1 out of 3 Financial Institutions Lost Customers Due to Inefficient or Slow Onboarding Processes
31st January 2019 – Fenergo, the leading provider of digital Client Lifecycle Management (CLM) software solutions for financial institutions, today announced findings from the company’s industry trends report series, which found that “poor customer experience” is costing financial institutions $10 billion in revenue per year. The report, the first of a three-part series, provides insights from global decision makers within large scale financial institutions towards customer experience within CLM, the end–to–end process management of a client relationship. Touching upon the need to improve the customer experience and obtain an enterprise-wide view of client and counterparty data, the report also highlights how financial organizations are being driven to digitally transform their entire customer journey, from the very first touchpoint to day-to-day trading.
Some findings from the Cost of Poor CX Report include:
- 1 out of 3 financial institutions have lost customers due to inefficient or slow onboarding (36%)
- Improving data and document capture is ranked the highest critical business issue and pain point across the board (31%), against complying with the rising number of regulatory requirements (19%) & improving data management (18%)
- 81% believe poor data management lengthens onboarding and negatively affects customer experience
- 84% believe the client experience during the onboarding process impacts the lifetime value of the client
- When it comes to the types of banks that have lost a client or prospect due to inefficient onboarding processes, commercial banking leads the charge (42%) followed by business banking (37%), investment banking (37%) and corporate banking (30%).
Commenting on the Report
Marc Murphy, Fenergo’s CEO, said:
“This report clearly shows the impact that client onboarding inefficiencies and a hesitancy to digitalize processes have on the customer experience and how it directly effects financial institutions’ bottom line. With challenger banks disrupting the customer experience, the efficient handling of client data through digital transformation must be achieved by organizations if they are to gain a competitive advantage in today’s digital-first world,”
Greg Watson, Global Head of Sales at Fenergo, commented:
"2019 will be the year when financial industry will be challenged to digitalize the entire customer journey end-to-end. Medium-to-large scale businesses want to be onboarded in days not weeks, while retail consumers expect to open accounts in minutes not hours. Combine this with the global economic environment, it’s never been more important for financial institutions to deliver value to their customers and differentiate themselves from competitors. The adoption of a digital CLM solution will be imperative in achieving this.”
The three related research reports are based on the findings from a global proprietary market survey commissioned by Fenergo. The survey engaged with 250 C-suite executives across commercial, business, investment/institutional and corporate banking institutions. Respondents were based in financial institutions of varying sizes, from 0-500 employees to those boasting 10,000+ employees, with their primary location of operation spanning UK & Europe, Middle East and North Africa, Asia Pacific and North America.
Download the report here.
Fenergo is the digital enabler of client and regulatory technology for financial services. It provides digital Client Lifecycle Management (CLM) software solutions for Financial Institutions including; Corporate & Institutional Banking, Commercial & Retail Banking, Asset Management & Asset Servicing, Private Banking & Wealth Management. Counting 70+ global Financial Institutions as clients, its award-winning CLM suite digitally transforms how Financial Institutions manage clients; from initial onboarding to KYC/AML and regulatory compliance, to data management and ongoing lifecycle KYC reviews and refreshes. Fenergo CLM empowers financial institutions to deliver a faster, compliant and digital customer experience while achieving a single client view across channels, products, business lines and jurisdictions.
Fenergo’s community-based approach to product development allows clients to collaborate on solution design on a global scale. Its rules-driven solution ensures compliance with multiple global and local regulatory frameworks including AML, KYC, SFTR, Tax (CRS, FATCA, 871M), OTC Derivatives (EMIR, Dodd-Frank, MiFID II, Margin Requirements) and data privacy rules (GDPR). It supports the collection, centralization and sharing of client and counterparty data and documentation across the institution and deploys an API-first approach to advanced integration with a host of external KYC, AML and entity data providers, KYC and industry utilities. The solution is underpinned by next generation Artificial Intelligence, Robotics Process Automation and Machine Learning technologies, using advanced OCR and NLP capabilities to extract information, expedite compliance and improve operational efficiencies.