Client on-boarding might mean something different, depending on the industry and the type of on-boarding one refers to. In many cases, an on-boarding process includes a credit check. Although this might look like a small part of the whole process, it is an integral part, both from the company and the client point of view.
To illustrate our point with an example, we will use a case of an on-boarding process when a credit assessment needs to take place. We will call it a “credit on-boarding process”.
Let’s assume that a client visits a specific market place, a vehicle leasing platform for example. They go through the available cars, do their research, and decide on a specific car they are interested to buy. After signing up and registering their personal details, and in order to finalise the process, the client comes to the stage where they need to upload certain documents that the vehicle leasing company requires as part of their due diligence process.
This part is essential for the company to validate and assess the credit worthiness of the client. Traditionally, to perform credit assessments like the one we described, there is a complex offline underwriting process involved. All the documents uploaded by the client need to be downloaded, printed and evaluated based on the company’s current credit policies, as part of a process that will involve one or more human resources. These documents are mostly containing financial information, and are bank statements, payslips and other tax related documents.
The process described above is not promoting a digital transformation. On the contrary, it makes it very time consuming and heavy on a company’s resources to come to a decision on whether to approve the client.
It is widely accepted that such manual interference in an otherwise digital world:
But there is a very simpe and effective solution!
Using open banking data, the “credit on-boarding process” we referred to earlier can be completely automated. Using transactional data and data science, a thorough and accurate credit assessment can be performed, that will reveal the historical and current income for an applicant, as well as its sources.
The result will not only improve the quality of the applicant’s analysis but also offer a smooth and delicate journey that converts applicants into customers.