Industry
Banking
Banking Services Transformation: Unlocking Exponential Value
Highlights
- Technologies are transforming the way banks are future-proofing their back-office operations.
- Rapid digital transformation, regulatory changes, AI adoption, and a shift in customer expectations will completely reimagine the payments landscape over the next 5-10 years.
- BPS payment operations will move from manual-heavy environments to fully automated payments lifecycle on intelligent real-time platforms with exception handling 24/7 to deliver a frictionless, real-time and world-class customer experience.
On this page
Overview
With GenAI at its core, onboarding is no longer just about ticking boxes, but about delivering contextual guidance, real-time personalization, and faster adoption, setting the tone for long-term trust and efficiency.
The current onboarding process takes several days, as customers need to provide and update multiple documents while aligning with bank requirements. This compliance journey often results in delays that stretch over weeks.
GenAI is turning onboarding from a checklist-driven process into a dynamic, intelligent journey. A classic GenAI use-case is a digital account-opening one that reduces workflow inefficiencies, improves turnaround times and simplifies the overall on-boarding process. Technology-led GenAI solutions enable higher efficiency, meet customer needs on time, and create lasting value for the organization.
Challenges
Historically, onboarding in banks was a manual, document-heavy process. This led to long turnaround times, high operational costs, and inconsistent customer experiences. For instance, in the UK, the process for onboarding merchants took over 10 to 12 days, with significant application backlogs and manual servicing of queries. Multiple stages such as identity verification, KYC compliances led to delays. Setting up accounts and digital services to build trust and foster long-term relationships took time.
The challenges with the traditional compliance journey are listed below:
- Customer walk-in / contact initiation - Prospective customers either visit a bank branch or contact via phone. A relationship manager or teller explains available account types, eligibility, required documents, and fees.
- Application form - Customers complete a physical application form (infrequently provided digitally, largely manually processed). Bank staff assists in clarifying sections.
- Document collection - Customers submit KYC documents such as proof of identity, address etc. Copies are taken and attested.
- Document verification - The front office performs preliminary checks for completeness. The back-office operations team verifies authenticity via internal systems, government databases and third-party verification agencies.
- In-person verification - Bank staff may conduct a physical visit or call to verify residence/workplace. At times signatures of existing card holders are also required.
- Compliance and risk checks - Anti–money laundering screenings, sanctions list screenings, PEP checks are conducted.
- Account creation - The operations team manually enters details into the core banking system (CBS).
Once all these steps are completed, account numbers are generated.
This process ‘as is’ creates ambiguity and compliance bottlenecks with the core systems which leads to low engagement and poor customer experience.
There are other key challenges across geographies that lead to cyber threats, and the risk of regulatory non-compliance, The ever-evolving digital landscape presents significant hurdles that the banking industry must navigate.
Solution
The future is here with GenAI and the potential to open an account in 15 minutes.
Consider Ramya, a first-time customer who visits her banks website during her lunch break. A friendly GenAI powered assistant pops up, that greets her by name (pulled from her pre-verified lead form) and asks about her needs.
Potentially this agent in real-time could:
- Guide her to the right account type based on her spending and saving goals.
- Help to upload ID documents and instantly run e-KYC checks.
- Answer questions about fees, benefits in simple, accessible and user-friendly terms.
- Offer digital signing of her application within the same session.
- During the chat, the GenAI agent can complete the back-end verification and confirm her account approval and share her welcome kit, digital debit card and mobile banking login details instantly.
No paperwork, no branch visit, no waiting for processing, a frictionless start to a user’s banking relationship. This quick seamless start is the foundation for a lasting customer relationship.
Recent initiatives, showcase how GenAI is reshaping onboarding and broader banking operations:
Automation of document processing
TCS’ GenAI platforms have been instrumental in digitizing document-heavy workflows. For instance, cognitive OCR implementations in European banks have achieved significant efficiency gain in trade finance registration.
Loan origination with GenAI
GenAI automates credit report and bank statement analysis. This reduces evaluation time from 30 minutes to seconds, saving an estimated 1 million man-hours annually in North America alone.
Proactive notifications and SLA tracking
GenAI is also being used to generate proactive alerts, automate SLA tracking, and streamline knowledge management across platforms like KANA, Adobe Live, and Mobius .
Operational efficiency and cost savings
GenAI-driven automation can offer:
- Instant document processing and verification using, e-KYC, OCR technology, which eliminates manual reviews and delays.
- Auto-population of application forms using pre-existing customer data, which will minimise typing and correction errors.
- AI assistance 24*7 to answer, support and guide the customer and speed up the onboarding process, rather than waiting in branch queues or on call centre protocols.
- Auto-completion of compliance checks that provides approvals instantly.
- Guidance through digital consent and auto signature forms.
- Role-based and personalized journeys, enabling tailored products as per customer profiles.
- Parallel processing enabled by GenAI resulting in running multiple checks and approvals simultaneously.
Before vs after GenAI – banking onboarding flow
AI chat assistants
Ready to assist form-fill completion based on usage patterns, that get smarter with each interaction.
- Multilingual onboarding in 7+ languages.
- A banking assistant available 24*7.
Smart document processing
- Straight-through processing for KYC documents.
- Improved turnaround time in verification that is safer and more convenient for the customer.
Dynamic risk and compliance support
- Real-time prompts during onboarding steps.
- Regulatory compliance with constantly evolving standards.
Employee onboarding transformation
AI-curated welcome kits and workflows.
Metric-wise banking onboarding flow: Before vs after GenAI
Human-centric GenAI
GenAI accelerates the process, humans elevate the experience.
Complementary strengths:
- GenAI: speed, accuracy, 24*7 availability, automation of repetitive tasks.
- Humans: empathy, trust-building, nuanced decision-making.
Seamless collaboration:
- AI handles the “how” — paperwork, verification, instant responses.
- Humans focus on the “why” — relationships, context, complex problem-solving.
Impact on onboarding:
- Drastically reduced processing times.
- Higher customer satisfaction through personalized experiences.
- More productive human workforce focused on high-value interactions.
In the coming years, GenAI will evolve from a process-enhancer to the central intelligence driving banking onboarding. It will:
- Integrate end-to-end compliance, KYC, and CRM systems.
- Personalize at scale for every customer profile.
- Enable instant, proactive onboarding across all channels.
- Continuously learn from interactions to improve speed and accuracy.
- Support global, multi-product onboarding in a single journey.
GenAI will become the backbone of banking onboarding, combining speed and compliance at scale, and enabling customer delight.
Unlike humans with fixed working hours, chatbots are always on duty, ready to assist. They not only provide immediate responses but also learn from usage patterns, getting smarter with each interaction with purpose. The next wave of GenAI onboarding will:
- Integrate voice biometrics and emotion AI.
- Enable zero-form onboarding (via pre-filled verified profiles).
- Offer self-healing workflows that adapt based on user friction.
- Identify repetitive onboarding steps that benefit from AI support.
The introduction of robotic process automation and artificial intelligence has begun to digitize document handling and SLA management.
The future of banking onboarding looks promising with predictive onboarding, hyper-personalization, and AI-led compliance. GenAI will continue to play a pivotal role in transforming customer experiences and operational efficiencies. Across the service lifecycle GenAI will amplify creativity and maximize operational efficiencies and impact.
Way forward
The evolution of banking onboarding across the globe from manual processes to GenAI driven automation has been remarkable. The integration of GenAI has not only streamlined operations but also enhanced customer satisfaction and reduced costs.
Adopting AI opens doors to a host of benefits.
- Human – centric AI
- Relationship managers focus on advisory functions.
- Routine tasks are automated.
- Co-pilot support for the workforce in real-time.
- Personalized journeys
- Adaptive onboarding.
- Inclusive experience.
- Tailored touchpoints.
- Frictionless entry
- Instant verification.
- Real-time fraud checks.
- Faster customer trust.
- Compliance at scale
- AI-driven monitoring.
- Regulator-ready reporting.
- Dynamic compliance updates.
The future holds even greater potential for innovation and efficiency in the banking sector. Leveraging GenAI solutions can offer competitive advantages, cost savings, improved response times, and greater quality and productivity across the entire process lifecycle.