The funding will be used to further advance the development of the company's digital engagement platform. Founded in 2015 Digital Onboarding initially focused on the B2B sales cycle. In 2017, following participation in Digital Federal Credit Union's fintech accelerator, the company altered its operational plan, rebranding itself as Digital Onboarding. From January 2018 onwards, it began offering its engagement platform to banks and credit unions.
According to TechCrunch, financial institutions often rely on paper-based communications, particularly during the account opening process, due to regulatory constraints. According to the CEO of Digital Onboarding, between 25% and 40% of new checking accounts are closed within the first year, as reported in the 2023 Future of Finance Report. He also highlighted that neobanks, by encouraging customers to merely swipe a debit card, have contributed to the reduction of valuable aspects in the customer relationship.
Digital Onboarding's technology aims to address these challenges by digitising the traditional paper welcome kit. This includes targeted, journey-based communication and action-oriented microsites. The company offers a library of campaigns and proprietary as well as third-party widgets that can be integrated into microsites, bank landing pages, and third-party digital banking applications.
With over 140 financial institution customers, Digital Onboarding has experienced rapid growth, despite an average sales cycle of five months. The recent USD 58 million growth investment was described by company representatives as 'opportunistic.' The company, already on the path to profitability, had previously raised USD 7.5 million in venture capital, including a Series A in 2020.
Digital Onboarding plans to leverage the funding to accelerate its product roadmap. The company aims to enhance segmentation and profile management and invest in marketing attribution, machine learning, and embedded fintech functionality.
In January 2023, Volition Capital announced the completion of a growth investment in HAAS Alert. This investment followed rapid growth for HAAS Alert, with thousands of public safety and transportation agencies, roadway fleets, and municipalities using Safety Cloud to deliver road safety information and hazard warnings to drivers via in-app and in-vehicle alerts.
In November 2023, Volition Capital helped US-based payment platform Mozaic to raise USD 20 million to solve uneven payment distribution in the music industry.
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