Digital Client Onboarding

Digital Onboarding and its Importance

What is Onboarding?

Now the exact steps and process of digital onboarding differ in case of various scenarios, but the jest is, the word “Onboarding” dines the steps of verifying the credentials of the user base, be it customers of a bank or employees in a company. 

For simplicity, lets define the term with respect to its two most used industries. 

Role in Human Resources

The term Employee Onboarding is used to refer to the process of introducing a newly hired employee into an organization. Also known as organizational socialization, Employee onboarding is an important part of helping employees understand their new position and job requirements. It’s the process that helps them integrate seamlessly with the rest of the company.

Role in Banking

Here, the term relates to the procedures that a customer has to go through before they acquire access to the products and services of the respective establishments, virtually acting as the originating application (An originating application is a document that’s required to be filled while applying for a loan or a mortgage).

Onboarding Usecases in Banking
  1. Loan Origination Process
  2. Digital Account Opening
  3. Vendor Onboarding
  4. Lead Origination
  5. Back Office Portal

Types of Onboarding

  • On-Site: It is the conventional onboarding method. The customer moves to the commercial office, branch, or store of a company and must show his identity document as proof of identification.
  • Semi-On-Site: Companies offer digital documents to their new customers to fill in the data at home, but still, they must move to the branch hand them in.
  • Digital: Also called online or remote. This process is completely digitized and customers do not need to go to an office or store if they do not want to, being able to become a customer remotely with the same security and guarantee.

The DIGITAL Onboarding process

As the name implies, digital onboarding is when the typical onboarding process is available online, which can include the myriad forms new employees/ customers must fill-out. This allows the remote opening of bank accounts (or employee background checks) with the same guarantee and security as face-to-face methods.

The importance of Digital Onboarding

Digital Onboarding Blog Image

It’s the year 2021 and “wearing masks”, and “public gathering restrictions” are the new normal. The only thing in which we’ve seen change is, the growth of digital services, be it for interactions, sharing of documents, etc. So, by leveraging the availability of digital tools and technology you can make your process of onboarding more cost effective and efficient as possible (not mentioning it’ll be safer). These digital tools can also enable the customer/ employee to access certain information.

Digital onboarding will ensure the consistency and accuracy of the information shared across the organization, be it for a small team in the 10s or a big corporation with numbers in the 1000s. 

Also Read: Why Digital Client Onboarding Is a Must Now?