4th June 2015 Posted by David Chescoe

Customer On-Boarding – Automating the process

 It is important for financial institutions to ensure a proactive response to customer on-boarding whilst still effectively managing processes, improving customer service and increasing profitability.

Banks, mortgage and asset management companies often struggle with new client and administrative paperwork that is becoming a burden and a challenge when trying to improve efficiency.

Many banks still have fragmented processes that prevent a seamless on-boarding function. With the advancement of document capture technology, process management, analytics and emerging mobile capabilities, banks can achieve near-perfect transactional accuracy.

All finance companies and banks, large or small, fight to win new customers on a daily basis. The whole process can often mean the new customer on-boarding process is lengthy, ties financial staff up for long periods of time and can affect the customer’s experience. Customer on-boarding is a smart process and an effective way for banks and financial institutions to open and manage new accounts while building trust through automated follow-up communications.

For the client, the absence of clear information on the status of the on-boarding becomes frustrating. This is due to the lack of a centralised view of a client, which can lead to potential fallouts such as incorrect account relationships being set up and inaccurate mapping, which, as a result can cause an internal loss.

Client on-boarding involves several important activities, not just opening new accounts but also evaluating new clients, setting up credit process compliance, ensuring agreement on legal terms, and making the client “trading enabled” in line with the bank’s business policy as well as industry regulations.

For retail financial services having an effective on-boarding process is far more critical. The first 90 days after any new account is opened is an especially sensitive period outlined by several important customer experience factors:

• Customers expect high levels of interaction
• They expect to be asked for personal information
• They are in ‘switch mode’ and open to new offers
• They are much more likely to defect before ‘bedding in’


How does the process work?
AAC System’s customer on boarding solution allows new account applications and relevant documents to be captured when they are first available from a number of sources which can include mobile, email, internet portals and mail. Information on documents such as passports, driving licenses and utility bills, used as proof of identity and residency can be captured.
The content is then extracted and validated automatically and then using dynamic workflows the on-boarding process is completed efficiently and effectively. The process eliminates the need for back office resources that would be tasked with manual data entry to transfer the required data into traditional systems of record.

Customer On-Boarding Diagram

What are the benefits to automating the on-boarding process?
There are many benefits to financial organisations and banks:

1. Provides a great first impression to the customer
2. Reduces the paper handling process and in return saves time
3. Reduces the risk of data errors and misplaced documents
4. Efficiency is increased as well as productivity
5. Real time customer engagement
6. Costs are dramatically reduced
7. Competitive positioning and differentiation
8. Better manage and grow your business

Done well, client on-boarding can affect consumer attitudes, behaviours and results. In a recent report by KPMG they found significant results along those three dimensions:

• 80% of consumers began doing business with a competitor following a poor experience
• A customer is 4 times less likely to defect to a competitor if the service related problem is handled effectively
• A 5% reduction in the customer defection rate can increase profits by 95%

In the report KPMG also talk about the next generation of client-on-boarding “Going forward in order to enhance on-boarding capabilities, improve the client experience and advisor productivity and overcome internal processing constraints, financial institutions will need a blending of a big data technology platform with highly automated business process operations”.

“You never get a second chance to make a first impression”

In this challenging economic environment, banks and financial institutions are expected to match each other quite closely in terms of product innovation and financial service offerings. A major difference will therefore lie in creating a high-quality first impression.
As banks move forward to gain larger market share, the focus will be on a smart, flexible and agile automated on-boarding process to stay competitive.

“The customer on-boarding process needs to automate, standardise and streamline the relationship setup whilst tracking progress from point of sale through back office systems updates, providing a full audit trail of the entire implementation process. Across all of the key areas, Sales, Implementations, Customer Service and Operations, the on-boarding solution must enable your organisation to do more with the same staff and accelerate the generation of revenue.”

For more information on how AAC Systems can help with customer on-boarding please speak to one of our specialists on 01628 421569.

AAC Systems ONE St. Peter’s Road, Maidenhead, Berkshire, SL6 7QU . Telephone 0800 955 3315. Click here to email us ›