Funds Industry Report - Flipbook - Page 13
Kevin O’Neill Fenergo
signicantly reduce onboarding times, but
ensure that regulatory compliance is met.
The answer is digitalization.
When digitalization of client onboarding is
massively cost-intensive process.
Digitalization from Start to
Finish Makes Sense
implemented successfully, Financial Institutions have witnessed a signicant improve-
While it would be naive to expect the entire
ment in their CX whereby creating brand
end-to-end onboarding process to go digital,
loyalty
to
the majority of mundane tasks can be updat-
cross-sell. Also, the reduction in time to
ed. It can happen from the very start. Instead
onboard a client allows valuable internal
of manually submitting KYC-related docu-
resources to focus on more productive and
mentation, new clients can complete the
protable tasks.
process via a smartphone.
and
offering
opportunities
Technology now allows organizations to
The Status Quo of Manual
Onboarding
extract digital identity documents through
the use of optical character recognition
(OCR), meaning that back-end ofcers no
Institutions
that
traditional
longer need to type the data in manually.
onboarding methods will often require a
Moreover, the authenticity of documents,
combination
documentation,
such as a passport or national ID card, also
back-and-forth emails and in some cases,
can be instantly veried through technologi-
face-to-face meetings. Once the information
cal innovation. This further alleviates the
is collected, it must then go through the
manual validation process.
highly manual process of being entered in to
Facial recognition and biometric technolo-
an internal system. Not only is this a mun-
gies can also enable the client to avoid imper-
dane and repetitive procedure, but it is also a
sonal requests, such as a face-to-face meet-
strain on human resources.
ing. When it comes to AML obligations, the
As a result, it comes as no surprise that, as
previously collected client data can then be
published
examined
of
by
engage
paper
Forbes,
in
onboarding
costs
against
multiple
jurisdictional
increased by 19% in 2017 in comparison to the
regulations and other data sources to ensure
previous 12 months, with costs expected to
that Asset Managers remain compliant.
continue to rise.
RegTech is revolutionizing this process, sup-
Client onboarding is predominantly manual
ported by a range of emerging technologies,
(excel spreadsheets!), error-prone, time con-
such as blockchain and cloud computing.
suming, expensive and inaccurate process,
These technologies allow managers to share
that leads to multiple contacts with clients
information with relevant stakeholders, such
for information. Fenergo research revealed
as regulators or other institutions, in a safe,
average
secure and frictionless manner - for the
client
receives
over
10
contact
requests, resulting in the submission of
organization and the client.
between ve and 100 documents. This is a
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