Onboarding is an integral part of any successful product or app. Discover the main features of the onboarding process in the fintech industry and learn how to establish effective communication with a customer.
The customer onboarding process is one of the most important stages of the customer lifecycle. It sets the tone for future relationships between the product and the company, while also exerting a great amount of influence on whether a customer continues to use the product during the long term and becomes a regular customer.
The onboarding process is an integral step in the interaction between the customer and the product. At this stage, new users set up their accounts and start using the product as conveniently as possible. Onboarding covers the entire user journey: from initial sign-up to product activation and first use.
The best way to build trust with users is to be as transparent as possible and make them feel secure. This can be achieved by explaining each step of the onboarding process along with the importance of information, at each stage of onboarding.
According to research undertaken by McKinsey, only 27% of US-based users trust fintech services. However, the onboarding process plays a vital role in gaining the trust of users in financial products.
Onboarding is an integral part of financial service security, which consists of several elements. Ideal onboarding is organic and invisible to the customer. However, it is of vital importance to demonstrate that users and their assets are protected at every stage of onboarding. This starts with basic authentication and authorisation protocols such as biometrics and two-factor authentication. You can also explain why data encryption is important for protecting sensitive information.
The Know Your Customer (KYC) stage is the most critical aspect here. It includes various methods to verify the identity of users and is a key component in fighting money laundering and ensuring that the personal data of users are protected from fraud.
It is also extremely important to leave no stone unturned and keep the customer’s goals in focus, optimise the process so that the value of the product is demonstrated the first time it is used. This has a positive impact on profitability and reduces the risk of customer churn.
However, the onboarding process should not be too time-consuming or complicated resulting in users losing interest and making them abandon the product, no matter how good it is. The main point here is to minimise the effort required by the user to start using the product.
Also, avoid collecting excessive information because this can become a constant source of irritation for users. The key goal of this process is only to ask for information that is essential at the moment. The time users spend filling out a form should be worth the benefit they receive.
First impressions make all the difference, especially in the competitive fintech environment. It takes more than an innovative idea and a visually stunning app to stand out from the crowd. The user needs to be engaged and gain trust within the first few minutes while the value of the product is demonstrated.
There are several approaches that help improve the registration process:
Creating an account is the first stage of the onboarding process, after which communication with customers continues. After successful registration, it is important to send a user a welcome email in which:
Immediately after sending a welcome email, you need to establish unobtrusive communication with the customer, laying the basis for retention. The best way to do this is to diversify communication channels. In a welcome email confirming the registration, offer options of various communication channels: email, private messages, messengers, push notifications, etc. At the same time, you should regularly measure the activity and the level of conversions for each channel so that you can determine channel priority.
If the product caters to different users, customising the onboarding process is a great solution. By adjusting onboarding for each user segment, companies can attract new users more effectively, as well as lay the foundation needed to retain them. Onboarding customisation always has a positive effect on registration results.
It is also necessary to monitor how the customer interacts with the onboarding process and improve this process on an ongoing basis. The following metrics can be used for this purpose:
The key to effective onboarding is simplicity, ease and user-friendliness. The fewer people there are that ask “why?” or “how?” during the onboarding process, the more likely they are to finish it.
When it comes to fintech services, onboarding plays such an important role that you simply can’t afford to link several pages and be done with it. Instead, you really need to think over the effective customer onboarding process and integrate it into the app experience effectively.
This is a challenging task, in addition to the many challenges fintech developers are already facing. But, try to offer your best to make your onboarding intuitive and engaging, and you will definitely benefit from satisfied users and long-term collaborations.