Digital Customer On-boarding – A Must-Have for the Digital Generation
This month, we explore the growing importance of seamless digital onboarding, focusing on reducing friction and improving customer experiences for Millennials and Gen Z in mobile banking.
Spotlight
1.) The Cost of Digital Friction: Lose Customers to Competitors - Banks and credit unions that lack a smooth digital experience risk losing customers who abandon applications for better options.
2.) Consumer Expectations: Speed and Ease Are Essential - Customers expect quick, hassle-free interactions. If banks can't meet these expectations, frustration leads to drop-offs.
3.) Complexity and Confusion: Simplify the Experience! - Complicated forms and unclear instructions overwhelm users, causing them to abandon applications. Simplicity is vital.
4.) Lack of Personalization: Engage Customers with Tailored Guidance - Personalized experiences resonate better with users. Without tailored guidance, customers may feel disconnected and leave.
5.) Ineffective Communication: Clear Updates Are Crucial - Unclear onboarding updates can leave users confused. Clear communication is essential to keep them informed and engaged.
6.) Mobile Experience: Optimize for On-the-Go Users! - With many users banking on mobile, a clunky onboarding process increases abandonment rates. Optimizing for mobile is critical to retaining users.
Industry Best Practices
Reducing Digital Onboarding Abandonment:
1.) Keep the Application Short - Lengthy, complicated online forms lead to abandonment. Consumers prefer simple applications. Trimming unnecessary questions and streamlining the process can help retain applicants.
Chase Bank revamped its mobile app for quick account openings in under 5 minutes, utilizing biometric verification to enhance user experience.
2.) Ensure Quick, Responsive, and Flexible User Experiences - Account openings, loan applications, and transfers should be easy and seamless, especially on mobile. Sites must load quickly and minimize friction.
Bank of America launched an AI-driven onboarding assistant that provides real-time feedback and tailored recommendations, powered by Salesforce to track user interactions.
3.) Leverage New Technology for Ease of Use - Modern tech like driver’s license scans and prefill options can expedite applications. Banks should incorporate these features to simplify the process and reduce abandonment. PNC Bank allows pre-filling from existing accounts and sends follow-up reminders via CRM tools to recover abandoned applications.
4.) Following Up on Abandoned Applications - Reach out to users who start but don’t finish applications. A simple follow-up can increase completion rates by 15% to 20%.
Capital One implemented a personalized email follow-up strategy for users who abandoned their applications, which helped boost completion rates significantly.
With 25 years of expertise in BankTech, Maveric has been at the forefront of driving transformative solutions in the banking domain.
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