Fenergo’s Client Lifecycle Management solutions enables financial institutions to manage the end-to-end client lifecycle from initial onboarding all the way through to the off-boarding of the client or account.
Why Conduct Client Off-Boarding?
Client off-boarding may be defined as the proactive management and removal of redundant, obsolete or incorrect information held on clients, accounts and assets. Inactive or dormant accounts are not a revenue stream and can actually cost your financial institution money, as they still need to undergo regulatory (AML and KYC), credit worthiness checks and reviews each year (not to mention all of the staff, technologies and operational processes required to maintain these review processes). And of course, the higher the risk associated with the client, the more frequent these reviews must be conducted, potentially using higher-skilled staff to ensure full due diligence compliance. One financial institution has estimated that it costs them up to £3,000 per client per year to maintain accounts that they know to be dormant.
Fenergo’s Client Lifecycle Management solution enables financial institutions to off-board clients seamlessly. The criteria to off-board clients / accounts differs from institution-to-institution, however, Fenergo recommends the following as a guideline:
If the account has been inactive for 36 months or one month immediately post M&A transaction (i.e. the account was opened only for the purposes of a single M&A transaction) and there are no open positions / trades on the account;
If there has been a manual request to off-board a client (e.g. from the client, relationship manager etc.).
Just like the client onboarding process, the client off-boarding process is equally data and document-heavy (due predominantly to the need to evidence all regulatory compliance obligations). Given that most financial institutions are quite silo’d in nature (using numerous complex IT systems across various functional, business line and jurisdictional divides and storing client and counterparty data across a raft of data repositories with little or no interconnectivity), this adds a further level of complexity when attempting to off-board a client / account.
The solution sends a notification to the Relationship Manager to assess the request to off-board the client / account in context (i.e. make sure it is done for the right reasons). This ensures that off-boarding follows a rigorous review process before the decision to finally off-board the client / account is taken. As part of the assessment review, the Relationship Manager needs to answer a crucial question – why does this client / account need to be off-boarded? This provides them with an opportunity to contact the client and ask them about their account / transactions to determine if off-boarding is the right course of action or if they can meet the client’s needs better with another range of products / services.
2. Determining the Impact of Off-Boarding on Reliant Parties
If it is decided to off-board the client / account, Fenergo Client Lifecycle Management checks the organization structure for interdependencies that may impact other clients / accounts. For example, if the legal entity is associated with a parent company or other companies in different roles (e.g. guarantor etc.). Once a full understanding of the legal entity’s associations and activities is gained, Fenergo Client Lifecycle Management commences the process to disassociate reliant parties e.g. IM funds etc.
3. Off-boarding the Client / Account
Once all reliant parties have been disassociated from the legal entity to be off-boarded, Fenergo Client Lifecycle Management updates the Legal Entity Role to Off-boarded. To ensure full auditability of the process, the user must add in a reason as to why off-boarding is taking place (based on the original assessments by the Relationship Manager). The Client Off-boarding process must be approved by a senior manager before being marked as complete. Fenergo Client Lifecycle Management solution provides a dashboard and task queue-driven process to ensure full visibility throughout the process.
4. De-activating from Vendor Systems
The final step off off-boarding involves purging the client / account from linked internal systems. Fenergo Client Lifecycle Management distributes a notification that the client has been off-boarded to all related systems to commence the de-activation process from source systems downstream.
Save operational and compliance costs related to reviewing clients and accounts in accordance with regulatory review processes.
Cleanse and remediate accounts, data and documentation.
Opportunity to reconnect with lapsed clients to determine if their needs are being met with current products / services or could be better met with another selection of products.
Achieve a more compliant and auditable Client Lifecycle Management process.
Client Lifecycle Management Brochure
Fenergo’s lifecycle approach to client management means that our solution goes beyond initial onboarding and takes a lifetime view of the client, enabling the financial institution to perform data refreshes, ongoing due diligence and use the centralized data to support new regulatory obligations, as well as upsell and cross-sell opportunities.
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We chose Fenergo’s solutions because they will enable us to meet the increasing complex regulatory frameworks with an efficient and client-centric onboarding experience.
Managing Director, Head of Capital Markets Operations SunTrust Robinson Humphrey
Fenergo’s Regulatory Onboarding solution provides us with an additional level of flexibility and enhances our ability to prioritize our compliance initiatives.
Managing Director for Client Onboarding BMO Capital Markets
We chose Fenergo to support regulatory onboarding across our Global Banking and Markets division. We wanted a solution that would support an efficient onboarding experience for all of our customers.
Nicola Ray Smith
Managing Director, Global Capital Markets Scotiabank
Our main ambition is to streamline the end-to-end client lifecycle management process – from onboarding to regulatory compliance to lifecycle reviews – for all of our jurisdictions and to standardize processes and procedures across different divisions. Fenergo will help us to achieve operational efficiencies and improve our customer experience, whilst maintaining the highest level of regulatory compliance across the globe
Emma Rey Gállego
Head of Customer Experience-Onboarding in CIB BBVA
We selected Fenergo’s Client Lifecycle Management software to enable us to manage the CDD / KYC processes from client onboarding to client off-boarding and all the KYC / CDD compliance and lifecycle events (periodic and event-driven reviews) that occur in between. A core part of our business transformation program will involve creating an internal centralized KYC target operating model that will help us to simultaneously improve the client experience and reduce the cost impact of the regulatory KYC activities. Fenergo is the technology platform that will underpin this initiative.
Bank-wide responsibility for CDD, client master administration and regulations ABN AMRO