How to Open More Merchant Accounts in Less Time
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The document outlines strategies for merchant acquirers to improve their onboarding processes through automation, addressing the challenges faced over the past four years. Key focuses include the impact of new technology, increasing fraud, and the need for expedited merchant account setups. It recommends mapping onboarding processes, gathering feedback, and automating where possible to reduce onboarding time and errors.
How to Open More Merchant Accounts in Less Time
- 1. How to Open More Merchant Accounts in Less Time
- 2. We will send the recording (after the webinar)
- 3. Stick around for a demo
- 4. We help merchant acquirers open more accounts in less time with onboarding automation A little about us:
- 5. Some of Our Customers 5 / 29Agreement Express Onboarding Automation Software
- 6. Meet the Speakers 6/ 29Agreement Express Onboarding Automation Software
- 7. What We’ll Cover Today 7 / 29Agreement Express Onboarding Automation Software 1. How Merchant Acquiring has changed in the last four years 2. Why onboarding is the focus of Merchant Acquiring strategy today 3. The biggest growth obstacles 4. How to crush the obstacles and optimize the process to open more merchant accounts
- 8. When we first started down this road four years ago, onboarding was a distant priority for merchant acquirers…
- 9. Merchant Acquirers Were Up Against A Lot 9 / 29Agreement Express Onboarding Automation Software • Disrupted by new technology entrants like Square, Stripe, Intuit • Regulated to the teeth • Impacted by increase in fraud • Stretched by EMV migration preparation
- 10. They had bigger fish to fry
- 11. Merchant Acquirers were getting slammed So What Made Them Prioritize? 11 / 29Agreement Express Onboarding Automation Software 1. The Squares of the world started to eat their market share 2. Fraud was increasing and so were the manual checks 3. Backlog was building 4. And merchant quality was decreasing 5. Their businesses weren’t growing as fast as they needed to
- 12. Square: what made onboarding important again 12 / 29Agreement Express Onboarding Automation Software 1. Opened merchant accounts in 15 minutes, NOT 3-5 days 2. Began working with bigger and bigger merchants 3. Forced traditional merchant acquirers to rethink their customer experience And then…
- 13. Onboarding became a race
- 14. “80% of financial institutions have made onboarding automation their #1 priority – 3x more than any other initiative.” CEB Tower Group 14 / 29
- 15. But there’s a BIG mountain to climb
- 16. Most Common Onboarding Challenges 16 / 29Agreement Express Onboarding Automation Software 1. Paper-based or partially digital application collections 2. Sending forms back and forth to correct errors 3. Physically sending the application around for ink signatures 4. Backlogs in Underwriting’s work queues 5. Errors in application made by merchant or sales person 6. Manual verifications and checks for KYC and compliance 7. Sending applications to underwriter for final approval 8. Communicating final approval to the merchant 9. Zero visibility into bottlenecks throughout the entire process 10. No audit trail
- 17. 5. Errors in application made by merchant or sales person 17 / 29Agreement Express Onboarding Automation Software • The most under identified problem in an onboarding process • It’s commonly misunderstood when the onboarding process really starts • The onboarding process is usually longer than anticipated
- 18. 6. Manual verifications and checks for KYC and compliance 18 / 29Agreement Express Onboarding Automation Software • When number 5 is addressed the volume of applications increases BUT… • Now the bottleneck has moved from Sales to the Back Office • So the next step is to automate the KYC and Compliance process
- 19. Steps for Optimizing the Onboarding Process (How to catch up)
- 20. Here’s how you do that: 1. Gather feedback from sales, merchants, and underwriters 2. Follow an application through the entire process 3. Then, create a workflow diagram of that process 4. Explore the exceptions to “the happy path” (what kinds of variables does your business need to account for?) 5. Understand which client data is nice to have versus necessary 1. Map Your Onboarding Processes 20 / 29Agreement Express Onboarding Automation Software
- 21. Look for these things in the feedback you’ve gathered from your groups: 1. Double entry of data 2. Common errors that require revision 3. Errors in document package assembly 2. Identify Bottlenecks 21 / 29Agreement Express Onboarding Automation Software
- 22. 1. Digital forms and signatures 2. Data validation (I.E.: Dates or Syntax) 3. Data transposition 4. Document package assembly 5. Automatic TIN validation 6. ID verification 3. Automate What You Can 22 / 29Agreement Express Onboarding Automation Software
- 23. 1. Map your onboarding and underwriting process to identify bottle necks and create your definition of the “happy path” 2. Eliminate as many obstacles to the “happy path” by removing unnecessary complexities within your applications 3. Create a consistent, repeatable process you can audit 4. Automate manual checks where possible to increase underwriting efficiency Summary: how to open more merchant accounts 23 / 29Agreement Express Onboarding Automation Software
- 24. • Reduce merchant onboarding time by 70% • Reduce application errors to <5% • Automate underwriting The Impact of Onboarding Automation
- 25. Demo
- 26. Product Roadmap
- 27. 1. The Risk Scorecard 2. Additional Language Capability 3. Upgrades to the User Interface Product Roadmap – Highlights 27 / 29Agreement Express Onboarding Automation Software
- 28. We’re here to answer your questions!
Editor's Notes
- #15: And it’s not just Payments. Square, Wealthfront, Betterment, Zenefits, Oscar and countless others are combining to create a customer onboarding revolution in financial services.