Onboarding, which literally means taking someone on board, has become a buzz word in the last year or two and it is quite peculiar that it hasn’t made an appearance in our major dictionaries yet. The word onboarding is used for hiring new personnel as well as registering new clients. Client onboarding implies going through all the necessary steps to make a person a client. This ranges from obtaining the required client details to saving these for potential future sales. One thing that is evident, is that client onboarding is a critical function for the financial services industry, as it directly impacts client experience, servicing and relationships — which, in turn, impact profits. Currently many financial institutions are grappling with evolving market dynamics. Our clients simply expect more in less time.
Starting with this blog post, I am going to explore different onboarding techniques and how these fail and/or satisfy the needs of the customer and businesses involved. Which one is the best to use is the question I am asking and eager to find an answer for.
Which one do you prefer and what are you offering your clients?
Typical, old-fashioned, paper-based application form approach
- This onboarding lifecycle can be separated into phases and is most often handled by three or more different departments. These forms have to be filed and archived somewhere and good luck finding the right one if you have to walk into a warehouse full of filing cabinets.
Electronic question and answer method
- Slightly more streamlined, but requires a client liaison officer, broker or personal banker to digitally record answers to questions
Online via laptop, pc, tablet or cell phone
- Website or mobile application with a step-by-step guided flow that can be completed in client’s own time
Online via social media
- Using the client’s preferred social media for obtaining the required information to find sales-ready leads
Let’s dig into this and determine what works best!