A few years ago, many believed that client onboarding software was something that was only necessary for big corporations. However, since the beginning of the pandemic, businesses of all sizes have been adopting this technology as a means of enhancing the customer experience and improving business security in a remote society. Now, once these businesses have successfully turned leads into clients, they can ensure that their interactions are legitimate and profitable. Using tools such as credit score services and digital bank statement retrieval, businesses can accurately perform affordability checks during onboarding as a part of their financial risk management strategy.

Affordability checks for client onboarding

Affordability assessments are used to evaluate a client’s ability to make payments over the length of a contract. It is the responsibility of businesses to ensure that each of their new clients will be able to afford the monthly fees to prevent failed or delayed payments. However, it is often necessary for businesses to not only look at affordability but sustainability in order to safeguard the business against any financial risk for the duration of the client’s contract. This evaluation can take place in several ways. The personal details provided by the client at the time of onboarding can be used to quickly retrieve authentic client information such as credit records and bank statements. All of this takes place in real-time.

Ensuring business security with digital solutions

As mentioned already, accurate affordability checks require tools such as credit screening and authentic bank statements. Using client credit scores, businesses can determine whether an individual has been reliable when paying their other accounts. These scores are quickly and accurately determined using bureau data to fast-track the onboarding process without sabotaging its effectiveness. This will allow businesses to make on-the-spot decisions about the potential client’s account. Thereby improving the customer experience by removing unnecessary delays. Businesses may also choose to observe the incoming and outgoing payments recorded on the client’s bank statements each month. These bank statements are issued directly from the client’s bank, eliminating the risk of forgeries. They can then be analysed to determine the source of their funds and whether their monthly income – taking into consideration their other debit orders – is sufficient for additional monthly payments. It is important to note that these processes do not guarantee continuous payments for the unforeseeable future; however, they will minimise the risk of financial loss and offer insight into the individuals that a business onboards.

KYC for assured monthly payments

It is imperative that businesses are compliant with Know Your Customer standards in order to effectively combat fraud, money laundering, failed payments, and more. KYC practices are especially important in the modern remote world, where individuals can easily hide behind fake identities or forge documents. Automating the client onboarding process and streamlining it using software will assist businesses in improving their financial risk management strategies. Implementing the appropriate software, businesses can effectively analyse client information for secure onboarding.

Comprehensive payment solutions

Affordability checks are only a fraction of what businesses should be doing to remain well-protected from financial risk. Identity verification software can be integrated into your systems to authenticate client information off the bat. Once their identities have been verified, it would be beneficial to double-check their banking information with bank account verification services. Pairing these verification solutions with DebiCheck, Strike Date Optimisation, and other payment collection software, businesses can decrease their risk of debit order disputes and increase their collection success rates. These solutions provide a comprehensive solution to financial management within a business. From the initiation of client relationships to the moment client accounts have been debited, they can be sure that their revenue streams will be protected.

Are you onboarding the right clients?