Client Onboarding Solutions: Buy or Build?


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Many wealth management firms are scrutinizing their business processes with an eye to automation, since manual processes
like client onboarding and updating are expensive, labour intensive and error prone. As a result, automating business processes
has become a high priority project with many firms. For many wealth management firms, this has started a “buy versus
build” discussion. Why not just have your in-house team build a business process management solution to automate your
onboarding? Industry experience, solution flexibility, and faster implementation time are among the reasons to work with an
experienced onboarding solution provider. The alternative can be an expensive and inflexible proprietary system which cannot
keep pace with changes in the field of client onboarding.

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Client Onboarding Solutions: Buy or Build?

  1. 1. Client Onboarding Solutions –Buy or Build?Many wealth management firms are scrutinizing their business processes with an eye to automation, since manual processeslike client onboarding and updating are expensive, labour intensive and error prone. As a result, automating business processeshas become a high priority project with many firms. For many wealth management firms, this has started a “buy versusbuild” discussion. Why not just have your in-house team build a business process management solution to automate youronboarding? Industry experience, solution flexibility, and faster implementation time are among the reasons to work with anexperienced onboarding solution provider. The alternative can be an expensive and inflexible proprietary system which cannotkeep pace with changes in the field of client onboarding.In the current economic climate, wealth management Using a comprehensive, pre-built client onboarding solution,firms are often looking for ways to cut costs. Given this you can be assured of the following benefits:situation, it seems like an obvious choice to build a clientonboarding solution in house rather than partner with an • Accelerated and improved client onboardingoutside organization. However, firms often run into a series of • The ability to extend your onboarding system to automateproblems which commence with assessing the scope of the any form based process, from account management andproject. Often when evaluating the “build” option, the effort to maintenance to internal process workflows.automate processes like client onboarding is underestimated • Advisors who are enabled to initiate and manage the clientor the automation project scope is narrowly defined, onboarding processresulting in little benefit. One of the most common failures • Easy updates to business critical questionnaires,of client onboarding automation projects is the inflexibility workflows, and businessof the new system - a simple question, documentation or • Visibility and transparency in the client onboarding processworkflow update requires costly development and long • An archive of client onboarding materials and interactions.delays. The result is an inflexible client onboarding systemwhich, while it is well received on day one, quickly begins In this document, we will examine each key design goalto cost the company in escalating maintenance and support and the significant R&D investments made by Doxim todollars. Next, user frustration increases as systems cannot deliver OpenAdvantage™. These investments have madekeep up with business strategy - negatively impacting staff OpenAdvantage™ a best-in-class client onboarding system,productivity, performance and loyalty. The end result is an which cannot easily be matched in scope and flexibility by aoutdated system which costs hundreds of thousands of custom build solution.dollars a year to maintain, and which staff hate to use.The truth is that client onboarding is complicated. It is a ACCELERATE AND IMPROVE QUALITY OFcore operational process for all financial services firms, CLIENT ONBOARDINGinvolving every customer and every product. It spans OpenAdvantage™ clients expect to decrease their overallmultiple departments and offices, and it must meet strict client onboarding times by 50% and report their NIGO rates tocompliance regulations. Client onboarding is complex, drop to almost 0%. The following research and developmentdetailed and constantly evolving. For most financial services investments have made these benefits possible.firms, it involves 300-600 questions, 5-10 workflows, 30-150 documents and 200-300 business rules – all of whichchange as new products are introduced, new regulations areimposed and organizational changes occur such as mergersand
  2. 2. Client Onboarding Solutions – Buy or Build?Key R&D Investments: firm to institutionalize best practices. OpenAdvantage™ can assemble documents page by page or even line by line• Responsive faster client onboarding is accomplished to tailor the materials specifically based on the client and through a streamlined question/ answer process or simple product. The OpenAdvantage™ pagination engine ensures but elegant smart forms, and an intuitive user interface. dynamic documents are professionally formatted. OpenAdvantage™ utilizes a powerful patented framework to allow for rapid feedback to the user inside the web browser, • Sophisticated Permissioning: Advisors often rely on minimizing server trips over the network as well as providing their sales associates, branch administrators or even security by enforcing rules on the application server. other advisors to help open new accounts quickly. The OpenAdvantage™ architecture has a sophisticated • Real-time Integration: OpenAdvantage™ was designed to permissioning system to ensure that each user can access enable straight through, real-time, processing of accounts. only the relevant information for their role such as assistants, OpenAdvantage™ eases integration with other front-office advisors, branch managers, operations manager, and and back-office systems through standard interfaces compliance manager. Permissioning also plays a key role including web services and XML. OpenAdvantage™ to secure data when client onboarding spans multiple has interfaces for several back-office systems including organizations (such as Broker/ Dealers and clearing firms). systems from IBM, Broadridge and Sungard. Our solution was designed to offer a complete client onboarding system including workflow, document management, and document INITIATE AND MANAGE THE CLIENT generation. We realize that existing systems may perform ONBOARDING PROCESS some of these functions, thus OpenAdvantage™ is able When advisors initiate and manage the client onboarding via web services (or APIs) to work with third party solutions process, the result is increased business volume and for workflow, document management, and document improved quality. A study conducted by Moss-Adams showed generation to allow organizations to unify their data that top performing Broker-Dealer firms that “initiated more architectures. OpenAdvantage™ also supports integration transactions in the field had low NIGO rates and took less time with third party providers for electronic signatures, and to complete a taski”. Advisors are quick to embrace Doxim politically exposed persons checks. And, of course, powered systems because they increase productivity, improve OpenAdvantage™ integrates bidirectionally with CRM quality and increase their overall visibility into the process. systems to capture and store essential client data. The key OpenAdvantage™ product features which ease• Workflow Automation: OpenAdvantage™ can automate advisor adoption are: and coordinate workflows that span multiple departments as well as multiple organizations (for example: clearing • Dynamic Questionnaires or Smart Forms: With firms and correspondents). As well, OpenAdvantage™ can OpenAdvantage™, opening an account is as easy as automate sophisticated parallel workflows. Today, very few having a conversation. The intelligent system can be firms have completely automated the client onboarding configured to ask only the necessary questions based workflow. on the specific client scenario such as account type, the selected product(s) and existing client information. And• Personalized Welcome Kits: Client onboarding is a key whether you choose simple but intelligent PDF forms or marketing opportunity. With OpenAdvantage™, you can a full HTML custom questionnaire duplicate information choose to generate a personalized welcome kit which entry is eliminated – easing advisor frustration and boosting contains dynamic documents such as a welcome letter productivity. Behind the scenes the system handles data whose contents (promotional material, legal disclosure validation and computations necessary to open the and disclaimers) are dependent on the nature of the account. The goal is to have a responsive client onboarding products specified. Automated personalized sales system which is designed to reflect the way brokers work kits dramatically reduce the representatives need to and minimizing training requirements. “understand the paperwork requirements” and enable
  3. 3. Client Onboarding Solutions – Buy or Build?• On-screen Help and Tooltips: OpenAdvantage™’s and generated documents. Updating the client onboarding context-sensitive help and FAQ generation is built into and updating process is as easy as 1, 2, 3: Change, Review, the system to help users through the client onboarding Deploy. process. These tips are displayed and automatically adjusted as the user proceeds through the client For example: onboarding process. • Dynamic questionnaires are authored by business analysts• Simplified Migration and Client Transition: Bringing – they do not require code changes or programming skills on new advisors often results in a scramble to transfer • New questions can be added and previewed immediately, client assets. OpenAdvantage™ allows for partial client and values are stored using a logical data model or user information in a spreadsheet exported from a handheld defined fields device or CRM package to be imported as work in • Workflow can be viewed graphically allowing visualization of progress. Advisors can then enter this missing information how accounts flow through the system and generate an account agreement or immediately • Business rules are defined in a subset of Javascript generate a partial agreement to fill in by hand with the • Document filling can be done in directly from the PDF using client. Adobe Acrobat• Visibility into the client onboarding Process: For years, OpenAdvantage™ allows business users to focus on what client onboarding has been perceived as a black hole to they know best within their business while allowing the system many advisors, where paperwork “goes in and then we to transparently handle the complexities of web design, data wait”. With OpenAdvantage™, advisors have complete, storage, document generation and pagination, audit histories real-time visibility into the approval process and workflow and permissions behind the scenes. for their accounts. PROVIDE VISIBILITY, TRANSPARENCY AND AENABLE PROCESS UPDATES BY BUSINESS CLIENT ONBOARDING ARCHIVEUSERS • Ease and improve compliance reporting by automatingIn financial services, client onboarding is constantly changing time-consuming, manual tasks. OpenAdvantage™– every year brings new regulations, new products and new improves the quality of the data captured by ensuring thatforms. One of the most common failures of client onboarding required values are entered, and that required documentsautomation projects is the inflexibility of the new system - a are tracked. OpenAdvantage™’s configurable workflowsimple question, documentation or workflow update requires and business rules are designed to help meet compliancecostly development and long delays. and regulatory obligations, and reduce liability risks.The result is an inflexible client onboarding system which may • Produce business, compliance and audit reports –be well received on day one, but which has maintenance Produce comprehensive compliance and audit reportsand support costs which quickly escalate. User frustration increasing the transparency of internal processes andincreases as systems cannot keep up with business strategy efficiency within the organization. OpenAdvantage™ can- negatively impacting staff productivity, performance and produce more than thirty reports including business metrics,loyalty. operational efficiency and portfolio supervision.OpenAdvantage™ enables tight alignment of businessstrategy and operational processes. OpenAdvantage™is designed to enable business analysts (with properpermissions) to configure all aspects of the client onboardingprocess including questionnaire, business rules,
  4. 4. Client Onboarding Solutions – Buy or Build?• Streamline Processes with Enterprise Content Multi-tenant environments enable a single installation to Management (ECM) - The OpenAdvantage™ platform can simultaneously support multiple organizations. For example, be extended with Doxim ECM to enable rapid processing, OpenAdvantage™ enables a clearing firm to support multiple fast retrieval and centralized management of massive correspondents from a single installation. Each correspondent document archives while enhancing corporate compliance firm has the option of utilizing a standard or alternatively a practices and policies. Access to the archive can be configurable client onboarding process. Configurations are securely shared by authorized users between clearing based off the master template but are maintained separately so firms and correspondents. With BarcodeAdvantage™, that changes made for one correspondent are isolated and a paper documents are scanned, stored and organized using single system can be used to serve many firms simultaneously. dynamically generated barcodes – transforming a paper trail into a rapidly accessible, centrally managed digital document Our configuration was designed for service bureau sand archive. This can speed the client onboarding process by clearing firms as well as brokerages. Master templates can eliminating the need for paper forms to be couriered and be created and be modified by correctly permissioned processed by the clearing firm. Electronic documentation correspondents to add additional documents, questions, s secure and can easily be replicated to meet institutional business rules, or workflows. security standards.• Generate missing document reports – With SUMMARY OpenAdvantage™, you can quickly access and view a Business process automation projects, like client onboarding report outlining the status of documentation at any business automation, are often underestimated. This can result in the level. creation of costly, limited custom systems which become cumbersome and dated. Today, wealth management firms• Comprehensive log archiving – Log data is archived and are seeking client onboarding systems which will immediately indexed in perpetuity to meet data retention regulations. lower the cost and complexity of client onboarding, and will keep pace with regulatory change and firm growth. With the investment of 150 man years of development and more thanMULTI-TENANT ENVIRONMENTS 10 years of field experience, Doxim has built a flexible andFor partners seeking to extend their offerings with client easy-to-use client onboarding platform. Don’t make the costlyonboarding, OpenAdvantage™ has the flexibility and scalability mistake of underestimating the complexity of client onboardingneeded to be incorporated into your comprehensive financial automation. Consider partnering with Doxim to allow you to goservices platform. Many organizations such as clearing firms to market immediately, leverage a proven solution and lowerand back-office providers want to extend their offerings your development costs.with client onboarding and update capabilities. Multi-tenantcapabilities are essential to enabling OpenAdvantage™ to bedelivered as Software-as-a-Service (SaaS) offering. i Moss Adams, “The Art of Efficiency”Doxim builds and delivers automated client on-boarding software, cloud-based Enterprise Content Management, and advanced documentprocessing solutions for Financial Service Providers and their outsourcing partners. These solutions are used by thousands of clients inbanking, credit unions, wealth management and investment brokerage to create, deliver and manage business critical documents andcontent more efficiently and cost effectively. Doxim solutions help these organizations to improve client communications, streamlinedocument access and meet the stringent compliance requirements associated with transactional document output and delivery.Doxim is an SSAE16/CSAE 3416 compliant organization.Toronto | Kitchener | Vancouver | Montreal1.866.475.9876 |