Automated Client Onboarding

Coronavirus is forcing companies to speed up automation. A recent report by Forrester holds that automation may become key to surviving a coronavirus recession, at least as far as businesses are concerned. Remote and automated client onboarding will be integral for any regulated business that wants to improve the customer experience, speed up processes and reduce compliance costs. However for firms to succeed in a post-coronavirus world balancing automation with the demands of the regulators is critical.

Posted on August 18, 2020
Written by Rebecca Angus

Engage new customers with automated client onboarding and achieve regulatory compliance

The global pandemic has forced companies to speed up their plans of automation, according to a recent report published by analyst company Forrester. As firms tighten their belts financially, businesses are increasingly using software that automates client onboarding processes and back-office compliance tasks.

  • According to a report in EY, 41% of bosses in 45 countries were investing in accelerating automation as they prepare for a post-coronavirus world (source)
  • According to a KPMG survey over 90% of CIOs and COOs plan to increase automation of their compliance processes over the next year (source)

A recent report from Deloitte research reveals that at least 38% of customers drop out of the onboarding process, often as a result of the sheer volume of touchpoints and paperwork involved.

Traditional in-person onboarding is no longer viable, and firms need to provide automated and remote client onboarding if they want to succeed in the future.

Tightening of AML Regulations 

Anti-money laundering (AML) regulations in the UK are set to tighten, under the mooted Economic Crime Levy legislation – which is out for consultation until October 2020. The complexities of Know Your Customer (KYC) verification can be onerous and time-consuming, particularly when undertaken manually, which is far from ideal for achieving a great onboarding experience in today’s market.

Companies who have avoided adoption of automated client onboarding – either due to cost, concerns over integration with legacy systems or lack of digital strategy – need to wake up to the demands of consumers. No longer are interested-parties content with waiting a few days for verification to be completed – they expect, and demand, verification to be made in hours, if not minutes, and they are certainly not prepared to give their information several times over, to each successive department!

How do I automate client onboarding, whilst satisfying anti-money laundering regulations?

The truth is, that integrating an automated client onboarding compliance process doesn’t have to be complex. 

By partnering with the right Regulatory Technology (RegTech) partner who understands your specific compliance and onboarding requirements, you can easily integrate a configurable software solution into your existing systems. 

RegTech software solutions can automate the onboarding process to verify your client’s data against multiple international data sources in the seconds and deliver a risk-score. Eliminating the need for employees to perform repetitive tasks means they can spend their time focusing on more high-risk cases and customer-centric activities.

Client Lifecycle KYC Management

With an ever-evolving regulatory landscape, an agile software solution can be updated and reconfigured in real-time enabling you to future-proof compliance processes against evolving or new regulatory obligations. This is especially useful for KYC client onboarding and regulatory deadlines and ensures that all clients are onboarded compliantly and remain so throughout the client lifecycle journey.

Implementing digital client onboarding software

Implementation and integration can be carried out remotely in most cases, with little or no client downtime. It’s important to work with a provider that understands your exact requirements and has a team of qualified specialists that not only designs, builds and deploys the software but then engages with you on a regular basis to ensure it continually delivers.  Reporting should be carried out remotely through an intuitive dedicated client portal on the basis of ‘only cases relevant to you’ which saves time and avoids trawling through irrelevant results.

Can I trust automated client onboarding anti-money laundering results?

Yes, if you choose the right provider. Any software provider worth its salt will be able to provide you with the evidential guarantees that you need for peace-of-mind, against your automated AML checks, when you enter into an automated client onboarding anti-money laundering arrangement. Audit trail-backed verification reporting is not just possible, it should be the norm.

Do I need ongoing monitoring for my FinTech client onboarding automation?

Ideally, yes. Data goes out of date very quickly – virtually overnight – so clean results you have on one day could be speckled with warnings the following day. Ongoing monitoring doesn’t need to be expensive and any costs can be amortised against the peace-of-mind that comes with knowing your client base is fully compliant on a daily basis.

Are there specific AML estate agent automated checks for the property sector?

Yes, the property sector is fast-moving and Agents need to keep abreast of compliance issues (both Anti-Money Laundering and Right-to-Rent) for buyers and renters, as well as for landlords and lenders. Automated onboarding software will verify documents and individuals remotely, through international database searches, as well as visual identity verification software. In addition to checking lenders and landlords against PEPs and Sanctions registers, as well as due diligence of beneficial owners or directors for adverse media and political exposure. Remote verification and an ongoing monitoring solution are key to success in the property market.

Automated Client Lifecycle Management

Providing consumer-grade digital experience isn’t optional anymore – it’s a must to stay competitive. Regulated businesses have a narrow window to deliver automated client life-cycle management otherwise they will fail in this new world of digital experiences.

Want to learn more?

If you would like to learn more about transforming your KYC/AML client interactions to deliver a positive automated client onboarding experience then contact the team at NorthRow.