High Value Merchant Onboarding: The White Glove Approach

High Value Merchant Onboarding: The White Glove Approach

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In the tangled world of onboarding and Know Your Business (KYB), striking a balance between security, simplicity and efficiency is essential. Even more so for payment gateways hoping to tempt high-value merchants, who can add hundreds of thousands, even millions of pounds in revenue. 

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The opportunity they present doesn’t come along often, and there’s plenty of competition for it, so platforms must offer the best possible ‘white glove’ service that delights them – and keeps them that way.

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It’s not about being quick, but efficiency is key, removing pain points and useless steps in the process, pre-populating data with fact-finding so there’s less toing and froing for the merchant, then giving a single point of contact for in-depth questions that can be resolved without fuss.

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For one globally recognised payment gateway, this was far from the reality of its old KYB process. In fact, it faced major hurdles onboarding high-value merchants, averaging an arduous 90 days per application. 

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The sub-par setup not only discouraged potential clients but also delayed revenue realisation, negatively impacting the company's bottom line. There was no automation, no personalisation, and instead a complex process filled with questions, which, ironically, led to poor and inconsistent data. 

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It was a nightmare scenario: the company faced commercial losses as valuable customers simply abandoned their applications, while internal teams were bogged down and overwhelmed with manual check after manual check. 

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Here, we delve into the problem, the solution, and the impressive outcomes achieved when Detected introduced its innovative approach.

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The Problem: Lengthy and Inefficient Onboarding

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High-value merchants, though few in number, are valuable because of their revenue potential. But, for one payment gateway, roadblocks in the onboarding process prevented it from taking advantage of these major players.

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Its average time to onboard a new merchant was three months, which frustrated potential clients and postponed revenue realisation.

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The core issue was the lack of automation in the onboarding process. Each new merchant was subjected to an exhaustive list of questions, many of which were irrelevant to their specific circumstances. 

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A one-size-fits-all approach led to poor data quality and inconsistencies, meaning internal teams spent too much time on manual checks, diverting resources from other critical tasks.

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The commercial fallout was severe, costing immediate revenue as well as missed opportunities for long-term, lucrative relationships. 

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Even more existentially, the company's ability to compete in its fast-paced market was compromised, as competitors with more streamlined processes tempted away valuable clients.

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The Solution: Leveraging Automation for Streamlined Onboarding

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To address these challenges, the payment gateway provider turned to Detected’s Copilot solution, an advanced tool designed to streamline complex processes and remove blockages without compromising on security. 

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Key improvements:

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Automated Data Gathering and AML Checks: By automating data collection and conducting Anti-Money Laundering (AML) checks, significantly reducing the manual workload for internal teams. This sped everything up, but also ensured all compliance checks were conducted thoroughly.

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Enhanced Due Diligence: Efficient and effective due diligence. By integrating real-time data from global sources, the system provided a comprehensive view of each merchant's background and risk profile, allowing the provider to make informed decisions quickly.

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Real-Time Integration with Global Data Sources: With real-time data sources, relevant information was readily available, so merchants no longer had to provide the same details repeatedly. 

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Outcomes: Onboarding Time Down, Revenue Up

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The implementation of automated onboarding led to remarkable outcomes. The onboarding time for new merchants fell by 60%, a dramatic improvement that wildly enhanced customer experience. 

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Merchants were no longer put off by a lengthy application processes with lots of fiddly information and requirements, which meant higher completion rates and fewer abandonments.

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Improved data quality was another major benefit. Automated fact gathering and AML checks ensured the information collected was accurate and consistent. This not only streamlined the onboarding process but also reduced the risk of compliance issues down the line.

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Perhaps most importantly, the time to revenue was significantly shortened. On average, the provider realised additional Year One revenues of more than £47,000 for every new merchant onboarded. This financial boost was a direct result of the improvements delivered by Detected.

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The Future of Onboarding

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The case of this globally recognised provider demonstrates the major benefits of leveraging automation and real-time data integration. Reducing onboarding time and improving data quality, it’s possible to formulate the win-win of enhanced customer experience and substantial additional revenues.

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In a competitive market, small advantages become key differentiators. For this payment gateway provider, the implementation of Detected proved to be a game-changer, transforming its tired process into a streamlined, money-making asset. 

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The lesson? In today's fast-paced business environment, where delays can be fatal, the right tools often prove to be the dividing line between success and failure.

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