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.
In order to ensure that new brokerage accounts are opened with ease and investors are happy, it’s imperative to understand the differences and when to use a CRM versus an onboarding solution. CRMs are primarily used to effectively store and manage client data so that financial advisors can help them plan for their financial futures and meet their financial goals. As a result, CRMs must be customizable so that you can store relevant financial information (such as whether they plan to purchase a home, send a child to college or pay for a wedding), beyond qbasic demographic information. Data must also be modeled and indexed properly so that it is easy to find and analyze.
Just like CRM solutions, automated onboarding solutions for financial services firms are customizable. And, with the constantly evolving regulations in the financial services sphere, they have to be. Unlike CRMs, which are primarily used as a data warehouse, Onboarding solutions are deeply integrated with a firm’s business rules and operations. As a result, they must have workflow automation capabilities that spawn certain tasks and route workflow appropriately. This functionality increases visibility and transparency into the onboarding process as well as reduces error rates.
Ultimately, CRMs and Onboarding solutions are very different yet powerful technology tools. With bi-directional integration between a CRM and a robust Onboarding solution, firms can have the best of both worlds and increase operational efficiency while impressing investors.
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