INDUSTRY UNLOCKED
Streamlining client onboarding in banks
As banks and financial institutions continue to struggle with client onboarding , particularly in the corporate banking sector , it is becoming increasingly important to shine light on the challenges facing the industry and how to combat them . Alan Samuels , VP , Data & Product at Encompass Corporation , provides valuable insight into how evolving technologies and solutions such as Corporate Digital Identity can transform and streamline processes for financial institutions , particularly banks .
Client onboarding is a critical yet challenging process for banks , particularly in the corporate banking sector where it remains a labour-intensive and costly exercise . It is becoming increasingly important to shed light on these challenges and how evolving technologies and solutions such as Corporate Digital Identity ( CDI ) can transform and streamline this process .
Research conducted by Chartis emphasises the stark differences in resources allocated for individual versus corporate onboarding . This inefficiency is underpinned by the complexity of corporate risk assessments , the sheer volume of documentation required and the fragmented nature of corporate data .
The key pain points in client onboarding
Client onboarding in corporate banking forms a core component of a bank ’ s Know Your Customer ( KYC ) procedures , which require strict adherence to regulatory guidelines . However , the process is often riddled with inefficiencies , mainly due to the manual nature of corporate onboarding .
One key challenge is the time-sensitivity of the onboarding processes . Corporate onboarding typically spans 90 – 120 days , with 51 hours of manual effort required to complete various tasks such as identity verification , screening and quality control . The time investment in onboarding is particularly high due to the need for manual processing at nearly every stage . www . intelligentcxo . com
37