Increasing Regulation and Client Onboarding, A Growing Challenge for Wealth Managers

Wealth managers are increasingly under pressure to keep up with the evolving regulatory landscape. The onboarding process is an area affected by many compliance rules due to the information obtained from institutional investors at the time of onboarding and the data held thereafter.

Amidst these growing regulatory pressure and shrinking profit margins due to added complexities and
old processes, client onboarding times have lengthened considerably. A large proportion of wealth managers state onboarding non complex, high net worth clients can take on average anything from 5 – 40 days. But why does it take so long? In short, many firms lack integrated straight-through processing. Their
front- and back-office operations are not connected and as a result, their end-to-end
operations are not aligned.

Wealth managers looking to improve their onboarding process must look at numerous metrics. Due diligence on new clients must be performed accurately spanning a variety of sources and often under the scrutiny from global regulators. Yet the onboarding experience must remain a positive one.

Inadequate and manual KYC/AML compliance processes compound the problem, often diminishing client
experience, which drives higher onboarding dropout rates and with it higher costs.

Emerging technologies can help to enhance profitability during client onboarding by automating and streamlining the end-to-end client journey. Simplifying data collection through automation, reduces liability risk and shortens time to onboard substantially thus reducing costs and strengthening client relationships.

So what compliance checks are required?

1 – Sanction List Checks
2 – KYC (Know your customer)
3 – AML (Anti-money Laundering)
4 – Biometric ID-Checks
5 – UBO – Ultimate Beneficial Owner
6 – PEP (Politically Exposed Person)
7 – Bank Account Validation

This is a list of the top 7 requirements when looking at the API calls needed to onboard a new client, but
there are many more such as adverse media screening, crypto currency provider checks to name a few.  That is a lot of API calls to onboard a client in under 5 minutes!  This all depends on the compliance requirements to onboard a new client of course.

There are a host of providers out there who are focused on the B2Cspace but generally this is focused on the front end. The middle and back office are lagging, with disparate back-end data systems and manual compliance checks.

Having spent several years working in this space and a lot of time looking into this vertical, we have
addressed the market challenge by developing a core solution providing intelligent onboarding. Our solution incorporates carefully selected partners, such as Veridas for biometric ID verification, with industry leading compliance check providers but all in one core solution. Through our ‘Intelligent Glue’, psKINETIC’s Intelligent Onboarding Solution provides our customers the ability to onboard their clients in minutes, increasing revenue and protecting those revenue streams.

The solution we have developed through our 90-day accelerator program has Appian at its core, managing the API call requirements, case management, periodic checks KYC, AML. Veridas is embedded into Appian for Biometric ID-Checks providing a frictionless solution for onboarding allowing accounts to be opened within 5 minutes, instead of days or weeks, with little to no human interaction in the middle and back office.

There are core workflows for low, medium, and high-risk clients with multi-layer automation and if required, technology assisted intervention and assessment, with artificial intelligence and machine learning. Our intelligent onboarding solution is specifically designed to meet ongoing regulatory requirements covering periodic checks and full case management.

The onboarding market for institutions has become highly complex with large amounts of compliance requirements. This means wealth managers need a solution that can handle 100% technology driven intelligent automation for compliance checks. Up to 15% of cases needing manual intervention and approval will be technology assisted and automatically flagged.  When dealing with customers who now expect a different customer experience, manual processing becomes impossible.  We have already shown to our customers how this solution will save them time, money and more importantly it is an exact fit, first time right solution that will grow at scale with them as their business grows and expands.

If you would like to know more about how we can help you with streamlining you institutional onboarding, contact a member of our team for a friendly, no obligation chat.

Nick Foggin – Head of Private Banking & Wealth Management 

Asset Management: 
David Landi – Head of Asset Management 

Private Capital: 
Alex Tyler – Head of Private Capital



Private capital firms cannot let off-the-shelf software solutions control data strategy, writes Ingolv Urnes of psKINETIC.  Ingolv spent a decade with Goldman …

“Asset managers are harnessing the tools, expertise, and infrastructure needed to turn data into actionable insights that can drive growth in investments …

Business improvement through automation is a strategic investment. So it comes as no surprise, we often get asked what is best practice …

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Onboarding: slow, irritating, manual?

Read the report ‘Intelligent Onboarding’ to find out how to fix it, in 90 days.

It is time to put intelligence into onboarding with our ‘Intelligent Glue’.