The non-stop advance of digitalization continues to impact different companies and their processes. One of the processes affected has been customer onboarding, which has taken on a special relevance today, due to the new needs of remote users, who seek simplicity, efficiency and security in the acquisition of their products and services.
The foregoing has caused various industries to consider new sources of information, such as mobile alternative data, as agents to help improve the processes and guarantee a better experience in the incorporation of new users.
According to a study prepared by Backbase, Mexico stands out in digital onboarding for the banking sector, revealing that 32% of Mexicans surveyed took less than 5 minutes to open a digital account, while in Chile, Colombia and Costa Rica 20% of the respondents took more than 20 minutes with the same process, followed, in most cases, by the abandonment of their registration.
Offering a good digital onboarding experience produces several benefits and challenges, but focusing on this strategy can have a direct, positive impact on sales and customer retention.
How does mobile alternative data enhance the onboarding process?
In Tiaxa, we recently addressed this issue during a webinar, attended by experts in digital solutions for the eCommerce, Fintech and Telecommunications industries. The discussion on carrying out this process as efficiently and safely as possible highlighted three fundamental points:
1. Taking advantage of all the available information from the financial environment that ensures the best decisión making, and more efficiently identify good and bad prospects.
In this scenario, the use of mobile alternative data becomes key to profiling users in a more reliable way, validating their information, analyzing loan applications, qualifying credit risk and guaranteeing the protection of business, without generating any type of friction.
During this origination stage it is very important to consider that accessing data sources that could potentially extend the onboarding process can negatively affect the customer experience.
In this regard, Fernando González, Chief Data Officer of RappiPay Mexico, explains the importance of using mobile alternative data during the onboarding process, as a valuable source of information that allows the enrichment of the origination process.
2. Having the alternative data transparently available during the onboarding process, as this will produce a good user experience. On this point, the speed with which we have access to that data also becomes very relevant.
One of the main goals of financial institutions is to reduce the origination time and improve the user experience during the loan application process. It is important to do some preliminary studies, prior to the integration of these data to evaluate the speed at which they can be made available.
3. The profitability associated with the onboarding process. Initially reducing the costs of accessing information to perform the origination of a loan, followed by maximizing the flow of good clients into the portfolio. This is combined, as much as posible, with a reduction in the number of bad clients, since once inside, they can affect the resources that the financial institution is investing.
If all the information and data available in the environment are integrated, most likely, the value of these will significantly affect the entire onboarding process. In this sense, it is advisable to evaluate and find a cost-benefit balance for the contribution of this information in onboarding to maximize efficiencies.
One posible way to achieve this balance is to produce a hierarchy of the available data, that is, not using all data types at the same time, but depending on the value and cost associated with the origination model, access them in a staggered manner to improve the efficiency of the process and using them only for the segment of prospects for which they really provide a noticeable benefit.
In the following excerpt, Fernando González details how the balance between an effective procedure and business security is achieved during the onboarding process;
In case you want to watch our webinar Alternative Mobile Data: How to improve the onboarding experience without generating friction for users, you can do so by clicking the following link:
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