Introduction

Customer Onboarding Statistics: Customer onboarding is the process that serves to introduce new customers to the products or services of a company. The better the onboarding experience is executed, the more it increases product adoption, decreases churn, and fosters long-term loyalty.

In 2024, from investment in customer success and customer experience, onboarding had turned into a major touchpoint in the journey of the customer. From SaaS platforms to e-commerce, onboarding has grown to be much more than a mere welcome tour-it has turned into a competitive differentiator.

This article analyses the latest customer onboarding statistics and trends for retention and growth in today's market.

Digital Customer Onboarding Software Market size was valued at USD 1.42 Billion in 2023 and is projected to reach USD 6.81 Billion by 2030, growing at a CAGR of 21.79% during the forecast period 2024-2030.

Global Digital Customer Onboarding Software Market Drivers

The growth and development of the Digital Customer Onboarding Software Market can be credited with a few key market drivers. Several of the major market drivers are listed below:

Demand for Seamless Customer Experiences: To draw in and keep clients, companies in a variety of sectors are placing a high priority on providing seamless and frictionless customer experiences. By streamlining the onboarding process and eliminating manual labor and paperwork, digital customer onboarding software improves the customer experience in general. Regulatory Compliance Requirements: Robust customer due diligence and identity verification procedures are required by regulations like Know Your Customer (KYC), Anti-Money Laundering (AML), and data privacy laws (e.g., GDPR). By managing customer data securely and automating compliance checks, digital customer onboarding software assists businesses in adhering to these regulations. Acceleration of Digital Transformation: As businesses move to online and remote channels, the COVID-19 pandemic has quickened the pace of digital transformation across all industries. Businesses can remotely onboard customers with the help of digital customer onboarding software, which promotes resilience and business continuity in the face of disruptions. Growth of InsurTech and FinTech: The need for digital customer onboarding solutions is being driven by the rise of insurance technology (InsurTech) and financial technology (FinTech) startups. For these startups to stand out in fiercely competitive markets, digital-first strategies and agile customer onboarding procedures are top priorities.

The User Onboarding Software market has emerged as a critical segment in the broader field of customer experience and product engagement, providing organizations with innovative tools to facilitate a seamless transition for new users into their platforms. As businesses increasingly recognize the importance of user r

According to Cognitive Market Research, the global Customer Onboarding Software Platform market size is USD 1561.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 22.0% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 624.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 20.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 468.36 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 359.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 24.0% from 2024 to 2031.
Latin America had a market share for more than 5% of the global revenue with a market size of USD 78.06 million in 2024 and will grow at a compound annual growth rate (CAGR) of 21.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 31.22 million in 2024 and will grow at a compound annual growth rate (CAGR) of 21.7% from 2024 to 2031.
The Load-based ASRS held the highest Customer Onboarding Software Platform market revenue share in 2024.

Market Dynamics of Customer Onboarding Software Platform Market

Key Drivers for Customer Onboarding Software Platform Market

Demand for Seamless Customer Experiences to Increase the Demand Globally

In reaction to the escalating call for seamless client reviews, groups throughout sectors are emphasizing frictionless interactions during the customer adventure. Customer onboarding software program performs a pivotal position in this pursuit by means of automating obligations, lowering office work, and facilitating a seamless transition for brand spanking new clients. By streamlining processes and improving performance, such software not simplest fosters convenience but also cultivates high-quality logo impressions. It ensures that from the preliminary engagement to ongoing interactions, clients come across minimal barriers, thereby maximizing pride and loyalty. In the present-day aggressive panorama, prioritizing such equipment is paramount for companies striving to differentiate themselves and thrive in the ever-evolving market.

Increased Regulatory Compliance to Propel Market Growth

The regulatory panorama surrounding client onboarding, especially in sectors like finance, has grown an increasing number of stringent, mandating strong adherence to protocols together with Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. In response, organizations are turning to client onboarding software programs to streamline these strategies. By leveraging automation, these platforms decorate compliance measures even as mitigating the risk of errors. Through thorough identity verification, documentation management, and transaction tracking, such software programs not only ensure adherence to regulatory requirements but also bolster security and are accepted as true. In an era marked by means of heightened scrutiny and evolving requirements, investing in state-of-the-art onboarding solutions turns into imperative for industries in search of to navigate complicated compliance frameworks effectively at the same time as retaining operational efficiency and integrity.

Restraint Factor for the Customer Onboarding Software Platform Market

Security Concerns to Limit the Sales

Security remains a paramount difficulty in handling touchy client records, especially inside the realm of client onboarding. Software structures designed for this reason have to characteristic strong safety features to guard in opposition to statistics breaches and identification robbery. However, for a few companies, in particular those with confined IT sources, enforcing such comprehensive security can pose a sizable barrier. The want for stylish encryption, stringent get entry to controls, and normal security updates necessitate widespread investment and understanding. Consequently, companies should weigh the potential dangers against their ability to put into effect and hold good enough protection protocols. Balancing the imperative to defend purchaser records with realistic issues is important for businesses navigating the complicated panorama of records security in the present-day digital age.

Impact of Covid-19 on the Customer Onboarding Software Pl...

This statistic depicts the key performance indicators used to evaluate onboarding programs worldwide in 2019. During the survey, 70 percent of respondents reported using employee retention rate at their organization to measure their onboarding program.

Digital Customer Onboarding Software Market Outlook

The global Digital Customer Onboarding Software market size was valued at USD 1.5 billion in 2023 and is expected to grow to USD 6.8 billion by 2032, experiencing a robust CAGR of 18.5% during the forecast period. The significant growth in market size can be attributed to the increasing adoption of digital solutions by various industries to streamline their customer onboarding processes and enhance the customer experience. Factors driving this market include technological advancements, increased focus on customer-centric strategies, and the need for compliance with regulatory requirements.

One of the primary growth factors for the digital customer onboarding software market is the growing demand for efficient customer onboarding processes. As businesses across various sectors aim to reduce manual processes and accelerate customer acquisition, the adoption of digital onboarding solutions has become pivotal. These solutions not only enhance the speed and efficiency of onboarding but also reduce errors and improve overall customer satisfaction. Furthermore, the increasing penetration of digital banking and financial services has necessitated the adoption of sophisticated onboarding software to meet the expectations of tech-savvy customers.

Technological advancements in artificial intelligence (AI) and machine learning (ML) are also contributing to the expansion of this market. AI and ML technologies enable the development of intelligent onboarding solutions that can analyze customer data in real-time, detect patterns, and provide personalized onboarding experiences. These technologies also help in automating the verification process, ensuring compliance with regulatory standards, and reducing the risk of fraud. The continuous innovation in these technologies is expected to create new opportunities for market growth.

The increasing regulatory requirements in various industries, especially in banking, financial services, and insurance (BFSI), are another significant driver of market growth. Regulatory bodies globally are emphasizing stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, compelling organizations to adopt advanced onboarding solutions that can ensure compliance. Digital customer onboarding software facilitates seamless verification processes, helping organizations adhere to regulatory mandates while providing a smooth onboarding experience for customers.

Employee Onboarding is a critical process for organizations aiming to integrate new hires smoothly into their workforce. This process involves not only the administrative tasks of setting up new employees with the necessary tools and access but also ensuring they understand the company culture, values, and expectations. Effective employee onboarding can significantly enhance employee engagement and retention by providing a structured and supportive introduction to the organization. As companies increasingly adopt digital solutions for various operational needs, digital onboarding platforms are becoming essential tools to streamline and enhance the employee onboarding experience. These platforms offer features such as automated document management, task tracking, and personalized training modules, which help in creating a seamless and engaging onboarding journey for new employees.

From a regional perspective, North America is expected to hold a significant share of the digital customer onboarding software market due to the early adoption of advanced technologies and the presence of major market players in the region. However, the Asia Pacific region is anticipated to witness the highest growth rate during the forecast period, driven by the rapid digital transformation initiatives in emerging economies such as China and India. The increasing focus on enhancing customer experience and the growing adoption of digital banking solutions in the region are key factors contributing to this growth.

Component Analysis

When analyzing the Digital Customer Onboarding Software market by component, it is essential to consider the two main segments: software and services. The software segment is anticipated to dominate the market due to the growing demand for automated and efficient onboarding solutions. The software solutions include various features such as identity verification, document management, and workflow automation, which are crucial for a seamless onboarding process. These solutions help organizations streamline thei

Employee Onboarding Software Market size was valued at USD 1.4 Billion in 2023 and is projected to reach USD 2.4 Billion by 2031, growing at a CAGR of 6.4 % during the forecast period 2024-2031.

Global Employee Onboarding Software Market Drivers

The market drivers for the Employee Onboarding Software Market can be influenced by various factors. These may include:

Improved Employee Experience: Enhancing the onboarding experience for new hires is a priority for organizations, and onboarding software helps streamline the process, making it more engaging and efficient. Efficiency and Automation: Automation of repetitive tasks such as document collection, form filling, and compliance training saves time for HR departments and ensures a smooth onboarding process. Compliance and Standardization: Onboarding software ensures that all onboarding activities comply with legal and organizational standards, reducing the risk of non-compliance and associated penalties.

Remote Work Trends: The increase in remote work necessitates digital solutions for onboarding, allowing organizations to effectively onboard employees regardless of their location. Data Integration and Analytics: Onboarding software often integrates with other HR systems, providing valuable analytics and insights into the onboarding process, helping organizations improve their HR practices. Scalability: Onboarding software can easily scale to accommodate the needs of growing organizations, making it suitable for businesses of all sizes.

Employee Retention: Effective onboarding has been shown to improve employee retention rates by helping new hires feel welcomed, supported, and integrated into the company culture.

Customization and Personalization: Advanced onboarding platforms offer customization options to tailor the onboarding process to specific roles, departments, or individual needs, enhancing the overall experience.

Reduced Time to Productivity: Streamlined onboarding processes help new employees become productive faster by providing them with the necessary tools, information, and training from day one. Cost Savings: Automating onboarding processes reduces administrative costs and minimizes errors, leading to overall cost savings for organizations.

Client Onboarding Tool Market Outlook

The global client onboarding tool market size is projected to expand from USD 1.2 billion in 2023 to USD 3.8 billion by 2032, with a remarkable compound annual growth rate (CAGR) of 13.5%. This significant growth can be attributed to the increasing adoption of advanced digital solutions and the need for streamlined and efficient onboarding processes across various industries.

One of the primary drivers of the client onboarding tool market is the growing emphasis on customer experience and satisfaction. In todayÂ’s competitive market environment, businesses are under immense pressure to provide seamless and efficient onboarding experiences to their clients. An effective onboarding process can significantly enhance client satisfaction and retention rates. Consequently, companies are increasingly investing in advanced onboarding tools that can streamline and automate various aspects of the onboarding process, thus enhancing overall productivity and user experience.

Another key growth factor is the rapid digital transformation across industries. The integration of advanced technologies such as artificial intelligence (AI), machine learning (ML), and blockchain into client onboarding tools is enabling businesses to automate and optimize their onboarding processes. These technologies can help in reducing manual interventions, minimizing errors, and ensuring compliance with regulatory requirements. Additionally, the rise of remote working and digital banking has further accelerated the adoption of digital onboarding solutions.

Furthermore, regulatory compliance is a significant factor propelling the growth of the client onboarding tool market. Financial institutions, in particular, are subject to stringent regulatory requirements aimed at preventing fraud and ensuring the security of client data. Client onboarding tools equipped with robust compliance features can help these institutions meet regulatory standards by providing automated identity verification, anti-money laundering (AML) checks, and secure data management. This increases the demand for sophisticated onboarding solutions in the BFSI sector.

In addition to onboarding, businesses are increasingly recognizing the importance of efficient offboarding processes. Offboarding Software plays a crucial role in ensuring a smooth transition when an employee or client exits an organization. This software helps manage the various tasks associated with offboarding, such as revoking access to company systems, returning company assets, and ensuring compliance with data protection regulations. By automating these processes, offboarding software minimizes the risk of errors and security breaches, thereby protecting the organization’s data and reputation. As companies continue to prioritize data security and compliance, the demand for comprehensive offboarding solutions is expected to rise, complementing the growth of onboarding tools.

From a regional perspective, North America holds a dominant position in the client onboarding tool market, owing to the presence of numerous financial institutions and tech-savvy enterprises. The region's strong emphasis on technological advancements and customer-centric services further drives the adoption of onboarding tools. Meanwhile, the Asia Pacific region is anticipated to witness the highest growth rate during the forecast period, propelled by the rapid digitization of various industries and the increasing focus on enhancing customer experience in emerging economies like India and China.

Component Analysis

The client onboarding tool market can be segmented by component into software and services. The software segment is expected to hold a significant share of the market due to its ability to offer comprehensive solutions that automate and streamline the onboarding process. Advanced software solutions often come with features such as automated data capture, real-time identity verification, and compliance management, which are crucial for ensuring a smooth and efficient onboarding experience. Moreover, the continuous advancements in AI and ML technologies are further enhancing the capabilities of onboarding software, making them more intelligent and efficient.

On the other hand, the services segment is also witnessing substantial growth as organizations increasingly seek professional services for the effective implementation and customization of onboarding tools. These se

The global digital onboarding software market is experiencing robust growth, driven by the increasing need for streamlined customer acquisition and enhanced user experience across diverse sectors. The market's expansion is fueled by several key factors. Firstly, the rising adoption of cloud-based solutions offers scalability, flexibility, and cost-effectiveness, appealing to businesses of all sizes. Secondly, regulatory compliance pressures, particularly within the financial and government sectors, are driving the demand for secure and efficient digital onboarding processes. Thirdly, the increasing preference for self-service options among customers is further accelerating the market's growth. While precise market sizing data isn't provided, considering the rapid advancements in technology and the increasing digitization across industries, a reasonable estimate for the 2025 market size could be around $2.5 billion, with a CAGR (Compound Annual Growth Rate) of approximately 15% projected for the forecast period (2025-2033). This growth is expected to be driven primarily by the Financial Services and Government sectors, with Cloud-based solutions maintaining a significant market share. However, challenges remain, including concerns about data security and the need for robust customer support infrastructure to ensure seamless onboarding experiences. Despite these restraints, the long-term outlook for the digital onboarding software market remains positive. Market segmentation by application (Financial, Government, Business, Other) and type (Cloud-Based, Web-Based) provides valuable insights for strategic market players. The competitive landscape is dynamic, with established players like Temenos (Akcelerant), Pegasystems, and Backbase competing with emerging innovative companies. Geographical expansion, particularly in developing economies with rapidly growing digital adoption rates, presents lucrative opportunities for market expansion. Successful players will need to focus on continuous innovation, robust security features, seamless integration with existing systems, and personalized customer experiences to maintain a competitive edge. Future growth will be significantly influenced by advancements in AI, automation, and biometric authentication technologies, further streamlining and enhancing the digital onboarding process.

The Customer Onboarding Software Platforms market has emerged as a vital segment of the broader software industry, encompassing solutions designed to streamline the onboarding process for new customers. As businesses recognize the importance of a smooth transition for customers, these platforms provide a comprehensi

This statistic depicts the reasons to use technology in onboarding according to human resources (HR) practitioners worldwide in 2018. During the survey, ** percent of respondents believed that using technology would empower new hires to be more active in their own onboarding experience.

Employee onboarding and offboarding data from USA Staffing API.

Brand performance data collected from AI search platforms for the query "fintech customer onboarding KYC flow".

Digital Onboarding Market Outlook

The global digital onboarding market size was valued at approximately USD 2.5 billion in 2023 and is expected to reach around USD 9.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 16.2% during the forecast period. The significant growth in this market can be attributed to the increasing demand for seamless and efficient customer onboarding processes, rising adoption of digital solutions across various industries, and the need for enhanced customer experience and compliance management.

One of the primary growth factors driving the digital onboarding market is the rapid digital transformation across industries. Companies are increasingly leveraging digital onboarding solutions to streamline their customer acquisition processes, reduce manual errors, and improve operational efficiency. The use of artificial intelligence (AI) and machine learning (ML) in digital onboarding has further enhanced the capabilities of these solutions, enabling real-time document verification, facial recognition, and automated data entry. This has significantly reduced the time and effort required for customer onboarding, thus contributing to market growth.

Another critical factor propelling the growth of the digital onboarding market is the increasing regulatory requirements and compliance standards. Industries such as BFSI and healthcare are subject to stringent regulations regarding customer data verification and anti-money laundering (AML) practices. Digital onboarding solutions help organizations comply with these regulations by providing robust identity verification mechanisms, secure data storage, and audit trails. This not only ensures regulatory compliance but also enhances customer trust and confidence in the onboarding process.

The growing emphasis on customer experience is also a significant driver for the digital onboarding market. In today's competitive landscape, providing a seamless and frictionless onboarding experience is crucial for customer retention and satisfaction. Digital onboarding solutions offer a user-friendly interface, quick onboarding processes, and personalized experiences, which enhance overall customer satisfaction. Moreover, the integration of omnichannel capabilities allows customers to complete the onboarding process through their preferred channels, further improving the customer experience.

Onboarding Software plays a pivotal role in enhancing the digital onboarding experience by providing a structured and efficient framework for managing customer data and interactions. These software solutions are designed to automate the onboarding process, reducing the need for manual intervention and minimizing errors. With features such as real-time data verification, automated document processing, and seamless integration with existing systems, onboarding software ensures a smooth transition for new customers. This not only improves operational efficiency but also enhances customer satisfaction by providing a quick and hassle-free onboarding experience. As organizations continue to prioritize digital transformation, the demand for advanced onboarding software is expected to grow, driving further innovation in this space.

Regionally, North America dominates the digital onboarding market, owing to the presence of major market players and the early adoption of advanced technologies in this region. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period. This can be attributed to the increasing digitalization initiatives by governments, the rapid growth of the fintech sector, and the rising adoption of smartphones and internet connectivity in this region. The combination of these factors presents lucrative opportunities for market growth in the Asia Pacific region.

Component Analysis

The digital onboarding market is segmented by component into software and services. The software segment includes various solutions and platforms designed to facilitate the onboarding process, such as identity verification software, customer relationship management (CRM) systems, and electronic signature tools. The services segment encompasses a range of professional services, including consulting, implementation, and support services, which help organizations effectively deploy and manage their digital onboarding solutions.

The software segment holds a significant share of the digital onboarding market due to th

The Client Onboarding Software market has emerged as a pivotal segment in the broader landscape of customer relationship management, addressing the essential need for businesses to streamline the intake of new clients. As companies increasingly recognize the importance of a smooth onboarding process, the demand for

This statistic depicts the kinds of onboarding technology currently in use worldwide in 2018. During the survey, 32.2 percent of respondents stated they do not currently use any onboarding technology.

This statistic depicts the most used metrics to measure the success of onboarding activities in North America in 2017. During the survey, 28 percent of respondents stated they use the level of employee satisfaction with the onboarding process as a measure of success.

The global employee onboarding market is experiencing robust growth, driven by the increasing need for efficient and engaging onboarding processes across organizations of all sizes. The shift towards remote and hybrid work models has further accelerated this demand, necessitating digital solutions that streamline the process and improve employee experience. While precise market sizing data wasn't provided, considering the presence of numerous established players like SAP, Ultimate Software, and iCIMS alongside a plethora of emerging solutions, a conservative estimate for the 2025 market size would be around $15 billion. A Compound Annual Growth Rate (CAGR) of 15% over the forecast period (2025-2033) appears realistic, considering technological advancements, increasing adoption of AI-powered tools for onboarding automation, and the ongoing focus on improving employee retention through a strong onboarding experience. Key segments driving growth include Software solutions (estimated at 60% market share in 2025), catering to the preference for automated and scalable onboarding processes, and Large Enterprises (estimated at 70% market share in 2025), which have the resources and the need for comprehensive onboarding programs. However, challenges like high implementation costs, integration complexities with existing HR systems, and the need for continuous training and updates could act as restraints on market expansion. The North American market currently holds a significant share, but regions like Asia-Pacific are poised for substantial growth due to increasing digital adoption and economic expansion. The competitive landscape is characterized by a mix of established enterprise software providers and agile niche players. Companies like BambooHR and Zenefits cater to SMEs with user-friendly, affordable solutions, while larger players like SAP and Ultimate Software offer comprehensive, integrated platforms for large enterprises. The future will likely see increased consolidation and innovation, with a focus on AI-driven personalization, gamification, and integration with learning management systems (LMS) to enhance the employee onboarding experience and drive higher engagement and retention rates. Furthermore, the rise of microlearning and mobile-first onboarding solutions will continue to shape the market trajectory. Specific regional market share breakdowns require further data but given the global nature of the market, a relatively even distribution across North America, Europe, and Asia-Pacific can be reasonably expected, with North America maintaining a slight edge given its established tech infrastructure and adoption rates.

Global Employee Onboarding Software Market size valued at US$ 1223.32 Million in 2023, set to reach US$ 2218.94 Million by 2032 at a CAGR of about 6.84% from 2024 to 2032.

In a March 2019 survey, 53 percent of respondents globally said that when establishing external relationships they check for KYC on the identity of clients, while only 27 percent look for an ultimate beneficial ownership status. The KYC (Know Your Client) form ensures investment advisors know details about their clients´ risk tolerance, investment knowledge, and financial position.