Expert: Éva Adravetz-Kadocsa, Dorsum Facilitator: Carline Burkart, Alpha FMC
Headlines:
- Client onboarding is described as "fractured" and inefficient, with significant delays due to manual processes
- Legacy systems hinder the adoption of digital solutions, but integrated systems are recognised as necessary for streamlining the process
- The industry grapples with meeting regulatory requirements while ensuring a seamless client experience
- Onboarding clients across multiple jurisdictions adds layers of complexity, including varying regulatory requirements
- Both technologies are discussed as potential game-changers for the onboarding process, though adoption remains limited
Discussion points:
Onboarding challenges
The onboarding process is described as inconsistent, fractured, and often lengthy (taking 6-9 months). This is attributed to manual processes and the lack of digital integration.
Both clients and service providers experience frustration with the process due to outdated systems.
Technology integration and client experience
The conversation emphasised the need for integrated systems to improve onboarding efficiency.
Some firms are experimenting with hybrid models that blend digital tools with human interaction to improve client experience while maintaining regulatory compliance.
The need for flexible systems was highlighted, with clients moving between different stages of the process, sometimes requiring more human assistance.
Cross-border complexities and data management
Onboarding clients across multiple jurisdictions presents added complexity, as each location has its own regulatory requirements.
Ensuring accurate and consistent data across various systems was identified as a significant challenge. Some firms are exploring AI and machine learning to improve data quality and automate processes.
Future trends and potential solutions
Delegates discussed how AI and blockchain could revolutionise the onboarding process, with potential for faster, more accurate, and automated systems.
However, the adoption of these technologies remains low, with only 3% of firms using AI in any aspect of their business.
The need for better integration between systems was stressed, with the goal of creating a more seamless, automated onboarding process in the future.
Key takeaways:
- The onboarding process is still highly manual and inconsistent, leading to significant delays
- Legacy systems are a barrier to progress, and firms must prioritise adopting integrated solutions to improve efficiency
- Finding the right balance between meeting regulatory requirements and offering a smooth client experience remains a challenge
- Onboarding across jurisdictions is more difficult due to varying regulatory requirements in different locations
- Both technologies hold potential to transform onboarding, but their adoption in the industry is currently minimal
