Point of no return: Why digital Business onboarding is here to stay

The increased complexity of onboarding

Change is nothing new in business onboarding. The rapid introduction of new and enhanced processes around KYC, KYB, CDD, AML and other regulations have kept B2B companies busy for years. Companies are left scrambling to meet new demands, as they are forced to keep track of and adapt to the ever changing regulatory landscape.

What was once a fairly simple, manual process has grown in complexity over the years. The formerly straightforward task of onboarding a new or existing business customer is now time consuming and filled with details you don’t dare neglect, let alone ignore.

And you can be sure of one thing, the Financial Authorities around Europe are tougher than ever, so if you want to stay out of trouble and avoid being fined, you'd better shape up. 

Anti money laundering in the spotlight

Combating money laundering is not a new invention. The Finance Action Task Force (FAFT) was founded back in the late eighties, to handle the growing problem of money laundering and to put the issue under a spotlight. The intergovernmental organisation set standards and promotes implementation on legal and regulatory measures to combat money laundering and terrorist financing. The organisation is constantly identifying methods for tightening and removing loopholes, that otherwise might attract shady business.

Know your business customer, how hard can it be?

To combat money laundering, companies must perform risk assessments, implement policies and controls, and ensure that these are complied with. When onboarding a new or existing business customer, a proper due diligence process is required, where everything from identity verification of board members to financial monitoring of the company can and will be scrutinised. It seldom stops there. Even company staff are in many cases subject to background screening to fulfill AML and KYC obligations.

It goes without saying that this is a lot of work, and a lot of information to process, especially for larger corporations. And there is no going back. Luckily there are solutions and methods out there that automates and digitalises it all. 

Effective processes are key

Processes for onboarding a business online are a bit more complex and challenging than regular B2C onboarding, but the basics are the same and there are many similarities to learn from and take advantage of. Automated business onboarding is, for many, a new way of working. There are challenges for early adopters, those breaking new grounds and for late bloomers, but market expectations are clear. As a business, you need to keep up and develop processes for digital onboarding, where effectiveness is key. The majority of your business customers expect a smooth, fast, flawless and secure online onboarding experience.

Willingness to invest is fundamental

Research shows that there is a willingness among companies to spend money and invest in digital solutions that can handle business onboarding. Research also shows that it's wise to make these investments sooner rather than later. Not only will this save huge amounts of time and money, but you will most likely keep your business customers and your relationships will thrive. If you neglect to go digital, your business customers might take their business elsewhere. This is unfortunately the harsh truth. 

Companies offering a convenient and streamlined digital user experience, often win over traditional companies who insist on offering a tedious and labour-intense manual process. Loyalty is a fresh product, not to be tampered with.

Defining a new strategy for digital onboarding is not just an option, it’s a necessity. The pattern is clear, regardless of which country you're in. Whether you like it not, you are past the point of no return.