Jonathan Bennett
Digital onboarding tools for lawyers have come a long way in the last few years, and a there are a fantastic variety of solutions that are now available.
These tools can offer an end-to-end experience from ID checks to capturing bank statements for source of funds checks, issuing client care packs and even payments. Every area of AML practices can now be carried out digitally. But embracing digital onboarding tools can seem overwhelming if your business is accustomed to performing these processes manually. So where should you begin?
In this article, we’ll review the various options for digital onboarding and compliance tools and what you should consider before transitioning to a fully digital solution. We’ll show you how shifting to a digital due diligence process can make yours and your customer’s life easier while saving your company time and money.
What Digital Tools Are Available?
A wide range of onboarding tools is now available to help businesses digitise all aspects of their customer due diligence (CDD) and other AML requirements, including:
- Client care letters: Automated document creation with embedded eSignature
- Risk Assessments: Internal tools to capture and assess a client/matters risk level
- ID checks: Verifying a person’s identity using biometric facial recognition technology and documentation verification
- Proof of address: Confirming a person’s address using trusted and official data sources.
- PEPs and Sanctions checks: Ensuring a person is not a politically exposed person (PEP) or on any sanctions lists.
- Source of funds: Proving a potential customer’s source of funds through Open Banking software.
- UBOs: Discovering a transaction’s ultimate beneficiary owner (UBO) using AML software.
What to consider when switching to a digital onboarding solution
The first thing you will want to do is to review and evaluate your current processes to determine what tools will work best for you. What are your biggest blockers and where are you wasting the most amount of time. It’s also integral to evaluate your staff’s exposure to digital onboarding tools to assess future training requirements. Once you have completed your assessment you will clears objectives that you can use to effectively assess any solutions.
A great starting point for research is independent directories like Aventine Lab’s RegTech directory, which provide unbiased assessments of available tools, helping you compare features and capabilities. Additionally, seeking recommendations from peers in your industry can offer valuable real-world insights into the effectiveness and reliability of different solutions. For more complex or large-scale transitions, you may also want to consult with a specialist advisor or technology consultant who can guide you in selecting the most suitable solution.
When assessing a solution, consider the following questions:
- Is the solution specific to your industry / use case?
- Does the solution meet regulatory requirements (e.g., GDPR)?
- What certifications and accreditations do they hold?
- What support and training can they offer you?
- Do they have a good track record with strong customer reviews, and case studies
Once you’ve shortlisted potential solutions, it essential you get a demo or free trial to experience how the platform works for yourself.
The Key to a Successful Transition
While conducting thorough due diligence is crucial, the most important factor in a successful transition is engaging key stakeholders early in the process. By involving compliance officers, practice managers, IT teams, and frontline staff from the outset, you build a foundation for a smoother implementation and greater adoption.
Early engagement ensures that each department’s needs are addressed, potential challenges are identified, and everyone is aligned with the objectives of the digital onboarding initiative. This collaborative approach not only fosters buy-in but also paves the way for a seamless and successful rollout.
Your Roadmap to a Fully Digital Onboarding Process
Transitioning to a fully digital onboarding process may seem like a daunting task, but with the right approach, it can be a seamless and highly beneficial change. Not only does embracing digital onboarding tools streamline regulatory requirements such as AML and CDD, but it also saves precious time and resources.
As technology continues to evolve, staying ahead with digital solutions will ensure your firm remains competitive and compliant in an increasingly digital-first world. Whether you start small or go fully digital from the outset, the key is to choose solutions that align with your business needs and regulatory obligations.
Your firm can strategically design its path into a modern, efficient, fully digital onboarding process, bound for continuous growth and success, with the right approach and technology in place.