Wealth Management firms haemorrhage clients due to lack of digital advancement

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Almost one-third of wealth management firms take over four weeks to onboard new clients, with 9 out of 10 firms lacking self-service options for younger customers

17 September 2019 – Wealth management firms globally are struggling to onboard new clients within four weeks for a standard High Net Worth Individual (HNWI). New research of global wealth management practitioners by Fenergo, a leading provider of digital Client Lifecycle Management(CLM) solutions, reveals that onboarding times have increased over the past five years, disappointing the expectations of younger investors. Regulatory requirements around Ultimate Beneficial Ownership (UBO), Politically Exposed Parties (PEPs), sanctions, watch lists and Anti-Money Laundering (AML) obligations are hindering the onboarding process for firms that haven’t digitally transformed their processes.


 Key insights from this global survey include:  


Steve D’Souza, Global Head of Private Banking and Wealth Management at Fenergo says: 

“In the past five years the sector has failed to transform sufficiently and its now impacting wealth managers and clients alike, except this time round clients are taking their money elsewhere. Onboarding clients in 2019 should be a pain-free process. We live in a world where you can now open a bank account with a selfie, so firms need to consider if their onboarding technology is good enough to support the retention of assets as wealth transfers to the next generation.”

Alois Pirker, Research Director, Wealth Management, Aite Group, said:

“Ever-growing expectations from investors have driven client experience considerations to the fore. Firms need to be re-thinking and re-engineering their onboarding processes if they want to attract the next generation of investors. With the right technology, we’re starting to see some firms make inroads in making onboarding a pleasant experience”.

To dig deeper into the research findings, register here to join the live webinar, The Shocking Truth about HNW Client Onboarding in Wealth Management, on October 22nd at 3.30pm BST (10.30am ET).


Notes to editors

Research was commissioned by Fenergo and conducted by WealthBriefing, the premier news, features and information source for the global wealth management sector. This study is based on a global survey of 82 wealth management practitioners carried out in April 2019. Steve D’Souza was quoted in the Cap Gemini World Wealth Report 2019, click here to read the full report. 

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