A Quick 5-step Remote Client Onboarding Process for Portfolio & Wealth Managers

A Quick 5-step Remote Client Onboarding Process for Portfolio & Wealth Managers

Authored by: Mohammed Mansoor    Reading Time: 02 min 20 sec

In portfolio and wealth management companies, client onboarding process involves critical interactions between an advisor and investor that builds the foundation for a long-term trusted relationship.
But what if it involves a complex process? How will this affect the customer experience? And most importantly, how can this clutter be eliminated?
If the process is time-consuming and requires manual documentation, it impacts the client experience and has a high chance of the application getting marked as NIGO (not in good order).
This blog post explains how iStart’s remote and automated client onboarding platform makes the new account opening (NAO) process easy and efficient.

In case you missed our previous blogs about onboarding process, please click, https://isolve.in/blog/


5-step Remote Client Onboarding Process

As per the SEBI Regulations, portfolio firms should undertake direct onboarding of their clients. This removes intermediaries, such as advisors and clearing firms. The digital onboarding client process can provide direct onboarding with automated KYC and AML checks.
Below is iStart’s remote and simplified onboarding process:
5-step client onboarding process

1. eKYC

With the eKYC process, clients can submit their PAN and Aadhaar details online. The uploaded identity documents are promptly authenticated, facilitated by digital API integrations with Digilocker and KRA (KYC Registration Agency).

iStart client onboarding platform utilizes intelligent process automation, with ML & ICR/OCR functionalities to collect, extract & validate client information for KYC verification.

2. Video KYC

Video KYC enables clients to onboard remotely via a secure audio-visual interaction performed by the portfolio firms. Modern AI technologies, such as facial recognition, liveness detection, and fraud detection, enable client identity verification in real-time.

This step allows clients to virtually verify their identity in the comfort of their home or workplace.

3. AML Regulatory Checks

Digital KYC/AML integrates all the regulators such as FATCA CRS, CKYC , UIDAI, and NSDL to perform auto compliance checks and verify the client portfolio accounts. This step employs the digital verification of new clients to expedite regulatory compliance checks.

4. E-signature & Stamping

Consent declaration using e-Signature, e-stamping, and smart forms enable portfolio managers to complete documentation and get quick authorization from investors.

This eliminates the paper-intensive manual approach and facilitates the effective use of digital data.

5. Online Account Approval

The platform offers online portfolio account approvals for clients to instantly access financial services and products. The complete process of onboarding a portfolio client takes approximately 30 to 60 minutes or even faster.

Digital Onboarding for Enhanced Client Experience

Portfolio and wealth management clients expect a quick, simple, and digital-first account opening process. According to Trustreport, about 70% of clients have abandoned their onboarding process as it is more complex and time-consuming.

iStart client onboarding software is a digital solution that helps portfolio managers streamline the account opening process and perform KYC checks for their clients.

The software is tailor-made for PMS services and provides a faster and smoother client onboarding experience. With the iStart onboarding platform, portfolio and wealth managers can reduce customer attrition and onboarding TAT by 66% and 90% respectively.

Key Takeaways

1. Client onboarding should be quick and easy to boost client happiness, revenue, and process efficiency.

2. The standard procedure for creating a new account is time-consuming and carries a high risk of getting flagged as a NIGO.

3. SEBI requires portfolio firms to directly onboard their clients rather than using intermediaries, such as advisors or clearing firms.

4. Digital client onboarding speeds up the process with KYC, AML, & regulatory integrations, facial recognition, and OCR technology.

5. For faster, safer, and more compliant onboarding solution, contact us to schedule a free demo.

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