Webinar Recap: Building Better Onboarding - How Design, AI, and Compliance Intersect

In this edition of Lucinity’s “Actionable Intelligence” webinar series, Theresa Bercich, Chief Product Officer and Co-Founder at Lucinity, hosted a conversation with Stuart Watkins, CEO and Founder of Zenoo. 

The session explored how onboarding can be transformed through better design thinking, AI automation, and a deeper understanding of customer needs. Drawing on Stuart’s entrepreneurial background and hands-on AI experimentation, the discussion explored why compliance processes remain cumbersome - and how we can fix them. Below is a summary of the key insights from the webinar.

Key Insights from the Webinar

This session focused on how friction in onboarding impacts both compliance and customer acquisition, and why it’s time to reframe the problem.

Introduction

Theresa began by welcoming Stuart Watkins, who has spent over 15 years in compliance, identity verification, and onboarding technology. Stuart shared the unexpected catalyst for founding Zenoo: his inability to open a bank account online after moving back to Prague. Despite leading digital onboarding projects across 23 countries in a prior role, he was forced to visit a branch himself. That disconnect inspired him to build a better solution.

Why Do So Many Customers Drop Off During Onboarding?

Stuart pointed out that as many as 60% of customers abandon onboarding despite having clear intent to sign up. He attributed this not to the technology itself, but to organizational misalignment. Compliance teams are often perceived as blockers, while sales and product teams push for speed and simplicity. These competing goals create structural friction, which customers feel directly.

He emphasized that most organizations would not tolerate this level of customer drop-off in any other industry. Marketing investments are effectively wasted when conversions fail at the final step due to poor user flows.

How Can UX Design Reduce Friction in Compliance Processes?

Stuart explained that optimizing onboarding isn’t just about compliance - it’s a user experience challenge. He advised financial institutions to stop relying on generic funnel reports and instead study real-time customer interactions. He shared an example where simply formatting an ID input field with dashes improved conversions by 6-7%.

Understanding pain points like “rage clicks” requires watching users navigate the interface. These insights, he said, are essential to making onboarding feel intuitive instead of obstructive. 

What Role Does AI Play in Simplifying Compliance and Product Development?

Stuart detailed Zenoo’s internal AI implementation journey. Over several months, he personally immersed himself in AI development, working 10+ hours a day to understand how it could be practically applied. 

Today, Zenoo uses AI to reduce the number of developers needed for product features, generate code through structured AI conversations, speed up QA, and automate testing. They also support internal operations with a virtual AI assistant called Bobby.

Stuart explained that Bobby is a character-driven AI tool that acts as a sales and operations sidekick. He automates tasks, sends reminders, and keeps the team organized - all while speaking in a distinctive East London accent.

Why AI Implementation is Different for Large vs. Small Vendors

According to Stuart, small firms like Zenoo can experiment with AI more freely because they aren’t bound by massive client bases. In contrast, large vendors must maintain legacy systems and cannot afford to introduce unstable features at scale. This puts startups in a better position to innovate quickly and build the tools users actually need.

Stuart stressed that while AI promises efficiency, it still requires strong guardrails. Poor implementation can lead to unpredictable outcomes and harm user trust.

Theresa also emphasized the importance of trust in AI adoption in regulated sectors. She noted that Lucinity is also taking a staged approach to AI, balancing innovation with responsible oversight.

How Can Tech Be Used for Social Good?

Stuart’s work goes beyond commercial tech. He explained that he has also launched projects like Freedom ID (identity verification to prevent human trafficking) and Huddle Puddle (supporting the elderly). 

Stuart spoke candidly about helping Ukrainian refugees and the emotional return he felt from contributing. He urged identity providers to offer services free of charge to humanitarian programs that distribute cash coupons, which could prevent exploitation and reduce fraud.

What Would an Ideal Onboarding Journey Look Like?

When Theresa asked what the ideal onboarding journey might look like, Stuart proposed two visions.

The first is Reusable Identity. A user could own and share their verified identity across platforms, making account creation as simple as signing in with LinkedIn. While ideal, this would disrupt many current business models.

Until that future arrives, Stuart advocated for shared compliance templates and plug-and-play tools that institutions can configure quickly. He stressed the importance of minimizing unnecessary friction, using simple yes/no/maybe systems that clearly explain risk decisions.

Key Takeaways

The conversation underscored that compliance doesn’t have to be slow or painful. By aligning internal roles, using real user data, and embracing automation, financial institutions can dramatically improve both customer experience and regulatory outcomes.

Notably, Lucinity and Zenoo have already partnered to offer financial institutions a connected way to manage compliance.

Here are the main points to remember from the discussion:

• Up to 60% of onboarding drop-off is preventable with better design and alignment between product and compliance teams.
• Small design tweaks—like field formatting—can lead to substantial gains in conversion.
• Recording and analyzing user behavior reveals more than traditional funnel analytics.
• AI can reduce development cycles and automate manual work but requires safe implementation.
• Smaller vendors can innovate faster, building tools based on current customer needs rather than legacy assumptions.
• Identity providers can play a major role in humanitarian efforts by offering free tools to prevent fraud and trafficking.
• The ideal onboarding experience should be reusable, standardized, and low-friction. This supports both business and regulatory goals.

Watch the full webinar here for more on how compliance, customer experience, and AI intersect: https://youtu.be/_Ef1hajTMgk?si=BnNOE5ajdsAXwtz2

Meet the Speakers

Stuart Watkins

Founder and CEO, ZenooStuart has supported onboarding and identity programs for organizations like NASA and Experian. At Zenoo, he helps regulated businesses onboard customers securely using modern, intuitive technology. He also leads humanitarian initiatives that apply identity tech for good.

Theresa Bercich

Chief Product Officer and Co-Founder, LucinityTheresa leads Lucinity’s product vision, drawing on her background in machine learning and AI. She focuses on making complex compliance operations more intuitive and scalable with the responsible use of GenAI.