In today’s fast-moving world of fintech, where technology and user experience are top priorities, making the Know Your Business (KYB) and user onboarding processes smooth is a must. KYB, or Know Your Business, is a vital check that helps fintech companies confirm the legitimacy of their corporate customers. But it’s not just about following rules; it’s also about making sure that users find the journey as easy as possible.
The very essence of fintech is rooted in its ability to simplify complex financial processes, making them accessible to a broad user base. While these platforms offer a wide array of services, from digital payments and investment solutions to lending and insurance, their effectiveness often hinges on the user’s ability to smoothly navigate the onboarding process. This is where the concept of KYB comes into play, as a thorough understanding of the business entities using these fintech services is not only a regulatory requirement but also a fundamental component of risk management and fraud prevention.
In this article, we’ll look at seven essential tips to make KYB and user onboarding processes better from a user’s perspective. The goal is to create a more user-friendly experience for business users. We want to help them trust the platform, stay loyal, and have a great experience while making sure all the necessary rules are followed.
1. Simple and intuitive design
The design of your KYB and user onboarding process is the first point of contact with users, and first impressions matter. A clean and intuitive design is paramount. When users land on your platform, they should be greeted with an interface that is not only visually appealing but also user-friendly. Clear instructions, straightforward navigation, and an absence of unnecessary clutter are fundamental. Overly complex designs or convoluted steps can confuse and frustrate users, potentially leading to drop-offs. An intuitive design ensures users can smoothly progress through the onboarding process, making the experience less daunting and more enjoyable.
Revolut, a fintech app, employs a straightforward onboarding process with a clean and modern design. Users are guided through the KYB steps with minimal effort, enhancing the overall experience.
2. Progress tracking
Users appreciate transparency and a sense of accomplishment as they move through the KYB and onboarding process. Implementing progress tracking mechanisms, such as a progress bar or completion percentages, provides users with a clear visual representation of where they stand in the onboarding journey. This not only helps them understand how far they’ve come but also what remains to be completed. Such progress tracking not only aids in managing user expectations but also reduces frustration, as users can see the endpoint in sight.
Robinhood, a stock trading app, shows users a progress bar during KYB and onboarding, indicating the completion status. It gives users a sense of accomplishment as they move through the steps.
3. Clear and concise information gathering
KYB requirements demand the collection of substantial data from users, but it’s imperative not to overwhelm them. Breaking down the information gathering into smaller, manageable steps is a key strategy. Furthermore, provide concise explanations for each data point you request. Users should easily grasp the purpose and importance of the information they are providing. By doing so, you empower users to make informed decisions and understand why specific data is being requested. This, in turn, increases their confidence in your platform.
PayPal, a digital payments platform, asks for information incrementally during the KYB process. They provide short explanations for each piece of information required, making it easy for users to follow along.
4. Mobile optimisation
The widespread use of smartphones and tablets for accessing fintech services underscores the importance of mobile optimization. Your KYB and onboarding process must be seamlessly responsive to various screen sizes and device types. When users access your platform on a mobile device, it should adapt seamlessly to their screens, ensuring a hassle-free experience. Mobile optimization not only expands accessibility but also caters to the modern user’s preference for on-the-go solutions.
Square’s Cash App offers a user-friendly mobile experience for KYB and onboarding. The interface adapts well to various screen sizes, ensuring a smooth journey for users on mobile devices.
5. Personalised guidance and support
In any KYB and onboarding process, it’s common for users to have questions, face challenges, or require assistance. Providing personalized guidance and support is a valuable feature. Chatbots, readily available customer support channels, or even AI-driven assistance can address user concerns promptly. The availability of this support system reassures users that they have someone to turn to if they encounter issues. As a result, it not only prevents drop-offs but also enhances overall user satisfaction.
Wise, a money transfer service, provides users with access to live chat support throughout the KYB process. Users can ask questions and receive real-time assistance, ensuring a smoother journey.
6. Error handling and feedback
Errors and omissions are almost inevitable in the KYB and onboarding process. It’s crucial to handle these situations with care. Your system should provide clear and user-friendly error messages when users make mistakes or omit required information. Generic error messages are often unhelpful and frustrating. Instead, offer specific guidance on what went wrong and, most importantly, how to rectify it. This proactive approach to error handling empowers users to quickly identify and resolve issues, reducing frustration and expediting the process.
Stripe, a payment processing platform, provides detailed error messages that pinpoint the exact issue in the KYB process. Users receive specific guidance on what information needs correction or completion.
7. Document upload simplification
KYB often involves the submission of various documents, such as business licenses, tax records, or identity documents. This step can be particularly daunting, but simplification is key. Allow users to take photos or scans of these documents directly from their mobile devices, reducing the need for external devices like scanners or printers. Additionally, provide clear instructions regarding acceptable formats, file sizes, and naming conventions for uploaded documents. Simplifying the document upload process minimizes technical hurdles and streamlines the overall KYB process, making it a more efficient and less intimidating experience for users.
Coinbase, a cryptocurrency exchange, offers a user-friendly document upload process. Users can easily take pictures of their IDs or documents using their smartphone cameras, streamlining the KYB process.
Conclusion
Streamlining KYB and user onboarding processes for fintech services is not just about regulatory compliance; it’s also about delivering an exceptional user experience. By prioritising simplicity, progress tracking, clear information gathering, mobile optimization, and personalised support, fintech companies can create a smooth and user-friendly journey for their customers. In doing so, they not only ensure regulatory compliance but also foster trust, loyalty, and satisfaction among their user base, contributing to the overall success of their fintech ventures.
Would you like to explore more?
Check out how DeepInspire UX experts worked their magic in enhancing the Know Your Business and Compliance process for an institutional-grade trading platform: Case Study – Custom KYB Solution.
We’ve designed a user-friendly custom KYB solution that’s easy to navigate, improving the experience for both users and compliance officers.
