Teracloud Boosts Fintech Client Onboarding with Cloud and AI

The financial technology (Fintech) landscape is fiercely competitive, with new players constantly emerging. In this environment, where speed and efficiency reign supreme, attracting and retaining customers requires a frictionless onboarding experience. 

At Teracloud, we recently partnered with a prominent fintech company that specializes in crafting personalized investment plans for individuals of all financial backgrounds.  

Our client's primary objective was to streamline their onboarding process. They aimed to expedite the delivery of personalized investment recommendations. With that done, they’d empower their clients to embark on journeys toward financial security at an accelerated pace.

Problem

The client's current onboarding process was mired in inefficiency, hindering both customer acquisition and satisfaction. It relied heavily on manual data collection through lengthy, cumbersome forms. This approach presented several challenges. Strict regulations and internal compliance rules required meticulous data gathering, which then led advisors to spend a significant amount of time – up to two days per client – to compile a complete picture. This not only slowed down the process considerably but also limited the company's capacity to onboard new clients. 

Furthermore, the complexity of the forms resulted in a lot of incomplete or inaccurate entries. This data inconsistency directly impacted the quality of the personalized investment recommendations generated, ultimately affecting customer satisfaction. 

Perhaps the most detrimental consequence was the high abandonment rate. Faced with the daunting task of data entry, many potential customers simply gave up midway through the onboarding process. This not only impacted the company's revenue stream but also limited the overall value proposition of its personalized investment plans.

Solution

Teracloud implemented a two-part solution using cloud technology and AI to transform the client's onboarding experience. We built a custom chat tool using a cloud framework to collect customer data and conversationally assess risk profiles. This made the process more natural and user-friendly, significantly reducing the number of customers who abandoned the process. The same tool checked the collected data for completeness and accuracy, eliminating the need for manual review at this stage.

Internally, a second chat tool powered by AI used the client's knowledge base to create a draft investment recommendation based on the collected data. This recommendation came with clear explanations from the knowledge base, promoting transparency and trust. Advisors then worked with the chat tool to refine or correct the recommendations in a step-by-step process. This approach leveraged the chat tool's speed while maintaining human oversight for compliance purposes.

Results

Teracloud's AI solution has improved the onboarding process, delivering a series of impactful enhancements. The error-prone nature of manual data entry has been significantly mitigated, with the rate of incomplete or inaccurate data dropping to near zero. 

This not only streamlines the process but also ensures the recommendations generated are built upon a foundation of accurate and reliable information. Customer frustration has also been noticeably reduced.  The conversational approach fostered by the AI solution has led to an impressive 80% decrease in customer abandonment during onboarding. This surge in completion rates highlights the effectiveness of the new system. But perhaps the most compelling benefit lies in the expedited timeline.  

Clients can now expect to receive a draft recommendation and schedule an initial meeting on the very same day they submit their information. This remarkable acceleration empowers them to embark on their path towards financial security at a significantly faster pace.

Conclusion

Teracloud's successful use of cloud technology and generative AI has transformed the client's onboarding process. By streamlining data collection, using AI for recommendation generation, and facilitating collaboration between advisors and AI, Teracloud has empowered the client to deliver exceptional customer service and gain a significant competitive advantage. This project showcases the potential of AI to change the Fintech industry, paving the way for future innovations that help people manage their financial futures.

Carlos Barroso

Head of AI

Teracloud