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Digitalizing the client lifecycle for private banks and wealth managers

By Steve D’Souza, Global Division Head - Private Banking & Wealth Management, Fenergo

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Fenergo for Wealth

Challenge Private banks and wealth managers work with complex clients with rapidly evolving needs. However, regulatory pressures, disjointed legacy and reference systems, hybrid disjointed processes and requests for more information from clients all create significant inefficiencies and negatively impact the client experience.  These firms are now more focused on delivering excellence in...

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by Fenergo
| 26/06/2019 06:00:00

A streamlined and effective client lifecycle management process is a key market differentiator in today’s competitive marketplace, explains Steve D’Souza from Ireland-headquartered Fenergo.

Private banking and wealth management is progressively entering a new era, driven by digital transformation and rising customer expectations. A generational shift is underway on the client side with many new clients expecting faster and more convenient ways to manage their assets securely. Delivering a streamlined digital client journey has now become the key market differentiator in a competitive marketplace.

Yet, many financial institutions are finding it difficult to deliver excellence within the client onboarding process and beyond due to significant operational challenges. Regulatory pressures, disjointed legacy and reference systems, manual processes and repeated requests for more information from clients are creating significant inefficiencies and negatively impacting the client experience. 

By adopting a best-in-class client lifecycle management (CLM) solution, private banks and wealth managers can address the gap within client onboarding and deliver frictionless, digital client journeys in the following ways:

Simplify complex client onboarding
Mass Affluent, High Net Worth and Ultra High Net Worth individuals lead complex lives and have multi-layered structures, special purpose vehicles and intricate tax affairs. The ease by which these clients are onboarded and subsequently managed is highly dependent on the jurisdiction and source of wealth of the client, and how repeatable the process is. A fully automated CLM solution can streamline the orchestration and regulatory process and deliver full visibility of the client onboarding progress across the front, middle and back office. Users can also gain a clear picture of corporate structures and identify ultimate beneficial owners easily for continuous lifecycle compliance.

Empower clients with digital client self-service channels
In today’s digital age, clients expect sophisticated digital interactions with their private bank or wealth management firm. Yet, many financial institutions still continue to operate a manual regulatory client outreach process, resulting in a disparate procedure that makes it difficult to track all incoming and outcoming information. Client self-service channels can enable swift and secure data and document exchange during the onboarding process as well as the review process. Integrating eSignature and instant messaging capabilities also significantly reduces the pain point of form-filling for new clients and expedites client outreach communications between client, advisor and compliance officer.

Gain a 360-degree client view across the client lifecycle
Centralised client data is key for keeping pace with regulatory demands and enabling re-use of client data and documentation across the client lifecycle. Many wealth managers have client data stored across several systems including back office and portfolio management systems. By choosing a CLM solution with an API-first approach to internal repositories and industry integration, private banks and wealth management firms can obtain a true, consolidated 360-degree view of all clients across channels, functions, business lines and jurisdictions.  

Increase operational efficiency with straight through processing
The ever-rising cost of regulatory compliance has put exceptional pressure on financial institutions’ operating budgets and created a keen appetite among executives for cost-cutting strategies in an environment where fees are under pressure and new investments are required.

Underpinned by Artificial Intelligence (AI) and Robotic Process Automation (RPA), CLM solutions, like Fenergo, can provide fully automated application and orchestration across all products, clients and jurisdictions across the entire client lifecycle – from initial onboarding to ongoing lifecycle events. API-first technology allows straight-through processing of requests, reducing the need for human interaction and allowing simpler integration to current and future multi-channels.

Improved revenue generation with enhanced regulatory and brand protection
Trust and reputation play a crucial role in private banking and wealth management. By achieving faster onboarding times and streamlining front-to-back processes through increased process automation, firms can expedite access to assets, resulting in more fruitful client relationships and increased client referrals.

From a compliance perspective, a sophisticated client lifecycle management solution can deliver a single platform to manage compliance and KYC regulations across all bank customers, integrating them into a fully audited orchestration process. This determines the HNW client’s regulatory journey through the onboarding process and beyond, ensuring compliance with all-in scope regulatory obligations. The solution also incorporates an automated review process with event-driven functionality. A consistent regulatory-driven workflow reduces manual effort and ensures lifecycle compliance.

Digitalizing the client lifecycle experience provides numerous benefits to private banks and wealth management firms. It enables organizations to transform the client onboarding experience by placing the client at the forefront of the process, minimizing customer effort and streamlining the orchestration and regulatory process. Furthermore, by eliminating data silos and manual processes, firms can achieve a full 360-degree view of the client lifecycle for enhanced client relationship management and improved revenue generation.

This article features in the UK Wealth Technology Landscape Report. See that here.