Understanding Lifecycle Management in Client Onboarding

By Mark Mitchell
Apr 22, 2020

For many companies, client onboarding and client lifecycle management (CLM) are two separate and distinct processes–where onboarding is viewed as a process to get the client’s information, perform KYC checks, verify information, and get a person set up with an account login. But effective CLM should actually be just an extension of client onboarding, with the two tied together to create an opportunity for managing an overall client relationship in the long term and not just getting them set up with the right logins.

The Importance of CLM

Client lifecycle management is one of the most critical components of a financial relationship. It centers around the idea of having a comprehensive and requirements for the future as well. When this is viewed as a completely separate function from onboarding, you’re not taking advantage of an opportunity to use information you have about your clients to optimize their experience with your products and services from the very beginning.

A better understanding of CLM and its integration into your client onboarding process also allows you to use information about where your clients want to go to advance your product, creating more and better features or offerings to meet those needs.

Using Onboarding to Improve CLM

During your onboarding process for new financial clients, you are required to conduct certain checks and reviews:

  • KYC – Know Your Customer
  • CDD – Customer Due Diligence
  • EDD – Enhanced Due Diligence
  • AML – Anti-Money Laundering

These checks can actually provide a lot of insight into your clients, and allow you to open up new discussions about what they want and need from your products. Many of these processes can be automated and integrated into your onboarding with the GuideCX platform, but it’s important not to let the information you gather go to waste and to use it effectively beyond the onboarding process.

The more information you have available, the better you can conduct ongoing data refreshes, due diligence, and upselling or cross-selling opportunities in the future. You can also use this information when new regulatory requirements come up in the future. The more your information is tied together, the better you can provide intelligence and insight to other members of your team with continuous onboarding.

Having the right tools to enable you to integrate your ongoing CLM with onboarding is essential to provide a better client experience initially and into the future. Find out more from GuideCX by scheduling a demo.

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