A key challenge for banks and credit unions is being able to deliver a positive customer experience across branch, phone and online/digital channels. Customers today want to choose how they interact with their financial institution and they expect the same level of access across all channels. Further, bank executives have a strong desire to grow revenues by delivering an enhanced omnichannel experience to their customers.

One common focus for all banks and credit unions is building a better digital account opening process. When customer onboarding is too complicated or takes too long, customers seek other solutions. Some bank customers abandon up to 90% of new account applications prior to completion.

Although financial services industry has made big strides in reinventing how they interact with customers, there are still bottlenecks that slow down the process such as paper interactions, legacy systems and industry regulations.

New customer onboarding continues to be one of the most important strategies for banks and credit unions as they both seek to improve engagement, share of the wallet and ultimately the value of a relationship.

Key Challenges

Below are eight common challenges that banks and credit unions face when it comes to digital interactions with customers. Each financial institution is unique in the way their customer engagement process flows; however, complexity caused by regulations and compliance is the common challenge that all financial enterprises face.

  1. Financial institutions have historically built their business around personal relationships and face-to-face interactions with their customers. Most financial institutions are focused on building relationships with their customers that they can grow and cultivate. A shift towards digital banking can make it difficult to build personal relationships with customers.
  2. Banks and credit unions are looking to increase geographic customer footprint without increasing the number of branches (i.e. utilize existing banker capacity to serve customers remotely).
  3. Applications for new accounts and other financial transactions are typically lengthy and complex. When a process takes too long or a customer does not understand what is being asked of them, they leave and go elsewhere which represents missed opportunity and revenue.
  4. Know Your Customer (KYC) and other industry regulations that are in place to prevent money laundering and fraudulent transactions require identity verification as well as a copy of a valid I.D. on file. Some institutions still require customers to come into a branch to verify identity and others are using online identity verification tools.
  5. For financial institutions that have established digital processes in place for new accounts and services, there will always be customers that do not pass standard identity verification and are required to come into a branch. This brings the digital experience to an abrupt halt and the inconvenience of being required to visit a branch casts a negative shadow on the customer relationship.
  6. Some account opening processes require that the customer submit supplemental information such as a previous bank statement or utility bill and this can be challenging in a digital environment without the right customer collaboration tools.
  7. Challenges arise when banks attempt to marry antiquated account opening procedures with market demand for digital experiences. For example, a customer service representative initiating an account opening application over the phone and then emailing the form to the customer to print out, sign, scan and return by email or physical mail.
  8. In an attempt to better use resources at the branch level, some banks and credit unions have made investments in video conferencing equipment and software for new customer account openings and transactions (customers use equipment in the branch to interact with remote call centers). This process still requires a customer to visit a branch and therefore does not provide customers with omnichannel access.

“Each financial institution is unique in the way their customer engagement process flows; however, complexity caused by regulations and compliance is the common challenge that all financial enterprises face.”

Current Workflow Considerations

When it comes to digital customer interactions, there is a broad spectrum of transformation that is occurring across the industry today. Some financial institutions still require wet signatures and others have made the digital leap and are on their second or third version of their digital customer engagement process.

All regulations (old and new) are subject to interpretation by financial institutions which explains the wide variety of business practices that we see in the financial services industry. When it comes to antiquated business practices, some financial institutions do not have the resources to implement broad sweeping procedural changes without the help of external partners.

Recommendations for Building a Successful Digital Workflow

Because of the history of building personal relationships in financial services and the complexity associated with becoming a new banking or credit union customer, our recommendation is to provide customers with the convenience of digital access paired with human assistance.

It could be that your institution has always had personal relationships with customers and you wish to keep it that way. Or it could be that your customers are fairly independent and wish to conduct business online on their own and only need help when they have questions.

While some workflow can be completely digitized, complex processes will always benefit from human interaction. We have the benefit of knowing now that customers significantly drop off when asked to complete complex, digital applications and forms without assistance.

“Our recommendation is to provide customers with the convenience of digital access paired with human assistance.”

Without the right tools, providing human assistance during a digital process can be challenging. Most of us have seen or experienced chat assistance on websites which can be very helpful. Instead of chatting in a small box off to the side, imagine the experience of entering into a virtual conference room (with video and chat capabilities) and being able to see what the customer service representative sees on their screen, being able to fill out a form with the help of the representative, upload a photo, I.D. or document and electronically sign forms all while inside the virtual conference room.

The goal is to create a fulfilling digital experience for customers and this enhanced level of service is what is required for complex, digital transactions. Because you will be offering a customer centric approach, you will experience higher than average digital completion rates and as a result, your revenue will grow.

When it comes to digital transactions and files, most forward thinking financial services executives agree that digital is more efficient than paper and the industry as a whole has been working towards finding a way to solve for how to get customers over the digital finish line.

After working through many financial service use cases, we have the knowledge and best practices to help your organization implement the perfect blend between digital self-service and human assistance. With this first-hand knowledge, Liveoak has built a cloud-based platform that will enable you to interact with your customers during your digital workflows. Our goal is provide you with the right tools that help your customers get over the finish line.

How does Liveoak’s Platform improve digital outcomes?

  • Meet face-to-face with your customers through Liveoak’s video conferencing technology. With Liveoak, you can conduct face-to-face banking with your customers without them coming in to the bank.
  • Provide guided, customer assistance Walk your customers through the account application process with Liveoak’s real-time collaboration tools. Fill in applications together in real-time and answer questions along the way.
  • Share your screen with your customer as if you were sitting together at your desk or in a conference room. Allow your customer to see what you are seeing on your screen. Review important information, web properties and data with your customer.
  • Verity your customer’s identity While inside the Liveoak conference session, ask your customer knowledge based authentication questions, capture a snapshot of your customer through Liveoak’s selfie feature and ask them to upload a copy of their I.D. through Liveoak’s mobile application. The selfie photo of your customer and their I.D. will be automatically attached to the customer file.
  • Gather supplemental files during your Liveoak conference session. If you require supplemental documentation as part of your customer onboarding process such as a utility bill or former bank statement, your customer can upload and the documents will be attached to the customer file.
  • Sign documents while inside a conference session. No more sending electronic signature envelopes to your customer’s inbox and waiting for them to be signed. DocuSign is integrated into the Liveoak platform and when a signature is required, your customer will sign the forms directly inside the Liveoak session without a break in communication.
  • Upload a signature image when a wet signature is required. A photo of the customer’s signature will be attached to the customer file. This is an accepted practice when a wet signature is needed during a digital (remote) process.
  • Record all or a portion of your video conference if your process requires it. The recording will be attached to the customer file.
  • Capture the conference session data All of the conference data will be stored in the Liveoak conference audit file. 100% of the conference activity is packaged together, including video, audio, text chat, attachments, uploads, images and a record of all keystrokes.
  • Integrate all of your Liveoak conference data (the audit trail), attachments, signatures and recordings directly with your CRM or database. Liveoak easily integrates with third party providers and legacy systems.

Specific Interactions Inside the Enterprise

There are a wide range of business functions represented from tech to business inside the enterprise. Most organizations have interdepartmental teams that are tasked with finding solutions. The process starts with the business use case and then moves to enterprise technology teams to vet internal and external solutions.

Functions Impacted

Using Liveoak will allow for remote customer interactions which will substantially decrease customer interaction time when compared to traditional in-branch engagement from both the customer and representative perspective. Using Liveoak creates several different authentication points and we believe the sum of the combined parts exceeds current authentication practices.

The Impact of Implementing Liveoak

Increase revenue, profitability, productivity, customer satisfaction and decrease expenses

  • Reduce time to close – Applications/Forms/Agreements can be completed by the customer on the first call avoiding repetitive interactions utilizing in branch meetings + fax/scan/email/mail.
  • Build personal relationships – Relationships need to be nurtured and it is hard to do in a strictly digital environment. With the ability to conference, collaborate and complete work with your customers, your relationships will continue to grow.
  • Focus on your customer’s experience – Providing personal assistance to your customer during their digital interaction will help make a great first impression and set your relationship up for future success.

Success Metrics: Improving Accuracy, Reducing NIGO

By using Liveoak’s platform, our customers have experienced an 80% reduction in Not in Good Order (NIGO) status on their new customer account paperwork due to missing pages, signatures, and other issues. Further, our customers see a 99% improvement for the most common causes of NIGO.

  • Mitigation of impersonation fraud Recreate the experience of a face-to-face meeting and capture images and identity data.
  • Reduce NIGO* (Not in Good Order) rates  – Live collaboration will eliminate the back and forth of information gathering with the ability to check for accuracy while engaged with customers.
  • Enhance audit trail – Record and archive the data entered by conference participants.
  • Increase close ratios – Sales & customer service representatives can spend more time performing their role and less time on paperwork via elimination of inefficient workflow.
  • Enhanced reputation for innovation  – Add a new layer of communication to your customer’s digital journey.
  • Enhanced customer service – Omnichannel communication gives convenient choices to customers and allows for interactions on their own terms. This type of communication is key for the millennial customer.

*NIGO defines applications and forms that are incorrect, illegible and/or incomplete. Often times, applications that fall into this category are returned to representatives/customers for completion and therefore delay the customer process and ultimately revenue.

Success Metrics – Closing new business faster

Including Liveoak’s customer collaboration capabilities into your digital workflow will yield a decreased time to close by over 60%.

Use Liveoak to create a remote, live customer interaction. We know from experience that complex paperwork, transactions and remote customer onboarding requires professional assistance. Create a new “hybrid” channel combining human interaction with a remote/digital experience.

Next steps

Contact our team with questions or to schedule a conversation and/or a live demo.

About Liveoak Technologies

The Liveoak cloud platform seamlessly integrates best-in-class video conferencing, screen-sharing and data/ID capture with forms collaboration and e-signature capabilities that let your teams deliver white-glove service to your customers. We help enterprises close more business, eliminate nearly all “not in good order” paperwork and turn customers into passionate brand advocates.

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