Link.

5 Key Considerations for

your client onboarding
processes (KYC/ AML
Compliance)
Whether your products are credit cards, insurance policies, wealth management solutions or
securities, client onboarding for financial services companies (including KYC/AML compliance
obligations) can be a pain for all concerned. Below we highlight 5 key considerations for your client
onboarding process.

The list is high-level, we could go into a ton of detail on each one and we may do on our next
article… get our updates here.

Client Onboarding / KYC Link. www.hifromlink.com info@hifromlink.com

Link.

1. User-Friendly
User experience is particularly critical when it comes to onboarding clients. The shortest, most friction-free
process is what you should be trying to achieve. Clients want to have their product purchased or account
opened and begin ASAP. If you’re using PDFs and pens, make the forms flow well and don’t repeat questions.
If using an online system, keep it neat, clean and easy to read and navigate.

On the back end, you need to be ‘staff-friendly’ also. Systems and process should be in place to get the right
information from the client as quickly as possible, while remaining compliant. If the back office functions
smoothly, this will translate to a better experience for the client, and happier back office staff.

Client Onboarding / KYC Link. www.hifromlink.com info@hifromlink.com

Link.

2. Build Relationships
Clients are not just numbers. Input as much effort to construct an on-going relationship as you can during the
onboarding phase. Even if clients are interacting with you via online methods, give them a call and ask them
as many open-ended questions as you can to learn about their preferences and needs.

Make notes! Interact, assist and understand. It’s all about building a bridge of trust that connects companies
and clients. You only get 1 chance at a first impression. If you outsource your onboarding (to a Fund
Administrator for example), make sure they are managing your clients expectations and are providing a good
experience. Ask your client for feedback on this.

A positive client onboarding approach enables companies to gain goodwill and can have cost benefits. It can
also lead to significantly reduced time to onboard customers through higher rate of interaction. This will
result in enhanced customer satisfaction and works towards accelerating revenue realization.

Client Onboarding / KYC Link. www.hifromlink.com info@hifromlink.com

Link.

3. Keep your Records Up-to-date

The accuracy of the clients’ profile and records are vital in achieving the goals of your KYC/AML
obligations. To protect yourself, periodic monitoring is crucial. Depending on the risk rating you give your
clients (think PEP) you should be actively checking their status on a screening database or at least via online
searches of related database. These screenings may be take place yearly, semi-annually, quarterly, or in some
cases, in real time. In addition, you need to make sure the information you have on your client is accurate
with regard to reporting for FACTA, CRS etc.

Nobody wants to ‘bug’ their clients for more information, but if it’s required by a governing body, you
will have to. Try make the process as simple and non-intrusive as possible.

Client Onboarding / KYC Link. www.hifromlink.com info@hifromlink.com

Link.

4. Avoid Inconsistencies
In order to run an efficient client onboarding and KYC programme, you need clearly defined processes and
standards. If you can, try using technology to automate repetitive tasks and reduce room for error.
Be careful though, you cannot automate everything. As much as the process can be seen as a box ticking
exercise, humans are making crucial decisions that matter and the wrong decision can have severe
ramifications. Having processes for approvals (and rejections) at different levels of the business and tracking
are important in avoiding inconsistencies.

If you’re using PDF and pen, you should have a separate, digital system for tracking the process. Something as
simple as Excel can help, but be careful when you try to scale this and have more than 1 person involved in
the process.

Having good processes in place will minimise regulatory and compliance risk as well as the costs associated
with achieving these conditions.

Client Onboarding / KYC Link. www.hifromlink.com info@hifromlink.com

Link.

5. Everyone on the Same Page

Depending on your business type, front-line staff are often the ones who bring risk into the business, so they
should be aware of the KYC/AML guidelines at all times in order to protect the interests of the business. Any
updates and changes should be communicated across departments as soon as possible, so everyone knows
what’s happening. Insufficient communication between business departments may lead to inconsistent and
unconsolidated data, which diminishes the trustworthiness and reliability of the data and can leave you
exposed.

There should be clear, open communication channels between all levels of the business and readily available
resources that all staff can access. Also consider relevant training and where applicable, continual
professional development.

If you’d like to learn how we create great digital experiences for your clients, reduce onboarding times and
remove risk form your business, please contact us for a discussion.

Client Onboarding / KYC Link. www.hifromlink.com info@hifromlink.com