Digital Onboarding Raises $58 Million to Help Banks Engage Customers

Digital Onboarding has secured a $58 million growth investment from equity firm Volition Capital to expand its digital engagement platform for banks and credit unions.

This investment comes at a time when financial institutions are increasingly seeking digital solutions to enhance customer engagement and drive product adoption, the software-as-a-service (SaaS) company said in a Thursday (Jan. 18) press release.

Many customers have negative digital experiences in banking, with poorly integrated customer service tools being a major source of frustration, according to the release. As a result, many new checking accounts are closed within the first year.

In response to this challenge, Digital Onboarding offers a digital engagement platform specifically designed for banks and credit unions, the release said.

Traditional onboarding processes, such as paper welcome kits and generic mailers, often create enrollment friction and hinder customers from adopting important account-related services, according to the release.

Digital Onboarding’s platform addresses this issue by enabling financial institutions to engage with customers through targeted communication and action-oriented microsites, ultimately driving account primacy, the release said.

The platform includes a library of campaigns and widgets that can easily be integrated into various digital channels, such as microsites, bank landing pages and third-party digital banking applications, per the release. By simplifying the onboarding process and making it more accessible, Digital Onboarding helps financial institutions improve customer retention and loyalty.

The $58 million growth investment from Volition Capital will support Digital Onboarding’s goals of accelerating its product roadmap, enhancing support for existing customers and raising awareness among potential prospects, according to the release.

The company plans to use the investment to expand its platform with additional features such as segmentation and profile management, marketing attribution, machine learning (ML) and embedded FinTech functionality, the release said.

Additionally, Digital Onboarding aims to nearly double its team’s headcount by the end of 2024, per the release.

In another recent effort to meet this challenge, Virtusa and Thought Machine teamed up in August to launch a platform that helps financial institutions onboard small and medium-sized businesses (SMBs).

This SME Customer Onboarding Platform provides financial institutions with digital onboarding that minimizes the need for physical paperwork.