How Digital Onboarding Benefits Payment Providers

Payment providers face a lot of challenges while onboarding merchants. Some of them are related to regulatory requirements and the complexity of the onboarding process for corporate clients. However, the majority of these challenges are the results of outdated processes and workflows. While there are no shortcuts when it comes to compliance, the onboarding process can be accelerated with just one simple solution – fully digitized client onboarding.

What is digital onboarding?

Digital onboarding is a fully digitized process of client onboarding. Thanks to a host of features and services offered by FinTech providers, digital onboarding enables companies to onboard customers at any time and from any place in the world. Such a solution not only improves client experiences but also optimizes internal workflows reducing the risk of errors and operational costs.

What are the challenges of onboarding as a payment provider?

Doing business with international clients means that there are plenty of regulations to meet. When onboarding new clients manually, ensuring compliance within each market takes forever, while your clients keep on waiting. Considering how often legal requirements change, staying compliant with markets’ regulations remains a big challenge. You need to be agile and adapt fast to keep up with these changes, but how do you do it when the slow internal processes are holding you back?

With multinational clients, onboarding requires several stakeholders involved. Referring clients from one stakeholder to another, filling in additional forms, or answering the same questions is not an option anymore. Having all data in one place and being able to access it anytime improves internal processes and leads to a better customer experience.

Manual onboarding carries the risk of errors. One error during manual data collection or verification can impact the whole process leading to more errors along the way and a lengthy onboarding process overall. Another issue is the cost of such an error, conducting the whole process from the beginning requires a lot of resources.

What benefits does a digital onboarding platform bring?

One thing a digital onboarding platform offers is having all processes within a single platform. From data collection, through identity verification and AML screening, to easily accessible databases – everything happens within one platform. PaaS (Platform as a Service) is a cloud-based solution that integrates and provides 3rd party services. It means, there is no need for additional contracts or agreements with service providers nor extra waiting time for service integration. Everything is ready to use instantly.

Digital onboarding entails automation of the KYC and AML processes, which speeds up the entire workflow and, most importantly, brings operational proficiency. With access to local and global verification services to remain compliant, you can set up automated verification, screening, and monitoring processes. As a result, you get an alert whenever a client’s data changes or red flags occur. On top of that, automated risk profile evaluation based on predefined requirements can be set to make sure you only make risk-based decisions. All the data gathered throughout the onboarding process is stored in a cloud-based database from which it can be accessed by all stakeholders.

Payment providers can use a digital client onboarding platform for several reasons, including improved processes and agility. Digital processes enable way more agility than traditional ones, meaning they speed up the workflows and allow faster adaptation to new regulations. For payment providers that operate internationally, time to market is key. Being able to onboard clients from different countries is essential to sustain growth. Digital onboarding allows international coordination, improved due diligence, and faster expansion.

About HelloFlow:

HelloFlow approaches the problem of digitizing client onboarding in a new way. The platform enables companies to set up onboarding and related KYC processes, using all the needed local and global services – all in a few minutes. 

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Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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