Last Thursday, we hosted a webinar “Effective Onboarding Practices: Improving Your Firm’s Most Critical Business Process.” In the webinar, members of our product team Ray Mulligan and Randy Barnes guides participants through the onboarding process from the front to the back office and provided tips for improving any wealth management firm’s onboarding system.
Within the financial services industry, perspectives vary widely on whether new customer onboarding is a front office or back office function. In fact, a 2011 study from the Aite Group showed that, among small wealth management firms, 26% of respondent viewed new customer onboarding as a front office automated tool, whereas 46% of respondents saw it as a back office function. And, among large to midsize wealth management firms, only 8% of respondents indicated that new customer onboarding is a front office automation tool, and 64% responed that onboarding is a back office function.
In today’s competitive landscape, financial services firms are looking to technology to improve client relationships. Two of the most common technologies used to manage the client experience are Customer Relationship Management (CRM) solutions and New Account Opening/Onboarding solutions. Some firms fall into the trap of using one technology solution to manage all of the requirements and challenges that come along with opening new investment accounts.
Some of the greatest challenges operations professionals face at financial services firms stem from fragmentation between front and back office systems and staff. This fragmentation can be especially costly during the onboarding process, when these two departments must work in orchestra to open and fund new accounts in a timely manner. Without the necessary tools and practices in place to unify front and back office staff, the onboarding process is susceptible to inefficiencies including administrative errors and lack of or miscommunication. As a result, the amount of time it takes to open accounts is increased, customers become frustrated and valuable staff are caught up in administrative functions instead of value-add ones.
Have you spent a lot of time and resources trying to understand and prepare for the upcoming Department of Labor Best Interest of the Client Exemption proposal that will be finalized later this year? We sure have—because it will create big changes for our clients and the financial services landscape. The proposal means significant changes for almost all parts of your organization:
Recent industry reports indicate that over 80% of financial advisors want to improve automation of their workflows to increase operational efficiency. Onboarding is one of the most critical yet complex and compliance sensitive processes for financial services firms.
This post originally appeared as a guest blog post for SIGNiX.
As Ray mentioned in his recent blog post about the past year in financial services, there have been numerous exciting changes in terms of the products and services that are available to the financial consumer. When we look ahead to 2016, we see some immediate and long-term challenges that will face all of us. Let’s take a look at some of the more significant ones and what you can do to prepare.
As is the case in the rapidly-evolving industry of financial services, 2015 was a year of exciting changes in terms of the products and services that are available to the financial consumer. As we reflect back on the year, let’s take a look at some of the most meaningful industry trends from 2015.
As the first touchpoint with a new client, onboarding is arguably the most important part of the client lifecycle. In the financial services industry, it is a particularly complex process that requires coordination between multiple departments and stakeholders. With so much at stake during the onboarding process, financial services firms, along with other types of organizations, are looking to technology to simplify the process, satisfy customers, and improve operational efficiency.