Wealth Management Firms Haemourage Clients Due to Lack of Digital Advancement, According to Research by Fenergo

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Key insights from this global survey include:


Over half (52 percent) of wealth managers are concerned about losing clients due to dropouts during their poor onboarding experience


The majority of wealth management firms (80 percent) admit having made poor to no progress in achieving integrated, straight-through onboarding processing


Regulatory requirements are hindering onboarding with more than half (55 percent) suffering serious cross-border compliance pain. In fact, one-third of firms still have not integrated global AML or Know Your Customer (KYC) rules into their onboarding methods


Almost a quarter (22 percent) of wealth managers have not integrated international tax compliance into their onboarding procedures, despite rising requirements


More than half of wealth managers (60 percent) struggle to integrate external data sources, while four in 10 still haven’t integrated with KYC/AML systems and 28 percent have not integrated global rules

Despite the complexities of onboarding currently, 40 percent of respondents are focusing on implementing an end-to-end digital onboarding system by 2021


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