Every brokerage and fund manager loses prospective clients at the same point: account opening. Someone decides to invest, starts the process and gives up when it asks for a branch visit, printed forms or a wait of several days. Digital onboarding solves that problem, provided it does not trade away the controls regulators expect.
The seven steps
The OTS eKYC service takes a new client through seven clear steps:
- Registration: the client creates an account.
- Additional details: the information the institution needs about the client.
- Document upload: identity and supporting documents, submitted digitally.
- Service selection: the services the client wants to use.
- Review: the client checks everything before committing.
- E-contract signing: the agreement is signed electronically.
- Identity verification: the client’s identity is confirmed.
Each step asks for one kind of information, which keeps the process understandable for the client and complete for the institution.
Electronic contracts remove the last paper
Many so-called digital processes still end with a printed contract. Electronic contract signature removes that final step, so the whole relationship can begin online.
Controls stay in place
Speed should not mean weaker checks. eKYC integrates fully with investor KYC systems and with the institution’s identity and screening providers. Applications are approved digitally, and every step is recorded in an onboarding audit trail that can be shown to an auditor or regulator.
The back office knows immediately
A common frustration is a client who has completed onboarding but cannot trade because the back office has not caught up. eKYC synchronizes instantly with the back office, so a newly onboarded client is ready to use the firm’s services straight away.
One front door for several services
Institutions that offer brokerage, funds and other investor services often build separate onboarding for each. eKYC can serve as a shared front door instead, so a client is identified once and that result is available wherever it is needed.
Digital onboarding works when it is faster for the client and no weaker for the institution.
A good way to start is small: a pilot that deploys eKYC against one existing account-opening flow and connects it to the identity and screening providers already in use. Within 30 to 90 days the institution can see the effect on its own clients.