Capital Markets Advisors

Turning Change Into Opportunity


In today’s changing financial landscape, most financial institutions realize the need to improve their client on-boarding process to maintain their competitive advantage in the marketplace. As a result, a majority of financial institutions are in the process of streamlining and unifying their client on-boarding processes and systems to help improve the client’s experience, develop their ability to cross-sell, measure client profitability and meet the increasing stringent regulatory requirements. Numerous regulatory changes resulting from the recent financial crisis are key challenges. In particular those that affect the way clients and their data will have to be checked, on-boarded, categorized and stored. To accommodate these additional obligations, on-boarding processes will need updating, established legacy data will require cleansing and current systems and architecture may require modifications.

A key driver for improvement is that competitors are constantly re-engineering their on-boarding processes with a focus on acquiring a competitive edge. Often, a client’s first experience of a financial institutions service will be when they are transferred to the on-boarding team from the sales to make the client trading ready. A smooth client experience means higher client retention and introduction of new business.

Some of the recent regulations (Dodd-Frank Wall Street Reform and Consumer Protection Act),which impact client on-boarding, are:

  • Creation of the Financial Stability Oversight Council (FSOC) and the Office of Financial Research (OFR) responsible for implementing and enforcing financial compliance
  • Introduction of more stringent capital requirements
  • New regulation framework for Over-the-Counter (OTC) derivatives
  • Implementation of the Volcker Rule significantly impacting proprietary trading practices
  • Securitization market reform implementing minimum credit risk exposure requirements
  • Derivatives reform will impact the way OTC derivatives are on-boarded

CMA Can Help You:

  • Perform a current-state assessment of the client’s process
  • Analyze governance, training, technology, roles and responsibilities, metrics and communication processes to identify opportunities for improvement
  • Develop a future-state model of the client on-boarding process which aligns with your business vision and financial priorities
  • Develop gap analysis identifying processes and technology required to achieve the desired state
  • Create a on-boarding workflow which can incorporate existing and future regulatory changes
  • Our experienced resources have a deep and firsthand experience of the client on-boarding process as well as relationships with on-boarding system vendors
  • Provide a strategic roadmap charting specific initiatives which would enable you to improve your internal processes

CMA Resources Can Provide:

  • Documentation Requirements (FIA addendum)
  • Tracking and Reporting of legal tenants
  • CPM Agreements
  • CCP Set-up Requirements (Account Opening Forms, Connectivity, Margin Analysis)
  • Pipeline Management and Metrics
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