Taking on new clients, often referred to as onboarding in the banking and investment industries, requires special attention given the current regulatory environment. Federal recordkeeping requirements make it critical to get the right start and to manage onboarding processes in an organized and consistent way. This can ensure full compliance with regulatory requirements and can offer a number of other benefits for your financial services company. Re-visiting your current client onboarding process can even lead to ensuring great compliance within your Financial services firm. As well as producing greater productivity and success over the long haul.
If you are considering a task such as this, then consider these seven advantages to re-assessing your client onboarding process.
1. Getting the Right Start
Integrating digital data storage and input strategies at the beginning of the client onboarding process can significantly reduce the time needed to manage these records in the future. Digital recordkeeping can also increase productivity by reducing the amount of repetitive data entry performed by your staff. By onboarding clients using digital storage strategies, your company can streamline compliance tasks throughout the life of the client-bank relationship. Mature firms integrate their onboarding with CRM systems in order to capture client information at the point of engagement and stream it through downstream processes more accurately.
2. Improved Productivity
Creating consistent onboarding procedures can eliminate much of the guesswork involved in creating client paperwork and downstream funding transactions. This can simplify the process and reduce the learning curve. By establishing a set of standards for introducing new clients into your system, you can ensure that all necessary steps and procedures are followed during the onboarding process and can allow your staff to perform their duties with greater confidence. By standardizing your onboarding forms and processes, you can help your employees achieve greater productivity and improved accuracy for all of your clients.
3. Reinforcing Best Practices
Revamping your onboarding process can also provide an opportunity to implement client onboarding best practices for use throughout your organization. By creating a consistent set of rules applicable to both common situations as well as significant outlier cases, your company can create an environment in which regulatory compliance is maintained organically and fewer manual steps are performed. Incorporating software systems that allow greater collaboration, that provide forms and formats for onboarding procedures and that offer centralized storage for completed client documentation can be an important step in establishing consistent best practices for your institution.
4. Greater Interoperability
Implementing digital recordkeeping strategies into your onboarding process can allow you to ensure start-to-finish interoperability that can significantly reduce the amount of time needed to convert records from one format to another. Storing all records and documentation in one centralized and searchable database ensures a structured client-banker relationship.
5. Inherent Compliance
By integrating compliance concerns into the initial stages of bringing a client onboard at your institution, you can ease the workload of your compliance staff and can start off on the right foot from a regulatory standpoint. Considering the future impact of regulatory requirements during the onboarding process can help your company reduce the risk of serious violations and associated costs later on in the client-banker relationship.
6. Increased Accuracy
Digitizing financial data entry practices has shown to reduce the risk of errors in linking records together and storing them for the seven years required under current financial law. By limiting the number of times data is entered during the onboarding process and retaining the core elements of a particular client’s information on all records associated with that client, centralized data management systems can allow superior accuracy over the life of the client-bank relationship.
7. Enhanced Customer Service
Partially automating the onboarding process to provide greater speed and convenience for new clients allows your company to make a more positive impression during the critical initial stages of consumer engagement. Faster retrieval of records can also be useful to clients who may need historical data for in-house purposes. Responsive customer service can boost your firm’s position in the competitive financial marketplace.
By reimagining your company’s onboarding processes to ensure faster retrieval of records and to institute secure data storage solutions, you can make the best possible impression on your new clients while increasing productivity among key members of your compliance team.