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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  • Good Afternoon everyone! Welcome to today’s webinar; “A roadmap to client onboarding success”Now for those of you who are new to Doxim webinars we kindly ask that you submit any questions or comments through the chat/comment box at the bottom of the gotowebinar user interface.And as a reminder we will be sending our an email tomorrow with a link to the ondemand recording of the webinar for you to view and share at your convenience.Now Im excited to have Adam Zimmer as our presenter for todays webinar. Adam is the V.P. of R&D and Chief Technology Officer at Doxim. Adam joined Doxim in 2012, following Doxim’s acquisition of Arius Software. Adam originally founded Arius Software while he was studying at the University of Waterloo. Following a number of consulting engagements with financial customers he identified a gap in the market for a client on-boarding application that would help streamline and automate the gathering of high quality client data; Doxim Account Opening was born to address this need.Before I pass things over to adam I’d like to get a level set on what we’ll be covering in today’s webinar
  • In todays webinar we will be covering off several key topics all centered on the subject of client onboarding.Well start by introducing the concept of client onboarding then proceed to cover some of things you’ll need to consider when choosing an onboarding solution and then dive into paperless account opening best practices, and speak to where to get started and how to create quick wins to ensure a healthy ROI. And finally we close things off with a brief explanation of our onboarding solution, Doxim OpenAdvantage. At that point we’ll answer any questions that you might have about any of the material presented today or anything regarding client onboarding in general.Now without further ado Adam the floor is yours….
  • Sure no problem Dan, but before we get into the webinar content I’d like to take a moment to give a brief introduction about Doxim as some of you may not be familiar with who we are and what we do.
  • What is client onboarding? It is most commonly defined as the first 90-120 days of a client’s life cycle with your firm, though some research groups identify it as the first full year of the client’s involvement with your firm. It is a time of unique opportunity to build engagement and loyalty and to encourage clients to purchase additional products from your firm.If you attended our 101 course, you are familiar with the argument FOR onboarding automation, but perhaps you are wondering about the nuts and bolts – how to select a solution, what to automate first, how to plan for regulatory change.
  • According to Pitney Bowes, nearly 75% of all cross-sell opportunities occur within the first 90 days. Beyond this point the customer’s lifetime value and profitability will have been practically set in stone
  • Deloitte researched the biggest pain points in wealth management and private banking and discovered that 81% of wealthy clients value service quality as the most valuable attribute when selecting their investment firm/financial advisor. <Go to next slide.>
  • In Deloitte’s research of what “service quality” means to wealthy clients, they quickly honed in on some key service failures. Doxim should note that client onboarding was the top issue and also on the list were: integrated view of accounts, statements and client relationship management.Note: embedded ‘selling scripts’ and basic business intelligence would help with FA training.
  • Although this Forrester Research report is several years old, I really like this slide as it clearly depicts how certain new account opening processes are much easier than other processes.
  • In our last webinar, we discussed the phases of onboarding, from initial implementation of an account opening solution through planning for enterprise-wide analysis of client data and complex up-sell and cross sell. Today, we’d like to discuss some implementation-specific topics, which suppose that you’ve decided to take the plunge and automate your client onboarding. First topic here, then, is whether you should buy or build the solution you’ll use for this task. Even if you aren’t at this stage, it is a useful thought exercise to consider what your solution will need to look like. Too often in this field, we see people who have creating a limited solution, or one which cannot be easily configured and reconfigured. These look great out of the box, but within a couple of years they are dinosaurs, and the staff who initially applauded them hate working with them, as they haven’t kept pace with how business is actually done at your firm. POLL 1: How automated are your business processes at present?• Paper based and manual• Mix of paper and technology-based• Highly automatedOur expectation is than many of you will fall in the middle category – the trend in the industry is towards some automation, but people are still struggling with siloed data and applications which prohibit enterprise-wide automation of business processes like onboarding.
  • POLL 2: How often do you build applications for your firm in-house? Seldom, but it happens – depends on the scope of the projectOften – we have a talented technology team, and a bespoke solution is the best solutionNever – we don’t have the resources in-house for that, and prefer to partner with trusted vendorsThe graphic on the next page, from Aite Consulting, shows how complex wealth management onboarding can be , from a front-end perspective. Behind the scenes, the situation gets even more complex.
  • This image, from a presentation by Aite Group in 2010, shows just how complex wealth management onboarding can be from a front end perspective. This very complexity is what makes onboarding such a good target for automation, of course, but it also reminds us of the importance of proper development of scope and business cases up front.
  • Account opening which is about relationships, not formsClient-centric communications Right timeRight channelValue addSignatures and paperwork via esignature/email or wet signature/traditional formsImmediate personal response to client questions or concerns
  • These are some of the system needs that you need to address….
  • Most people realize that the technology exists to create a Utopian environment and it frustrates investors, advisors, as well as middle office operations and compliance, that there are so many disparate, manual and batch-related processes.
  • Research by Finextra Research Ltd., as cited in Aite Group’s reports on wealth management onboarding, suggests that major stumbling blocks in onboarding automation include “Predicting ROI and getting budget for process reengineeringProject”’ (13% reported this as their top concern, 33% as their second most important concern), and “Getting buy-in from all relevant entities in global financial group” (again, of those surveyed, (13% reported this as their top concern, 33% as their second most important concern). For this reason, firms often ask us how best to achieve early ROI and keep the onboarding project within scope early on. I know we’ve just discussed the complexities of what a fully implemented solution must involve, and that is perhaps daunting. But the secret here is incremental growth, and that means aiming for the low-hanging fruit first, then using early successes to drive the expansion of the project.
  • Whether you buy or build, your solution must include the following, or you will experience difficulty now or in the future.
  • Recently, we’ve seen several high profile banks and wealth management firms in Canada and the US roll out e-signature pilot programs, and their early success is very promising. With RBC and JP Morgan Chase amongst the recent headliners in the eSignature space, the time for eSignature seems to have finally arrived. Of course, as with any new technology, we need to highlight the need for good process architecture and audit trails when implementing e-signature technology, but then that’s already something you need to be thinking about when implementing client onboarding software – the two technologies work well in synergy with each other.
  • The benefits firms realize by implementing eSignature fall into the three buckets described above.
  • For onboarding, SaaS can be a great approach, and it is especially cost-effective for smaller to mid-sized firms who may be accessing onboarding services through a service provider like a clearing firm. Larger firms may elect to host their own solution on-site. The pros and cons of each approach are outlined here – as always, choosing between SaaS and Onsite is a matter of your business needs, and there is no “”one size fits all” recommendation to offer* But with an application like client onboarding, it is likely the platform need to be accessed by branch offices and mobile employees anyhow, so the difference here isn’t great. Either way, you’ll need robust security controls in place.
  • Why is back office integration such a focus here? Because for most financial service firms, there is no one system which contains all customer, product and account information. Instead, data is siloed in legacy systems. But with the increasing regulatory requirements around suitability assessment and KYC, there needs to be a way to get a 360 degree view of the customer. Onboarding software can provide that bridge, but only if it is robust and connected enough to work enterprise wide, and only if it can access the various components of the back office bi-directionally.
  • Why is back office integration such a focus here? Because for most financial service firms, there is no one system which contains all customer, product and account information. Instead, data is siloed in legacy systems. But with the increasing regulatory requirements around suitability assessment and KYC, there needs to be a way to get a 360 degree view of the customer. Onboarding software can provide that bridge, but only if it is robust and connected enough to work enterprise wide, and only if it can access the various components of the back office bi-directionally.
  • I’m sure you recollect earlier when we said that the average wealth management implementation of onboarding automation involves, it involves 300-600 questions, 5-10 workflows, 30-150 documents and 200-300 business rules. A thought exercise- how many of the new regulations you are watching will require a change to one of these four items? Consider the cost of modifying these internally vs though an engagement with a vendor.Regardless of your position on buy vs. build, you MUST be sure that the tools used to configure these items are intuitive and GUI based, or your system will date fast and cost hundreds of thousands of dollars to maintain and update.
  • For example, a client liquidating a number of assets may be undergoing a divorce or purchasing property – detecting these patterns and offering suitable financial advice both helps you maintain current client data and provides you with opportunities to offer meaningful product matches.In our “Client Onboarding 101” webinar we also discuss other natural targets for early automation, like asset transfers and client complaint management. And of course if you pick a flexible enough solution, you can use it to automate any process that requires a workflow and approval process, so you can also automate HR forms or other non-onboarding business processes. After all, if you are doing the work to select and implement the right solution, you might as well find out of the box ways to increase your ROI.
  • Firms often have twice the staff time devoted to transfers as they do to account opening
  • Onboarding automation can be quite cost effective, if you follow the best practises we’ve outlined today. Besides, it’s more expensive to open an account (price per account) and have that person become dissatisfied and leave. And regulatory compliance is a must have these days, with the radically increased fines being levied by FINRA and others. Onboarding automation can help mitigate your risk in that regard too. You’ll need to gather more data to meet increased regulatory imperatives – might as well use it!
  • As a final reminder, the alternatives to properly implemented onboarding automation are very expensive indeed. Account opening cost firms anywhere from $36 to $150 dollars per account. And when you consider the cost of rework on NIGO accounts, this number increases dramatically.Firms often try to implement their own solutions but these tend to be very expensive both upfront and to maintain on an ongoing basis.It’s not just the cost of buying the dog, it’s the vet bills.
  • We’ve discussed WHAT you might want to automate, how you might choose to evolve your automation strategy, and so on, so here’s a chance to show you some nuts and bolts of HOW that automation might take place, using our client onboarding tool. OpenAdvantage can support the initiatives described above. OA integrates seamlessly with your back office applications, becoming a key part of your Business Process Management initiatives and supporting the move towards intelligent, enterprise-wide onboarding.
  • POLL3: would you like to learn more about OpenAdvantage? Please select the response that best describes your level of interest
  • There is no need to boil the ocean, but you need to make sure you make the right pick up front, as an onboarding solution will act as an enterprise-wide bridge between your systems. Start small, pick the best bang for your buck, and then get creative in how you leverage your system for maximum ROI.
  • At this point, I’ll open it up to any questions that you’ve been asking during the webinar. Please keep the questions coming by simply submit them at in the chat box at the bottom of the GoToWebinar User Interface and we’ll try to answer as many as we can without going over the allotted time.First question….Q1: What's an example of a good first account type to automate?Q2: Have any big names implemented e-signature yet?Q3: How can you capture ID information using OA without paper?Q4: How will new regulations in the US and Canada impact account opening automation?Q5: What's the usual scope of a client onboarding automation project? Do most firms stage their onboarding automation, or do it all at once?
  • I’d like to thank for attending this webinar on “A roadmap to client onboarding success”. If you would like to learn more about Doxim you can visit our or simply contact us at In addition we’ve listed some of the other ways you can stay connected with Doxim and to keep abreast on the latest news, trends and developments impacting your industry. As a reminder we will be sending out a follow up email tomorrow with an on-demand recording of this webinar for you to view and share at your convenience. Thank you again and have a great day.
  • 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: