Onboarding is your customers first experience with your bank and will set the tone for their interactions with your services.
Whether your bank is digital only or has branches around the world, this is always a critical feature to improve and innovate. Customer loyalty and satisfaction is especially important in the banking industry because customer retention is key. Very few people are likely to change their banks. Making it both important to not lose them during the first step and also providing an opportunity for more modern banks with refined onboarding to get new customers.
Customers leave banks for a bunch of reasons, and most of them boil down to frustration. Long wait times, clunky apps, and outdated processes can drive even the most patient customers away. Hidden fees and confusing terms make customers feel cheated, while poor customer service leaves them feeling unheard. Add in a lack of personalization or modern digital options, and people start shopping around for a bank that’s doing something new. In short, if a bank isn’t keeping up with the times or treating customers right, they’re likely to see people heading for the exit. A smooth onboarding experience can make sure you both get your customers and keep them.
Additionally, customer onboarding fulfills many practical needs for both you and your customer. It collects crucial information for improving services, enhances customer engagement with your services, streamlines customer service workflows, and ensures you are complying with legal regulations.
What does onboarding mean in banking specifically? At first glance, it seems obvious: it’s just the process every new client goes through to set up their account. In general, the customer onboarding process in banking starts with:
Customers can then be introduced to all of the different services and products offered by your bank.
The most important thing to note is that great onboarding never really stops, as your client gets introduced to new services and changes at your bank. That’s why we provided this full guide with all the important points as you evaluate your own onboarding process (or build a new one).
So, what are some customer onboarding solutions that can make joining your bank or trying out your new service a breeze?
We’ve picked up a few tips from our senior product experts and there are few overarching principles that can make your onboarding experience great.
First, successful onboarding is all about making the process smooth, secure, and, dare we say, enjoyable. Start with a simple, user-friendly setup—whether online or through an app—that’s quick, stress-free, and backed by tools like digital KYC and biometric verification to keep things safe and compliant.
Secondly, don’t overlook transparent and direct communication. Welcome bank customers with personalized messages, offer easy tutorials, and be upfront about terms and privacy to set the right tone. Don’t forget to be accessible, whether through chatbots, live support, or quick approvals via automating some common requests. If you have room for it, you can include extras, like guides to budgeting or app demos – but make sure you get the basics down first.
Also, customer onboarding in banking doesn’t stop after sign-up. Regular follow-ups and requests for feedback keep the connection alive and help you refine the experience over time. Onboarding isn’t just about first impressions—it’s about building a lasting, trusted relationship.
A smooth onboarding process sets the tone for the customer’s relationship with the bank. A positive experience can increase satisfaction and loyalty.
Ensures that the bank adheres to regulations that protect against fraud, money laundering, and other financial crimes.
Streamlined onboarding reduces the workload for bank employees and cuts down on processing time.
An engaging and informative onboarding experience helps customers understand the bank’s services, improving retention rates.
Better onboarding can significantly increase revenue for banks by creating a foundation for stronger customer relationships, improved retention, and more effective cross-selling.
There are a few simple ways to improve your customer onboarding flow. Before diving into the details, it’s best to keep these essentials in mind:
Make sure its a continuous process
Your existing customers won’t appreciate feeling forgotten and new questions can arise as they explore your wider service offering. Especially in banking. Providing ongoing support will help you build trust, encourage loyalty, and create opportunities for making customers aware of additional products or services.
Offer multi-channel support
Just because chatbots have improved, doesn’t mean you should force all of your customers to use them. Leave space for customers who get frustrated or aren’t as tech savvy by offering live support and an easy to find phone number.
Make it simple and don’t overload new customers with information
It’s just as important to know what information to leave out as it is knowing which information you need. Really parse down the information that you practically and legally need in the first steps of onboarding. As mentioned, this is a continuous process and there will be more opportunities to guide your customer through your services.
Provide clear instruction
Opt for simple, step-by-step instructions, tooltips, and FAQs to guide customers through the process. A visual progress tracker can also help them understand how far along they are to reduce frustration.
While there are many tools out there to help you build a smooth customer onboarding experience, there are a few general types of tools you’ll want to stay up to date on.
These platforms provide a streamlined digital onboarding solution designed for a fast and hassle-free account-opening experience, often using automation to cut down on time and effort. Many also feature omnichannel access, so customers can sign up anytime, anywhere, and integrate seamlessly with your core banking systems. Examples like Backbase and NewgenONE are great choices for bringing onboarding into the digital age.
Say goodbye to slow, manual ID checks! Tools that leverage AI and biometrics, like Onfido or Jumio, make identity verification fast, accurate, and fully compliant with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations. Bonus: Some even offer real-time risk monitoring to flag potential issues before they snowball.
A solid CRM system is your onboarding MVP, helping you keep track of customer interactions, centralize data, and personalize the experience. Platforms like Salesforce Financial Services Cloud or HubSpot CRM are powerful tools for managing relationships and ensuring nothing falls through the cracks.
Compliance doesn’t have to be a headache. Look into tools like ComplyAdvantage or Refinitiv World-Check, which can help automate regulatory checks and manage AML risks, keeping you on top of current best practices while reducing manual workloads.
Streamline paperwork with tools like DocuSign or Adobe Sign that let customers sign documents digitally, saving time for everyone involved. Pair this with document management systems like Box or ShareFile to keep everything organized and accessible.
Keep your support game strong with AI-powered chatbots like Intercom or Drift to guide customers through onboarding in real-time. Add in live chat options for those trickier questions, and you’ll create an onboarding experience that feels personal and efficient.
Want to know what’s working (and what’s not)? Use tools like Qualtrics or Google Analytics to gather customer feedback and track where people are dropping off in the onboarding process. These insights are pure gold for making improvements.
By combining these tools, you’ll have everything you need to create a smoother, faster, and more customer-friendly onboarding process that makes a lasting impression. After all, first impressions count—especially in banking!
To wrap it all up, streamlining your client onboarding process is no longer optional—it’s essential. By leveraging automated systems, clean and intuitive UX, and robust customer support features, you can transform customer onboarding into a smooth and enjoyable experience for both your team and your customers. Thanks to advancing technologies, these improvements are now more accessible and cost-effective than ever.
Consistency is key, so make it a habit to regularly review your onboarding process. Identify bottlenecks, fix drop-off points, and ensure your workflow evolves with customer needs. Don’t forget to keep your customers informed every step of the way with clear updates and communication go a long way in building trust and keeping them engaged at every phase.
At Vacuumlabs, we’ve delved deep into the onboarding challenges faced by both traditional and challenger banks, helping them design systems that work. If this overview sparked your curiosity, check out our webinar hosted by our product experts—it’s packed with insights to help you take your onboarding to the next level: The Power of Digital Onboarding.
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