Client Onboarding Process Challenges

Client onboarding is a process that opens the doors to your organization. When a potential client sets a foot in your door, he/she is likely still in a shopping mode trying to select the best organization to deal with. The onus is, therefore, on your organization to get this client rooted into your services through an efficient client onboarding process which your organization should have developed for such purposes.

An effective client onboarding process is something that may be tricky to develop. Given the need to comply with various inter-organizational requirements, government regulations, limitations on the client’s side such as time, interest, attention span, and the need ensure accuracy of information, this process may be cumbersome.

Some issues regularly associated with client onboarding process are:

  • it is by nature prone to human error because most of it is done manually
  • it often involves excessive manual and paper-intensive processes and management signatory requirements
  • client application process is often invisible to organization’s employees thus limiting the employee’s understanding of how what he/she does integrates into the full picture
  • it is adversely affected by poor data management practices where employees are required to enter same data into several entry points

All of these issues too often create situations where it takes several weeks to onboard and fully integrate a new client.

When developing Client Onboarding Process, it is important to remember the following points:

  • Long and unnecessarily complicated processes will hinder the ability to onboard new clients quickly.
  • Inefficient onboarding process may result in loss of business to competitors.
  • Automation of key processes is key to efficiency of client onboarding which will result in dramatically reduced onboarding timelines, increase accuracy of information, increase in-flow of new clients and thus improve business, productivity and profitability.

We did some research on improving client onboarding processes, and found the following great tips offered by Open Text News & Insights (some quotes are used in the below text):

  • Selecting a flexible and customizable business process management suite is important step in building a process that is “agile enough to allow you to evolve and change the process over time”. Open Text solution offers the ability to
    • “mask the complexity of underlying legacy systems
    • create an aggregated view of client information across multiple systems and departments
    • streamline and manage the best process for your success
    • monitor inbound workflow with ease, providing you complete visibility into the status of a new customer’s progress
    • improve customer service”
  • Collaborate with the right people because improvement of any process is “only as good as the people, knowledge and skills that are brought to the table to implement the transformation”.
  • Monitor and report on your process – Open Text’s tools offer ability to monitor the process in order to know how much it has improved.

Finally, we at ESC realize that one of the greatest risks associated with client onboarding process for financial institutions and lending organizations is linked to the Know Your Client regulations which raises the need to verify your client’s identity (be it corporate, business or personal) through checking the client’s identification. For businesses and corporations, this may not be as easy as it is for a person.

As part of our Know Your Client solution, ESC offers easy corporate and business verification process through which your organization would be able to quickly verify identity of its new corporate and business clients via our white-labeling service linked directly to various government databases offering the ability to order and receive original government-issued corporate and business documents.

Make client onboarding process fast and easy by improving it with the help of technology.

Contact us for more details.

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  1. #1 by Natalia Ros on June 26, 2012 - 10:10 AM

    Another challenge when onboarding new clients is the pressure imposed by the AML legislation to have clients’ identity verified in the onboarding process and the threat of possible adverse effects of not doing so. These effects are not only sanctions associated with non-compliance, but also the natural consequences, such as spoiled reputation and loss of trust in cases where money laundering activities take place in a given financial institution.

  2. #2 by Natalia Ros on June 26, 2012 - 10:20 AM

    Reblogged this on natrosblog and commented:

    Wanted to share this post on my own blog. Enjoy!

  3. #3 by Catherine on June 27, 2012 - 9:51 AM

    It took our bank to on-board a client a whole 3 weeks at one time, and we were on the brink of losing him to another bank. I have to say that effective client communication is key ank often can save an otherwise bad situation.

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