Why do Portfolio & Wealth Managers need to Centralize Client Onboarding Process?

Why do Portfolio & Wealth Managers need to Centralize Client Onboarding Process?

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

Client relationship teams in Investment management services are under significant strain driven by both compliance and regulatory challenges. Portfolio and wealth managers need to improve their bottom line by facilitating an easy and efficient onboarding process.

The financial planning and portfolio creation process of Investment management services involve many departments; compliance, legal, and operational.

This article discusses isolated client onboarding Process and the necessity for automated platforms such as iStart to centralize and fasten the portfolio account setup turnaround times.

If you missed our previous blogs about Onboarding and Compliance, click: https://isolve.in/blog/ to know more about it.

iStart Automation Outcomes
iStart Automation Outcomes

Reasons to Consider for Efficient Client Onboarding Process:

KYC Compliance Burden

Financial managers need numerous data to support compliance decisions and approvals. They should follow regulations on AML and KYC during the collection, processing, validation, and storage of data and supporting paperwork. This process creates the utmost operational burden for many global financial organizations.

According to the Abbyy opinion poll on digital strategies for financial services, over 40% of financial managers cited difficulties with ID validation and verification as their top issue, and 38% cited a lack of visibility.

They need a platform solution that is future-proof and capable of meeting stringent global regulations. With this, they can ensure continued full compliance with existing and emerging obligations.

isolated vs centralized onboarding

Disconnected CRM and CLM

In Investment management services, the relationship team uses CRM systems, while the internal function team uses Client Lifecycle Management software. Each has a unique process and data that results in a disconnected onboarding journey.

Financial managers should equip with a centralized platform that integrates all departments engaged in financial planning, advising and portfolio account opening (such as compliance, legal, operations, and credit).

It enables the financial managers to locate the bottlenecks in the system and hurry the application via the relevant system.

Un-centralized data storage

There is no unified repository for consumer data across financial managers. Currently, they duplicate and store the data across many systems. It provides a limited view of consumer data leading to operational inefficiencies and delays the time required to onboard new clients.

According to a Fenergo survey, approximately 70% of businesses do not have central data storage to link clients and their documents.

They need onboarding software that can integrate with various organization systems. Hence it stores all data in one location, regardless of the point of onboarding. This system allows the relationship team to observe clients across all channels.

Paper-heavy Documentation

Investment management services still perform KYC via manual, paper-intensive processes and collect data in unstructured formats.

Extracting value from such confused and unstructured data is a complex task. Furthermore, it is impossible to depend on such data to derive strategic insights if the company doesn’t have a central repository of all client-related data.

The onboarding platform will enable the investors to submit digital OVDs and E-consent declarations that can be secured stored and easily retrieved. Additionally, the financial managers may provide digital clearance and allow internal departments to access these documents.

Centralized Onboarding – To Streamline Client-advisor Engagements

One of the most crucial phases in the client lifecycle is their onboarding journey. It serves as the initial point of interaction between investors and financial managers.
An automated and centralized onboarding procedure may provide an organization with a competitive advantage. It can also set the organization apart from its competitors.

iStart client onboarding software system for investment management services improves risk management across departments with a managed-by-exception approach, better system integration, and centralized data.

Implementing a quick, user-centric, compliant, end-to-end onboarding process can improve client experience. This smooth approach will hasten revenue growth, generate a richer lifecycle, and ease client portfolio account creation.

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