Emerging technology trends and innovative processes are replacing the traditional ways of client onboarding for financial institutes. The digital transformation is helping companies to tackle operational challenges with great aplomb. The technology tools are also assisting financial companies in delivering digital client journeys that make for faster onboarding and more satisfied customers.
Client onboarding offers massive revenue generation opportunities for financial institutions. However, it still remains an under-funded, technology-lagging, spreadsheet-driven process, built around siloed systems and data stacks that are incapable of connecting or representing the views and demands of the customer. Furthermore, new and evolving compliance regulations also play a spoilsport in providing efficient customer onboarding processes.
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Financial institutions have to collect various data or documentation from clients to complete the onboarding process, hampering customer experience in client onboarding and client lifecycle management. According to a survey by Fenergo, financial institutions are losing billions of dollars in revenue due to poor data management practices. Many financial institutions also suffer from inefficient data management strategies and an inability to re-use existing customer data and documentation.
Automation and digitalization can provide a sufficient push to financial institutions to tackle the challenges in customer onboarding. Automation tools can efficiently finish the redundant and repetitive tasks, allowing financial companies to use their resources for more practical purposes. It can also help to increase transparency across functions, business lines and jurisdictions, and enhance into client profiles. Automation can also be a great asset in enhancing data quality and data sharing across multiple platforms and institutions. Implementation of automation also allows companies to connect internal repositories, helping them to reduce operational inefficiencies, and deliver a seamless and streamlined journey for clients throughout the onboarding process.
Digitalization can only be successful through buy-in and effective communication. Financial institutions must ensure to bring all the operations and functional siloes together to achieve success in the digital client journey.