Investment firms that engage in providing traditional investor processes will most commonly require a combination of paper documentation, back-and-forth emails and in some cases, face-to-face meetings. Once the desired information is collected, it must then go through the highly manual process of being entered in to an organization’s internal system.
In a study conducted by IIROC and Accenture published in March 2019, dealer respondents to the survey part highlighted account-opening and know-your-client (KYC) processes as the areas driving the most cost.
A move from lengthy, paper-based and inconvenient investor onboarding and subscription processes to a smooth experience would be a true game changer, not to mention it could potentially reduce unnecessary cost burden for investment firms.
Investors’ expectations are evolving
On the other hand, investors are becoming more tech-savvy so they expect simpler, quicker and more flexible interactions with their funds. They are looking for the firms that can provide them with an easy access and streamlined experience.
Digital subscription solutions enable a new investor experience by simplifying the subscription to investment funds while reducing processing time and cost due to optimized process:
The wealth management industry is at a turning point
Even though evidence suggests that the digital revolution has yet to disrupt the end-to-end processes from within the wealth management and financial institution space, significant progress has been made.
With the latest announcement from IIROC, investment firms have the option of fully digitizing the investor subscription process. The updated guidance allows investment firms to adopt digital solutions in their businesses for more streamlined processes for their investors.
Additionally, as stated in the IIROC and Accenture study, some future policy framework ideas are strongly related to defining clear and accurate online KYC procedures.
Therefore, improving the investor experience should be a priority for investment firms.
Obsidian SmartDocs – leading electronic subscription suite for investment managers
Obsidian developed SmartDocs to help investment managers work more efficiently, stay onside with regulators, and help their clients purchase strategies with ease.
With SmartDocs you can securely manage:
- Auto subscription & KYC
- E-signature flows
- Fast track investors onboarding
- 99% time reduction
- Higher AUM
