COVID-19 brought the world to a standstill. Cities around the globe were completely locked down, essential services organizations experienced pressure like never before while all others struggled to keep themselves afloat. Work from home became the only way to run businesses that could be run through a remote set up. An unfortunate consequence was that customer trust and loyalty became largely irrelevant. Under the circumstances, onboarding new customers was a challenge every business seemed to have faced, but among the worst-hit were financial services products in general and forex trading houses in particular.
The COVID-19 pandemic has brought several major challenges to the fore. Given how every industry is battling with the crisis in its own way, the problem of retaining existing customers has become extremely difficult. Acquiring new customers was hard enough at the best of times but now the bar to be cleared has become unimaginably high. The expectations of customers are sky high and the experience a financial services company of a forex trading house must provide them has to match the promise. In that scenario, onboarding new customers acquires tremendous importance.
Here are 4 common customer onboarding challenges plaguing forex trading houses:
The lack of structured processesIn times of crisis, getting new customers on board as quickly as possible has become every organization's mantra. However, in the hurry to get them on board, many trading companies follow diverse processes to attract and engage customers. The lack of uniformity and few structured processes means client onboarding is often done haphazardly. These organizations end up not following standard processes across different departments such as credit, legal, and operations. This results in a high percentage of customers abandoning the process or causing problems to pop up later in the relationship.
Changing regulationsRegulations in the financial industry change ever so frequently - most regulations are updated every month, and some even undergo changes every week. Companies that depend on manual processes for onboarding customers will, almost certainly, fail to keep up with the pace of regulatory change. Add to that the errors and omissions that are part of the current manually-intensive onboarding processes. No need to point out that this heightens regulatory risks in an area already fraught with sensitivity.
Modern tech-savvy customers expect easy and stress-free access to financial services. Today's customer is a digital-native. Such customers certainly no longer include physically coming into a branch on their "To Do" list. Expecting them to meet agents in person or manually fill in details in dozens of onboarding templates can cause a lot of buyer dissonance and dissatisfaction. This is especially true in times of crisis like COVID where physical contact needs to be restricted as much as possible.
Time-consuming processesTraditional approaches to customer onboarding also tend to be very cumbersome and time-consuming. In an age where customers expect their demands to be met in a jiffy, an onboarding experience that is clunky, non-intuitive, and lengthy is sure to drive them away. Lengthy processes are not only frustrating for customers, but they can also prove to be extremely costly for financial institutions since they consume more resources (of all types) along the way.
Digital transformation has picked up immense speed in the last few years, but the pandemic has brought its benefits under the spotlight. As remote work models become mainstream, secure digital solutions that allow remote customer onboarding are growing in popularity. Such digital onboarding of customers not only makes the process of opening an account seamless and comfortable, but it also helps meet their demands quickly and efficiently while allowing organizations to extend their customer base more easily.
Digital onboarding provides a fast and efficient way of onboarding both retail and institutional clients. Using digital onboarding, financial services companies and forex trading houses can:
Reduce the complexity of the onboarding process while greatly cutting the time taken to get them on board.
Leverage easy and intuitive dashboards that give customers full transparency and control of their relationship and initial transactions.
Carry out quick and efficient KYC checks and biometric identity verification and accelerate the account opening process.
Make the most of intelligent real-time analytics to monitor business KPIs and get personalized alerts and notifications on customer challenges and pain-points.
Provide customers with virtual means to easily deposit, withdraw, and transfer funds across multiple accounts.
Empower agents with access to powerful tools to configure and manage workflows, databases, and client interactions from a unified interface.
COVID-19 has affected businesses in a way never imaged before. As industries across the globe struggle to keep their business running, customer onboarding challenges such as lack of standardized processes, changing regulations, evolving customer demands, and time-consuming onboarding processes have made it extremely difficult for them to meaningfully expand transactions from their client base.
Digital onboarding solutions that integrate with modern trading platforms enable organizations to accelerate the customer onboarding process. By verifying customers online in a matter of a few seconds and auto-filling redundant details, these solutions can help boost the customer experience while lowering compliance and improve compliance. This helps to ensure that the hard work the financial services company or forex trading house has put into acquiring a new customer translates into a long relationship, full of profitable transactions!