Think of digital customer onboarding like you would a budding relationship. If things work out, it’ll last forever. If not, you might face an ugly breakup and need to start over. You’re no expert at this stuff. You’re doing your homework and making up the rules as you go, but you don’t have much time to make up your mind. It’s a competitive landscape out there. You just want to skip to the stability.
What is Digital Customer Onboarding?
Digital customer onboarding is when you sign up a customer for the first time. You have no prior history of this individual other than what you’ve been able to learn using credit bureau reports, social media, terrorist watchlists and the DMV. You’re hoping that they are who they say they are and that their intentions are honorable.
The Ins and Outs of Digital Customer Onboarding
An onboarding stack involves integrating a diverse set of identity verification and KYC data vendors. It is essential to extract uncorrelated features from these different data sources and build accurate models that balance fraud risk with top-line growth. These models must be monitored and updated continuously to keep pace with shifting behaviors and demographics.
Digital customer onboarding services specialize in the task of finding good customers and keeping out the bad. They have access to large data sets because of the broad spectrum of industries they serve. They are able to leverage these data sets to build complex models spanning a comprehensive feature space and to maintain these models as fraud patterns drift. Detecting synthetic and third-party fraud patterns is their core business, not a secondary cost center. Technologies like Instnt Accept™, Instnt's fully managed acceptance platform, help businesses combat fraud by providing the first line of security defense.
Digital Customer Onboarding and Fraud Loss Indemnification
Fraud loss indemnification takes outsourcing a step further.
To reduce fraud and grow the business at the same time, an onboarding service should:
- Control the entire fraud detection stack
- Chose high-value data vendors
- Build the models and rules that turn raw data into high-fidelity decisions.
In this case, the fraud risk can be underwritten and moved off a company’s balance sheet. This eases capital requirements standards demanded by regulations like Dodd-Frank and Basel III and re-focuses the business towards core activities, be that banking, e-commerce, or digital match-making.
How Instnt Revolutionizes Digital Customer Onboarding
With Instnt, your business can digitally verify, accept, and onboard new customers with ease. Through its fully-integrated and automated AI technology, Instnt Accept™ ensures a frictionless experience for your customers as well as reliable fraud prevention for you.
Maybe a good onboarding partner can’t fix a broken heart but wouldn’t it be great to have coverage in case of a breakup? For more on improving your digital customer onboarding, check out 7 Reasons Why Your Company Needs Digital Customer Onboarding.