The transition from manual and paper-based systems to a digital approach to onboarding, facilitated by Client Lifecycle Management (CLM) programs, can give clients a positive customer experience that is all too crucial in a digital-first world.
Philippe Guiral of Accenture began the discussion by discussing the ‘perfect storm’ taking place in the financial services industry. The combination of regulatory pressures, massive operational costs, and rising customer expectations means that banks are between fintech and a hard place. They must adopt disruptive technology or risk losing customers, or worse becoming obsolete.
The Need for CLM
Jonathan Jones, Principal Director at Accenture, presented staggering statistics about the challenges that commercial banks are facing today. On average, clients are receiving outreach from at least 12 people in the onboarding process, looking for data that is likely already stored in the system but impossible to access. This results in at least 10% error rate, which at the end of the day, means that the work must be re-done. A standardized, digital, and transparent ecosystem of Client Lifecycle Management technology can have a substantial, transformative effect on the client experience. These numbers are not to be taken lightly if banks want to continue to stack up against their competitors.
Benefits of Digitalizing Client Onboarding
The discussion then turned from pain points to solutions. While many banks are still struggling with paper forms, constant outreach to clients and a lengthy, painful account opening process, a systematic approach can work wonders. Moving toward a digital model can yield a host of benefits, including:
- A Consistent Target Operating Model – Banks of all sizes are moving toward an industry-standard front-to-back enabled team and solution, moving time and money into something that can orchestrate the entire client relationship.
- Digital Omni-Channel Approach- Omni-channel goes beyond just mobile banking, but enables a transition through any channels, whether it be at a branch or online. It takes the single journey from a phone conversation and allows them to finish the electronic data collection from a tablet.
- Automating the Process – Take the effort out of the equation with process automation, including auto-document classification, machine learning, RPA and systemic sourcing of data.
- Reduced Dependency on Core Platforms- Many banks have dependencies on core banking platforms. CIOs are looking toward best-in-breed, open architecture to allow for federated applications and fintech integration.
- Single Source of Regulatory Rules – Without a centralized rules engine, there is no way to know if the client is being onboarded in a compliant way. A centralized rules engine drives a compliant customer journey across all channels.
To hear the discussion in full and see a demonstration of what good looks like in Commercial and Business banking, watch the on-demand webinar.