PIMFA
What can wealth management firms learn about onboarding from other industries?
 We recently hosted a fascinating discussion in a webinar on digital onboarding. It was clear from the session that there is no simple solution for wealth management firms because there are such a complex range of criteria to fulfil. The aim of digital onboarding is to make this complexity invisible to the customer in order to provide a positive experience, and still meet all the regulatory and operational requirements of a successful onboarding process.
We all know what a good onboarding process looks like. In financial services we can see huge improvements in retail banking driven by neobank challengers. Beyond the industry, it has never been simpler to sign up to Netflix or switch to Disney or Apple TV if we want something new. However, we’ve probably all been on the receiving end of some less positive onboarding experiences. Anyone who has recently applied for a mortgage or tried to change the rate will probably agree that the process could have been easier and the forms both simpler and quicker to complete.
Of course, it’s not fair to compare a service like Netflix or even a simple current account with wealth management, but firms can learn from the valuable lessons and examples of good process automation and excellent client service. Technology can deliver a better outcome for the client and the organisation. Digitisation of consumer and corporate funding is a great example where this has worked in a complex area; partly driven by the recent pandemic, the European Union has demanded that participating banks overhauled existing paper-based processes into a new digital solution.
Another example comes from a leading global private bank that has extended onboarding to deliver a softer introduction, one where the relationship manager invites a prospect to join a digital community right at the outset. The onboarding solution starts with the creation of a profile and with each interaction, the prospect profile is enriched with additional data and access to more and more of the services from the bank. Services can include ability to create meeting events, access to research and curated content relevant to the prospect and in return the prospect feels part of the organisation right from the outset.
Our panel discussion from the recent webinar only just scratched the surface of something that wealth management firms are clearly keen to get to grips with because it could drive commercial growth. It is a complex area; unlike retail banking or even execution only broking; onboarding a wealth management client is often so much more than a product application process. However, there are opportunities to smooth the process using technology.
It’s important to note that technology can’t paper over the cracks of an inefficient process, nor is it simply a case of replacing paper forms with an editable PDF. Onboarding includes KYC, AML and suitability checks, risk profiling, compliance and financial planning. These topics span the entire wealth management organisation from back office, CRM and middle office functions to the front office and technology. To deliver a positive digital onboarding experience, firms should look at all this through the lens of client experience.
The client doesn’t care which department their enquiry sits with or which solution their data is held in, they want a clear view of what is happening with their application. A client-facing digital layer can provide a personalised digital onboarding experience whether someone applies online or in person, freeing the firm from lengthy and outdated processes, and can be the final piece of the puzzle when it comes to creating a positive digital onboarding experience.
Jamie Whatley, Director Sales and Account Management, CREALOGIX
