A new era in corporate onboarding

In a recent webinar, we explored how Corporate Digital Identity (CDI) has the potential to deliver a new era in corporate onboarding.

The webinar discussed three insightful reports from Chartis Research, in collaboration with Encompass. The discussion dived deeper into the challenges and opportunities that CDI presents. Below, we outline key takeaways from Alex Ford, CRO & President, North America at Encompass, Howard Wimpory, KYC Transformation Director at Encompass, and Nick Vitchev, Research Director at Chartis Research.

The pain points of corporate onboarding

Corporate onboarding continues to be plagued by inefficiencies, primarily due to outdated, manual processes. According to industry research, banks spend an average of $13 million annually on Customer Due Diligence (CDD). Furthermore, over 80% of these costs are linked to manual operations. Subsequently, this dependence on traditional manual methods can lead to onboarding timelines that can stretch to 120 days or more.

These delays do not just impact banks operationally; they also have a significant effect on customer experience. The webinar discussed the point that hidden costs associated with slow, manual processes are often overlooked. The impact, however, is that they are damaging to the relationship banks have with their corporate clients. A staggering 93% of clients report being asked for the same information multiple times, and this inefficiency can push them to abandon the onboarding process entirely.

The corporate onboarding experience conundrum

In our 2024 Corporate Treasurers Report, 73% of corporate treasurers expressed dissatisfaction with the KYC process. One of the most frustrating aspects of corporate onboarding is the repetitive requests for data already in the bank’s possession. Additionally, this inefficiency not only disrupts operations but also undermines the client-banking relationship.

The process, which is often seen as cumbersome by both clients and staff, underscores the urgent need for change.

Introducing Corporate Digital Identity (CDI)

The discussion emphasized the transformative power of CDI, a solution that addresses many of these deep-rooted issues. CDI enables banks to build a comprehensive digital identity for each corporate client, tailored to specific risk and business requirements. This streamlines the onboarding process, reducing the time and effort required to verify identities and assemble profiles.

As highlighted in the webinar, CDI not only accelerates the onboarding process but also reduces redundant data requests. The shift from weeks of processing time to hours has the potential to dramatically improve customer satisfaction and overall efficiency.

CDI and continuous monitoring

Beyond onboarding, CDI also supports continuous monitoring and perpetual Know Your Customer (pKYC) processes. By adopting a real-time, dynamic approach to client reviews, banks can move away from periodic assessments. Instead, moving toward ongoing, automated compliance checks. This enhances operational efficiency and reduces manual workloads, freeing up resources for more strategic initiatives.

Navigating the journey to CDI implementation

While implementing CDI does come with challenges, the rewards are substantial. The long-term benefits of adopting CDI include benefits from significant cost reductions, to improved customer retention and employee engagement. In fact, the reports showed that CDI can provide 21% efficiency savings in the first year alone, with further savings and efficiency gains over time.

The three reports offer a structured approach to CDI implementation, helping banks overcome short-term challenges and realize the full potential of this solution. By adopting a phased approach, banks can see early benefits, which helps to build momentum and secure stakeholder support.

Overcoming transformation challenges

The discussions explored the report results further and that unlike some KYC transformations that often experience delays, CDI offers an iterative approach that delivers results early in the process. By partnering with trusted external experts and carefully planning each step of the journey, banks can minimize risks and accelerate success.

Driving transformation in corporate onboarding

CDI represents a significant step forward in the evolution of corporate onboarding. By embracing CDI, banks can unlock new levels of efficiency, improve compliance operations, and deliver superior customer experience. The path to transformation may present challenges, but with CDI, banks have the tools they need to turn corporate onboarding from a pain point into a competitive advantage.

To learn more about CDI and its potential to revolutionize the onboarding process, watch the webinar summarizing the three insight papers produced in collaboration with Chartis Research. These reports provide in-depth analysis and actionable insights for banks looking to stay ahead in the rapidly evolving world of KYC transformation and compliance.