Is the wealth management industry at risk of being significantly hampered by excessive regulatory compliance? Yes, it is. We partnered with Hubbis to host a private but in-depth conversation on ‘The Future of Onboarding’, to pinpoint the critical challenges encountered by private banks and wealth management firms, and explore ways for the industry to streamline and expedite the client onboarding process.
The discussion was attended by 14 key private bank, EAM, MFO and technology decision-makers. Finalix was not there to steer the proceedings or provide definitive answers; but rather to actively engage with industry experts and welcome their candid, off-the-record insights on key issues in client onboarding. Despite significant advances in digital solutions, the Onboarding challenges persist and demand significant time and financial resources that lead to substantial operational headaches for the intensely regulated banks.
The consensus among guests was that despite strategic efforts and digital advancements, the industry continues to struggle to keep up with regulators, both locally and globally. They emphasized the necessity for banks to improve internal processes and adopt an agile and collaborative approach to data gathering, while being pragmatic and acknowledging that there are no perfect solutions. Technology, while beneficial, isn’t a panacea and must be aligned with the right approach, people, skills, and attitudes.
We live in an imperfect world, and while regulators might set huge demands for the wealth industry, the reality is that business must go on, so banks need to be aware that there are real risks of ‘death by endless box-ticking’ that others and themselves can mitigate and at least partially overcome. This is a summary of the key hurdles they articulated, and some of the current and pending solutions that will mitigate, but realistically not entirely overcome these challenges.
