Backbase presents

Customer
Onboarding
and Origination
in Banking
Backbase presents Contents

Customer 00 _ Customer Onboarding and 03

Onboarding
Origination in Banking
01 _ How it looks now 04

02 _ Critical Ingredients for Digital Sales 08

03 _ Getting ready for digital onboarding 11

and Origination
04 _ Backbase Omni-channel Onboarding 13

Summary and recommendations 15

About Backbase 16

in Banking
 INTRODUCTION

Customer Onboarding
and Origination in Banking

/ 03

The vast majority of banks believe that by 2020 most will be increasingly dependent on digital sales and Truly effective onboarding makes a new customer
of their sales operations will have shifted from their retention capabilities. In essence, it’s about securing the feel at home, from the outset. They need only input
branches to digital channels, mostly web and mobile future and not being lulled into a false sense of security information on themselves once, the service they receive
applications. This has major implications for how based on the back book. is uniform and uncomplicated at every contact point
they do business. Strong digital sales capabilities and and they can easily apply for new products and services,
streamlined, end-to-end digital origination processes What the bank’s customers want on any device. For any bank wishing to grow customer
must play an integral role in any strategy. One-to-one Visits to bank branches have dropped significantly and acquisition, clever onboarding not only makes sense,
targeted campaigns, microsegmentation, dynamic, basic transactions are increasingly handled online or it is essential in order to compete. A seamless, multi-
tailored pricing and product bundling, third-party via mobile devices. This reduces opportunities for face channel digital onboarding process is also infinitely
integration (e.g. with social networks), product white to face engagement and selling and makes online and possible, yet for many banks and their customers this is
labelling, and distribution via aggregators - banks mobile channels the chief branding and sales touch not the status quo. Customer onboarding still involves
need to become good at all of it. Such capabilities are points. Despite this channel shift across all customer cumbersome tasks such as form-filling, manual data
vital to support distinctive mobile and online offerings. segments, banks and credit unions have been relatively input, or visiting a bank branch - tasks that today’s
It sounds like a lot of work, and it is, but delay is not slow to develop alternative selling strategies to leverage customers are less and less willing to undertake.
really an option and banks that get it right will benefit online and mobile channels.
in the long term. The current onboarding experience falls short of
The process of winning new customers and new expectations for both banks and their customers, yet
In the short-term high-turnover products such as credit business happens in a variety of ways. A consumer the market has become increasingly competitive. Whilst
cards, loans and payments will most likely undergo could begin their research on their home computer the reasons for this vary, falling behind will most likely
the most rapid digital transformation. In fact, these are or tablet, they could walk into a branch seeking the lead to failure.
the areas most under attack from new digital entrants. best interest rate on a savings account, or the most
Looking ahead, bank accounts and mortgages, which flexible terms for a mortgage. They could be driven to
together drive over 50% of many banks’ revenues (and a bank’s call centre via a number on the website, or fill
usually provide ‘sticky’ annuity streams), will be brought in an online form to open an account. Whatever they
into the fray. Given this development, banks must decide, they expect a seamless, integrated onboarding
carefully watch the evolution of their digital share and experience. It is this experience that will determine how
the success rate of digital products in the front book. they feel about a bank and whether they actually follow
The future replacement rate of lucrative annuity streams through to become a customer.
 CHAPTER _ 01

How it looks now

/ 04

Onboarding or new product origination Paper-based processes

is traditionally a challenging and time-
consuming process. Barriers are created
More often than not, there’s a complex paper trail as
from the outset, which seriously impact new customers have their identity verified. Banks must
on conversion rates and the cost of put their customers through this in order to comply
acquisition. This is even more so for with regulations such as Know Your Customer (KYC).
banks targeting high net worth individuals, The rules are strict and usually require documents to
where the biggest barrier to winning be signed in person or sent via snail mail.

business is that many new clients simply

forget to “follow-up”.
Waiting for information
These abandonment rates come as no surprise. The
current set-up, filled with confusing, time-consuming The information banks require to undertake due
procedures is demanding, both for banks and their diligence and assess risk profiles comes from third-
potential customers. Manual processes, visiting bank parties. This means they have to request data, wait
branches, awaiting approval, and passing information for it, and then analyse it, which essentially derails
through a series of systems consumes a lot of time. In the onboarding process as new customers must wait
addition to the very real risk of losing a customer along before taking the next step. Such lead time reduces
the way, it’s all quite a burden on the bank’s back end the probability that they will stay with the bank until
systems. the end of the process.
 Chapter _ 01 How it looks now

Onboarding gone wrong Human effort

Legacy Processes Cause Abandonment

Customer onboarding is clearly not as it should be and banks are losing out because of it.
iSky’s report “Business On-boarding with Australia’s Big Four Banks”, investigates what is Legacy Processes Cause Abandonment
wrong with the traditional onboarding experience. Whilst it is based on Australia’s top four
banks, it reflects the experience everywhere.1
What step(s) of the website application
new checking account opening process
must currently be handled in a branch?
1 CSRs (customer service representatives) will fill out paperwork over the telephone with
remote customers and then email the forms to the customers for signature. This two step
/ 05 process delays new account openings and causes customer drop off.
Signatures or supporting documentation
74%
2 Customers must physically visit a branch to confirm their identity. For a remote customer,
the branch visit takes place on a future date and this step delays the new account onboarding ID verification
process. Further, the bank requires a branch visit to lift the outbound transaction restriction. 71%
The longer this restriction is in place, the more frustrated customers become.
Funding
48%
3 Asking a customer to go through multiple steps without CSR assistance brings barriers into
the onboarding process. The result is increased customer drop off and decreased new account Application
openings. 31%
Other
4 Customers can initiate the account opening process online; however the onboarding process
10%
can only be completed with the signing of physical forms.
Source:Digital
Source: Digital Banking
Banking Report
Report © September
© September 2016 / The2016 / The
Financial Financial Brand
Brand

5 One bank sent far more physical mail to the customer, including two security devices and
separate physical mail for account information, cards, card PINs, online banking registration
information, and online banking password and setup information. Not only did the volume of Form-filling costs time, for both customers and bank makes no sense - and there are huge opportunity costs.
mail seem excessive, it was at times superfluous to requirements and confusing. employees. Customers re-enter information they may One bank that re-designed the experience for their
have already provided via another channel. CSRs have customers saw an 80% reduction in the length of time it
6 Remote customers are advised to visit a local branch which can be a difficult undertaking, to push this through, or input it into other systems. took to onboard and a 15% reduction in the cost of the
especially given that remote customers are often times out of town or out of the country. Human resources and a new customer’s time are overall process.2
wasted on unnecessary data entry. Customers must
work to get their banking products, rather than being Savings and increased revenues are clearly there for the
made feel welcome from the start. From both a taking, so what should banks be doing to take advantage
customer acquisition and an operations perspective it of this?

1
”Business On-boarding with Australia’s Big Four Banks” iSky Research, July 2016 2
“Transform your bank’s operations model” Strategy & PWC, 2013
 Chapter _ 01 How it looks now

5 steps to frictionless onboarding What’s going wrong?

The current state of play is not a sustainable one, so seem an impossible task. Regulations are set by other
4% How would you categorize the success why is onboarding so often below par? There are a few bodies outside of their organisation. Replacing legacy
of your current onboarding program?
reasons, some of which banks may feel are beyond their systems and re-training staff drains a huge amount of
13%
16% control, yet the technology exists to overcome all of resources. Improving onboarding is an overwhelming
Very successful
these hurdles and deliver integrated, seamless onboarding. task and most banks will need to seek outside help in
Successful
Moderately successful
The cumbersome nature of on-boarding is in part due to addressing these challenges.
36%
31% Not as successful as desired regulatory requirements and to the legacy systems that
Too soon to tell banks operate with. Overcoming these hurdles could
(n=285)

Source: Digital
Source: Digital Banking
Banking Report
Report ©
© October
October 2016
2016//The
TheFinancial
FinancialBrand
Brand
/ 06

With a clever onboarding process, both human and technological aspects are optimised and dove-
Regulatory requirements
tailed to create the right experience every time. The smartphone is considered at every stage, data
is input once and information is accessible whenever it is needed. Customer onboarding comes under the auspices of outside organisations, are constantly changing.
various directives and pieces of legislation, such as the These are pretty much a non-negotiable fact of life
1 Blend Human and Digital Experiences European Anti Money Laundering Directives (AMLD) and and a bank must constantly navigate a sea of varying
Forrester uncovered a surprising statistic: millennials are just as likely to use bank branches as other Know Your Customer (KYC) procedures. As part of due regulations. Different rules apply to different products
generations (50-55%). This demonstrates the importance of ensuring that your onboarding must diligence, customers must be identified and verified. A and compliance is essential across the board. On the
extend seamlessly across both in-person and online experiences. range of checks must be put in place, and these often face of it, the regulatory side of things would seem
require hand-written signatures or face to face contact to thwart any attempts to automate onboarding. It is
2 Make Mobile the Hub of Your Onboarding Experiences with a potential customer. Legal requirements, set by however, a key driver of the need to do so.
It’s no surprise that daily banking activities have increasingly shifted to digital channels, given the
fact that 56% of all website traffic is now coming from mobile devices. We expect the trend to
continue towards more research and applications being performed on mobile devices, which means
that your customer onboarding strategy should begin with mobile.
Legacy systems
3 Transform Digital Customer Experiences In any onboarding process today, flexibility is key. down and the various functions of the bank must talk
It’s clear that digital is increasingly the place where consumers will be interacting with banks and Users must be allowed to become a bank’s customer to each other in real-time. Huge legacy systems, by
financial institutions. In order to capitalize on this shift, it’s imperative that you either inspire or whenever they want and on whatever device they want. virtue of their design, often cannot plug into such an
facilitate a digital transformation within your organization. The trouble for most banks is that this demands a new ecosystem. Technological support is required to bring all
level of technological flexibility. Data needs to flow of the pieces together and deliver a unified onboarding
4 Use Data to Differentiate and Personalize Experiences across open APIs, traversing systems, pre-populating experience. Banks cannot do it alone, so they need to
Transforming the customer experience is not about moving everything to digital and forgetting form fields and providing bank personnel with a 360 be smart about seeking help to get them to where they
the branch experience entirely—it means leveraging data to better understand how your customers degree view of a customer. Silos must be broken need to be.
want to receive information, and what channels work best for them for onboarding.

5 Stay Customer-Led not Technology-Led

Your consumers don’t care about your new back-end system—they just want a great user experience
and the ability to apply easily for your banking products….Take the time to understand the needs of your
customers and the capabilities of various software platforms, and plan a course for marrying the two.3

3
“5 Steps to Creating Frictionless Customer Onboarding Experiences” Avoka February, 2017
 Chapter _ 01 How it looks now

How it should look Onboarding can actually be done on a smartphone

in a matter of 60 seconds. The traditional concept of
into the system, where a number of checks can be
carried out. The checks verify identity, as well as whether
onboarding is both outdated and unnecessary. In fact the applicant qualifies for a particular product or service.
The key to a seamless onboarding process is to put In addition to removing compromises that the customer hand-written forms and drawn-out processes are no These checks are done immediately, so the risk of losing
the customer at the forefront of its development and to must make, onboarding done right brings a host of longer viable if a bank truly wants to win new customers. the new customer drops substantially. Rather than
harness the right technologies to support it. Banks that benefits. Aside from actually having a new customer at stalling the process to facilitate approvals, the system
do so will reap the rewards in terms of brand perception the end of the process, brand perception is solid from With an omni-channel orchestration platform in place, lets users sign up and become a customer right away.
and customer acquisition. A smart onboarding process the outset, making it easier to upsell or cross-sell to banks can easily process applications that are started
will not only ensure a potential customer is more likely to them in the future. Due diligence and compliance cause on one device and finished on another. For both bank and Step into the future
sign up, they will feel more confident in the brand from far less headaches, and with the number of interactions customer the process is seamless and uncomplicated It’s old news by now that the cumbersome Central
the outset. Aside from boosting customer acquisition greatly reduced, everyone saves time and money. as the platform unifies all of the bank’s channels. A new Banking Systems (CBS) of the 1970’s have not kept
and retention, banks that get smart about onboarding customer might, for example, begin an application for a pace with the movement to the cloud and the raft of
/ 07 can also cut costs - and substantially. McKinsey has The benefits of an effective onboarding programme are current account on a mobile device and finish it on their new channels open to customers. In recent years, some
calculated that banks and credit unions can realise clear, yet banks are not there yet, and they know it. In desktop computer, or in one of the bank’s branches. The banks tried to bridge the gap with expensive rebuilds,
40-90% cost reductions through careful deployment of one study, over a third of banks surveyed considered customer will pick up an application at the point they left manual workarounds, and even mergers, but these
workflow tools and digital onboarding capabilities for their onboarding programme to be less successful than it and CSRs should be able to see what stage they are at approaches have also failed.7
customers and staff. 4
desired. 5
and if any help is needed. A central server that connects
to each channel orchestrates the entire process, saving The answer lies not necessarily in fixing what has gone
time, eliminating the need to duplicate information, and before, but in engaging with the technologies of the
The perfect onboarding process - creating a positive customer experience. 6
future, which have automated each and every step of the
onboarding process. With remote and real-time being
it’s already out there At the back-end, all digital applications can be processed the order of the day, banks wishing to compete will have
quickly, as banks don’t need a human operative to tran- to embrace big data, digital identities, biometrics and the
scribe a handwritten form. Instead, data flows straight power of the smartphone.

Cross Channel Customer Journeys

Cross Channel Customer Journeys
Smartphone

Call Center
Desktop

Branch
Tablet

Cross Channel Journeys:

Loan Application

Check Rates

Select Products

Apply

Get Help

Sign Contract

View Status

4
“The rise of the digital bank” McKinsey & Co, July 2014 5
“4 Reasons Onboarding Efforts Fail to Meet Bank Expectations” The Financial Brand, October 2016 6
“The Strategic Impact of Omni-Channel” Backbase May, 2017 7 “Overhauling banks’ IT systems” McKinsey & Co, March 2010
 CHAPTER _ 02

Critical Ingredients
for Digital Sales

/ 08

A cutting-edge onboarding/origination solution has

a few key ingredients. To begin, a concerted strategy
Mobile Onboarding
must be put in place, one that is designed to bring the
various facets of the bank together to deliver the right Smartphones already have all the technology required
UX. Once the business model is truly focussed on to make onboarding quick, easy and efficient. Just as a
being connected, technology can take care of the rest. person can book a flight from the comfort of their sofa,
Banks with a good appreciation for the technologies they can easily sign up for banking products, using the
available to them can take more informed steps tools available in their phone. Visiting a branch in person
towards smart, automated onboarding and origination. or passing documents from one place to another is
Developments such as mobile phone functionality, actually no longer necessary. Biometrics can identify
big data or dynamic forms save resources and make a customer and prove their identity as fingerprint and
life easier by removing the need for outdated processes. voice recognition technology works via the smartphone’s
More importantly, they free customers and staff from fingerprint reader and microphone. Indeed, many of us
many of the compromises they must currently make, are already using biometrics, unlocking our phones with
boosting acquisition and retention efforts. a fingerprint, rather than typing in a code. Some of the
larger banks already offer their customers the option to
use biometric technologies like fingerprints, voices or
retina scans to access their accounts.8

Important documentation can be sent and verified

digitally too. OCR (optical character recognition)
technology helps to scan ID documents on the
smartphone’s camera, such as passports and driving
licences. With these technologies, identities are
immediately verified and application forms are pre-
populated for customers, making the entire process
painless and efficient.

8
“The Biometric Future of Banking” The Financial Brand, October 2016
 Chapter _ 02 Critical Ingredients for Digital Sales

KYC - Know your Customer approval decisions and simpler processes. The system
can figure out which documents should be signed or
the full process – and starting with high impact areas
(quick wins), banks can significantly boost productivity
provided at any particular point in the process. It can and lower acquisition cost. German bank Number26
even go as far as making product recommendations. is a good example of how this is already happening.
Using a KYC utility helps eliminate duplicative KYC activities
This bank offers a fully­fledged bank account with
With these KYC technologies, everything is checked, MasterCard completely handled via the smartphone.
verified and signed off in real time. The customer has a Paper forms are replaced by mobile apps, video
Pre-utility state
Pre-utility state Post-utility state
Post-utility state positive onboarding experience, and the bank’s systems identification and intelligent algorithms to deliver fast,
are simultaneously updated. By enabling straight- hassle-free onboarding.9
through processing – that is, automating and digitising

/ 09
Dynamic Forms
Utility
Utility
A Dynamic forms engine helps to model and streamline from the end user’s perspective is that they input data
the interactive dialogs needed for digital sales and self- once only. It is automatically saved so they can start
advice tools. It helps to create intelligent digital dialogs, completing a form and finish doing so later, even after
and to design business rules and processes to route switching channels (e.g. phone to desktop). This is the
data inputs to the appropriate systems and people. essence of omni-channel.
Interactive forms can be designed and calculators or
simulation tools incorporated to make all interaction Dynamic, intelligent documents
Current situation Utility vision with customers intuitive, user-friendly and efficient. Next to creating smart digital dialogs, ideally the same
• Significant process redundancy • Economies of scale platform can be used to create dynamic, personalised
• Long wait turnaround times for • Rapid new client acceptance Rule-driven customer dialogues and intelligent documents, which generate case-specific,
new client acceptance • AML/KYC as core competency Without any programming, intelligent, rule-driven relevant and personalised information. Quotations,
• AML/KYC as one of many tasks • Significant reduction in regulatory visits dialogues can be designed to create intuitive, user- contracts and confirmation letters can be shared in
• AML/KYC spending as a ‘cost’ • Common AML/KYC standards friendly interactions. This puts customers in control and paper or digital formats and both digital and paper
• Frequent regulatory oversight • Optimal AML/KYC effectiveness removes the need to answer unnecessary questions. dialogues are handled with ease.
• Inconsistent AML/KYC standards It also ensures that expert help is provided where
• Marginal AML/KYC effectiveness needed. All inputs are channelled to the appropriate Better Business and IT Collaboration
systems and people within the organisation, powering Dynamic Forms solutions can also offer an efficient
Source: “Share and share alike: Meeting compliance needs together with a KYC utility” PWC December 2015 a real-time 360 degree view of each customer. collaborative environment for both Business and IT
specialists. Business teams can quickly design new
Omni-Channel Reuse forms, measure results, and make the appropriate
The same dynamic form flows can be designed for updates and modifications, all without programming.
Know Your Customer (KYC) enables identification and customers, boosting acquisition and retention rates. use across multiple channels (e.g. online, mobile, call IT specialists can configure the core forms engine and
verification to be performed once for a customer, and KYC offers many opportunities to enhance the center) or devices (e.g. desktop, mobile, tablet, ATM). need only code display and integration logic once.
distributed on request and approval. Information relating customer journey and reduce duplication of effort. An open architecture allows for the flexible creation
to a customer is supplied on demand to different Pre-populated forms can be provided to customers, of reusable building blocks, such as field elements,
organisations so each bank no longer collects the same and their account profiles automatically completed. validation rules, or back-end integration connectors.
information. Aside from the time and cost savings, The bank’s staff get immediate visibility of up-to-date All are components of a modular design, and can be
banks can provide a more frictionless experience to data, allowing for fast, accurate risk assessment, used for a variety of forms and channels. The end result

9
“Three of Europe’s most innovative banks are in Germany” Banknxt, March 2016
 Chapter _ 02 Critical Ingredients for Digital Sales

Dynamic Case Management Digital Identities

Digital Identities
Dynamic Case Management allows for the rapid, Maximum flexibility
integrated and goal oriented handling of cases between With Dynamic Case Management, processes and
knowledge workers, customers and other stakeholders. decisions are represented by dynamic, rule-driven
Collaboration is facilitated as everyone can access models. This ensures maximum flexibility and
the same information. Decisions are transparent transparency. The main components of a process
and always in line with the latest acceptance criteria can be described in rules that determine which
and compliance rules. As complex processes and steps are permitted. Rather than having a series
business rules become dynamic, automated, and less of prescribed rules, a case develops according to Contributes to Online Customer
Company’s image Self Service reduces
cumbersome, operations get much more efficient and the specific situation surrounding it. A much more Increases Valuable Channel Labor Costs
customers are more satisfied. flexible and customised approach. customer loyalty to Cross-sell
/ 10
Simplified Policy Up-sell Products
Endorsement
Integrated customer view Improved efficiency and effectiveness process
Dynamic Case Management connects data, processes Complex and long-term cases can be handled in a
and people to create an entirely integrated customer rule-driven manner, with rule specifications immediately
view, with complete, real-time information presented to executable. This paves the way for automatically
all stakeholders in a user-friendly manner. With the same processing multiple cases by means of Straight Digital identities can help to reduce abandonment rates Used to varying degrees throughout the world, new
information available to all who require it, collaboration, Through Processing (STP). Service delivery gains significantly by helping to make the process frictionless. developments could see digital identities become
efficiency and customer-friendliness increase. speed and quality, as knowledge workers are freed A new customer need no longer walk into a bank to increasingly ubiquitous. Already within the EU, new
up to handle more complex cases. Automating such present identification, they can simply scan the relevant regulation called the Electronic Identification and
decisions also increases transparency and ensures official identification into their smartphone. Scanning Authentication Services regulation (or ‘eIDAS’) strives
compliance with applicable laws and regulations. technology can capture a barcode or QR code from to establish a single legal framework for recognising
an official identity card, and this information flows electronic signatures and identities.11
immediately into the bank’s system.10

Self-Service Portal
A Self-Service Portal is the central cog that brings core systems gives prospects and customers a
it all together. It provides secure access to private single point of of control, with access to everything
information and aggregates content and functionality they need. Within the self-service portal customer-
from various back-end systems into a unified dashboard, centric dialogs can work on all devices and even
which supports both customers and employees. The know customers’ preferences per device.
addition of a unified self-service portal on top of existing

10
“Digital identity key to making open banking frictionless” Finextra, June 2017 11
“The Future of Onboarding” PWC, December 2016
 CHAPTER _ 03

Getting ready for

digital onboarding

/ 11

It’s pretty clear that there is no time to waste which improvements will deliver the most
with digital onboarding and origination, value and how things will be done, will make
however before jumping in, some thought the transformation a much more rewarding
is required. Taking some time to document and long-lasting one.

Start small
Instead of setting out to build the complete ‘perfect’ “One European bank that went
onboarding process, it makes sense to start small,
create a strong foundation, and build from there.
through a systematic mapping
A well thought out, targeted approach will deliver of its onboarding and origina-
more value and will prevent effort being wasted on tion processes for automation
the wrong things.12
potential found fewer than 10
processes that represented the
bulk of its digital transformation
ROI. In these targeted areas,
the bank embarked on more
radical investments, retiring old
platforms, deploying new digital
solutions, and reinventing the
way the process works.”
McKinsey & Co “The Rise of Digital Banking” July 2014

12
“21 Steps to Onboarding Success in Banking” Financial Brand, August 2014
 Chapter _ 03 Getting ready for your Digital Transformation

Map the processes The time is now

As seen time and again with new CRM systems, a sign up? Does this change when they apply for a Digital onboarding, far from being an unwelcome task, It’s not as impossible a task as it might seem either.
failure to consider processes before implementing new loan? Documentation should be kept in line with the is actually an opportunity not to be missed. The resulting Backbase has already created the software to
technology can lead to failure. With onboarding it’s no requirements throughout the lifetime of a customer. growth in acquisition and the reduction in costs and connect the various banking silos and ensure that
different and banks must consider each step of the This will simplify processes and reduce the burden on attrition rates have been proven. In fact, banks that have every customer experience delivers, every time.
process. What documents are required when customers them as they reach out for new products and services. taken a proactive approach have not looked back. Their mission is to create integrated systems where
disparate channels existed before and the following
While the rewards are there for the taking, the pressure chapter outlines how this can be done.
Go holistic is also well and truly on. Customers, both new and
Go holistic existing, are used to booking flights, getting insured and
/ 12 buying pretty much anything at their own convenience
and via their choice of channel. Challenger banks are
disrupting the industry, using technology to transform
Orientation Digital Structure
onboarding, and making it easier than ever to become
Success begins with seeing people Form a digital customer experience
(customers and employees) differently,
appreciating them for thier differences
Transformation team with responsibilities clearly defined.
The formation of a DCK team unites key
a customer.

takes an
and letting it all inspire vision and stakeholders around a universal customer
leadership. understanding.
Asking a new customer to just drop into a bank branch
“Opposite sounds easy, but this means they may need to take
People
Understand behavior, trends, values and
Approach” Insights & Intent
Gather data and apply insights to
time off work, travel to another town, or change their
expectations to reveal new opportunities adapt technology and customer schedule to accommodate. In a world where people are
to earn relevance. experience to stay relevant.
used to streamlined, simplified onboarding processes,
this is simply too much to ask. For customers that
actually make it through the current onboarding process,
Processes Orientation Technology
New business models, org.charts and supporting Invest in technology infrastructure the bank has already missed an opportunity to impress
processes systems and policies are written and that enables each pillar of the
rewritten to enable digital transformation
People them and gain their confidence.
opposite approach to optimize
customer and employee journeys
Processes and experiences.
Banks need to get as far down the road as possible
Objectives
Objectives
with planning for digital onboarding. Fortunately, it’s “The good news is that virtually
Define what success looks like in the
Structure
long and short term at the enterprise
and functional levels. Also define
Execution
The digital transformation roadmap
not a case of replacing all of their systems and starting no financial institution has
customer happiness and desired Insights & Intent must have stakeholders who are over, a short cut exists in the form of getting the right
experiences. accountable for execution and stopped an onboarding program
evolution with outcomes and metrics technology partner. Fully mapping out the onboarding
Technology tied to everything.
process, targeting key areas for improvement and once they have initiated the
Execution
incorporating clever solutions will kick-start the trans- process. This is because the
The New Customer Experience formation and bring it all together – in a much shorter
space of time than can be achieved in going it alone.
return on investment (even
Source: “Why Comcast And GM Need To Be More Like Netflix And Uber To Survive” VentureBeat July 2016 in the worst case scenario) is
An overhaul is required, but not impossible. With proper always positive, and many times
An integrated approach is vital. Digital onboarding is bringing everything together to create an ecosystem planning, the right specialised support and targeted
so much more than just bringing nice interfaces to the that connects all the parts of the bank and optimises implementation, banks can transform and enrich
has a return of 5:1, 10:1 and
end customer. It spans the entire user experience and a the customer experience. onboarding – for good. even 20:1 or higher.13
host of back-end systems and procedures. This is about

13
https://goo.gl/qxeBeP
 CHAPTER _ 04

Backbase
Omni-Channel
Onboarding
/ 13

From Channel Islands to Omni-channel

Current Envisioned
Touchpoints Touchpoints

Branch Internet Mobile Branch Internet Mobile

Screen design, Screen design, Screen design,

workflows, workflows, workflows, Screen design, workflows, content
content content content

Channel-specific processes Omni-channel processes

... ...

Customer onboarding
Account

Account origination

Customer service
origination

...

...

...

...

...

...
Internet

Internet

Internet
Branch

Branch
Mobile

Branch
Mobile

Mobile
Various data stores with customer information Customer information accessible via APIs

Single view of the customer Single view of the customer

Backbase’s view is centred around omni-channel Today’s customers are using multiple devices and
customer engagement orchestration. Yesterday’s multiple channels to accomplish a task over time,
onboarding solutions are quite fragmented and silo-ed. and this is especially true when purchasing new
 Chapter _ 04 Backbase Omni-Channel Onboarding

products and services. The customer expects the same 1 There needs to be low-friction, end-to-end Dynamic Forms for improved interaction Re-useable building blocks for increased
experience on every device and on every channel, and business processes that work across all customer Dynamic Forms Management (DFM) is Backbase’s flexibility
they expect to be able to perform a seamless handover touchpoints. This means the customer sees a 100% digital, paperless solution, which enables banks Both Backbase DFM and DCM are designed from
between devices and channels. consistent experience, no matter which channel and insurance companies to accelerate the digitization an omni-channel, re-use perspective. As part of this,
they use to make contact with the bank. of their business processes. It does so by cutting the the same dynamic form flows can be re-used across
To make this possible, banks have to move the flexible Back-end systems need to be built on APIs with
2  number of steps required, reducing the number of multiple channels (e.g. online, mobile, call center,
customer experience layer that runs independently powerful configuration and product-defined documents and implementing automated decision front-office) and devices (desktop, mobile, tablet,
from their core (legacy) systems and works across all features, so customers can execute any process making. This solution is also designed to work across ATM, kiosk). Customers can now complete forms
touchpoints. There are three necessary components through any channel. all devices and platforms, empowering the bank’s that are uniform and make sense. Data provided
required to achieve this. Banks ‘need’ an omni-channel journey orchestration
3  customers and service representatives throughout by end-users is saved automatically so customers
capability that creates a single view of the the entire process. can easily switch devices to complete a form in their
customer and enables the customer to be served in own time.
/ 14 the most efficient way possible, on any device. The Backbase DFM supports the design of interactive
forms, calculators and simulation tools. It helps to Field elements, validation and business rules, back-end
model and streamline intelligent, interactive dialogs integration connectors and presentation templates

The Backbase Digital Onboarding & and the processes behind digital sales and self-advice
tools. This means that customer interactions are
are the building blocks for true omni-channel. The
modular design and open architecture of the Backbase
Origination Solution friendly and efficient, processes are de-tangled, and solution means these building blocks are made once,
data is instantly available as and where needed – in then re-used. Creating and completing forms as part
short, transactions become experiences and this is of onboarding has become easier than ever.
Onboarding & Origination – End-2-End Capabilities
a vital part of engaging customers.
Onboarding & Origination - End-2-End Capabilities Straight Through Processing (STP) of cases brings
Dynamic Case Management (DCM) for faster speed and quality to service delivery and frees up
decision-making knowledge workers time for more complex scenarios.
Package Solutions Sometimes, more complex processes are required. The Backbase omni-channel solution powers STP,
Onboard Loans Mortgage Generic
USA USA USA USA For example, with small business loans or mortgage supporting the design of intelligent dialogues for
EU EU EU EU applications, various individuals within the bank intuitive interactions with customers. Bank personnel
Customer Employee FLEX FLEX FLEX FLEX
must sign off and a more complex workflow is called can assist where needed, customers need not re-enter
for, alongside dynamic case management. The the same information, data is automatically stored in
Backbase Dynamic Case Management (DCM) is the the right place, and regulatory compliance is assured.
Dynamic Forms Management
engine behind such processes. It effectively takes This solution automates the entire flow end-to-end, yet
over, letting applicants submit relevant information retains many of the benefits of face-to-face interaction.
Dynamic Case Management and documents, and subsequently streamlining the
workflow within the bank. Collaboration between 60 Second Onboarding concept
front and mid-office operatives is enhanced, which Manual, paper-based onboarding processes are not
Middleware / Core Systems / KYC / AML expedites operations and decision-making. The only outdated, they are costly. In fact, they can cost up
Backbase DCM supports all styles of case work and to 20 times more than computer-assisted, electronic
dynamically streamlines interactions between people, document processing. Digital facilities are already
processes, data and content. Users not only get the available, but often merely as an online form rather
So how does technology make these ideal scenarios
information they need, they get it in the right context, than a real, engaging customer experience.
a reality? By taking a closer look at the Backbase
which optimises operations, decision making and
origination solution, it’s possible to get some insight into
performance. Backbase’s recently launched customer onboarding
the technological factors behind omni-channel success.
solution is the pinnacle of omni-channel engagement,
 providing end-to-end onboarding in less than a minute. Summary and recommendations
This solution combines flexible, open architecture
with cutting-edge tools to make paperwork a thing of Paper-based processes, lead time and human effort creating a holistic, customer-centric ecosystem are
the past. It’s ‘latest mobile technology’ simplifies the are all part of parcel of the traditional onboarding and three crucial secrets to success.
Know Your Customer (KYC) process, speeding up origination experience. Legacy, siloed systems and
approvals. In addition, optical character recognition external regulatory requirements have played some KYC technologies, digital identities and biometric
(OCR) scans official documents (e.g. passports and role in preserving this way of working, yet with 60 and scanning capabilities have already made it possible
credit cards), facial recognition confirms identities – second digital onboarding already available, it has to apply for banking products within 60 seconds on
and all data is relayed to the appropriate place on a already become a thing of the past. Abandonment rates a smartphone. Ignoring these technologies is not an
bank’s system – all within seconds. and customer dissatisfaction resulting from the current option, banks must incorporate them into their UX
setup are further proof of the the need to change. delivery.
Aside from the amount of time saved by personnel, the
/ 15 impact on customer perception and loyalty is invaluable. On the surface, banks are trailing behind when it Above all, banks that keep their customer firmly in
comes to digitized onboarding and origination, but on sight throughout this entire renewal process will win the
“You never get a second chance to make a good the flip side, there are many unexplored opportunities day. Grappling with new technology could lead banks
first impression – this is also valid with customer for them. In order to remain competitive in the future, down a deployment-based path rather than a customer
onboarding,” comments Jouk Pleiter, CEO of Backbase. banks will have to engage and learn fast. They could engagement one, an approach that will not work. Getting
“Onboarding is the first step that proves the kind of also opt to go beyond the minimum requirements, the right solution on board will ensure banks don’t lose
experience banks will offer to their customers. If not take things a step further and really delve into the sight of their customer or divert time and resources into
done right, it can kill the customer’s trust and ultimately, opportunities an omni-channel banking solution brings. the wrong things. The way to achieve this is to enlist the
acquisition.” By doing so, they will accrue tangible increases in help of a specialised technology partner.
customer loyalty and retention.
Knowing what needs to be done is one thing, knowing In essence, it’s time to find out what must be done, what
how to delegate the tasks involved is another. Banks New market entrants have surprised everyone by can be done in-house and what banks need others to do.
know their customers best, they just need to allow making onboarding and origination digital and hassle- Once this has been mapped out, a solid foundation is
that knowledge to direct their efforts, whilst letting free. Nimble fintechs aside, some banks have already already in place and banks can step into this new digital
technology partners handle the automation piece. taken steps in the right direction, and those who have world with clarity and confidence.
This will be the route to omni-channel success, now already invested generally retain or even grow their
and in the future. omni-channel programmes.

With KYC data available on demand, and a host of

technologies such as biometrics and OCR, the
capabilities have never been better. Customers need
no longer walk into a bank to sign up for products.
Omni-channel banking software acts in an almost
human capacity, with dynamic forms and case
management handling many of the jobs that drain
bank personnel time and frustrate customers.

While banks should not delay with starting their own

omni-channel programmes, they should ensure they
embark upon them in a clever way. Starting small,
mapping out processes and seeing this as a part of
 About Backbase Why is Backbase a leader in omni-channel digital banking?

Backbase is a fast-growing fintech software Our customer base includes ABN AMRO, Barclays, Omni-channel: putting your end-customers first
1 Ready to go: jumpstart your digital transformation
3
provider that empowers financial institutions CheBanca!, Credit Suisse, Fidelity, Hapoalim, HDFC, Today’s customers expect seamless customer Backbase has developed out-of-the-box digital
to accelerate their digital transformation and Hiscox, ING, KeyBank, Legal & General, Al Rajhi Bank, journeys – any time, any place, and on any device. banking solutions optimized for retail banking,
effectively compete in a digital-first world. NBAD, OTP, PZU, PostFinance, Societe Generale de The Backbase Digital Banking Platform (DBP) commercial banking, wealth management and
Banque au Liban and Westpac. helps you to modernize and orchestrate all of your insurance-specific scenarios. Kickstart your project
We are proud to be the creators of the Backbase customer touchpoints, transforming multiple siloed and dramatically decrease your time-to-market by
Omni-Channel Banking Platform, a state-of-the-art Industry analysts Gartner, Forrester and Ovum recognize banking channels and legacy applications into a leveraging industry best practices and ready-to-go
digital banking software solution that unifies data Backbase as an industry leader in terms of omni-channel consistent brand experience that’s easy to use and implementation accelerators.
and functionality from traditional core systems and banking platform capabilities, and award the company always available.
/ 16 new fintech players into a seamless digital customer high marks for its deep focus on customer experience Growth: control your digital strategy
4
experience. management and unparalleled speed of implementation. Cost-efficient: reuse your core banking systems
2 Backbase puts you in control of your digital
With Backbase, there’s no need to replace or rebuild strategy, enabling you to create, manage, and
We give financials the speed and flexibility to create Forrester names us a Leader in the Forrester Wave for your core systems from scratch. Backbase enables optimize the end-to-end customer experience
and manage seamless customer experiences across Digital Banking Engagement Platforms, Q3 2017. you to repurpose them by incorporating their across every device. We have invested in many
any device, and deliver measurable business results. content, data, and functionality into a new digital years of R&D to give you exactly the right editing
Backbase was founded in 2003, is privately funded, customer experience layer. This layer is optimized and digital marketing tools you need to take full
We believe that superior digital experiences are with headquarters in Amsterdam (HQ Global) and Atlanta for easy integration with your existing business control of optimizing the customer experience,
essential to staying relevant, and our software (HQ Americas) and regional operations in London and applications, and the delivery of a unified and resulting in more sales conversions, and greater
enables financials to rapidly grow their digital Singapore. seamless customer experience across any device. customer satisfaction.
business. More than 90 large financials around the
world have standardized on the Backbase platform
to streamline their digital self-service and online sales
operations across all digital touchpoints.

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