Enhancing the onboarding of a NeoBanking App
Background
The Video KYC (VKYC) process is an essential step for onboarding users on a Jupiter, the neo-banking app.
It is a regulatory requirement used by the banking partner Federal Bank to upgrade a user’s Minimum KYC account to a Full KYC (FKYC) account. Conducted via a video call, the process includes:
Verification: The agent cross-checks the user’s responses with profile details submitted during onboarding.
Document Validation: The agent captures live photos of the user and their original PAN card.
Signature Authentication: The user provides a live signature on a blank sheet.
Final Review: The agent’s decision is audited, and upon approval, the user’s account is upgraded to FKYC.
The Problem
Current Screens
The video call failure rate (failed calls as a percentage of total connected calls) has risen significantly from 79% in December to 92% in March. This increase is primarily attributed to policy changes implemented by Federal Bank in the previous quarter.
Analysis
Rejection Data:
Third-Party Intervention: 15%
Weak Internet Connectivity: 12%
Income Mismatch with Reported Details: 12%
Lack of PAN or Pen & Paper: 6%
User Feedback from Voice of Customer, App Reviews, and NPS:
Process Length: 27% of users cite the flow being too long as a key issue (L2 driver for NPS).
Agent Behavior: 17% of users report rude or unprofessional behavior by officers.
Language Barriers: Users struggle with language issues during the VKYC process.
Lack of Awareness: Many users are unaware of the purpose of VKYC and the steps involved in the process.
Objectives
User Preparation: Help users understand why VKYC is required and ensure users feel prepared and alert for the VKYC call.
Expectation Setting: Clearly communicate the process, requirements, and estimated time for completion.
Anxiety Reduction: Minimize user anxiety about the VKYC process.
Error Minimization: Reduce call failures by addressing common challenges such as third-party involvement, internet issues, and incomplete prerequisites.
Enable Recovery: Simplify recovery from call failures by providing clear error explanations and actionable next steps.
Solution considered:
Approach 1: Simplified Onboarding:
Focuses on reducing friction by minimizing the steps in the VKYC process.
Provides a brief overview without in-depth preparation steps.
Trade-off: Higher risk of call failures due to insufficient user preparation.
Approach 2: Error Avoidance:
Involves visual communication, readiness checks, and proactive error mitigation.
Includes interactive feedback to confirm readiness before the VKYC call.
Trade-off: Slightly higher friction due to the two-step readiness check but ensures better-prepared users and fewer failures.
Approach 3: Heavy Handholding:
Emphasise on every detail of the potential error.
Visual aid for each requirement
Trade-off: Higher implementation complexity and potential lack of human touch.
We selected Approach 2 for its mixed approach to tackle the biggest obstacle to the conversion while balancing comprehension and flow length.
Interface design
Step 1: Contextual Discovery
Interactive illustrations explaining VKYC and its purpose.
Visual cues for readiness (e.g., green checks for completed steps).
Step 2: Error avoidance
An intentional break in the flow introduced to highlight and address third-party errors.
Submitted details displayed to the users before the call to prevent mismatches.
Step 3: Waiting experience
An engaging loading screen added to set expectations for the questions during the call.
Tips for a successful call (e.g., "Ensure a quiet environment").
A virtual queue simulation introduced during the minute long wait to manage user impatience.
Step 4: Video call and result
The call concludes gracefully, providing a clear timeline for KYC approval
One-click retry option and help resources in case of call failure.
Results
Key Metrics:
Failure Rate Reduction: 22% decrease in VKYC call failures.
User Satisfaction: CSAT scores improved from 3.8 to 4.4.
Completion Time: Average time to complete VKYC reduced by 15%.
Learnings
Clarity Reduces Anxiety: Users responded positively to clear, concise instructions.
Preparation Boosts Success: A readiness checklist significantly decreased errors.
Empathy Matters Most: Recognising and alleviating user anxiety and frustration builds trust, leading to improved conversion outcomes
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Posted Dec 27, 2024
The Video KYC project aims to reduce call failures, and enhance user experience for smoother account upgrade.
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