Customer Onboarding

CUSTOMER ONBOARDING
Copyright © 2017 HCL Technologies Limited | www.hcltech.com

BANKING
Definition:-
 Banking has been defined as “Accepting for the purpose of lending & investment, of deposit of money from the
public, repayable on demand order or otherwise and withdraw able by cheque, draft or otherwise.”
Meaning:-
 Banking means transacting business with a bank; depositing or withdrawing funds or requesting a loan etc.
2 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

PRIMARY FUNCTIONS
 The main functions of banks are accepting deposit and lending loans:
 A – accepting deposits
 1. Fixed deposits:- These deposits mature after a considerable long period like 1 year or more than that the
rate of interest is fixed the amount deposited cannot be withdrawn before maturity date.
 2. Current A/C deposit:- These are mainly maintain by business community to facilitate frequent transaction
with big amounts. Generally no rate of interest or very low rate of interest is paid on this account.
 3. Savings bank A/C:- It is kind of demand deposits which is generally kept by the people for the sake of
safety. These facility is given for small saver and normally a small rate of interest is paid.
 4. Recurring deposit A/C:- In case of recurring deposit the fixed amount is deposited in a bank every month
for a fixed period of time.

CONT…
 B-Lending loans
 1. Call loans:- These loan are called back at any time. Normally, this loans are taken by bill brokers or stock
brokers.
 2. Short term loans:- These are sanctioned for a period up to 1 year.
 3.Medium term loans:- These are sanctioned for the period varying between 1 and 5 years.
 4.Long Term loans:- These loan are sanctioned for a period of more than 5 years

SECONDARY FUNCTIONS
 Apart from the main functions, the banks also provide financial services to the corporate sector and business
and society. They are as follows:
 1.Merchant Banking:- Merchant banking is an organization which underwrites securities for companies, advises
in various activities. No person is allowed to carry out any activity as a Merchant Banker unless holds a
certificate granted by SEBI. Thus, merchant banks are financial institutions which provide specialized services
including acceptance of bills of exchange, corporate finance, portfolio management and other services.
 2. Leasing:- Banks have started funding the fixed assets through leasing. It refers to the renting out of immovable
property by the bank to the businessmen on a specified rent for a specific period on terms which may be
mutually agreed upon. A written agreement is made in this respect.
 3.Mutual funds:- The main function of mutual fund is to mobilize the savings of the general public and invest
them in stock market and money market.
 4. Venture Capital (VC):-Venture Capital is financial capital provided to early-stage, high-potential, high risk,
growth startup companies. The venture capital fund makes money by owning equity in the companies it invests
in, which usually have a novel technology or business model in high technology industries, such as
biotechnology, IT, software, etc.

CONT…
 5. ATM:- An ATM is also known as cash point. The banks nowadays provide ATM facilities. The customers can
withdraw money easily and quickly 24 hours a day.
 6. Telebanking:- Telebanking is a throwback to the days when people would call into a central number at their
bank/financial institution in order to get balance, check status and other account-related information. Most
financial organizations offer telebanking services today; however, the public representation is known as
telephone-based customer service or just customer service.
 7. Credit cards:- Credit cards allow a person to buy goods and services up to a certain limit without immediate
payment. The amount is paid to the shops, hotel, etc. by the commercial banks.
 8. Locker Service:- Under this service, lockers are provided to the public in various sizes on payment of fixed
rent. Customers can deposit their valuables, documents, jewellery, securities, etc. in these lockers.

TYPES OF BANKS

WHO IS CUSTOMER OF BANK?
 A customer is someone who has an account with a bank or who is in such a relationship with the bank that the
relationship of a banker and customer exists… The legal position implies that opening an account is the crucial
element in establishing the banker-customer relationship.

TYPES OF CUSTOMERS
 Depositors
 Borrowers
 Third Party Provider
 NRIs
 Walkin

BANK – CUSTOMER RELATIONSHIP
 Banking relationship is a contract between the bank and he customer.
 The relationship between a banker and a customer depends on the type of transaction; products or services

offered by bank to its customers.

SATISFACTION WITH PAPER ONBOARDING
 Small corporations are less satisfied with the time it takes to implement a new service
 The more complex the service, the less satisfied corporations are with the process
 Corporations feel there’s room for improvement in their bank’s Paper Onboarding process.
 If the implementation process is shortened, almost 70% of banks believe it would free up their sales force to
generate more sales.
 Corporations are experiencing pain in every area listed below more than ½ the time:
 Lack of clear view into implementation status
 Poor communication with bank
 Too many paper forms
 Implementation process too lengthy
 Redundant information requested by bank

BANKS NEED HELP MANAGING/GATHERING DOCUMENTS
“Outdated home-grown platform used today. No workflow capabilities, no doc

image retention, virtually zero status reports.”
Q: Describe your greatest implementation pain points.

0% 5% 10% 15% 20% 25%
Missing documentation/gathering effo... 22%
Coordination with custo... 16%
Manual contr... 15%
Tracking sta... 12%
Test documents or fi... 11%
Cycle time/time to rev... 8%
Lack of solu... 7%
Lack of business knowledge (IT&... 3%
Training custo... 2%
P 2%
Lack of self serv... 2%

KEY TAKEAWAYS – BANK SURVEY
 The greatest pain point that banks experience regardless of size is the use of paper in
the implementation process.
 Banks see an opportunity to accelerate revenue through shortening the

implementation cycle.
 90% of banks surveyed believe they can accelerate revenue by shortening their implementation cycle time
 Banks see an opportunity to free up sales resources by improving the implementation

process.
 70% of banks surveyed believe improving the process will free up their sales force to generate more sales
 Internal communication is seen as a major detriment to bank implementation

processes.
 Small banks in particular cited more pain with implementation processes.

WHAT SHOULD PAPERLESS LOOK LIKE?
A The Sales Meeting: Improve Onboarding for new & existing clients.
B + C Multi-task on Autopilot: Solution workflow eliminates redundancy.
D Dashboard Deliverables: Simple, clear progression updates.
E Consider Compliance Covered: Streamline the auditing process.
F On-Demand Analytics: Improves communication between you & your clients.
G Give Satisfaction, Gain Opportunity: Satisfied clients spur new potentials.

THE SALES MEETING: NEW CLIENT, AUTOMATED ONBOARDING
Collect data from new clients

anytime, anywhere, with iPads
& other mobile devices
 Generate agreements
automatically
 Standard agreement
templates can be generated
on-the-fly
 Complex/consolidated
agreements can be sent back
to a mobile device or made
available online

THE SALES MEETING: NEW CLIENT, AUTOMATED ONBOARDING
Enter data once and apply to

agreements & set-up forms
 Sign & submit

 Sign & review documents on
the iPad or online
 Instantly send secure
documents to downstream
processes

THE SALES MEETING: EASIER FOR EXISTING CLIENTS
The benefits of going paperless

extend beyond new clients
 Current customers can sign-up

for new services online
 Data from their existing services

can be applied to new services
 Improve & enhance their

Onboarding experiences
 Make new impressions on

established relationships

MULTI-TASK ON AUTOPILOT
 Business rules ensure consistent

processing – designed using
250+ predefined workflow rules
without development
 Repetitive tasks are eliminated

through automation
 Multiple implementation
processes can occur in parallel

MULTI-TASK ON AUTOPILOT
+ C
 Email/mobile integration for all

workflow decisions
 Forms designed & implemented

without development
 Quickly deployed by business
users including validation

DASHBOARD DELIVERABLES
A clean, simple dashboard view

delivers:
 24-7 access to your customer’s

onboarding status & progression
 Progress notifications can be

sent internally and to the
customer
 SLA warning notifications can be

sent to operations and Treasury
Sales Officers


COMPLIANCE – CONSIDER IT COVERED
• Reduce audit efforts
• Ensure all required signatures are captured

• Safeguard appropriate access to sensitive information
 Easily identify customers who require updated agreements
 Automate the collection/review/distribution processes

ON-DEMAND ANALYTICS, IMPROVED COMMUNICATION
If problems do occur, surprises

won’t
 Identify potential bottlenecks that

may delay the go-live date
 Immediately notify clients and

stakeholders of issues
 Real-time information empowers

clients & stakeholders to make
informed business decisions
 Exceptions, pipeline &

productivity statistics generated
automatically

GIVE SATISFACTION, GAIN OPPORTUNITY
Clients are involved & informed
• More opportunities to cross-sell

develop when Onboarding is:
 Easier
 Less work
 Delivered on-time
 Revenue is accelerated by up to
35%

DEFINITION – WHAT IS CLIENT ONBOARDING?
 Client onboarding is the process of welcoming new clients into your business, addressing their questions and
concerns, and ensuring they understand the services available to them.
 Don’t make the mistake of assuming your current customer service structure will taking care of the client
onboarding process as this can lead to clients that become frustrated and cancel their account.
 Client onboarding is one of the most important functions for any business because it directly affects the client’s
experience with your company, which will affect profits.

THE CLIENT ONBOARDING PROCESS
 Different people will have different ideas about how to successfully onboard new clients. But in general, a
successful client onboarding process can be summed up by two questions:
 Have you successfully introduced your new client to your business and addressed all their questions and
concerns early on?
 Have you gathered information on your client so you have insight into what products and services would
benefit them?
 To summarize, a successful onboarding process will meet both the needs of your clients and your business
needs. To do this you must have a full understanding of your business’s needs and goals. How much data
collection does your business require? If the client onboarding process fails to meet the needs of your business
then it is ultimately useless. A good client onboarding process should not only retain your client but encourage
them to continue to buy new products and services.

REQUIREMENT FOR A SUCCESSFUL CLIENT ONBOARDING PROCESS
Assess your client’s current needs
 One of the most important parts of the onboarding process is learning about your client’s needs. Every client is
different and will have different resources to work with. When you understand their strengths and weaknesses
you will be able to develop a plan for how to work with them.
 Make a list of your client’s current assets as well as any areas that need improvement. When you review this
with your client use it as an opportunity to position yourself as an expert.
Outline the client’s desired outcomes and goals
 All successful marketing campaigns have a goal in mind. You should already have an idea of what your client is
hoping to accomplish, you have a clear understanding of what you are working with, and now it is time to
develop a goal and a plan to move forward.
 You need to take your assessment and turn it into measurable goals that your team can act on. The more clearly
you articulate your goals to your client and your team, the easier it will be for everyone will stay on track. Be
sure that you don’t promise anything you can’t deliver on and make sure everyone is involved in the goal-setting
process.

CONT…
Be sure your team is briefed on your client
 Before your team becomes involved with the client you need to make sure they have a clear understanding of
your client, their industry, and the work involved. Assign your team any necessary reading materials, be sure
they have access to the assessment and contract, and provide any notes available on your client. Once your
team knows your client’s desired outcomes and objectives they will be better prepared for the client kickoff call.
Have a kickoff call
 It is important to have a great kickoff call so everyone is on the same page and has all the information they need.
Your client needs to have a good impression of your entire team, not just you. Be sure your team demonstrates
that they fully understand the scope of the work and have everything they need to move forward. Give your
client time to articulate their objectives and expectations.
Check-in after 30 days
 This is an opportunity for you to gain feedback from your client, get a sense of how the process is going so far,
and address any concerns they may have. Use this check-in call as an opportunity to build on your relationship
with your client and let them know you value their business. Have a list of questions prepared and summarize all
the work that has been done in the past 30 days. When the call is over your client should feel confident that
they made the right choice by doing business with your company.

STEPS FOR ONBOARDING
 Step-1
 Assign a specific employee for Customer On boarding. His activities include;
 A single point-of-contact for on boarding process
 Managing budgets, goals, measurement of program success, work across product, channel & marketing
Departments
 Without a person dedicated to this, on boarding process will lack focus/may never get initiated

CONT…
 Step-2
 Include all Account Holders(Old & New)
 On boarding is an ongoing process that should include both new & old account holders. Also On boarding
process should be done for all types of accounts like Deposit & Advances

CONT…
 Step-3
 Target the Right Account Holders
 A strong targeting strategy helps to acquire households willing to build a broader relationship than just one
account. The more targeted the acquisition strategy, the greater the potential for on boarding success
 Another way to improve your acquisition results is to continuously engage with customer like “Direct
Mails/Mass Media” that can optimize your overall investment

CONT…
 Step-4
 Collect Data/Insights from day One
 The ability to personalize communications & provide targeted solutions is based on the;
 Demographic
 Behavioral
 Social insights
 The collection of insight doesn’t stop at the new accounts, but should continue during the entire on boarding
process using surveys that should build a customer profile.

CONT…

CONT…
 Step-5
 Communicate with the New Account Holders early
 The sooner you reconnect with the new account holders ,the more successful you will be in building dialogue &
engagement
 “A simple SMS stating Thank You is a great way to start an on boarding process”

CONT…
 Step-6
 Communicate with the account holders Regularly
 One of the biggest misconceptions by financial institutions is that new account holders don’t want to get a lot of
messages after opening a new account. But according to research studies-satisfaction & cross-selling success will
both improve as the number of contacts are increased up to 4 times & is till effective if the customer is
communicated with as many as 7 times during the first 90 days.

CONT…
 Step-7
 Personalize Communication
 Show the consumer that you know them & understand their needs. The goal is to mine the data on the
customer to Generate marketing messages that are customer specific
 It is important to build a communication channels strategy for each customer ‘based on the channels they use &
respond to best’

CONT…
 Step-8
 Start with a Simple “Thank You”
 This can be done by SMS or E-Mail immediately after the customer completes account opening. Some
organizations have developed local ‘Surprise/Delight’ offers from local merchants to provide as a Thank You

CONT…
 Step-9
 Build engagement before selling
 Nobody likes sales messages before you have earned trust.
 Start your on boarding process with various solutions like Internet Banking, Mobile Banking, Bill payment option
etc.

CONT…
 Step-10
 Don’t forget your ‘Brand’
 New customers are not necessarily familiar with your brand. Let them know what makes your organization
special. Make sure that all on boarding communications reinforces your brand & provides the customers with
reasons to refer your Bank to their friends

CONT…
 Step-11
 Provide Personalized Offers
 Customers respond to offers that relate to accounts they hold in your Bank. Ex: You can have a reward program,
to leverage as a part of customer engagement

CONT…
 Step-12
 Start your Communications with Mail/E-Mail
 For on boarding traditional Direct Mail/E-Mail is a great foundation for future communication.

CONT…
 Step-13
 Integrate all Possible Channels
 Today’s Digital Customer is more likely to open your E-Mail on their phone than their desk. These customers are
also open to receiving SMS messages & targeted offers in their Mobile Bank App. Leveraging multiple channels
like e-mail, phone, SMS text, online, mobile banking, videos, ATM etc allows you to appeal to customers channel
preferences while delivering a highly personalized message that will positively impact results

CONT…
 Step-14
 Leverage your Local presence
 Branch phone call follow-up’ can improve on boarding results significantly & is a great use of ‘Branch Down-
Time’
 The use of partnering with local merchants for non-financial offers also is a great way to leverage bank’s local
presence

CONT…
 Step-15
 Build Custom ‘Jump Pages’
 Several Banks have unique jump pages that are specifically designed for new customers providing step-by-step
instructions on how to take the best advantage of services. Many of these jump pages have links like “Go With”
service pages providing easy applications and additional education on the service

CONT…
 Step-16
 Measure Results
 While most banks miss this or avoid this, i.e “Measurement of Results”. However measurement involves the
following steps;
 How did a particular sale happen?
 Who should get the credit for it?
 How much credit should be attributed to each consumer interaction across channels/on what basis?
 How should the investment be apportioned across channels?

BENEFITS OF CLIENT ONBOARDING
 One of the most obvious benefits of a successful client onboarding process is continued service from your client.
When you lose a client it means that all the time spent on marketing, developing the relationship, drafting
proposals, and investing your time to meet with them has all gone to waste.
 80 percent of a company’s future revenue will come from 20 percent of its current customers. But many
businesses allocate few marketing resources toward retaining their current customers. There is an incredible
opportunity for future revenue with repeat clients so it is in your best interest to keep your current clients
happy.
 Another benefit to retaining your current clients is the opportunity for referrals. When your clients are happy
with the service you provide them they are more likely to refer you to others.
 20-50 percent of all purchases came based off of recommendations made by other people. Word-of-mouth
marketing can work to your business’s benefit or detriment. If you do an exceptional job of onboarding your
new clients you will set yourself up for positive word-of-mouth marketing.

WHAT IS KYC?
 Yes, Know Your Customer (KYC) is a popular term used in the banking or financial field. Know Your Customer
(KYC) is a process that has to be complied by financial institutions, whereby these set of institutions obtain
information about the identity and address of the customers.
 The Government of India has notified six documents as 'Officially Valid Documents (OVDs) for the purpose of
producing proof of identity.
 Even when you already submit the KYC documents once, the banks can ask again as they are required to
periodically update KYC records.

CONT…
 This is a part of their ongoing due diligence on bank accounts. The periodicity of such updation would vary from
account to account or categories of accounts depending on the bank's perception of risk.
 Opening bank account, mutual fund account, bank locker, online investing in mutual fund or gold your KYC
should be updated with bank.

CONT…
 The Know Your Client form is a standard form in the investment industry that ensures investment advisors know
detailed information about their clients' risk tolerance, investment knowledge and financial position.
 KYC forms protect both clients and investment advisors. Clients are protected by having their investment
advisor know what investments best suit their personal situations. Investment advisors are protected by
knowing what they can and cannot include in their client's portfolio.

WHY KYC IS MANDATORY NOW
 KYC norms were introduced in 2002 by the Reserve Bank of India (RBI). It directed all banks and financial
institutions to put in place a policy framework to know their customers before opening any account. The
purpose was to prevent money laundering, terrorist financing, theft and so on.
 Today other regulators too have made KYC mandatory. The Securities and Exchange Board of India (Sebi) has
mandated it for mutual funds and broking accounts, the Insurance Regulatory Development Authority (IRDA)
while buying insurance and the Forwards Markets & Commission (FMC) for commodity trading.
 KYC is important because it helps the banker to ensure that the application and other details are real. There
have been instances of fraud and siphoning off of money from accounts.
 By ensuring the identity of individuals, it would help to prevent fraud.
 The Know Your Customer practice has been in vogue for many years now. It is a must and all individuals have to
comply, if they wish to open account.
 It is not possible to open a back account or account for mutual funds without KYC compliance.

DOCUMENTS REQUIRED FOR KYC
 Here is a list of documents which acts Proof of identity and Proof of address
Passport, Driving Licence, Voters' Identity Card, PAN Card, Aadhaar Card issued by UIDAI

WHO NEEDS KYC?
 Those who want to open a bank account, a demat and stock trading account, open FD in another bank, would
definitely need to comply with KYC requirements.
 In fact, it is now mandatory as per guidelines from the Securities and Exchange Board of India to comply with
these KYC norms before you open a demat and trading account. Banks too will not open an account unless you
have the same.

BENEFITS
Improve Customer Service
 Improve customer satisfaction by delivering a convenient, personalized customer experience in a timely process.
Efficient customer onboarding translates to a better customer experience.
Increase Efficiency and Productivity
 Speed processing and reduce labor costs by capturing critical data and documents required to validate
information for customer onboarding.
Mitigate Risk and Promote Compliance
 Lessen risk at several levels, by eliminating error-prone manual work as well as by sharing information across
multiple applications.

CONT…
Reduce Operational Costs
 Reduce labor and associated costs while automating the collection of data and documents.
Increase Revenue and Maximize Profitability
 Improve the customer onboarding capture experience to speed processing, improve customer satisfaction and
elevate corporate competitiveness.
Increase Data Access, Integration and Compatibility
 Leverage data from multiple ECM, BPM, and workflow applications throughout the enterprise.
Improve Top Line Results
 Accelerate business-critical processes (customer onboarding, customer service, etc.), shorten sales cycles and
improve customer communication.

CONT…
 Thrill customers with a fast, smooth onboarding experience along with timely follow-ups, through the
customer’s preferred method of communication
 Increase customer satisfaction and loyalty with better communication
 Boost data accuracy and eliminate lost documents by deploying advanced data classification, transformation,
and tracking technologies that dramatically reduce human handling and error
 Become agile and protect margins by scaling out the customer onboarding process to match business growth
 Enhance your bottom line with streamlined business flows to reduce labor-intensive customer onboarding tasks
using advanced capture, auto-classification and workflow technologies

CONCLUSION
 In conclusion…
 Improving the customer onboarding experience is a major opportunity for banks to address. This first customer
interaction sets the tone for the entire relationship between bank and customer: a move from the lengthy,
paper-based, inconvenient process to a slick, genuinely omnichannel one would be a major customer experience
game-changer, not to mention bringing significant process cost savings. Incumbent banks need to recognise that
it’s all still to play for – they should look at adopting a mindset shift towards truly customer-centric design in
their current onboarding process.
 Getting the onboarding journey right won’t fix all of their problems, but it’s certainly a great place to start.

THANK YOU

Customer Onboarding

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CUSTOMER ONBOARDING

Copyright © 2017 HCL Technologies Limited | www.hcltech.com

2 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

3 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

4 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

5 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

6 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

7 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

8 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

 Third Party Provider

9 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

 Banking relationship is a contract between the bank and he customer.

 The relationship between a banker and a customer depends on the type of transaction; products or services

10 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

11 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

“Outdated home-grown platform used today. No workflow capabilities, no doc

Q: Describe your greatest implementation pain points.

Missing documentation/gathering effo... 22%

Coordination with custo... 16%

Manual contr... 15%

Tracking sta... 12%

Test documents or fi... 11%

Cycle time/time to rev... 8%

Lack of business knowledge (IT&... 3%

Lack of self serv... 2%

12 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

 Banks see an opportunity to accelerate revenue through shortening the

 Banks see an opportunity to free up sales resources by improving the implementation

 Internal communication is seen as a major detriment to bank implementation

 Small banks in particular cited more pain with implementation processes.

13 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

B + C Multi-task on Autopilot: Solution workflow eliminates redundancy.

D Dashboard Deliverables: Simple, clear progression updates.

E Consider Compliance Covered: Streamline the auditing process.

F On-Demand Analytics: Improves communication between you & your clients.

G Give Satisfaction, Gain Opportunity: Satisfied clients spur new potentials.

14 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

Collect data from new clients

15 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

Enter data once and apply to

 Sign & submit

16 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

The benefits of going paperless

 Current customers can sign-up

 Data from their existing services

 Improve & enhance their

 Make new impressions on

17 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

 Business rules ensure consistent

 Repetitive tasks are eliminated

18 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

 Email/mobile integration for all

 Forms designed & implemented

19 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

A clean, simple dashboard view

 24-7 access to your customer’s

 Progress notifications can be

 SLA warning notifications can be

20 Copyright © 2017 HCL Technologies Limited | www.hcltech.com

• Reduce audit efforts

• Ensure all required signatures are captured

 Easily identify customers who require updated agreements

 Automate the collection/review/distribution processes