How asset managers can enhance the client onboarding process

Account onboarding is critical to the client experience and time to market, yet few asset management firms have embraced transformation.

In brief

• Global asset management firms report significant pain points in client onboarding, including lengthy onboarding times and a systemic lack of automation.
• Tech-enabled solutions can streamline the onboarding process, accelerating revenue generation and enhancing the client experience.

In June-August 2023, Ernst & Young LLP (EY US) conducted a select asset management institutional client onboarding survey across more than a dozen Asset Managers to understand the challenges facing EY clients and provide insights into how onboarding processes and technology are evolving.  The primary concerns among the respondents included:

• Lack of automated and integrated onboarding processes and systems
• KYC (know your customer) processes that are often manual with little digitization
• A lack of electronic processes to collect and store tax data
• Inefficient investment guideline setup involving numerous stakeholder groups

Survey respondents cited an overwhelming need for a solution that considers automation and connectivity across multiple teams. By investing in a comprehensive onboarding experience, global asset management firms will increase client satisfaction while achieving greater revenue opportunities.

Michael Carletta, Michelle Ferrara, Alina Ehsan and Adam Gahagan  also contributed to the article.