Onboarding in fintech is a critical process that can make or break user acquisition and retention. Despite significant advancements in technology, many financial institutions struggle with long, effort-intensive onboarding flows that frustrate users and lead to high drop-off rates.

Agentic AI proposes a modern approach designed to streamline these processes, reduce friction, and improve completion rates.

In this article, we explore how agentic AI can address these challenges, highlighting a case study that underscores its transformative potential.

The Onboarding Complexity Landscape

Financial service onboarding is not a simple transaction—it’s a complex journey fraught with multiple critical stages:

  1. Personal Information Collection
    • Requires precise and accurate data entry.
    • Involves multiple verification checkpoints.
    • High potential for user frustration.
  2. Identity Verification
    • Users must submit documents and complete facial recognition.
    • Data must be cross-referenced with multiple databases.
  3. Financial Documentation
    • Requires proof of income, bank statements, and credit history verification.
    • Often perceived as time-consuming and tedious by users.
  4. Compliance Checks
    • Includes regulatory requirements, risk assessments, and anti-money laundering protocols.

The Human Toll of Complexity

Traditional onboarding processes create significant psychological barriers:

  • Cognitive Overload: Too many steps overwhelm users, leading to abandonment.
  • Time Investment: Lengthy processes discourage completion, particularly for time-sensitive users.
  • Technical Barriers: Poorly designed upload mechanisms frustrate users.
  • Privacy Concerns: Anxiety about submitting sensitive documents adds another layer of resistance.

The Costly Consequences

When users abandon onboarding:

  • Financial institutions lose potential revenue.
  • Customer acquisition costs skyrocket.
  • Brand perception suffers due to poor user experiences.
  • Operational resources are wasted on inefficient processes.

What is Agentic AI?

​Agentic AI is a next-generation approach to artificial intelligence. Unlike traditional rule-based AI, agentic AI exhibits autonomy, adaptability, and decision-making capabilities. It actively learns from user interactions and adjusts its behavior to optimize outcomes in real-time.

Key features of agentic AI include:

  • Proactive Assistance: Anticipates user needs and offers help before users encounter friction.
  • Dynamic Personalization: Customizes workflows based on individual user behavior and preferences.
  • Natural Language Processing (NLP): Engages users through conversational interfaces for better communication and guidance.
  • Seamless Integration: Works with existing systems to enhance, rather than disrupt, existing processes.​

How Agentic AI Addresses Long Onboarding Flows

Agentic AI excels in addressing the specific challenges of long and effort-intensive onboarding processes. Here’s how:

1. Automation

  • Streamlines data collection and verification tasks.
  • Automates repetitive tasks such as document validation and cross-referencing with databases.
  • Eliminates manual errors and reduces processing times.

2. Adaptivity

  • Dynamically adjusts workflows based on user inputs and behaviors.
  • Allows users to skip irrelevant steps while ensuring compliance with regulatory requirements.
  • Identifies and resolves bottlenecks in real-time.

3. Engagement

  • Uses natural language interfaces to guide users step-by-step.
  • Provides real-time assistance, addressing common queries and concerns.
  • Enhances user confidence through proactive and personalized support.

Case Study: TIQS - Transforming Onboarding with Zigment’s AI Solution

TIQS, a leading online stock trading app in India, faced significant challenges with low onboarding completion rates. Only 12–13% of registered users managed to complete the platform’s complex, nine-step onboarding process. Key pain points included:

  • Complex Personal Information Collection: Users struggled with filling out extensive forms accurately.
  • Document Verification: The process required users to upload multiple documents, such as Aadhaar cards and bank statements.
  • Compliance Hurdles: Regulatory requirements added additional layers of complexity.

The Solution: Zigment’s AI-Powered Customer Engagement Platform

To address these challenges, Zigment deployed its AI-powered Customer Journey Automation platform. Key features included:

  • AI Agents: Trained on TIQS’s data, these agents proactively engaged with users during the onboarding process, offering real-time assistance and guidance.
  • Multilingual Support: The AI agents communicated in multiple Indian languages, accommodating TIQS’s diverse user base.
  • Image and Voice Note Processing: Users could send images and voice notes for troubleshooting, simplifying the submission process.
  • Integration with Backend Systems: The platform seamlessly integrated with TIQS’s onboarding backend, CRM, and customer support systems via APIs.
  • Ticket Creation and Live Call Escalation: For issues beyond the scope of AI agents, the platform generated support tickets or connected users to live call center executives.

Results & Benefits

Zigment’s AI solution delivered transformative results for TIQS:

  1. Doubled Onboarding Completion Rates
    • Onboarding rates increased from 12% to 26%, representing a 100% improvement.
  2. Reduced Call Center Load by 80%
    • The AI agents handled common queries and guidance, freeing up human support staff to focus on complex issues.
  3. Enhanced User Satisfaction
    • Real-time, multilingual assistance minimized confusion and reduced drop-off rates.
  4. Cost Savings and Scalability
    • Automation of repetitive tasks cut operational costs while enabling rapid scaling without the need for significant staff expansion.
  5. Data-Driven Insights
    • Zigment’s analytics identified bottlenecks in the onboarding process, such as Aadhaar verification, enabling TIQS to refine its workflows further.

How TIQS Doubled Onboarding with Zigment

The Business Impact of Agentic AI on Onbo​arding Rates

Adopting agentic AI for onboarding processes delivers tangible benefits:

  1. Shorter Onboarding Times
    • AI-powered automation significantly reduces the time required to complete onboarding steps.
  2. Lower Drop-Off Rates
    • Personalized and proactive support keeps users engaged, minimizing abandonment.
  3. Higher User Satisfaction
    • Enhanced user experiences build trust and create positive first impressions.
  4. Operational Efficiency
    • AI-driven automation reduces reliance on human resources for repetitive tasks.
  5. Improved Conversion Rates
    • Simplified processes lead to more completed onboardings, directly impacting revenue growth.

Conclusion

Onboarding complexity has long been a pain point for fintech companies, but agentic AI is changing the approach. By automating repetitive tasks, personalizing workflows, and providing real-time support, agentic AI dramatically improves onboarding completion rates and user satisfaction. The success of TIQS’s partnership with Zigment underscores the transformative power of AI-powered solutions.

For fintech businesses looking to streamline their onboarding processes, now is the time to explore agentic AI’s potential. Simplify complexity, reduce friction, and enhance customer experiences—all while driving growth and operational efficiency.