Effective digital onboarding technology is the key to providing a smooth customer experience for South African consumers. This is the view of Finch Technologies co-founder Michael Bowren, who shared his insights on the evolving landscape of the financial sector.
In an era where mobility and digital accessibility are paramount, the way businesses onboard customers is undergoing a radical transformation.
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Bowren highlighted the changing consumer preferences; three out of four millennials are willing to switch banks for a superior mobile onboarding experience, while Gen Xers are increasingly embracing digital methods for opening bank accounts.
In response, South African financial institutions and corporations must adapt to these trends. “It’s not just about streamlining processes; it’s about understanding the dynamics and joining forces to create a robust, inclusive financial landscape in South Africa,” emphasised Bowren.
A challenging onboarding process can deter potential customers, leading to missed opportunities. Bowren noted, “A complicated onboarding process can drive away 74% of customers.”
South African businesses face hindrances due to convoluted document collection procedures, causing 70% of potential clients to abandon the onboarding process midway. To address this, he stressed the importance of adopting a streamlined, brief, and user-friendly customer-centric design approach validated through multiple prototypes and tests.
The role of KYC solutions and fintech innovation
Bowren highlighted the crucial role of KYC (“know your customer”) solution providers, emphasising that they are actively combating the challenges of inefficient verification and onboarding processes.
“Fintech is revolutionizing onboarding, turning it from a complicated process into a smooth, secure, and efficient experience,” he said. These innovations not only streamline the process but also maintain high-security standards through the incorporation of AI technology.
Collaboration becomes essential in combating the rising tide of fraud, particularly in regions like South Africa where fraudulent transactions are increasing.
Bowren stressed, “Specialised tech companies, focusing on biometrics, AI, cybersecurity, and KYC, must collaborate to provide effective defense against fraud.” Notable solution providers like Gathr, The Good People Data Company, Direct Transact, JUMO, and Entersekt offer vital support for businesses dealing with customer onboarding and fraud prevention challenges.
Gathr, for instance, stands out by not only addressing fraud but also anticipating and countering it with sophistication. Collaborations with institutions like Nedbank and MTN further enhance the level of security, safeguarding against various fraudulent practices.
Bowren concludes that the financial sector in South Africa stands at the precipice of significant change. With effective digital onboarding, collaborative efforts, and innovative fintech solutions, the nation can pave the way for a future where financial accessibility, efficiency, and security are seamlessly interwoven, ensuring a positive customer experience for all.
