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Client Onboarding: Effectively Managing the Client Lifecycle


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The first 90-120 days of your client’s lifecycle is commonly referred to as client on-boarding period. This period represents one of the best opportunities for a wealth management firm to engage with the client and maximize business opportunities. It is also represents an account administration challenge in terms of account opening, asset transfers, needs assessments and data capture. Download this presentation to discover more about:

- The 3 Stages of Client Onboarding
- Client Onboarding Best Practices
- Doxim's onboarding solution - Doxim OpenAdvantage

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Client Onboarding: Effectively Managing the Client Lifecycle

  1. 1. A Roadmap to Client Onboarding SuccessGrowing Your Onboarding Process & Going Paperless
  2. 2. Agenda1. Choosing an onboarding solution– Buy vs. build – selecting an approach– What will it need to do? A comprehensive checklist– Where should it reside – SaaS vs. Onsite?2. Paperless account opening3. Getting started – what to automate first?4. How is incremental growth best achieved?
  3. 3.  Leading service provider to wealth management firms Founded in 1999 4 locations, 100+ staff Products and Services: Automated Client Onboarding Statement/Confirm Processing ePresentment Tax Form Processing Enterprise Risk ManagementDoxim Inc.
  4. 4. Client On-boarding Beyond account opening Opportunity - engage and grow new customerswithout increasing expense A focus on customer experience
  5. 5. Why Does it Matter? During on-boarding, customers and assets are in motion Customers most receptive to cross-sell during this period Market driver – differentiate yourself with“Customer Forward Thinking”* Harland Clarke Financial Industry Studies (2011)
  6. 6. Deloitte, 2012“Growing Pains in Wealth Mgmt & Private Banking”6
  7. 7. Deloitte, 2012“Growing Pains in Wealth Mgmt & Private Banking”
  8. 8. Aite Group, Sep-2012“Account Opening Pain Points in the Front Office”
  9. 9. Forrester Research, Apr-2009“Best Practices: Customer Onboarding”
  10. 10. Onboarding ImplementationOnboarding Success
  11. 11. Buy vs. Build• As firms with large IT departments approachonboarding automation, the “buy vs. build”discussion often starts• In our experience, building onboardingsolutions in-house always costs more thanbudgeted, even for firms with enormous codingresources
  12. 12. Wealth Management Onboarding
  13. 13. And behind the scenes…• Client onboarding is complex, detailed and constantly evolving. Formost financial services firms, it involves 300-600 questions, 5-10workflows, 30-150 documents and 200-300 business rules.• All of these need changing as new products are introduced, newregulations are imposed and organizational changes occur such asmergers and acquisitions occur.• Too often, firms do not accurately define their business processesand operating model first
  14. 14. Technical Considerations forOnboarding Success
  15. 15. Utopian Solution• Full automation when following “The Protocol”: request out for investor approval,prepopulate assets for acct transfer, investor approves, transfer• Uniform agreements and paperwork regardless of custodian and only displayrelevant disclosures and only display the disclosures once.• Immediate approval of investor and all accounts• Paperless• Business intelligence built into system for upselling and suitability• Comprehensive package with one signature regardless if assets held away• eSignature accepted by all parties• Transparency into account opening status for all parties (investors and advisors)for all accounts including assets held away• Lower costs: No duplicate data entry, no NIGOs, drive adoption of electronicdelivery• Better controls than manual processes• Data and analytics generated from system to better understand investor buyingpatterns.
  16. 16. How do you decide where to start?• The recommendation is always to start where you will realize yourbest ROI – and use that ROI to fund expansions of the project.• So, as part of your process analysis/ROI study, you’ll identify yourmost-used account types, and automate those first.• As you progress, you may find that you have account types thatare never used, and you can streamline your processesaccordingly. If you automate everything up front vs. incrementally,you miss the opportunity to discover these improvements
  17. 17. Onboarding Automation1. Offer a robust rules engine behind the scenes whichautomates complex decision processes and mandatescompliance with enterprise-wide best practises2. Offer connectivity to document management and imagingsolutions3. Be able to work with eSignature, as there’s a movementtowards acceptance of that technology in the field
  18. 18. Going Paperless• Increasingly, e-Signature support is becoming part ofonboarding offerings across the industry.• The reason for this? Increased comfort levels withpaperless account opening, an increased interest inmobile technologies, and a clearer understanding in theindustry of the regulations which govern eSignatureadoption.
  19. 19. eSignature Drivers1. COST – Physical paper handling is expensive, from themailing costs, through the sorting costs, image capturecosts and eventual archiving.2. SPEED -Paper handling is slow. Waiting for the mail oreven printing/signing/faxing is slower than just a fewextra clicks.3. CONVENIENCE - By enabling eSignature you can havean entirely digital straight through process. This isparticularly appealing for investment advisors who visitclients. They no longer have to lug around an inkjetprinter for example.
  20. 20. Onboarding Automation4. Integrate seamlessly with your back office.5. Provide access to the onboarding application throughmultiple channels in real-time, securely6. Allow you to easily control changes to forms, questions,business rules, workflow7. Offer a flexible delivery model - installed on yourpremises or SaaS
  21. 21. SaaS or Onsite? Things to WeighSaaS OnSiteCost Pay as you go, per user, permonth, etc.Up-front capital costs forhardware and softwarelicensing.Customization Limited customization throughservice providerFully customizable onboarding.Hardware Hardware and software reside atprovider siteCustomer must providehardware and system platformsto run onboarding platform.Security Access to SaaS applications is viaInternet. Security must becarefully managed.Lower security risk because ofon-premises secured location*Control SaaS provider controls systemsand is entrusted with access tocustomer dataSystem control resides withyour onsite team.
  22. 22. Back Office Integration• The problem? Data held in silos can impair a completeview of the customer.• Increasing suitability and risk assessment requirementsmay mean you need to look at a bunch of data todetermine suitability.
  23. 23. Back Office IntegrationThe solutions:– Unifying KYC data collection and client onboarding togive a complete view of customer– Storage and reuse of customer data – requiresbidirectional access to back office applications
  24. 24. Why Configuration Matters• Usually, with an onboarding application, there are fourthings which need to be modified:1. Forms2. Workflows3. Rules4. Questionnaires• An application which permits your team to configure andreconfigure these will save you a tremendous amountover the lifetime of your onboarding solution• Imagine your business analysts being able to add aquestion to your onboarding process through a GUI, nothard coding.
  25. 25. Mobile Banking Explosion• Javelin Research indicates that mobile banking gained10 million new users in 2012 and currently reaches one-third of the mobile adult U.S. population.• 1 in 6 customers switching banks say a poor mobilebanking experience prompted them to shop for a newbank• Online brokerages are increasingly offering mobileservices for DIY investors, and full-service brokeragesare looking for ways to incorporate mobile technologiesinto their onboarding processes without losing thepersonal broker/client relationship which sets them apart.(Javelin Research Report “2012 MOBILE BANKING, SMARTPHONE, AND TABLET FORECAST:Mobile Banking Gains 10 Million Users as Smartphone and Tablet Adoption Soars)
  26. 26. Mobile Client OnboardingDrivers:• Inefficient account opening process• High error rate• Need to attract younger tech savvy customers• Need to meet clients remotely and process accountsecurely without carrying piles of paper
  27. 27. Mobile Client OnboardingBenefits:• Eliminate the need for the advisor to obtain an inksignature from the client via e-signature• Easy image capture of ID via tablet preventstranscription errors• Complete account opens in one visit, dramaticallyreducing abandonment rates• Perform end-to-end digital account opening, eliminatingthe need for paper-based forms.• Meet with clients at their home or place of business• Offer real-time, same-day client onboarding anywhere
  28. 28. Onboarding Automation8. Offer real-time reporting and event-driven notificationsto dashboards and etc.8. Do more than just account open – Business ProcessManagement - any form, any workflow - to maximizeROI9. Offer multi-language support - French/English,English/Spanish
  29. 29. KYC Updates –Another Automation Target• Depending on firm maturity, our research suggests you do 100-300% MORE KYC paperwork than account opening paperwork• KYC updates should be automated through the onboardingsystem to provide the same operational efficiencies andtransparency which you experience during initial onboarding.• Early automation will allow you to be responsive to upcomingFATCA/IIROC regulations which mandate more KYC coverage.• Implement event-based KYC updates (noting that a client’sinvestment behaviour has changed and proactively contactinghim or her) vs. just updating every 36 months
  30. 30. 30Account Transfers• Our questionnaire takes the place of account transfer paperwork includinggovernment mandated forms• Once completed, all asset transfer information is captured, reducingrepresentative’s need to “understand the paperwork requirements” for theRequest for Transfer• No need to retrain employees on updated paperwork requirements shouldforms change• NIGO checks ensure the asset transfer forms are completed correctly andall documentation is present.
  31. 31. Sounds Expensive!
  32. 32. Account Opening Costs• Manual, paper-based system- No scalability- Slow, time-consuming process- Duplicate data entry, high error rate- Low customer satisfaction• Inflexible proprietary system- $100,000 yearly updates- Long development lead time- Does not support the need to make changes quicklydue to M&A, new regulations and products
  33. 33. OpenAdvantage®
  34. 34. 34Introducing OpenAdvantage®Configurable Client Management Platform• PDF forms and HTML questions supporting business rules,workflow and document generation• User interface enables configuration. No coding required• Understands data – not just form filling• Not just KYC, but understand your customer better• Experience with direct, managed accountsand clearing broker models• Integration with enterprise systems:- Back-office, CRM, e-signature
  35. 35. 35Integrated E-Signature Ready to Go• Out-of-wallet questions used to confirm the identity of the signer - informationbased on light-touch credit check• Questions can be detailed or based on key metrics e.g. DOB, Driver’s License• Documents can be signed in multiple places (similar to initialing)• Process can be repeated by multiple signers each notified via e-mail• Once the document is signed customeris presented with list of completeddocuments for review
  36. 36. 36• Improved customer experience and increased sales• Speeds process and reduces costs – estimate 60%• Increases data accuracy for better compliance• Simple configuration and maintenanceOpenAdvantage® Benefits
  37. 37. Some Concluding Thoughts• In choosing an onboarding solution, a very thoroughneeds analysis is crucial.• Onboarding is complex and constantly changing – yoursolution must keep pace• Consider what to automate first? How can incrementalgrowth be achieved? How can I best get early ROI• Consider the role eSignature and mobile technologiesmay play in your onboarding in 5 years, and start to plan
  38. 38. Q & A
  39. 39. Connect With 1-866-475-9876 Email: