THE FACTORS TRANSFORMING CLIENT ONBOARDING IN WEALTH MANAGEMENT – II PART

Onboarding

As promised in our previous post on client onboarding, this second one will enlighten how the onboarding process can turn into a revenue function.

Today’s digital technology is a strategic asset to help create an efficient client experience. So, what are the technologies needed for banks, brokerages, and wealth firms to support an appropriate client onboarding process?

A workflow-driven platform integrating the onboarding-involved systems and applications

The technologies involved in this process span from big data and analytics, CRM, document management, workflow and collaboration tools, wealth management platforms and third-party engines.

On-boarding

Furthermore, multiple lines of business (e.g. retail brokerage, private banking, institutional business) are involved, requiring custom questionnaires, business rules, and forms.

A number of critical technology areas should be the focus for firms when choosing appropriate systems to support the client onboarding process:

  • Develop a flexible architecture to easily add tools and systems
  • Implement digital engagement and collaboration capabilities to provide ease of service to clients
  • Integrate software, systems, and channels to have a common view of the customer relationship
  • Establish front-to-back office automation to improve compliance requirements and for real-time decision support for advisors.

In summary, technology should be able to automate customer interaction capture, verification and authentication, decisioning, enable cross-selling, and finally account opening.

CRM at the core and centre of client onboarding

Having these technologies in place brings improvement of the onboading client experience, reduction of cycle time, stronger control and operational excellence.

Even if every firm approaches the client onboarding process in a different way, nevertheless, this phase has impacts on the client, the advisor, and the firm no matter which business model it has or which segment of customers is it serving.

CRM systems can be considered the alpha and omega for this process. With this single point of data collection, the quality of service significantly increases. Moreover, the trend of expanding CRM capabilities to improve the client onboarding experience has led to a number of approaches firms have followed concerning CRM integration to existing business platforms.

In some cases, the CRM system is embedded into an existing wealth management platform. This can limit the dynamicity of today’s external CRM systems.

In other cases, there is a separate module for vertical business CRM, based on existing CRM technology (e.g. Microsoft’s or other), which can be integrated via a middleware into the firm’s wealth management platform of choice, loosely coupled with other systems at the firm and creating the client account at the back office.

This technology approach favors today’s focus on targeting multiple client segments at various touch points. Also, firms are able to build incremental capabilities to sustain the changing regulatory requirements. Carefully mapping data to these systems will be key to providing a successful client onboarding experience.

In our view, onboarding is a “business facilitator”: this is why we designed our Client Engage as the baseline for increased organisational efficiency and customer service, central monitoring and alerting, and for guaranteed regulatory compliance.

The integrated front-to-back digital investment solution

illumas_blog

ILLUMAS 1.1 is the best in class solution designed to answer to the new challenges and increasing complexity currently facing the Private Wealth Management Industry. With the new version of Illumas we allow our customers to make substantial improvements in operation processes and efficiencies, while providing a certified and fast information flow throughout the key front, middle and back office functions enabling their Digital Transformation.

Continue reading “The integrated front-to-back digital investment solution”

SUITABILITY RULES BASED ENGINE

shutterstock_459939700

Could your stand up to MiFID II requirements?

When providing investment advice, the investment firm shall, before the transaction is made, provide the client with a statement on suitability in a durable medium specifying the advice given and how that advice meets the preferences, objectives and other characteristics of the retail client” MiFID-II – Article 25

Continue reading “SUITABILITY RULES BASED ENGINE”

THE FACTORS TRANSFORMING CLIENT ONBOARDING IN WEALTH MANAGEMENT

Onboarding

Client onboarding is a critical initial step for a financial institution to establish a new relationship or expand its offerings to clients. While it may seem a fairly standard process, it is quite complicated as the onboarding experience is the first real test of the promises made during the acquisition phase. And a bad first impression sets a negative tendency.

In this first post, we take into consideration the factors driving financial institutions to revisit the client onboarding experience.

Continue reading “THE FACTORS TRANSFORMING CLIENT ONBOARDING IN WEALTH MANAGEMENT”