1 CLIENT Client Onboarding ONBOARDING Capabilities for Wealth CAPABILITIES FOR WEALTH Introduction A successful, efficient onboarding experience is paramount to building a strong foundation for the client relationship. The onboarding process is the first experience that a client will have with your firm, is integral to driving time to revenue for your firm, and with the unprecedented change in industry regulation, firms are rapidly outgrowing legacy client onboarding capabilities. As individuals become more dependent on the conveniences of the digital world, and banks strive to remain ahead of the curve, client onboarding becomes a natural candidate for improvement. New technologies continue to emerge to help firms deal with the increasing complexity of client onboarding. With advancements in dynamic forms, smart workflow tools, centralized KYC, and machine learning, firms are finding new ways to streamline transactional processes, integrate methods for complying with regulatory requirements, and leverage tools to seamlessly share data and communicate, eliminating operational handoffs and paperwork. Common challenges across the Client Onboarding lifecycle Banks have been opening accounts for clients since they started trading. Done well, onboarding is an easy, unobtrusive and positive client experience. Handled badly, it s repetitive, time-consuming, and unreliable. What was once a simple way to formally welcome a client has become complicated and often clumsy. WEALTH MANAGEMENT CLIENT ONBOARDING
2 Client Onboarding Capabilities for Wealth For customers, the process can be time consuming and leave them feeling that requests are unjustified and never-ending. For banks, there are too many forms, the process is confusing, and there are masses of data to capture, store, review and update on a regular basis. With new rules and regulations coming, this only means more adjustments will be needed. These challenges in the onboarding process can result in potential damage to the customer relationship, to the brand, and will ultimately lead to lost revenue, as many customers will start, but never complete, the onboarding process, due to time, effort, complexity. What is driving change now? A seamless onboarding and account management process can help facilitate mutual understanding and reassure clients that the bank has high standards for compliance, risk and control. The more robust the process, the more solid the bank. In addition, regulations now state that key aspects of services received, for example costs and charges, along with inducements disclosure, are to be reported on an annual basis. Investment institutions and research managers will need to have excellent documentation processes in place to demonstrate their practice and charges to clients and policy-makers. With the pace of technology advancement, the growing sophistication and demands of clients, and the introduction of new, multifaceted technology products, it is the right time to invest in new tools and processes to support the onboarding process for clients and advisors. KEY FACTORS DRIVING CHANGE CLIENT EXPERIENCE REGULATORY DEMANDS GROWTH & PROFITABILITY EFFICIENCY & AUTOMATION FULL CLIENT VIEW RISK MANAGEMENT Client trust & satisfaction Onboarding success KPIs KYC & AML suitability Investment mandates & traceability Operations cost management Scalability and digital tooling Relationship based approach Cross-selling & tracking Reputation management Risk controls & audit reviews CAPACITY TO REALIZE BENEFITS
3 Client Onboarding Capabilities for Wealth Opportunities for enhancing the onboarding process Wealth managers aim to deliver a consistent onboarding experience for all account types, across all customer segments and all geographies that satisfy regulatory requirements for classification such as MiFID and segmentation for FATCA / RUBIK / DFA etc. From the client perspective, a seamless onboarding and account management process can help facilitate mutual understanding and re-assure them that the bank has high standards for compliance, security, risk and control. There also needs to be a highly effective knowledge framework in place, so that relationship managers and other key front-office staff know exactly the right onboarding process for each client profile, account structure and service style. And, of course, this does not just happen. It must be enabled by back-office operational readiness and process that is fully fit for purpose. GOALS IN CLIENT ONBOARDING STANDARDIZATION + Standardized look and feel across locations Standardized look and feel across products Centralization of Client On-Boarding Risk-based approach to AML and KYC, with questionnaires gauging more subtle information EFFICIENCY Client data secrecy remains at the center of these objectives Client Product Suitability was previously missing from many on-boarding processes. This should be a central pillar of the process along with KYC and AML requirements On-boarding processes should be more client-centric than product-centric
4 Client Onboarding Capabilities for Wealth Benefits of an enhanced Client Onboarding process ENHANCING THE CUSTOMER EXPERIENCE COST EFFICIENCY Reduce number of interfaces Create enhanced data management Reduce paper documents Lean project development Increase STP ratio RISK & COMPLIANCE MANAGEMENT Supervise client behaviour Faster time to market for new regulation Increase STP process Digital signature check Preserve client data secrecy Enhancing the Customer Experience: Many banks are embracing customer experience as a key differentiating factor in their service offering. A great customer experience offers a significant source of potential revenues, customized services, and cross-selling opportunities for the group. Increasing the automation of onboarding enables a seamless client experience and can greatly reduce the account opening cycle time, complete with online forms, integrated compliance checks, and workflow tools for notification and approvals. Driving Cost Efficiency: An efficient, digital onboarding capability can minimize, and even eliminate operational involvement in client onboarding. The business remains as the central owner of the process with the workflow and data capture in place, with tools such as e-signatures and pre-filled forms (for existing clients) becoming increasingly common. Many banks are employing onboarding tools to help manage the workflow and routing of information between different divisions, market segments, and even across lines of business. Reducing Risk and Improving Compliance: Banks want to service their clients globally while needing to comply with local regulation. Client complexity is continuously increasing in terms of sophistication, geography and product requirements. Workflow tools can help with this so long as the business logic behind the tool is sound and maintained for new KYC and AML developments.
5 Client Onboarding Capabilities for Wealth How Capco can help Capco has over a decade of experience working with wealth managers globally to transform client onboarding into an integrated experience. Our team has deep capabilities for designing and implementing client onboarding solutions, from redefining underlying operating and governance models to the selection and implementation of innovative onboarding solutions. We are partnering successfully with top wealth management firms and leading product vendors to help create a smooth, modern and compliant onboarding experience, from client acquisition to electronic documentation management. With multiple accelerators facilitating our proven execution model, Capco has a structured approach to streamlining your firm s client onboarding processes, including in depth analysis of the functions performed, roles and responsibilities, and support models: ENHANCING CAPABILITIES TAILOR BEST PRACTICES Utilize best practice frameworks to meet client needs Capco accelerators include: CLIENT INTEGRATION Full integration program plans Operational policies and procedures User guides and training materials We can support financial institutions in choosing and designing onboarding solutions that are repeatable and comprehensive, factoring in key issues such as online and offline customer experience, regulatory requirements, technical specifications, data definitions, services and interfaces. Onboarding planning should be a standardized process that includes clearly delineated project plans, achievable timelines, testing criteria, and a defined organization to manage the process in practice.
6 Client Onboarding Capabilities for Wealth CONTACTS Kapin Vora kapin.vora@capco.com 732-491-6954 212-284-8813 Damon Gatison damon.gatison@capco.com 347-439-2080 212-284-8601 ABOUT CAPCO Capco an FIS TM company is a global business and technology consultancy dedicated solely to the financial services industry. We work in this sector only. We recognize and understand the opportunities and the challenges our clients face. We apply focus, insight and determination to consulting, technology and transformation. We overcome complexity. We remove obstacles. We help our clients realize their potential for increasing success. The value we create, the insights we contribute and the skills of our people mean we are more than consultants. We are a true participant in the industry. Together with our clients we are forming the future of finance. We serve our clients from offices in leading financial centers across North America, Europe, Africa and Asia. WORLDWIDE OFFICES Bangalore Bratislava Brussels Chicago Dallas Düsseldorf Edinburgh Frankfurt Geneva Hong Kong Houston Johannesburg London Malaysia New York Orlando Paris Singapore Toronto Vienna Zürich To learn more, contact us in the UK on +44 20 7426 1500, in Continental Europe on +49 69 97 60 9000, in North America on +1 877 982 2726 or visit our website at CAPCO.COM 2016 The Capital Markets Company NV. All rights reserved.