Wealth Management Firms Lack Comprehensive 'Onboarding' Process

More than 70% of wealth management firms’ view client onboarding as either a back-office function that needs to be cost-contained or a front-office automation tool, according to a new report from Aite Group. Only 30% view client onboarding as a competitive differentiator. 

As a result, firms are missing opportunities by solely focusing on improving automation at the account opening stage. But Aite Group claims the onboarding process is an opportunity to deliver “a differentiated experience to new clients.” 

“Delivering a high level of service to clients is particularly important during the new-client onboarding stage,” Sophie Schmitt, senior analyst with Aite Group and author of the report, said in a statement. “This is when clients are forming their first impressions of the firm and have momentum to make changes in their financial lives.”