Digital Onboarding, a pioneering SaaS company known for enhancing customer relations for over 100 financial institutions, has successfully closed a significant funding round.
The firm announced a substantial $58m growth investment secured from the Boston-based growth equity firm, Volition Capital. This investment comes at a time when Digital Onboarding is witnessing a sharp upturn in demand, as banks and credit unions increasingly turn to digital solutions to augment customer engagement and further product adoption.
Operating in the heart of the FinTech industry, Digital Onboarding specialises in offering a unique digital engagement platform tailored for banks and credit unions. This platform is revolutionising the way financial institutions interact with their customers, focusing on deepening relationships post-account opening. Traditional onboarding processes, often hindered by analog methods such as paper welcome kits and generic emails, are being replaced. Digital Onboarding’s solution stands out by enabling institutions to effectively engage customers through journey-based communication and action-oriented microsites, ultimately driving account primacy and member profitability.
The fresh influx of $58m is earmarked to bolster Digital Onboarding’s ambitious objectives. The company plans to use this investment to accelerate its product roadmap, enhance support for existing clientele, and significantly increase its market visibility among potential customers. Furthermore, the firm intends to expand its team substantially, aiming to nearly double its headcount by the conclusion of 2024. This expansion will include advanced features such as increased segmentation and profile management, marketing attribution, and the integration of cutting-edge technologies like machine learning and embedded FinTech functionalities.
At the helm of Digital Onboarding is CEO Ted Brown, who, along with co-founder Jonathan Crossman, has been steering the company since its pivot in 2017. Initially founded as SalesBrief, the firm underwent a significant transformation after participating in the FinTech Accelerator of DCU, one of the nation’s largest credit unions. This pivot marked the beginning of their journey in the FinTech space, leading to the launch of their innovative platform with DCU and subsequent expansion to other financial institutions.
Digital Onboarding CEO Ted Brown said, “Banks and credit unions are pushing further into digital maturity, with many providing online banking and developing robust campaigns for customer acquisition. However, digital transformation often stalls at the onboarding stage of the new customer or member lifecycle. Financial institutions have a significant opportunity to make enrolling in and setting up deposit, payment, and other services simple and seamless. Making these as accessible and easy to complete as possible has a measurable positive impact on customer retention and loyalty.”
Similarly, Sean Cantwell, Volition Capital Managing Partner, emphasised the importance of user experience in the banking sector, stating, “Banks and credit unions must prioritize user experience and simplicity across every stage of the customer journey to maximize the quality of their relationships and reduce churn–especially with an ever-growing number of primary banking choices.
“This is because customers value experience and ease of use much more than any amount of digital banking features. We see Digital Onboarding’s leadership position being further strengthened as financial institutions embrace solutions to engage with new customers in ways that drive organic growth.”
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