Detroit Venture Partners, part of the Rock Family of Cos. in Detroit, led a Series A investment round for a Boston company offering customer engagement platforms for financial institutions.
Digital Onboarding Inc. provides an automated customer and member engagement platform. The platform offers automated email and SMS reminders for customers that link to personalized, step-by-step digital guides.
“Banks have myopically focused on getting new accounts opened to meet aggressive sales targets and are now being forced to contend with the reality that new accounts are worthless if they’re not converted into engaged relationships,” says Ted Brown, CEO of Digital Onboarding.
“The Digital Onboarding platform has been proven to drive the adoption of additional products and services like digital banking, direct deposit, and automatic payments, which drive long-term profitability. With the Series A investment and a board of directors with deep expertise in developing high-growth, hugely successful fintech companies, we will look forward to accelerating the execution of our product roadmap, scaling account management, and expanding sales.”
Financial institutions invest at least $300 to acquire a checking account, but 25-40 percent of checking accounts are closed in the first year. The platform helps customers and members adopt additional products and the account-related services that lead to long-term relationships.
“Digital Onboarding’s presence in Detroit is another great win for the fintech community here,” says Jared Stasik, partner of Detroit Venture Partners. “We are excited to back the team as they expand their reach into financial institutions across the country.”
The round also included investments other institutional and individual investors. In connection with the financing, John Philpott, partner at FINTOP Capital, and Shawn Ward, senior managing director at Jack Henry and Associates and a founding team member of S1 Corp., joined the board of directors.
Digital Onboarding partners with more than 40 financial institutions. Its current customers represent in aggregate more than $160 billion in assets. It has services for banks, credit unions, credit card companies, and investment management firms.