Along with Hubbis, Appway recently hosted the roundtable Drive your Top and Bottom Line with Client Onboarding in Singapore. The participants, senior banking experts from local and global private banks, exchanged visions about digitalization and the main pain points when it comes to onboarding a client.
These are the results:
What we found is that compliance is a hot topic in Asia, especially in Singapore. Most banks are now running a KYC review, because the more quality data a bank has about a client, the better they are able to service customers and fulfill current and future regulatory requirements.
Even though the need for better data is pressing, data gathering in Singapore is still done manually. Fifty percent of the roundtable participants disclosed that their onboarding is still paper-based and relationship managers work with task lists, resulting in inconsistent data and inefficiency. Relationship managers are spending up to 80% of their time on administrative work and frequently need to bother their clients with documents. Despite all this extra effort, data quality is still not good enough to fulfill compliance standards and a KYC review still needs to be performed.
Seventy-two percent of the participants mentioned that opening an individual account at their bank takes at least 10 days or more. The long period is accepted in the market and private clients tend wait for an account opening. It can take more than double the time when a client wants to open a legal account like a private investment company or trust.
These long wait times beg the question: how long are clients willing to queue for a private account when another bank offers faster onboarding while fulfilling all requirements of the regulator?
It’s no wonder that onboarding in Singapore takes so long when 67% of the roundtable participants admitted to using more than four platforms or systems to onboard a client.
These multiple systems, along with unguided manual process and stringent regulatory requirements make bankers and clients unsatisfied. Sixty-three percent of the participants mentioned that they were unsatisfied with their current onboarding process and 37% were neutral. This means that none of the participants are happy with their onboarding process.
Surprising when you realize onboarding is one of the first touchpoints of a bank will have with its client.
All participants agreed that an onboarding process needs to be guided, efficient, and flexible. Compliance is a challenge, but the requirements are clear. Digitalization will support banks to cope with these challenges.
For greater insights into how digital onboarding can boost client and employee satisfaction at your firm, download our study, The Fastest One Wins.