Legacy banks and financial institutions once dictated the pace of onboarding and approvals, operating under the assumption that businesses would tolerate weeks of waiting and excessive paperwork. Fintechs changed that, setting a new standard for fast and seamless onboarding that today’s customers now expect.

Enterprises that still rely on manual processes, fragmented systems and outdated compliance workflows are bleeding customers. Poor onboarding is the third leading cause of customer churn, after product mismatch and low engagement. Meanwhile, fintechs leveraging automation, AI-driven decisioning and embedded compliance have cut onboarding time by up to 60 percent.

So, what can enterprises learn from the best in fintech onboarding? More importantly: How can they apply those lessons to reduce abandonment rates, accelerate time-to-revenue and build customer loyalty? 

The Data Behind Onboarding Success and Failures

Onboarding is one of the most critical phases in the customer journey.

• First impressions matter: 63 percent of customers say their onboarding experience influences whether they stay or leave a company.
• Customer retention is revenue retention: About 37 percent of financial institutions who utilize fast, automated onboarding reported an increase in customer retention rates.
• Speed wins: Improving overall customer experience can lead to a 43 percent increase in satisfaction and boost customer retention by 37 percent.
• is expensive: About 74 percent of potential customers will leave if the onboarding process is too long or complicated.

For financial institutions, onboarding inefficiencies are costing millions in lost revenue, operational overhead and compliance risk, but fintechs are simplifying the whole process.

What Leading Fintechs Get Right About Onboarding

The best fintechs aren’t just fast; they’re strategic in how they streamline onboarding while balancing compliance, risk management and customer experience. 

1. Frictionless, Digital-First Experiences

Fintechs prioritize seamless, mobile-friendly and API-driven onboarding. That means:

• No unnecessary form fields
• Pre-filled data from existing sources to reduce redundancies.
• Omnichannel accessibility: mobile, web and embedded app experiences.

Who’s setting the Example?

Chime

Challenger banks like Chime cut onboarding time to under 10 minutes by using AI-powered identity verification and instant document uploads. No waiting weeks for approvals, no redundant paperwork.

Traditional institutions can no longer afford lengthy, outdated onboarding experiences. Enterprises should prioritize automation and digital-first workflows to keep customers engaged and prevent drop-offs.

2. Automation and AI for Speed & Accuracy

Manual reviews slow everything down and introduce human error. Fintechs use automation to:

• Eliminate redundant data entry through pre-fill technology.
• Run KYB/KYC checks in real-time instead of waiting days.
• Score risk instantly to fast-track decisioning for low-risk applicants.

Who’s setting the Example? 

Stripe

Stripe leverages AI-driven risk monitoring and automated compliance checks to streamline onboarding for global merchants, reducing fraud risk and unnecessary delays.

If an enterprise still relies on humans to manually review every application, they’ve already fallen behind the curve. AI-driven workflows cut onboarding times, increase accuracy and free up teams to focus on strategic growth.

3. Data-Driven Risk and Fraud Detection

Static, rules-based underwriting is no longer enough. Fintechs are proactively identifying risk signals in real-time by:

• Using alternative data sources to assess creditworthiness.
• Implementing AI-driven fraud detection to flag anomalies.
• Adjusting risk models dynamically instead of relying on outdated scorecards.

Who’s setting the Example?  

Square

Square analyzes thousands of data points beyond traditional credit scores, allowing them to approve small business merchants faster while maintaining strong fraud prevention.

Outdated risk models reject too many good applicants while still missing sophisticated fraud. Enterprises should integrate real-time monitoring and dynamic underwriting models to stay competitive.

4. Transparency and Customer-Centric Processes

Customers expect clear communication, real-time status updates and self-service options throughout the onboarding process.

• More customers want real-time application tracking.
• Fintechs provide instant notifications, chat support, and guided onboarding to keep applicants engaged.

Who’s setting the Example?   

PayPal

PayPal offers a step-by-step onboarding journey, ensuring users know exactly where they are in the process and what’s needed next, reducing frustration and increasing conversion rates.

Enterprises that fail to provide clear onboarding expectations risk losing customers to competitors who do. Transparency builds trust and reduces abandonment rates.

5. Embedded Compliance Without Slowing Down Approvals

Fintechs understand that compliance can’t be an afterthought, but it also can’t be a roadblock.

• Automated KYB/KYC ensures regulatory adherence without manual intervention.
• Bank verification and fraud detection are built into the process, not separate steps.

Who’s setting the Example? 

Wise

Wise reduced compliance processing time by over 60 percent through automated verification workflows, ensuring fast transfer approvals while maintaining regulatory integrity.

If compliance slows down approvals, customers will go elsewhere. Enterprises must embed compliance automation to accelerate decisioning while mitigating risk.

How Worth Powers Your Onboarding

Enterprises need a single, scalable solution that eliminates friction, enhances security and accelerates approvals. Worth delivers that with:

• Worth Pre-Filling – Auto-populates applications with just three key fields, reducing drop-offs.
• Worth Custom Onboarding – Seamless, digital-first onboarding tailored to enterprise needs.
• Security & Compliance – Fully SOC 2, GDPR and CCPA compliant, keeping data secure while ensuring regulatory adherence.

The Future of Onboarding is Automated and Customer-Centric

Fintechs have already set the standard and the need for fast, automated and customer-first onboarding isn’t optional anymore, it’s expected.

Enterprises that fail to modernize risk losing customers to digital-first challengers that provide seamless experiences. By adopting automation, AI-driven workflows, and embedded compliance, financial institutions can reduce onboarding times, lower abandonment rates and unlock new revenue opportunities.

The best fintechs have already figured it out and now it’s time for other enterprises to catch up.

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