Straight-Through Processing (STP) is a technology-driven method that enables financial services organisations to optimise customer onboarding and account opening processes. By automating workflows from initiation to completion, STP minimises manual intervention, leading to reduced errors, increased efficiency, and improved customer satisfaction.
The primary advantage of STP in for customer onboarding is its ability to streamline these processes. By automating tasks such as data entry, identity verification (ID&V), and document validation, STP enables financial service providers to offer faster account opening and seamless onboarding experiences. As a result, customers can quickly access their accounts and begin utilising financial services, leading to increased customer satisfaction and loyalty.
One example of STP in customer onboarding is using APIs to automate form completion. The customer simply fills in a few key fields, and in the background, APIs can call data from dozens of other sources to submit to the provider, supplementing the application with critical information required during the onboarding and decisioning process. As this happens in the background automatically, the user experiences a much shorter application process (i.e. fewer form fields) and a faster decision on the application, where customer due diligence and KYC checks can run instantaneously upon submission.
Another key benefit of Straight-Through Processing in customer onboarding and account opening is the reduction of operational costs. Automated processes require fewer resources, resulting in cost savings for financial service providers. Moreover, the efficiency gains from STP can lead to increased customer acquisition, as customers are more likely to choose providers that offer convenient and hassle-free account opening experiences.
In summary, Straight-Through Processing is a valuable tool for financial service providers seeking to improve their customer onboarding and account opening procedures. By adopting STP, organisations can enhance their competitive advantage, create cost efficiencies, and deliver an exceptional customer experience.