Client onboarding is the term most banks use for the process where they collect key information, and introduce new customers to their bank's products, services and solutions. Most banks also have training to help clients get to grips with the various systems.

In the most part, banks generally aim to make this process as smooth, seamless and secure as possible.

During the onboarding process, you should expect processes like opening the account, verifying your identity, collecting necessary data, device registration for digital banking and authentication set up – we’ll go into a little bit more detail on these later.

That said, processes and experiences can vary depending on which bank you’re joining.

For example, the process for some banks might be slightly quicker and could be completed online with little to no human interaction. On the other hand, when onboarding with larger banks, you may be required to provide more information, but there is often a dedicated representative walking you through the process.

As you begin your onboarding journey, you may be asked upfront to provide basic documentation validating your business upfront.

This could include proof of identity and address, business verification/license and proof of Companies House registration. You may have already provided this while you were scoping out potential partners, but it’s handy to have these to hand in case you need them again.

Banks should have secure processes, including a robust KYC process ("Know your client"). This typically consists of five steps:

1. Customer identification program (CIP): This involves collecting customer information, such as name, address, date of birth, and government-issued ID.
2. Customer due diligence: This step focuses on verifying the accuracy of the collected information, often using documents like passports, utility bills, and bank statements.
3. Enhanced due diligence: This is a more in-depth review for clients that work in higher risk industries or geographies, including those from countries with weak anti-money laundering enforcement.
4. Continuous monitoring: This involves monitoring customer accounts and transactions for suspicious activity and potential risks.
5. Reporting and compliance: If any questionable activity is uncovered during the KYC procedures, the financial institute will need to file these with the FCA.

Banks perform this to protect both themselves and customers from misuse of the financial system. It also gives the bank an opportunity to understand their clients and their financial activities to help identify and mitigate risks and fraud.

If you are working with a dedicated onboarding representative, which some banks offer, they may ask questions such as what your business does, how many employees you have, your key business goals, any concerns or challenges you’re encountering and expected growth.

Communication and speed

Clear communication and timeliness are the foundations for a user-friendly onboarding journey. You shouldn’t experience confusion or uncertainty around what happens next or perhaps what details or documentation you need to provide next. You also shouldn’t be waiting around to be informed of the next step either; the bank should be proactive and keen to get onboarding completed. If you’re feeling like you’re not getting the clarity you need, reach out to the onboarding team for updates.

Specialist, individual support

Some onboarding processes may seem lengthy, but usually this is important to capture the right information from you and your business. To alleviate this, some financial institutions will assign a dedicated onboarding specialist to you, to assist in the process. This specialist may have sector expertise and will try to get to know you and your business and its needs. With a one-on-one relationship with the bank you should hopefully feel supported through the onboarding journey, creating an efficient process.

Post-onboarding support

The onboarding process doesn’t end once you’ve become a client. You may have further questions, particularly around the product set you have just integrated, and so, post-onboarding support provided by the bank should be available to help you in the short term. As a business banking customer, you may have a dedicated relationship manager anyway, but it’s worth asking whether the high touch service continues beyond the official onboarding process.

Clear roles and responsibilities

Although this might be the first time you’re opening a business bank account, your provider has done this thousands of times before. That means they should be very clear in defining the tasks you need to complete, and what sits with the bank itself. If at any stage you are unsure or feel inclined to ask, the onboarding team should respond quickly and clearly.

Onboarding may not necessarily be quick

Each business is slightly different and usually onboarding teams accommodate for this. Some banks will provide an estimated turnaround time for the full onboarding process. While this is helpful, promising a turnaround time well ahead of getting to know your business may be a false promise. Banks might be able to give a better indication of the onboarding timings once they have fully got to know your business.

Strong and regular communication

As you’re going through the onboarding process, you should feel like a valued customer receiving a personalised service from your chosen bank. At a basic level, that should mean the bank is responsive to your questions and fully engaged with the goal of making your onboarding as efficient and seamless as possible.

Personalisation

Ideally, banks shouldn’t be taking a one-size-fits-all approach when it comes to onboarding. Your bank should have an eye on the future of your business too and how to continually to provide a product set that best suits your business’ needs as they evolve. Look for customised solutions, not generic offerings.

Human touch

Sometimes the quickest way to solve an issue or have a question answered is still by picking up a phone and going directly to a customer service representative. Automated replies or chatbots can often feel like a hurdle rather than an efficient way to solve an issue, particularly if it is a nuanced problem. Banking providers should give you the option of speaking to a human if that’s what you prefer.

Once onboarding is complete, your bank should inform you of when you will have full access to the products and accounts that you have set up.

However, post-onboarding is about more than product access. A committed banking partner will continue to prove the level of hands-on, specialist service throughout.

The onboarding process is sometimes described as the last hurdle. But in reality, it shouldn’t be seen as a hurdle at all. The process should be smooth, with no surprises, and completed at a pace which suits you best. Any questions that you may have are likely to be completely valid, so be inquisitive throughout the process. Your chosen banking provider is there to provide a comprehensive service and act as a partner to your business to help enable your exciting growth journey ahead.