Modernizing Commercial Banking Onboarding: Lessons from Fintechs and the Path Forward for Incumbents

Commercial and corporate banking is at a pivotal crossroads. As the sector eyes a projected £3 trillion in global revenues by 2026, the race to capture market share is intensifying—and the battleground is client onboarding. For too long, onboarding in commercial banking has been a source of friction, delay, and lost opportunity. But a new era is emerging, led by fintechs and digital challengers who have redefined what’s possible. Incumbent banks now have a clear blueprint to follow, leveraging composable, modular engagement platforms, automation, AI, and best-of-breed partnerships to transform onboarding from a barrier into a competitive advantage.

The Unique Challenge of Commercial Onboarding

Unlike retail banking, commercial and corporate banking deals with high-value, high-complexity relationships. Clients often span multiple entities, geographies, and industries, with intricate ownership structures and regulatory requirements. Onboarding a new client is rarely a single-user journey; it involves multiple stakeholders, extensive documentation, and rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. For many banks, this process can take anywhere from seven to 42 days—an eternity in today’s digital economy. The stakes are high: 67% of commercial clients cite onboarding and KYC as the biggest barriers to switching banks, and more than half are actively reviewing their banking relationships. The result? Banks lose billions in potential revenue each year due to onboarding friction.

How Fintechs Are Redefining the Standard

Fintech challengers have rewritten the rules. By digitizing customer journeys, reimagining colleague interventions, updating policies, and modernizing legacy systems, they have slashed onboarding times from weeks to as little as two to 48 hours. The impact is profound:

Fintechs achieve this by leveraging composable, modular engagement platforms built on microservices—discrete, loosely coupled components that can be rapidly assembled, replaced, or scaled as needed. This approach enables:

The Power of Composable, Modular Engagement Platforms

Traditional banks have long struggled with monolithic, inflexible systems that mirror their own organizational silos. This rigidity makes it difficult to personalize journeys, adapt to new regulations, or integrate innovative third-party solutions. In contrast, composable architectures—underpinned by microservices and event-driven orchestration—allow banks to:

This modularity is not just a technical advantage; it’s a strategic imperative. Banks can focus on differentiating capabilities—such as personalized onboarding or advanced risk assessment—while leveraging external partners for commoditized services. The result is faster time-to-market, lower costs, and a platform that evolves with client needs.

Rethinking the Onboarding Journey: A North-Star Vision

A modern, composable onboarding solution for commercial banking is designed around four key stages:

  1. Registration: Clients initiate onboarding via self-service or RM-led channels, with pre-filled applications and identity verification taking just minutes.
  2. Eligibility Decisioning: Automated checks against internal and third-party data sources, with real-time feedback and dynamic document requests.
  3. Processing: Integrated workflows for colleague review, exception management, and complex ownership validation—supported by AI-driven risk assessment.
  4. Completion and Onboarding: Instant account opening, product recommendations, and multi-product fulfillment, with real-time status updates for both clients and RMs.

For standard cases, onboarding can be completed in as little as five to ten minutes. Even for complex, multi-entity clients, the process is reduced to hours rather than weeks. This north-star vision supports both self-service journeys for business banking and SME clients, and RM-initiated journeys for higher-end SME and corporate clients.

The Role of Data, Automation, and Employee Experience

Modern engagement platforms are not just about client-facing journeys. They also empower bank employees—RMs, compliance officers, and operations teams—with a unified view of the client, streamlined workflows, and AI-driven insights. By breaking down data silos and enabling real-time collaboration, banks can:

A composable data architecture—often leveraging a data mesh approach—ensures that data is accessible, secure, and actionable across the organization. This is critical for delivering hyper-personalized experiences and meeting evolving regulatory requirements.

Actionable Steps for Incumbents: Closing the Gap

To compete with fintechs and digital challengers, incumbent banks must embrace a holistic transformation across technology, process, and organization:

  1. Adopt Composable, Modular Engagement Platforms: Move away from monolithic systems to microservices-based, event-driven architectures that enable rapid innovation and integration with best-of-breed fintech partners.
  2. Automate and Digitize Onboarding Journeys: Leverage AI, automation, and real-time data checks to reduce manual effort, accelerate decisioning, and improve compliance.
  3. Empower Both Clients and Employees: Provide seamless, data-driven experiences for clients and equip employees with unified tools and insights to enhance productivity and service quality.
  4. Integrate with Fintech Ecosystems: Build strategic partnerships to access cutting-edge KYC, identity, and workflow solutions, focusing internal resources on differentiating capabilities.
  5. Drive Organizational Change: Foster a culture of agility, cross-functional collaboration, and continuous learning. Upskill teams, embed agile and DevOps practices, and align incentives to customer outcomes.
  6. Modernize Core and Data Infrastructure: Invest in cloud-native, scalable platforms and composable data architectures to support ongoing innovation and regulatory compliance.

The Path Forward: Leading the Next Era of Commercial Banking

The future of commercial banking is being written today. Those who act now—rethinking their engagement platforms and onboarding journeys—will not just participate in the sector’s growth; they will lead it. By embracing composable architectures, automation, AI, and fintech partnerships, incumbent banks can transform onboarding from a pain point into a source of competitive advantage, unlocking new growth opportunities and delivering the seamless experiences clients now expect.

Connect with Publicis Sapient to explore how your institution can embark on this transformative journey and redefine what’s possible in commercial banking.