Onboarding in Corporate Transaction Banking: Prioritizing Investments for Reducing Friction

by Susan Feinberg, August 18, 2016
Industry Trends
Global

Abstract

Celent has released a new report titled Onboarding in Corporate Transaction Banking: Prioritizing Investments for Reducing Friction. The report was written by Susan Feinberg, senior analyst in Celent’s Corporate Banking practice.

The report defines the various components of onboarding; examines the impact of external forces including regulation, competitive pressures, industry initiatives, and technology evolution; and identifies opportunities for improvement, with a focus on the client experience.

Onboarding improvements could provide a wide range of benefits to financial institutions offering transaction banking services:

  • Enhance client satisfaction.
  • Improve the quality of their risk management practices.
  • Provide transparency to staff, clients, and regulators.
  • Differentiate their offerings.
  • Gain a larger share of their clients’ business.
  • Reduce expenses.
  • Free up sales and service personnel to perform more high-value tasks.
  • Accelerate revenue.

”Our thesis is that improving the onboarding process should be a priority. Whether establishing a new relationship or assisting a client in expanding an existing one, implementing transaction banking services in an efficient, timely, and transparent manner can be a key demonstration of a bank’s commitment to client-centric innovation,” comments Feinberg.

“No doubt, banks will continue to respond to ongoing changes in regulation. Banks that continue to focus only on ticking the compliance and risk check boxes will find themselves at a serious competitive disadvantage as increasing numbers of global and regional competitors take a client-centric approach,” she adds.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

2

Introduction: Corporate Onboarding Defined

3

 

Breaking Down the Processes

4

 

The Impact of External Forces

5

 

Regulatory Environment

6

 

Industry Initiatives

7

 

Competitive Pressures

8

 

Technology Evolution

8

Opportunities for Improvement

10

 

Cost of Onboarding

11

 

Length of Time for Onboarding

12

 

Onboarding Opportunity Initiatives

14

 

Onboarding Solution Providers

18

How Should a Bank Prioritize Investments in Improving Onboarding?

20

Recommendations

22

Leveraging Celent’s Expertise

23

 

Support for Financial Institutions

23

 

Support for Vendors

23

Related Celent Research

24

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