Why You Should be Capturing Client Onboarding Information Digitally

By Mark Mitchell
Apr 28, 2020

A lot of things have gone digital, and in most cases capturing information digitally is an easier and more efficient way versus paper documents. Client onboarding is no different, and the ability to capture a lot of the information you need from clients digitally can reduce onboarding time and may even help improve financial companies’ risk and compliance management as well.

KYC, CDD, & AML in Client Onboarding

During client onboarding, there are several different things that your company is required to do to ensure that the person or entity you are working with is legitimate and that they don’t pose a risk for money laundering or other illegal activities.

  • Know Your Customer (KYC)
  • Anti-Money Laundering (AML)
  • Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD)

These are essential during the onboarding process, but they don’t end once your client is onboarded fully. You need to continue monitoring clients, regularly reviewing their finances to ensure that there are no red flags for risk or compliance issues. Beyond just the legal requirements to monitor this information, ongoing reviews also allow you to expand your existing relationships by inviting them to try new products and services.

When you capture the information you need for your client digitally, you can comply with all the requirements and laws during the onboarding process, and also store that information for the future. Once your onboarding team completes the process, they can easily hand off the necessary information to your monitoring team as well as your sales team. It turns your onboarding process into a tool for managing clients’ lifetime value instead of just a one-time effort to check off a box when you’re done.

Better Automation

Right now many companies that work in the financial services industry don’t have the right tools to automate much of the onboarding process. That means they are still processing a lot of information manually, which slows down onboarding and leads to frustration on the client-side as well as the onboarding company side. Moving these things to a secure online platform can be a differentiator in the onboarding process that leads to higher levels of client satisfaction. Digital transfer of information also allows you to automate more of the processes in onboarding, saving on staffing costs and overhead for more people to process things manually.

Set Yourself Apart

Financial institutions today are aware of the significant market forces that require innovation—competition, regulatory scrutiny, cost of overhead—but onboarding offers an opportunity to set yourself apart from the beginning, creating a better client relationship and helping you overcome challenges. The more you can offer online tools that make onboarding easier for clients (and your team), the happier everyone will be.

Find out how the GuideCX client onboarding platform is changing the game for financial institutions to allow a smoother onboarding process and better data management.

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