HOW open banking can automate onboarding to convert customers

A new approach to customer onboarding

Accuracy

Consistent data sets received from all banking institutions

CX

Pre-populated onboarding and application forms enhancing the customer experience

Security

Safety and security of customer data is enhanced through the CDR

fast digital onboarding is what customers want – CDR is how businesses make it happen

 

Gone are the days where an application for a loan or credit card required a trip to the bank, an interview with your banker and a signature with a real pen. 

Online applications and onboarding for banking services and other products including loans and credit cards have changed the way that Australians access these products. 

However, despite the online innovation the slow process of manual onboarding with customers and employees entering information line by line, and repeating the same information is a huge deterrent for people wanting to make the switch to a different product - even when it will save them money. 

For banks and other financial service providers, manual onboarding also carries the burden of verification and ensuring the information provided by consumers is accurate. 

The introduction of Open Banking to Australian banking is rapidly changing this.

The Consumer Data Right (otherwise known as Open Banking) allows customers to grant permission to third parties to view their data safely and securely. The major four banks are obliged to share data with Accredited Data Recipients (ADR) upon customer request, with all other banks, credit unions and mutuals to follow from July 2021. 

Now, instead of an onerous manual process, the customer will be able to request Data Holders (like the major banks) share their data directly with a new provider (an ADR). 

By instantly having access to customer’s product, account and transaction data, the ADR will be able to automatically match and prefill much - if not all - of an application form.

This transforms the process for customers, empowering them to easily switch and access new and better products and results in higher quality data for the ADR.

Meet Shannon

 

Shannon is looking for a personal loan and wants the fastest application and approval. Wombat Bank is a Data Recipient and receives Shannon’s customer, product, account, and transactional details. With this information, 68% of the customer onboarding details can be prefilled, estimated to cut 90% of time off her onboarding process. Shannon feels less stressed about the loan process as it was done easily, paper-free, and quickly.

Icon lady with laptop

 

 

At first glance a potential customer like Shannon might seem like a straight-forward applicant for any lender. But by using manual processes, even the most automated application processes for loans would have taken significant time for Shannon to fill out and for an employee to approve. A simple mistake may set the process back a full day.

By giving permission to share her data, the essential information lenders need to approve a loan automatically flows through the system to the ADR, and, importantly, is already accurate with no chance of a manual error.

This means the lender can verify spending data, transaction history, and any other information they need, along with a credit score to quickly approve a loan. 

It quickly and accurately gives the lender the picture they need of who Shannon is - no meeting with a banker required. Having an in-depth account of Shannon’s financial data also means lenders are able to easily offer personalised rates for her, making sure she gets the best fit product for her purpose.

Before CDR Shannon’s application and approval process would be slow and manual, and her only option would be a one-size-fits-all personal loan. Yet now, her options and ability to find a lender and product to suit her without taking days are wide open.

Lenders and companies who are open to a new Open Banking led approach are going to find customers are attracted by their fast, easy to use services, while they are able to better tailor products to consumers according to their risk appetites. 

 

Getting Started in the CDR

Whatever your use case or industry, Adatree's turnkey CDR solutions remove barriers to organisations seeking to participate in the CDR ecosystem through our Data Recipient platform.

Organisations can focus on developing their customer propositions and use cases, while Adatree ensures they conform to the constantly evolving and challenging technical standards.

Interested in other ways CDR can be applied? 

Check out our Use Case Report with 25 ways the Consumer Data Right can create smoother and smarter customer experiences


Learn More

 

ADATREE’S TURNKEY SOLUTIONS TO ACCELERATE OPEN BANKING

 

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