Effective onboarding has become a critical business function, serving not just as the first touchpoint for customers and vendors but as a reflection of a company’s values and operational maturity.
While customers expect a fast and intuitive process, the reality behind the scenes is more complex and resource-intensive. From reducing costs to mitigating compliance risks, businesses that get onboarding right stand to gain from improved efficiency, lower fraud exposure, and stronger relationships.
LSEG, a global financial infrastructure and data provider, recently delved into how onboarding can elevate customer experiences, minimise costs and mitigate risks.
Security remains a cornerstone of any robust onboarding strategy. Whether a firm is operating in a tightly regulated market or engaging in low-risk commercial activity, the protection of sensitive data is paramount. A secure onboarding process not only builds trust with customers but also safeguards the business from downstream reputational and financial harm.
The need for vigilance has never been greater. In 2023 alone, it is estimated global payment fraud losses hit $48bn, with projections suggesting this figure will climb further in 2025, LSEG explained. The risks are evolving rapidly—from synthetic identity fraud and account takeovers to unauthorised transactions and Business Email Compromise (BEC). These threats pose challenges at every stage of onboarding, particularly when balancing fast service delivery with necessary checks.
To mitigate these risks while maintaining customer satisfaction, businesses are adopting several best practices. Real-time bank account verification is increasingly used to ensure customer or vendor details match financial accounts. Multi-factor authentication and behavioural analytics offer additional layers of security, helping identify trusted users while excluding bad actors. Sophisticated Know Your Customer (KYC) and Know Your Business (KYB) procedures, supported by real-time behavioural data, are critical for lifecycle risk management.
Artificial intelligence and machine learning are proving invaluable in modernising onboarding processes. These technologies enable companies to monitor transactions in real time, detect fraud faster, and scale security protocols more effectively.
LSEG Risk Intelligence is one such provider helping organisations onboard customers securely while accelerating identity and account verification. Their platform enables firms to meet compliance and security expectations without slowing down the onboarding journey.
The results of adopting these advanced tools speak for themselves. Companies that implement technologies like real-time verification and AI-powered analysis report lower abandonment rates, reduced operational costs, and faster onboarding across both customer and vendor channels.
Looking ahead, the onboarding experience will continue to evolve through AI and automation. These innovations will enable firms to process data more intelligently, communicate insights in real time, and reinforce trust with every interaction. By prioritising secure and seamless onboarding, businesses position themselves to thrive in a digital-first, fraud-prone world.
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