Roman GłogulskiDigital Onboarding, a company specializing in creating solutions for financial institutions to strengthen customer relationships, has secured $58 million for the development of its customer engagement platform. The investment was finalized by Volition Capital.
The company was founded in 2015 by Ted Brown and Jonathan Crossman under the name SalesBrief, initially focusing on B2B sales. In 2017, they changed their strategy after joining the fintech accelerator Digital Federal Credit Union. They renamed the company Digital Onboarding and since January 2018, they have been selling their own customer engagement platform to banks and credit unions.
Communication in heavily regulated financial institutions often still relies on paper, especially during the account opening process. As Brown, the CEO of Digital Onboarding, stated, statistics from the Future of Finance 2023 report indicate that 25% to 40% of new checking accounts are closed within the first year of operation.
“A significant part of valuable relationship aspects is lost by modern banks that focus on attracting customers through debit card usage,” Brown said in an interview with TechCrunch.
To reduce these losses and retain customers for longer periods, Digital Onboarding’s technology provides banks and credit unions with digital tools that replace traditional paper welcome materials. These are personalized communications based on the individual customer’s journey and websites with enhanced functionality.
The company also offers a library of campaigns and a set of proprietary and external widgets that can be placed on these websites or on the bank’s websites and external applications.
Currently, Digital Onboarding collaborates with over 140 financial institutions. Brown did not disclose revenue growth, but he emphasized that the company has been rapidly expanding despite an average sales cycle of five months.
He also highlighted that the $58 million investment was “opportunistic” for the company. The company was on track to achieve profitability, as it previously raised $7.5 million in seed funding, including a Series A round in 2020.
Brown said, “We have very few competitors in the market, and only a quarter to a third of our market segment knows about us. With this investment, we also have the opportunity to accelerate our product development roadmap, and we have 140 very satisfied customers who would gladly buy more from us if we had more to offer.”
Digital Onboarding also plans to invest in additional customer profiling and profile management tools, marketing effectiveness attribution, machine learning, and built-in fintech functionality. Additionally, Brown plans to double the number of employees by the end of 2024.
