RES122621

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FOR ENTERPRISE ARCHITECTURE PROFESSIONALS

Vendor Landscape: Financial Services Client OnBoarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges by Craig Le Clair September 28, 2015 | Updated: October 8, 2015

Why Read This Report

Key Takeaways

Peter Drucker once commented that the purpose of business is to create and keep a customer. Improving your mobile experience, social media presence, or use of the Internet of Things is meaningless without a laser focus on this simple fact. So why do we “create” new customers so badly? To help enterprise architects at financial services firms tasked with improving onboarding, we’ve highlighted significant problems/ pitfalls with current processes as well as seven categories of providers that have evolved from different competencies. Client on-boarding is ripe for innovation, and these providers come with fresh ideas and approaches.

Business Inertia And Technology Hold Back Transformation Increased regulation, higher client expectations, greater specialization, and the commoditization of core services place pressure on on-boarding financial services clients. At the same time, technology shortcomings and process complexity hinder radical improvement. Enterprises Split On The Best Approach To Curing On-Boarding Woes To transform old processes, some enterprises opt to revise their business architecture. Others choose more tactical solutions to enhance compliance and lower costs. Seven Categories Of Providers Can Help There is no single software market that supports customer on-boarding. Global systems integrators, data utilities, labor arbitrage providers, robotics process automation vendors, on-boarding specialists, business process outsourcers (BPOs) and third-party administrators (TPAs), as well as business process management and dynamic case management vendors can all play a role.

FORRESTER.COM

FOR ENTERPRISE ARCHITECTURE PROFESSIONALS

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges by Craig Le Clair with Alex Cullen, Alyson Clarke, Elizabeth Cullen, and Rachel Birrell September 28, 2015 | Updated: October 8, 2015

Table Of Contents 2 On-Boarding Processes Don’t Align With The Age Of The Customer Poor On-Boarding Hurts The Customer Experience — And The Top And Bottom Line Basic Document Workflow Automation Is Lacking On-Boarding Is Still Largely Product-Centric, Not Client-Centric 7 There’s Help To Fix Your On-Boarding Woes Some Solution Providers Help Transform The Process Others Focus On Lowering Costs And Enhancing Compliance

Notes & Resources Forrester interviewed 18 vendor companies, including Adobe, Appian, DST Systems, Fenergo, HCL Technologies, KPMG, Lexmark International, OnBase by Hyland, Pegasystems, Xerox, and Wipro, and drew on 30 inquiry calls with global and regional banks.

Related Research Documents Prepare For 2015’s Shifting BPM Landscape Re-Architect Your Business Capabilities To Win In The Age Of The Customer TechRadar™: Digitizing Operational Processes, Q2 2015

Recommendations

12 Take A Fresh Look At On-Boarding To Keep Clients Happy 13 Supplemental Material

Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA +1 617-613-6000 | Fax: +1 617-613-5000 | forrester.com © 2015 Forrester Research, Inc. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

FOR ENTERPRISE ARCHITECTURE PROFESSIONALS

September 28, 2015 | Updated: October 8, 2015

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

On-Boarding Processes Don’t Align With The Age Of The Customer Financial services firms face a challenging landscape of increased regulation, higher client expectations, greater specialization, and the commoditization of core services. Responding quickly to meet these changing market dynamics will become even more important for financial services firms — and the enterprise architects tasked with helping them do this. These trends put pressure on the client on-boarding process, particularly for high-value client relationships, the target of this research (see Figure 1). Forrester defines client on-boarding as: A firm’s activities when a client signs up for a new product or enrolls for a new service; these drive the product/service engagement and future cross-selling and retention goals. Currently, the client on-boarding process in financial services firms varies enormously compared with other processes. To make this complex task easier to assess, Forrester divides it into six phases that involve four or five teams, which typically include specialized client on-boarding representatives, account management or operations, know your customer (KYC)/anti-money-laundering (AML) departments, credit departments, as well as legal teams (see Figure 2). However, these processes share a similar set of problems: Poor onboarding hurts the customer experience — and the top and bottom line; basic document workflow automation is lacking; and on-boarding is still largely productcentric, not customer-centric.

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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September 28, 2015 | Updated: October 8, 2015

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

FIGURE 1 On-Boarding Financial Services Clients

High-value transactions Opportunity for advice, cross-selling, and customer experience

Commoditized transactions

• Business banking • Variable annuity • Commercial insurance • Life insurance • Retirement plan • Mortgage origination

• Brokerage • Bank account opening • Personal line insurance • Import financing • Credit card origination • Lease origination

Requires ad hoc interactions to on-board Ad hoc Structured collaboration

Requires recurring and patterned interaction

Production A consistent, straightthrough process

Recurring exception management

Low-value online transactions

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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September 28, 2015 | Updated: October 8, 2015

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

FIGURE 2 The On-Boarding Process Faces Significant Challenges In Financial Services Firms Customer experience Sales engagement

Data gathering

Operational experience Know your customer

Deal configuration

Underwriting and risk

Closing and fulfilment

Common challenges: • Too many • Inability to • Rekeying data • Collecting the • Presenting the • Providing inconsistent get a holistic or wasting time right information right information multichannel internal user view of coordinating while maintaining to clients at the customer interfaces operational various systems the customer right stage in service and other of record, core experience the process • Poor response • Operational reporting/KPIs data systems, and and escalation • Connecting packaged mechanisms with the apps, each for issues institution via with its own digital record-keeping channels needs • Operational reporting/KPIs

Poor On-Boarding Hurts The Customer Experience — And The Top And Bottom Line The first three phases of the on-boarding process — sales engagement, data gathering, and know your customer — are the most crucial. They can have a significant impact on a customer’s first impression of your firm and the productivity of your sales staff. Financial services firms with poor on-boarding processes risk: ›› Losing business and damaging top-line revenue. Client on-boarding is a bottom- and top-line issue. Enterprises are now aware of the economic impact of losing deals due to cumbersome processes and bottlenecks that often allow a competitor to close the business instead. Two global banks put the consequences of outmoded processes in crisp economic terms: “Time-to-market is not as quick as it should be, and we have lost deals or on-boarded clients with the wrong documentation. We estimate between $5 million and $10 million per year in loss.” (Senior vice president for client on-boarding, US-based global bank) “We are constantly challenged on service-level agreements (SLAs) — i.e., it takes too long to get a client on the books. Our best estimate is that we lose between 1% and 5% of the overall deals. Not a killer but material.” (Managing director, head of client on-boarding, UK-based global bank)

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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September 28, 2015 | Updated: October 8, 2015

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

›› Blowing out on-boarding costs. Few enterprises know what it costs to on-board customers. To some, it’s just the cost of doing business. For others, there are too many line items in different budgets and departments involved to accurately calculate the cost. But all financial services firms agree on one thing: Compliance and risk management are driving up costs. At one financial leasing firm, the process begins with a 12-person team doing credit due diligence; then, a 12- to 15-person client on-boarding team takes over; costs go up if the legal team needs to review the agreements and documentation or KYC and AML checks are required. Overall, the process takes six to 12 weeks, with only 30% of that involving actual tasks; the other 70% is just waiting. Furthermore, it costs about $10,000 per client. A large global bank spends $20,000 to $25,000 on-boarding each client for its credit-based products and about $3,000 for a cash product. ›› Reducing the productivity of front-line sales staff. Additional time spent navigating onboarding complexities or performing administratively intensive tasks reduces the productivity of your sales people. Less customer-facing time means less time selling and generating revenue for your business. ›› Offering poor customer experiences that aren’t mobile-first. While hard goals like retention and revenue often drive on-boarding activities, there is a softer side as well. As enterprises now consider the total customer experience, mobile is front and center. The ability to on-board via mobile is becoming more important. And on-boarding face to face requires branch staff to have the same and better mobile capabilities than customers. For many, mobile requires a painful onboarding reboot that reduces the use of paper and faxes or the exchange of static information. A “mobile-first perspective” must be central when revising your on-boarding process.1 ›› Losing valuable cross-selling opportunities. The rapid commoditization of many financial transactions leaves firms with no choice: They must differentiate through advice and more integrated offerings. But firms that don’t have a complete view of the customer and a good handle on the insights coming from the data they hold on that customer risk losing out on the opportunity to cross-sell additional products and ancillary services to existing customers. For example, a retail bank could sell a home equity line to an existing checking account customer. A commercial bank may target asset-based lending or additional treasury services. Basic Document Workflow Automation Is Lacking Too many enterprises still interact with customers using antiquated approaches. They may have automated the transactions at the end of the process, but manual work surrounds each step to get there. For example, manually rekeying data, searching for information, data gathering, and inputting compliance assessments leads to a poor customer experience and unmet business goals. Across financial services companies, we see consistently that: ›› Manual efforts slow down and complicate the process. One large bank needs 1,500 workers in its customer on-boarding department due to a process that contains multiple manual steps, paperbased transactions, and hard-copy mailing — supported by 25 front-end systems. Without process automation, the credit turnaround time is lengthy, while a lack of basic documentation frustrates

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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September 28, 2015 | Updated: October 8, 2015

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

the legal team. For most banks, manual coordination fills the gaps in siloed functions. For example, the wealth management division at one national bank processes up to 15,000 new accounts per year. The process for entering and waiting for the data is unacceptably slow, with most steps taking multiple weeks: one to three weeks for KYC/AML checks; one to three weeks for the credit review; two to three weeks in legal; and one to five weeks in operations. ›› Processing unstructured data is a challenge. Financial services firms’ on-boarding processes involve the use of unstructured data sources, such as legal documents, tax forms, and social media. Today, firms handle these inputs by manually rekeying the data; the amount of work requires one global bank to employ over 100 staff at an offshore processing data center. This data overload will become worse, as the Fair and Accurate Transactions Act (FACTA), KYC client file and audit log, and, ultimately, Dodd-Frank Title 7 all require sifting through and processing massive data sets. A “big data” problem is inevitable. ›› Determining a client’s basic on-boarding status is still a pipe dream for many. Real-time status alerts, client progress reports, or a client-accessible portal still elude most successful financial services firms.2 Many rely on Excel spreadsheets, out-of-band email communications, and, yes, “sticky notes” to keep track of what might be a multi-billion-dollar relationship. One architect at a bank put it this way: “We would benefit from a project management tool versus a project management person. Something automated that can allow the client to check in on the status would solve problems.” (Senior business architect, wholesale bank) On-Boarding Is Still Largely Product-Centric, Not Client-Centric A client-centric on-boarding process collects information on the customer first — independent of the specific product the customer is buying. That way, when the customer returns to buy another product, she faces a simplified on-boarding process. It sounds simple, but most on-boarding processes are built to support a specific product or service. One bank told us: “Every line of business did its own thing. If a client was interested in both equity and bonds, there were two different teams asking for the same kind of information. Clients got frustrated.” (Managing director, head of client on-boarding, UK-based global bank) Financial services firms need to recognize that: ›› Developing a client master profile is the key. Very few firms have a reliable “client master file” that can populate an add-on product application. One large global bank is ahead of most in having developed a master client record based on Oracle and Sybase, with proprietary tools to access the data. Organized by legal entity, client, and then account, the bank uses business process management (BPM) to cover 80% of the on-boarding cycle; however, 20% of the process is still manual, mostly on the front end.

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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September 28, 2015 | Updated: October 8, 2015

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

›› Systems collect data well but don’t give it up easily. Financial services back-office systems struggle to expose their structured and unstructured content to provide context, personalization, and usability. One large money center bank has developed an in-house solution, but it is siloed and doesn’t integrate well with relevant departments — for example, there is no digital integration with the legal and risk teams. If a credit line is required, the client on-boarding team must hand off a physical file to the credit team and legal group. As a result, operational reporting is poor and prevents a complete view of the client’s status. ›› Understanding customer data is the foundation for personalized offerings. Banks like the Commonwealth Bank of Australia have a single client view and the data analytics to understand their customers.3 This allows them to not only push personalized offers via mobile and online, for example, but also tell customers about preapproved credit limits, loans, and overdrafts, making it even easier to apply for the product. Barclays Bank is undertaking a massive data project: By yearend, it will be able to go out to every single client it has and tell them what mortgage/home loan amount they would qualify for.4 ›› Client interactions during on-boarding are a mess. Without integrated systems, firms are forced to rekey information during data collection and account set-up. Human error is common, forcing representatives to reconfirm information multiple times with clients. For example, a $500 million heavy commercial equipment leasing firm uses NICE Actimize for risk rating, client due diligence, and KYC. In its current process, customers are contacted an average of five times and speak with two or three teams (legal, credit, transition, on-boarding, or operations). The information collected is entered in other systems but is unavailable for query by employees.

There’s Help To Fix Your On-Boarding Woes Financial services firms are taking a number of different paths to resolve their on-boarding process challenges. Many choose to build in-house: This approach allows good integration with their existing architectures and workflows, but it doesn’t integrate well with third-party utilities and software and often misses budget and schedule targets. Other firms look to outside vendor support: Some opt to revise their business architecture to support data integration, client-centric reporting, and process transformation, while others choose more tactical solutions to enhance compliance and lower costs (see Figure 3).

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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September 28, 2015 | Updated: October 8, 2015

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

FIGURE 3 The Client On-Boarding Provider Landscape

NICE Actimize Markit Data utilities and management Bloomberg Genpact

Thomson Reuters

Informatica

SmartStream Technologies

Scivantage

Zoot On-boarding specalists

Fenergo

Doxim

Andera, a Bottomline Technologies Company

HCL Technologies Labor arbitrage Xerox

Cognizant

Broadridge Financial Solutions Computer Science Corp BPOs and TPAs iPipeline

IBM GBS

KPMG

Global SIs Accenture Wipro Deloitte

Atos

DST Systems

OpenSpan IPsoft

Cost and In-house build Process Select tier compliance transformation improvement one banks

Automation Anywhere RPA vendors

Tata Consultancy Services

Pegasystems IBM

Blue Prism

Lexmark International

BPM and DCM vendors

OnBase by Hyland

Appway Appian

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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September 28, 2015 | Updated: October 8, 2015

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

Some Solution Providers Help Transform The Process Enterprise architects who need to revamp their firm’s on-boarding process can look to global systems integrators (SIs), dynamic case management (DCM) and BPM tools, as well as specialist financial services offerings. The following provider categories can help transform your process: ›› Global and specialist SIs bring leading-edge technology. Accenture, Deloitte, IBM Global Business Services, and KPMG all have on-boarding practices. They have mature project management, process transformation best practices, and deep financial services expertise. But, increasingly, expertise with the latest technologies is the primary battleground. These SIs back reconfigured processes for on-boarding, off-boarding, KYC, and risk assessment with well-vetted approaches to assessing and implementing new requirements. KPMG, for example, has a NoSQL approach to managing unstructured data that reduces effort and replaces a significant amount of offshore labor. HCL Technologies has built an on-boarding framework with IBM Case Manager, a leading DCM product, and is revisiting many of its projects to address mobile requirements. ›› DCM and BPM vendors offer organization and process flexibility. These platforms lift onboarding functions out of product siloes, help resolve complex exceptions, and improve data integration and the work process (see Figure 4). DCM allowed one major bank to disband its central on-boarding team by replacing it with a standalone KYC team, moving the documentation function to legal, and splitting the credit function by region, with each line of business taking over operations. Another top-tier bank used DCM to streamline its multiple on-boarding processes tied to 30 legacy systems. Its case-based on-boarding system reduced cycle time by 25%, added process flexibility, and had direct cost savings. Appway offers a wealth-focused on-boarding solution with strong workflow. Other vendors with significant on-boarding use cases include Appian, DST Systems, IBM, Pegasystems, and Tibco Software. Overall, the providers in this category offer highly configurable workflows that enable process control and optimization, but most lack the deep business vertical content that data utilities and specialists offer. On-boarding for retail financial transactions often just needs a good workflow and a much improved user experience. Enterprise content management (ECM) and automation specialists can help with this more commoditized on-boarding. For example, Adobe Experience Manager Forms is a strong option that combines components of LiveCycle, e-forms, rights management, forms workflow, and customer communication management.5 ECM vendors like Avoka Technologies, Lexmark Enterprise Software, OnBase by Hyland, and ProntoForms are other options. Avoka Transact is an eCommerce platform for insurance policies, wealth management, and multiproduct banking services: The user experience is dynamically optimized as the customer enters data.6 ›› On-boarding specialist providers bring domain experience and fit-for-purpose smarts. Enterprise architects looking for a quick implementation may prefer packaged solutions. Fenergo specializes in client life-cycle management for capital markets and investment banks and has a strong user interface approach.7 Its specialization in master data to support a single view of a client across multiple regulatory and product frameworks is a strength. Prior to implementing Fenergo,

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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September 28, 2015 | Updated: October 8, 2015

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

one investment firm had a very manual process that was specific to each region, including tracking all email or fax requests in spreadsheets, fragmented onboarding, and working in silos; Fenergo provided globally consolidated data that reduced these manual workarounds. Retail financial services firms can also find packaged on-boarding offerings. Scivantage targets financial advisors, operations personnel, and online brokerage websites. Andera, a Bottomline Technologies Company, Doxim, Impact Financial Systems (IFS), and Zoot Enterprises all offer financial on-boarding solutions.8 However, their process engines, rules, and analytics tend to be more limited than those in horizontal platforms.

FIGURE 4 BPM Platforms Lift The On-Boarding Function Out Of Product Siloes

Customer capabilities Customer experience

These functions should move from product to customer capabilities.

Sales engagement

Operational experience

Data gathering

Know your customer

Deal Underwriting Closing and configuration and risk fulfilment

To support “client-centric” on-boarding Customer workflows and rules

Customer data management

Customer event broker

Customer analytics/ reporting

Client communications

Product A

Product B

Product C

Product D

Transaction management and history

Transaction management and history

Transaction management and history

Transaction management and history

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

Others Focus On Lowering Costs And Enhancing Compliance Sometimes, the only practical step is to focus on cost reduction and compliance without a major process change. In these situations, enterprise architects should look to providers in the following categories that can make their on-boarding process more tolerable. ›› Data utilities, traditional capture players, and AML providers can contribute. To streamline the on-boarding process, Bloomberg, Dun & Bradstreet, Genpact, Markit, and Thomson Reuters have extended their data business to the unstructured world to provide packaged content. A few have distinguishing features: Markit combines strong data management, while Genpact offers specific KYC data models with case management. Another option is turning to traditional capture players like Captricity, EMC (Captiva), Ephesoft, and Kofax (recently acquired by Lexmark International) for enhanced digital content transformation.9 AML vendors, such as Oracle and NICE Actimize, have extended workflow and business rules from their data warehouses and may be able to reduce the technology stacks you require. ›› Robotic process automation (RPA) can maintain applications and processes. In some cases, you can gain efficiencies by focusing on automating the human element rather than touching the process or the applications. RPA involves a virtual robot that emulates human activity at a fraction of the cost of the replaced worker. Tata Consultancy Services provided an RPA solution to an international commercial bank that had an on-boarding process that required staff to enter data (much of it repetitive) into 80 different systems. With no change to the existing systems or processes, software-controlled robotized processes entered customer data automatically into multiple core banking systems. Blue Prism and Xerox also provide RPA solutions applicable to client on-boarding. ›› Labor arbitrage can lower costs for existing on-boarding processes. You can often improve data accuracy, costs, and reporting by moving some of the non-value-add activity to a lower-cost economy. Many firms have done this through third parties that have built tremendous scale over the years. Cognizant, HCL Technologies, and Xerox are all capable of this type of labor arbitrage. This can help you with short-term improvements to your current process, but it won’t help you build a vision for a client-centric approach. ›› BPOs, TPAs, and other service providers can support back-end core processes. These provide account-opening apps that may meet your requirements at a good price. For example, Broadridge Financial Solutions offers an account-opening app for the brokerage market that feeds its business process outsourcing (BPO) back-office products. National Financial partners with Xtract, a Fidelity Investment company, to provide a similar front-end solution. DST Systems provides an on-boarding module for mutual funds, other financial services products, and healthcare, based on its AWD product. Computer Sciences Corporation (CSC), an insurance outsourcer, provides Product Accelerator, which enters data into its policy systems. Specialized intermediaries like iPipeline have an annuities order management system to connect brokers and advisors to insurance carriers. While strong solutions, these are designed to meet core system needs and maintain a product-centric view, so you may not be able to extend them across all of your firm’s on-boarding use cases.

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

Recommendations

Take A Fresh Look At On-Boarding To Keep Clients Happy Production costs dominate the the on-boarding discussion today, but how your organization treats customers will be the main focus in the future. Rampant commoditization of core services means one thing: Future margins will come from satisfied customers who remember smooth on-boarding experiences and competent exception management. To achieve this, enterprise architects should: ›› Use DCM or BPM to disrupt the old paradigm of functional organization. Functional departments are artifacts of the industrial age, providing mechanisms to divide and conquer or specialize and control. Product-centric systems fitted well with this view of corporate structures and functional processes. But DCM or BPM can view the company’s transactions from your customers’ perspective — specific functions, roles, and systems within silos mean little to them. Focus on outside-in, cross-functional processes that better serve the customer. ›› Include cloud on-boarding solutions on their list. Cloud solution approaches based on Amazon Web Services, Microsoft Azure, and Salesforce are sure to accelerate over the next three years. Why? Cloud implementations reduce customizations, are mobile right away, and can be deployed quickly. Pick your cloud platform and then look to emerging cloud integrators with platform experience, such as nCino for banking, 360 Dot Net’s 360 Lifecycle, and Cloud Sherpas for insurance.10 ›› Keep process logic independent of the process layer. In many cases, it makes sense to build business process logic into a DCM or BPM layer rather than into enterprise apps. DCM and BPM systems (BPMS) allow process logic and functionality to be external to and independent of the user interface layer/user application and the underlying core systems. Process logic can reside in DCM or BPMS without the need to replicate it in each product system of record; they can also replace manual process steps with interfaces and connectors for common office applications, like prompting users to execute approval steps via Microsoft Outlook email notifications. ›› Implement the inevitable — real-time ID verification and electronic signatures. One bank offered e-signature to clients but still needed to physically sign documents internally. It’s not alone: Many financial enterprises complete the on-boarding process and then print everything out and collect “wet” signatures. This approach is no longer just inefficient, creating needless backoffice work and slowing the time to fund an account; it is a bad customer experience. E-signature adoption in financial services is on the rise.11 Make sure you get on board. Banks like Bank of America, Royal Bank of Canada, and U.S. Bank are now digitally verifying a customer’s identity and using electronic signatures to provide an instant decision on certain retail products within minutes; they are also issuing the account number in real time. This is the future of onboarding — make sure you get on board.

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

Engage With An Analyst Gain greater confidence in your decisions by working with Forrester thought leaders to apply our research to your specific business and technology initiatives. Analyst Inquiry

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Supplemental Material Companies Interviewed For This Report Adobe

Lexmark International

Appian

OnBase by Hyland

DST Systems

Pegasystems

Fenergo

Wipro

HCL Technologies

Xerox

KPMG

© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

Endnotes Mobile used to be just another channel; now it is a way of solving traditional challenges. For example, service personnel can access and collect customer information electronically. Employees can now get the customer out of the line by uploading documents via a phone or tablet, tracking the application status, and receiving alerts and notifications via SMS. Financial services firms can use IBM’s standalone portal solutions. Insurance companies can also look at specialists such as Kony. For less complex on-boarding needs, look to mobile forms specialist like Avoka Technologies and ProntoForms.

1

Customers want a simple diagram showing the steps of the on-boarding process and where they are in it.

2

The strong focus on growing revenue, combined with digital disruption, tougher competition, a shake-up in payments, and increasing consumer expectations, means that digital banking teams in Australia and New Zealand will be expected to deliver a lot in 2015 and stretch their investment dollars further than ever. For more on the Commonwealth Bank of Australia case study, see the “Trends 2015: Australian And New Zealand Digital Banking” Forrester report.

3

Source: Geoffrey Moore, Steve Weston, and Simon Mulcahy, “Customer Theater: Geoffrey Moore Hosts Barclays is a Bank on a Service Mission,” Dreamforce, September 16, 2015 (https://success.salesforce.com/Ev_Sessions?eventId= a1Q30000000DHQlEAO#/session/a2q30000001LuyXAAS).

4

Adobe has revitalized the forms franchise with Adobe Experience Manager Forms; it will now distribute the product directly and through partnerships to all verticals. Experience Manager Forms is part of the Adobe Experience Manager Suite, a product now sold under the umbrella of Adobe Marketing Cloud. Source: July 2015 briefing by Adobe product executives to Forrester.

5

Avoka Technologies has prepackaged integrations with over 30 point solutions, ranging from identity verification for e-signature to those that leverage social media data to prefill applications. Analytics can identify friction points, test improvements, and measure customer acquisitions and abandonment. Source: “The Avoka Transact Platform,” Avoka Technologies (http://www.avoka.com/avoka-transact).

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Fenergo’s Client Lifecycle Management platform is a software solution for investment banks, capital market firms, and private banks. Insight Venture Partners, a New York-based private equity and venture capital firm, recently announced its $75 million investment in the company. Source: “Fenergo To Receive Significant Investment From Insight Venture Partners To Fuel Global Growth,” Fenergo press release, July 14, 2015 (http://www.fenergo.com/top-menu/newsevents/press-releases/fenergo-to-receive-significant-investment-from-insight-venture-partners-to-fuel-global-growth. html).

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Andera, a Bottomline Technologies Company, has 500 bank and credit union customers and is known for the oFlows customer on-boarding platform. Source: Andera (http://www.andera.com/our-platform/).

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Impact Financial Systems offers two relevant products: The IFS Automation Platform creates and maintains businessdriven automation, while the IFS Advisor Advantage Suite is a collection of prebuilt templates for brokerage and wealth management firms. Source: Impact Financial Systems (http://www.ifsautomation.com/default.aspx). Zoot Enterprises offers a variety of solutions that drive sophisticated customer interactions through integrating data and analytics in real time. Source: “zMerchant Onboarding and Risk Monitoring Solution,” Zoot Enterprises (http:// www.zootweb.com/merchant-onboarding.html). Today, most enterprises rely on inbound content capture technology designed for paper and fax and aligned specifically with a line of business. But now the BT agenda is clear: Help fully digitize the business to win an increasingly digital customer. For an overview of the six trends that will shape the formation of a more cohesive vision for inbound content, one that we have named “digital content transformation,” see the “Six Trends Reshape The Content Capture Market” Forrester report.

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© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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FOR ENTERPRISE ARCHITECTURE PROFESSIONALS

September 28, 2015 | Updated: October 8, 2015

Vendor Landscape: Financial Services Client On-Boarding Solutions Providers Offer Fresh Ideas And Approaches For On-Boarding Challenges

nCino’s Bank Operating System complements core systems to address customer records management, document management, business intelligence, and loan life-cycle solutions. Source: “A Revolutionary Bank Operating System,” nCino (https://www.ncino.com/solution/).

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360 Dot Net’s 360 Lifecycle helps reduce operational costs through the automation of key middle- and back-office procedures, such as automated overnight lead generation, multifunctional diary, automated SMS appointment confirmations, pipeline management, and case tracking. Source: “Our Products,” 360 Dot Net (http://www.360dotnet. co.uk/product-details/). Using a pen to sign a physical receipt or contract is fast becoming obsolete. Forrester spoke with nine market-leading e-signature vendors to understand adoption trends over the past three years. These conversations revealed that e-signature adoption is growing fastest in the financial services industry. For more information on e-signature adoption and Forrester’s predictions, see the “Brief: E-Signature Transactions Topped 210 Million In 2014” Forrester report.

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© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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