Banks have a short window to convert potential clients after they download the institution’s app, say digital onboarding specialists.
Customers should be able to complete a digital onboarding process in less than three minutes to maximize conversion rates, said Juan Pablo Ortega, co-founder of Rappi. “It is not a standard rule, but when we measure the [onboarding] process, it takes between 1-2 minutes. I think if the process goes over three minutes, you’ve already lost the customer’s attention,” said Ortega. Digital onboarding has picked up in recent months as a result of Covid-19 and the touchless measures that accompany it, said Samer Atassi, director of Latin America at Jumio, a global company that provides digital fraud detection services. A complete experience for companies lies in finding a balance between weeding out fraud and minimizing friction, he added. Currently, opening a digital account on Rappi takes four steps: scanning the user’s ID, taking a selfie, answering some regulatory questions, signing – and voila. After registration, the customer receives a card through delivery in 30 or 60 minutes. By photographing clients’ ID cards, the company collects between 80% to 90% of the necessary information with just one shot, so it doesn’t have to ask the user for those details. “We all want to do good KYC process, but there are parts of the regulation that were made 20 or 30 years ago that no longer make any sense, and that is a bit frustrating because it makes you take steps so that the user does things that generate friction and that sometimes they do not have any benefit,” says Ortega.