Boston, May 16, 2013 – Banks that fail to incorporate mobile and Web technologies into their client-facing onboarding processes will be left behind, new Aite Group research reveals.
This Aite Group analysis is based on surveys and interviews with executives at 10 of the 30 largest private banks and wealth management firms in North America, a 2012 global survey of executives at 54 banks, and 2012 and 2013 surveys of U.S. financial advisors.
Research reveals that young investors, including the future high net worth, are prepared to shift their assets to firms that can provide them with more convenient services and more online and mobile tools. Offering this generation of investors a channel-limited, time-consuming, and paper-intensive onboarding process gives them the impression that a firm will be unable to meet their ongoing needs for convenience in their financial lives.
“Banks that fail to migrate paper-based onboarding processes to Web and mobile platforms will be left behind in their efforts to improve the client experience, reduce costs, and meet regulatory requirements,” says Sophie Schmitt, senior analyst in wealth management at Aite Group and report co-author.
“Regulators will require more documentation during the onboarding process, particularly in mortgage sales, to ensure that lenders and buyers are not taking undue risks. Firms that are still distributing and storing key client documents in paper format will have trouble responding to regulators’ information requests cost effectively,” says Christine Pratt, senior analyst in wholesale banking and report co-author.
“While banks may look to the myriad regulatory requirements and conclude that they cannot afford to allocate much to client experience initiatives, they must reconsider this assessment and identify initiatives that can both meet the needs of regulators and ensure their own long-term competitiveness,” adds David Albertazzi, senior analyst in retail banking at Aite Group and co-author of this report.
This 29-page Impact Note contains 11 figures and five tables. Clients of Aite Group's retail banking, wholesale banking, or wealth management services can download the report.