Building the Perfect Onboarding: Needs and Solutions of a Fintech Signup Flow

Onboarding flows are crucial to obtain good conversion rates, offer a good user experience and help you reach your goals effortlessly. 

Building the perfect signup is not always evident — every onboarding experience has its particularities, depending on factors such as the type of product, the sector, the target audience, and much more. And if we’re talking about fintech registration processes, there are more needs that need to be taken into account.

5 common needs for the perfect fintech onboarding

Today, we’re elaborating on the perfect onboarding flow for a fintech company: the requirements that need to be fulfilled, common issues you may go through and the best solutions to tackle all of these.

Need #1 — User verification

Verifying users is a practice that should be carried out at all times, regardless of the characteristics of the signup flow. Adding verification flows to a registration form is easier than ever, and it is a common practice that doesn’t need to add friction to your flow.

Different verification methods can be applied depending on the type of sector, the type of product, the required level of security, etc. Specifically, email verification and phone verification are the most popular methods today. 

The solution: Verifying phone numbers via one-time passwords or magic links

While there are many different types of user verification systems, phone verification seems to be the most appropriate one for a fintech company, and it is in fact the most popular one. 

Phone verification can be executed with a one-time password — a unique code that is sent to the user’s phone number via SMS, and that confirms that the owner of the phone number is filling the registration form. 

This verification system can work as a standalone method for verification, or it can also be included in a multi-factor authentication system, with other verification methods working together.

• Passwordless system. If you want to get rid of passwords (another trustworthy and trendy practice), you can use phone verification as an authentication system and eliminate passwords forever. Sending one-time codes or magic links via SMS is a good solution both as a standalone practice, or in a multi-factor strategy. 
• Multi-factor auth system. If your fintech relies on password or other authentication methods, you can still use phone verification in a multi-factor authentication process. Keeping several layers of security never hurts if it can ensure extra security.
• User verification. Verifying the user’s identity via phone number is one the most secure and reliable systems there are. Since creating a SIM takes other verification systems at the same time, this method represents a quick and easy way to prove who your users really are.

A real-life example: Revolut’s onboarding flow triggered by phone verification

Revolut’s onboarding allows downloading the app after entering a valid phone number and verifying it. When the user gets the app, phone verification takes place again with a one-time password. If the user is installing the app in the same phone as the phone number, the one-time password will be automatically entered, which eliminates friction to a minimum point. 

Only after the phone verification takes place can the user continue to enter other personal data to open an account in Revolut.

Need #2 — Highest level of security

Managing user’s identities online is a hot topic nowadays, given the rising number of activities we carry out in the online world. Every registration process needs a trustworthy security system, but when we are talking finance, extra measures need to be implemented. 

The perfect onboarding flow needs to display the most sophisticated security measures, other than verifying user’s identity via email or SMS. The great news is some of this doesn’t need to interfere with your users’ experience, since they can take place behind the scene. 

One good example of these practices is analyzing IP addresses and applying security measures to the result of this analysis. 

Building a registration flow with your own security parameters ensures the perfect security parameters, since you can completely customize the logic of these conditions and reach the users your business needs.

• Top-notch security systems. Relying on the latest and hottest technologies to ensure security is particularly relevant when we’re talking about fintech companies. Extra measures like analyzing IP reliability can help you get rid of spam, fraudulent accounts and eliminate manual work.
• Customized security rules. Many times it’s not about reaching the best security system, but simply the perfect one for your system. Choosing personalized rules for your security net allows fully personalized systems that target specific issues and offer specific benefits.
• Frictionless security system. Systems like the one explained above don’t hurt the user experience, because they take place behind the scenes, without interference of any kind with the registration process.

The solution: Analyzing IP address and block 

Integrating your form with APIs like Onelogin Risk Score allows you to analyze the reliability of the IP address the submitter is using to fill the form. Thanks to the Flows editor, you can apply personalized rules and conditional logic, to set security limits and trigger actions accordingly. Among others, you could ban the submitter form submitting the form, add additional security measures (like multi-factor authentication systems), or directly allow form submission. 

Need #3 — Data enrichment and know-your-client practices

Fintech onboardings necessarily ask for a lot of personal data, not only to ensure the user’s identity, but also to guarantee communication with the user at all times, offer specific products, or closing financial transactions. In this context, obtaining data is mandatory, but it can be obtained through different means. 

The solution: Combining data obtention with know-your-client practices

Integrating data enrichment actions with KYC practices is a way of guaranteeing the veracity of the data entering, while you won’t be hurting the user experience. 

• Know-your-client practices. Most fintech companies need to apply KYC practices, not only for the registration process, but also to close certain deals. Uploading identity cards, passwords, or other documents is a common practice in this regard.
• Data verification. Implementing this kind of actions ensures that the data entered by the user is verified. While you may ask some questions with a registration form, having official documents to backup this information is encouraged.
• Data enrichment. Integrating your signup forms with data enrichment tools can add some extra information to your database. You can use these both to complement the information you have, or to verify the data at your disposal is trustworthy.

A real-life example: Coinmama’s verification with government-issued IDs

Coinmama is a cryptocurrency exchange platform that includes several types of verification in their registration flow. The first one is email verification and after this is completed, the user has to fill in personal information. This information has to be verified later on by uploading a valid Government-issued ID that backs up all the information submitted before. This reinforces security and ensures identity online is guaranteed. Plus, the user is informed about the need of uploading an official document at the beginning of the process, which reduces the risk of abandonment in the middle of the form.

Need #4 — Legal compliance

Legal compliance is mandatory in every type of form you may create, but it becomes more intricate in certain fields, like finance.

The solution: Customizable privacy options and terms and conditions

Using a form editor that allows customizable data persistence of your fields and easily allows you to add terms and conditions is compulsory.

• Easy-to-use editor. When it comes to legal terms and treatment of data, it is particularly important that you and your team members know how to edit each aspect of the form. That is why you can do so easily with a form editor.
• Customizable data persistence. Certain data are sensitive and don’t need to be stored in the editor database. That is why you can choose the data options of each field, to keep only what you need in its database and meet every security requirement. 

A real-life example: Legal terms and conditions of N26

Financial sites —like any other type— need to clearly display the Terms & Conditions and the Privacy Policy boxes. Depending on the type of product that is being purchased, other terms may need to be displayed too. In order to easily add them, using an understandable form editor is the best choice.

Need #5 — Flexibility to modify forms

Regarding the previous issue, it is important to count on a trustworthy system to apply changes in a fast and simple way, synchronized with your team. Updating GDPR conditions, changing the legal terms and conditions and letting the user know in an appropriate way is crucial to meet legal obligations at all times.

The solution: Form editor, shareable among team members

In order to avoid manual work (and human errors) in this regard, you can opt for a tool that allows work across teams, allows automating actions and applies changes in a centralized way. For instance, if the GDPR needs to be updated, you may want to let users know by automatically sending an email or by displaying a form when they log in, so they can accept them again. Regardless of the number of sites where your form is embedded, you should be able to apply these changes at once.

• Fully customized logic. Applying server-side logic right can help you improve user experience and make sure the legal terms are met without exception.
• Handy automations. By applying integrations, you can make sure your flow will be working properly. With well-configured logic, these automations can sophisticate your flow and eliminate manual work and therefore human errors.

How to build a high-performer fintech onboarding

Building an onboarding process for a fintech company is a delicate process. Knowing the issues you may encounter can help you create the perfect signup for your company and your users. In this case, applying different layers of security (user verification, phone verification, and other security methods), obtaining trustworthy data (know-your-client practices and data verification), and meeting the legal requirements at all times are some of the crucial aspects of the perfect onboarding flow for a fintech company. 

‍Try Arengu for free and start designing your onboarding today.