Client & Customer Onboarding

How To Choose The Right Fintech For Customer Onboarding

Effortlessly optimize your customer onboarding process by uncovering Fintech trends, benefits, and crucial factors for selecting the perfect solution.


In banking and financial services, “fintech” — a portmanteau of “financial” and “technology” — has become a critical differentiator between companies vying to attract new customers. As nearly two-thirds — 65% — of customers across demographics now expect automated digital services, fintech platforms offer an opportunity to revolutionize conventional onboarding methods, enhancing the customer journey from the first touchpoint. 

Among surveyed financial institutions, 32% report that improving customers’ digital experience is now their top customer service priority. Embracing these technologies not only satisfies the growing demand for digital convenience but also aligns with the financial sector's trajectory toward a more efficient, personalized, and secure customer experience. This guide covers emerging trends in fintech software, the benefits of fintech adoption, and what factors to consider when choosing the right fintech for customer onboarding for your organization. 

Trends and Advances in Fintech for Customer Onboarding

As the financial industry evolves, customer onboarding is undergoing a transformation driven by fintech innovation. Expectations for digital efficiency are soaring, with most customers seeking automated services as part of their journey. Here are pivotal trends shaping the future of fintech in customer onboarding:

1. Automation

Nearly 70% of customer service decision-makers plan to increase their investment in automation, indicating its important role in enhancing the onboarding process through tools like automated messaging and trigger emails.

How To Choose The Right Fintech For Customer Onboarding

2. Omni-Channel Services

With 71% of customers desiring a consistent experience across all channels, fintech is responding by creating seamless access points for services, whether on mobile, desktop, or in-branch.

3. Simplified Sign-Up Processes

Simplifying the sign-up and sign-in process is critical. Frictionless entry leads to a 20% higher customer satisfaction rate, making ease of access a priority for fintech solutions.

4. Personalization

Leveraging AI and machine learning technologies, fintech is shifting toward highly personalized onboarding experiences. Already, 44% of surveyed organizations report using AI-driven personalization tech to improve customer satisfaction and retention.

5. Blockchain Technologies

The use of blockchain to increase transparency and security in customer onboarding is on the rise, streamlining processes like identity verification and compliance checks.

6. Customer Expectations

As 9 out of 10 customers believe companies could improve their onboarding, fintech is poised to fill this gap with innovative solutions that prioritize customer ease and efficiency.

Enhancing User Journeys: How Fintech Revolutionizes Customer Onboarding 

Integrating fintech software into customer onboarding affords significant benefits, streamlining processes, and enhancing the customer experience. These advancements have become increasingly critical as companies strive to meet the evolving expectations of a tech-savvy clientele. Here are some of the key benefits.

1. Customer Retention

About 63% of customers consider the onboarding period crucial when deciding to commit to a service, indicating that a positive onboarding experience is vital for retention.

2. Consistent Experiences

With 87% of customers advocating for consistent experiences, fintech enables companies to deliver uniformity across various touchpoints, a fundamental component of customer satisfaction.

3. Time Efficiency

Approximately 67% of companies identified follow-ups with teams as their largest time drain, indicating that fintech solutions that streamline these processes can yield considerable time savings.

4. Customer Engagement

Highly engaged customers are more likely to purchase frequently and spend more, with fintech's personalized onboarding contributing to a threefold increase in annual value per customer.

5. Reduction in App Uninstallations

Fintech can decrease app uninstallation rates by improving user understanding during onboarding, addressing concerns of the 80% of users who have abandoned an app due to complexity​.

6. Customer Loyalty through Education

Educational onboarding content can enhance loyalty, as most customers are inclined to remain with a business that supports them post-sale through educational content.

7. Product Growth

Regardless of the industry, positive customer onboarding experiences contribute to new product growth.

8. Personalization

Among customers across industries, 58% rate personalized experiences as crucial, a demand met by fintech's data-driven customization capabilities.

9. Repeat Business

Positive customer service experiences lead to higher rates of return business for both B2B and B2C customers. Streamlining onboarding with fintech software ensures that customers’ first experience is convenient and stress-free.

10. Revenue Increase

An overwhelming 84% of companies focusing on improving customer experience, a primary feature of fintech solutions, have seen a resultant increase in revenue.

How To Choose The Right Fintech For Customer Onboarding

Key Factors to Consider When Evaluating Fintech Products

Choosing the right fintech product for your business requires due diligence. Implemented fintech must not only align with current business processes and goals but also adapt to future shifts in the industry. Here's a list of the important factors to consider:

1. Efficiency and Automation

The primary driver of fintech adoption is the promise of increased operational efficiency through automation.

  • Streamlining Document Verification Processes: Fintech solutions can automate the verification of documents using technologies like optical character recognition (OCR) and smart workflows, radically reducing the processing time from days to minutes.
  • Automating Data Entry: Advanced data entry automation involves using AI to extract information from unstructured data sources, such as emails and handwritten notes, ensuring that data is captured accurately and swiftly without manual input.
  • Reducing Onboarding Timeframes: Fintech can trim down the customer onboarding process from weeks to hours by using digital forms, e-signatures, and real-time identity verification, which not only enhances customer satisfaction but also accelerates the time to revenue.

2. Compliance and Security

The financial sector’s regulatory environment is both complex and critical, making compliance and security paramount when selecting a fintech solution.

  • Importance of Regulatory Compliance in Fintech Solutions: The right fintech solution must be compliant with applicable local and international regulations, with built-in features for regular updates as regulations change.
  • Evaluating Security Protocols and Data Protection Measures: It is vital to assess the encryption standards, access controls, and audit trails offered by fintech products, as well as their resilience against emerging cybersecurity threats.
  • Ensuring Adherence to Know Your Customer (KYC) and Anti-Money Laundering (AML) Regulations: Fintech products should automate the collection and verification of customer data, use advanced analytics for transaction monitoring, and provide easy reporting features to comply with KYC and AML regulations.

3. User Experience

A superior user experience can differentiate a fintech solution in a crowded marketplace.

  • Assessing Fintech Products from the Customer’s Perspective: It should facilitate a frictionless customer journey, with personalized interfaces and the ability to serve customers in their preferred language and currency.
  • User-Friendly Interface Design and Navigation: The design should be intuitive, responsive, and accessible, accommodating users on both ends with varying levels of technical proficiency. While some amount of dedicated training time for new systems is always necessary, fintech software should be sufficiently intuitive to avoid operational downtime in training. 
  • Improving Staff User Experience for Seamless Implementation: Staff should receive adequate training and support to ensure they can leverage the full capabilities of the software, translating into better service for the end-user.

4. Integration Capabilities

Effective fintech products should not operate in a vacuum but should integrate seamlessly with organizations’ existing tech stacks.

  • Integration with Existing Platforms and Core Banking Systems: Software should be compatible with current systems, facilitating data synchronization and providing a unified view of customer information.
  • Enhancing Overall Efficiency: Beyond its direct benefits, software should contribute to overall operational efficiency by automating inter-departmental workflows and providing comprehensive analytics.

5. Scalability

As financial institutions grow, so do their technological needs. A scalable fintech solution can handle increasing volumes of transactions and users without a drop in performance.

  • Accommodating Business Growth: Fintech software should be able to scale up in transaction volumes, number of users, and geographic expansion without requiring a complete or custom-coded overhaul.

6. Innovation and Futureproofing

With the rapid pace of technological change, a fintech solution must not only meet current needs but also anticipate future developments.

  • Adopting Emerging Technologies: Fintech software should be built on a platform that allows for the integration of emerging technologies like blockchain, AI, and machine learning.
  • Continuous Improvement and Updates: Choose a fintech partner committed to continuous improvement, with a track record of regularly updating their offerings to keep pace with industry trends.

By considering these factors, financial institutions can make a more informed decision when selecting fintech products. 

Fintech for a Competitive Edge in the Digital Landscape

A recent study by think tank McKinsey indicated that implementing fintech solutions provides a significant, twofold competitive edge in today's digital landscape.

  • Market Capitalization: As of July 2023, publicly traded fintech companies had a market capitalization of $550 billion, doubling since 2019. The number of fintech unicorns — companies that reach $1 billion in market valuation before going public — also saw a dramatic increase, suggesting rapid industry growth for the foreseeable future.
  • Revenue Growth Projections: Fintech revenues are expected to grow nearly three times faster than those in traditional banking, with a projected annual growth rate of 15% over the next five years, compared to 6% in traditional banking.

These statistics highlight the thriving growth of the fintech sector despite broader economic challenges, indicating that financial institutions with cutting-edge fintech are positioning themselves for rapid growth and increased market share.

Experience a More Secure and Customer-Friendly Onboarding with FileInvite

FileInvite equips financial service providers with an advanced onboarding solution for streamlining document collection and identity verification processes. The platform reduces your organization’s administrative burden, allowing teams to allocate resources more effectively and focus on enhancing customer relationships. 

With a commitment to security and compliance, FileInvite ensures that the onboarding experience upholds industry regulations while offering clients a seamless start. For organizations trying to modernize their approach and deliver an outstanding customer experience, FileInvite is a one-stop fintech solution. Discover the full potential of optimized onboarding by exploring FileInvite's capabilities, while adding convenience and enhanced security to your operations.

To learn more and request a demo, visit FileInvite today.

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