What is Digital Onboarding?

It is the process of using digital tools to bring new users—whether customers, employees, or clients—into a business or service. The traditional onboarding method often involves time-consuming methods, like face-to-face meetings or paperwork. Digital onboarding simplifies and accelerates this experience by using online platforms.

Paychex statistics show that just 52% of workers are happy with their onboarding experience. By using a digital onboarding solution, users can:

• Open accounts or sign up for services online without needing to visit a physical location.
• Have their identity verified through automated systems, such as digital identity checks and biometric data (like fingerprints or facial recognition).
• Follow a smooth, guided onboarding journey that introduces them to the services offered.

How Does the Digital Onboarding Process Work?

The digital onboarding process is designed to create a smooth, efficient experience for new users. For that purpose, it relies on various digital tools. Here is a step-by-step breakdown of how it typically works:

Step 1: Sign-Up and Registration

The process starts when a new user creates an account or subscribes to a service. Usually, this is done through an online platform where they enter basic information, like their name, email, or phone number.

Step 2: Identity Verification

For security or regulatory reasons, businesses must verify the user’s identity. Users may be asked to scan an ID or upload documents. In some cases, they might go through more advanced methods like biometric verification (fingerprint, facial recognition) or fraud detection. All these are required to make sure everything is accurate and secure.

Step 3: Account Setup

After the identity confirmation, the user sets up their accounts. For this, they usually select preferences, create passwords, and personalize their experiences. In some industries, like finance, additional verification steps may be necessary to meet legal standards like KYC requirements.

Step 4: Orientation

Once the account is set up, the user is introduced to the platform’s services, features, and benefits. Usually, they access necessary resources provided by the business to understand how to use the service effectively. This may involve an interactive tutorial, a walkthrough, and so on.

Step 5: Ongoing Support

Digital onboarding doesn’t stop once the user is registered. Businesses often provide ongoing support, whether through help centers, customer service, or automated systems. Thereafter, users enjoy a positive experience, so stay engaged with the service.

Industries That Can Leverage Digital Onboarding in the Best Way

Recent statistics show that a complicated onboarding process will turn away 74% of potential customers. Utilizing digital onboarding, various industries have found fast, secure, and efficient ways to bring new customers, clients, or partners into the system.

With digital onboarding, what used to take days can now be done in about 30 minutes or less. Below are some top industries that can benefit largely from adopting digital onboarding.

1. Banking and Financial Services

It is a common scenario with the traditional banking process to go through lengthy paperwork and in-person verification. Often, people face difficulties in opening bank accounts or transferring credits. They have to visit banks for several days and wait for several hours.

Digital onboarding can change this situation. Customers can open accounts or apply for credit from their homes through digital onboarding. In this case, banks can use eKYC (electronic Know Your Customer) through NID OCR, biometric authentication, or other advanced features. This will ensure regulatory compliance and prevent fraud. At the same time, this will speed up the process by tailoring forms to the user’s specific needs.

2. Insurance Sector

Most of the time, insurance companies struggle with registering new policyholders and verifying claims. That is because the manual process is prone to errors. Customers will prefer online platforms to register, with documents verified instantly through eKYC, which can be done by digital onboarding.

Multi-layer quality control ensures that all data is accurate. This will reduce fraudulent claims and speed up both registration and claim processing. By automating the onboarding process, insurance companies can enhance overall efficiency—ultimately boosting customer satisfaction.

3. Real Estate

Screening tenants is not easy; rather, it can be a slow, manual process. The same goes for verifying property buyers. It can be a hassle to check all the required documents for buying, selling, or renting a property. On top of that, there is the risk of fraudulent documents, which can often be overlooked.

With digital onboarding, potential tenants and buyers can upload documents online for automated verification. This shortens the time it takes to approve applications and close deals. As a result, real estate firms can reduce administrative burdens, avoid fraudulent applications, and improve the customer experience.

4. E-commerce and Retail

For e-commerce platforms, quickly and securely onboarding new sellers is critical. To complete the whole process, the sellers need to register, submit their business verification documents, and follow other guidelines. So, it usually takes a while to onboard new sellers.

However, the process becomes easier with digital onboarding. Within 30 minutes or less, depending on the amount of needed information, new sellers can do all the work associated with the process. Plus, the system can verify the accuracy and compliance of the seller’s information. Ultimately, the platform remains secure and trustworthy.

5. Fast-Moving Consumer Goods

The companies that sell Fast-Moving Consumer Goods, or FMCG in short, need to quickly expand their distribution networks. However, manual onboarding processes are often slow and error-prone. Traditionally, this process involved time-consuming paperwork, face-to-face meetings, and manual verification.

Digital onboarding solutions from trusted companies can reduce this administrative workload. For instance, using Polygon Technology’s Digital Onboarding solution, new distributors and retailers can register online and upload documents for instant verification. Thus, the overall time for onboarding will be reduced from days to minutes.

Why Industries Need Digital Onboarding

When it comes to onboarding new customers, clients, or employees, industries today face many challenges. Businesses are handling larger amounts of data than before. So, they require strict identity verification. In that regard, digital onboarding provides the right solution to enhance the overall customer experience.

Vlerik Talmundo found that 68% of HR professionals intend to incorporate technology into their onboarding procedures in the future. Below, we have given some solid points on why industries need digital onboarding.

Faster Onboarding Process

Traditional onboarding methods can be slow and tedious. Often, they require manual paperwork and in-person visits. This can frustrate users and lead to high dropout rates. Digital onboarding speeds up the process, allowing users to complete registration in as little as minutes. Hence, user satisfaction and retention are improved.

Improved Data Accuracy

There is a high chance of making mistakes in manual data entry. This can cause issues down the line. With digital onboarding, automated systems verify data and perform quality control checks. Hence, everything remains accurate from the start.

Compliance with Regulations

Many industries, like banking and insurance, must adhere to strict regulatory standards. It can be difficult to keep up with changing compliance requirements. Digital onboarding ensures that all processes meet these standards, which reduces the risk of non-compliance.

Fraud Prevention

Fraud is a growing concern across industries. Digital onboarding includes advanced identity verification tools, such as eKYC and biometric checks, which help detect and prevent fraudulent activities. This is how it keeps both businesses and users safe.

Operational Efficiency

Automating the onboarding process reduces the workload on staff. So, it frees up time and resources for other important tasks. This improves overall operational efficiency and allows businesses to scale more effectively.