Visa Consulting & Analytics conducted a comprehensive study to identify and benchmark global best practices in digital onboarding for small and micro businesses (SMBs). The aim was to understand what distinguishes the best digital onboarding services and how they contribute to customer satisfaction and business success.
Why SMB Digital Onboarding Matters
SMBs constitute a significant portion of the global economy, making up over 90% of businesses and accounting for more than half of private sector employment. Rapid digitalization in the sector has heightened expectations for seamless, digital-first customer experiences. The paper highlights the critical role digital onboarding plays in converting prospects into loyal customers and setting the tone for ongoing customer relationships.
Methodology
The study began with an extensive list of 65 SMB-specific service providers, narrowed down to 14 top performers based on customer feedback, business success, and public recognition. These included banks, neobanks, and fintech companies across various global regions. Visa analysts underwent the onboarding processes as prospective SMB customers, assessing the ease, efficiency, and integration of the services offered.
Key Findings
- Efficiency and Simplicity: The best digital onboarding experiences are noted for their quick and straightforward procedures that utilize digital verification and biometrics, maintaining consistency across platforms.
- Integration and Comprehensive Services: High-performing institutions offer integrated services that include business bank accounts, payment cards, and acquiring solutions, enhancing convenience for SMBs.
- Customer-Centric Features: Successful onboarding processes are characterized by engaging, easy-to-navigate interfaces that use auto-fill options and minimal repetitive data entry, aimed at reducing user fatigue and error.
- Opportunities for Differentiation: Despite high standards set by top institutions, significant opportunities remain for other providers to differentiate their offerings and excel in specific areas not fully addressed by current leaders.
Strategic Recommendations
The paper recommends that financial institutions (FIs) aiming to improve their SMB onboarding processes should:
- Align their onboarding strategies with broader business goals.
- Conduct detailed comparisons of their processes against industry benchmarks.
- Understand competitive offerings through firsthand experience.
- Identify and collaborate with technology vendors that can enhance digital capabilities.
- Facilitate cross-functional team discussions to innovate and implement improvements.
