INDUSTRY UNLOCKED
CORPORATE ONBOARDING WORKFLOWS OFTEN SUFFER FROM BOTTLENECKS DUE TO AN OVER-RELIANCE ON MANUAL PROCESSES AND LIMITED ACCESS TO CRUCIAL DATA .
Additionally , the presence of duplicate and inaccurate data poses a significant hindrance to the onboarding workflow . Not only does this increase the risk of errors , but it also wastes valuable time in rectifying these issues . It is also important to consider the corporate data that lies outside of core financial crime management systems . A significant portion of the data required for corporate onboarding resides outside the bank ’ s core financial crime master data management ( MDM ) systems , limiting analysts ’ ability to access key information in a timely manner .
These pain points demonstrate the inefficient and fragmented nature of the current onboarding process , which is heavily dependent on manual resources and lacks streamlined , technology-driven solutions . Addressing these inefficiencies is crucial for banks looking to remain competitive in an increasingly demanding regulatory environment . during enhanced due diligence ( EDD ) and investigations . Banks face a clear disparity between corporate and individual onboarding , whereas individual onboarding benefits from significant investments in technology and automation , corporate onboarding remains almost exclusively manual .
For example , in a typical Tier 1 bank , 33 % of the spending on individual onboarding goes towards technology and data solutions . In contrast , only 17 % of corporate onboarding expenditure is allocated to technology , with 83 % devoted to manual processes . This imbalance highlights the need for banks to modernise their approach to corporate onboarding and leverage digital solutions such as CDI to close this gap .
CDI is the way forward
The growing complexity of corporate onboarding processes , combined with rising regulatory pressures , makes it essential for banks to adopt more efficient and automated solutions . CDI offers a comprehensive digital representation of a company ’ s identity , bringing together
The scale of the onboarding problem
The onboarding process for corporate clients involves extensive due diligence and KYC checks that must account for a company ’ s structure , ownership , regulatory status and other key factors .
These processes require significantly more time and resources compared to onboarding individual clients . According to recent research , the financial burden on banks is substantial with approximately US $ 9.9 billion spent on customer due diligence , alongside an additional US $ 2.8 billion for downstream investigations . These figures do not even account for the hidden costs associated with maintaining manual and disjointed processes .
Addressing bottlenecks and inefficiencies
Corporate onboarding workflows often suffer from bottlenecks due to an over-reliance on manual processes and limited access to crucial data . The sheer complexity of corporate risk assessments further exacerbates these delays .
These bottlenecks add to the later stages of the onboarding processes , particularly
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