Firstly, this approach requires a potential client to go to a certain office or branch in order to request an application form. He/she needs to take the time to fill in all the details and again wait to submit the form. Usually there is somebody who can assist the client if necessary.

A lengthy process now begins that is shared between several different departments. The details are captured, verified, supporting documents obtained, the form filed, the client informed of the outcome and eventually the process is complete. The relationship with the client is now established.

Often there are unforeseen complications, such as an incomplete or misplaced application form, errors made by the client or the capturer, missing supporting documents and more time is needed to get the required information. Then we need to ensure that the client understands the legal terms and that we comply with industry regulations.

If all goes well, the entire onboarding process using a written application form shouldn’t take more than a day or two, which the client anticipated from the start. If something is incorrect the client has to be contacted in order to update the information, which may involve more paper work and an already unhappy customer.

But imagine his/her delight if it would only take five minutes. Done and dusted in five minutes. That would be incredible! Our clients would be raving fans before we even sell anything.

Taking all of this into consideration, it is no wonder that client onboarding is viewed as a routine process and not as a gigantic opportunity to build relationships. But what keeps us stapled to the application form approach?

First and foremost the absence of a flexible or scalable IT system to onboard clients has been a main barrier. Without a suitable IT system, there is simply no onboarding flow. Many financial institutions have multiple systems and need to find ways to ensure proper interactions between them. And that is no easy task. While onboarding clients with emails and faxes is completely acceptable, any automation in this process would enable faster onboarding, verified data and happier clients.

Starting with this blog post, I am going to explore different onboarding techniques and how these fail and/or satisfy the needs of the customer and businesses involved. Which one is the best to use is the question I am asking and eager to find an answer for.

Which one do you prefer and what are you offering your clients?

Typical, old-fashioned, paper-based application form approach 

• This onboarding lifecycle can be separated into phases and is most often handled by three or more different departments. These forms have to be filed and archived somewhere and good luck finding the right one if you have to walk into a warehouse full of filing cabinets.

Electronic question and answer method 

• Slightly more streamlined, but requires a client liaison officer, broker or personal banker to digitally record answers to questions

Online via laptop, pc, tablet or cell phone 

• Website or mobile application with a step-by-step guided flow that can be completed in client’s own time

Online via social media 

• Using the client’s preferred social media for obtaining the required information to find sales-ready leads

Let’s dig into this and determine what works best!