Despite the various technological upgrades that have occurred in the financial services industry over the years, the onboarding process for new customers remains a tedious and expensive process. Most banks still struggle to provide a simple and effective digital onboarding experience. But if they learn how to accelerate onboarding and reduce counterparty Risk, they can achieve much better results.
According to a study conducted by Refinitiv, the average onboarding process for corporate clients takes around eight separate contact points and takes around 20 days to complete.
Due to the complexity of the supply chain, it can take many months for a large company to onboard a new supplier. This is because the various risks that a new supplier brings to the table, such as operational and reputational issues, require the involvement of various internal functions.
A prospective client recently told me about an unpleasant supplier onboarding experience, where she discovered that she had interacted with 20 people and that she had created eight separate artifacts during the process. Unfortunately, despite the various steps that financial institutions can take to improve their operations, things still need to improve.
Across clients, we have found that there are several recurring aspects of onboarding that take the most time. The complexity of the supply chain can also result in the existence of multiple systems that don’t talk to each other. For instance, some functions, such as legal and information security, have multiple systems that don’t work together.
The “swivel chair” problem is when multiple data sources are used to record the results of the approval process. This is because the analysts need to access multiple sources to keep track of the details of the new supplier.
How to accelerate onboarding and reduce counter-party risk
The onboarding and qualification of new suppliers is typically handled by the strategic sourcing, supply chain management, and procurement teams. They can save time and increase the efficiency of their operations by implementing a comprehensive strategy to streamline the process. In addition to reducing the time it takes to onboard new suppliers, this process can also help boost the company’s corporate image and improve its purchasing costs.
Getting all the necessary details for a new supplier’s onboarding can take several weeks. This is why the entire process must be automated. One of the most common ways to make processes more efficient is by implementing a supplier self-service portal. This can help speed up the process and reduce the time it takes to onboard new suppliers.
One of the most important factors that financial institutions can consider when it comes to How to Accelerate Onboarding and Reduce Counter-party Risk is the availability of a single vendor portal that allows them to manage their product catalogues. This will allow them to reduce the time it takes to introduce new products and increase their operational efficiency.
When it comes to How to Accelerate Onboarding and Reduce Counter-party Risk you need to consider the consistency of the process across different global locations.
Unfortunately, many companies have a variety of systems that are not able to manage the multiple details of their suppliers. That leaves them struggling to understand how to accelerate onboarding and reduce counter-party risk. This is why they must adopt a single technology that can connect and manage all of their supplier data. This will allow them to gain a 360-degree view of their current and potential customers.
Through its technology, Trakti can help companies improve the efficiency of their supplier onboarding process by providing a single platform that allows them to manage all of their supplier data. Through its partnership with third-party software providers, W2 Global Data, Qii, and Spaziodati, they can help prevent financial crime and improve the security of their suppliers’ digital information.
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