Report: Digital Onboarding for Financial Services, Deloitte
“Digital onboarding enables a new and personalized customer experience by simplifying the access to financial services, while reducing processing time and cost for financial institutions due to optimized processes.”
Harbor’s digital platform for alternative assets can help save fund managers and brokers time, reduce costs and improve information accuracy throughout the entire investment lifecycle. For this post, we are going to focus on how Harbor can streamline the investor verification process, including KYC, AML, accreditation, and suitability checks.
For new investors, Harbor’s onboarding flow provides an easy, guided process that investors . can complete themselves (straight through processing). If preferred, issuers and brokers can enter this information on behalf of their clients.
For existing investors, we’ve made it is easy to upload their information and attest to verifications that were previously completed.
The combination of these options provides flexibility for firms transitioning from manual, paper-based processes to a more streamlined, six-step digital process. Let’s review how the online verification process works:
Step 1: Create an investor account –Investors are directed to a landing page branded to your firm, where they create an online account.
Step 2: Information collection –After creating an account username and password, investors enter their personal information into a straightforward form. As shown in the example below, brokers can also enter this information on behalf of their clients.
Step 3: KYC/AML Verification –The Know Your Customer (KYC) and Anti-Money Laundering (AML) checks allow investors to take a photo of their government-issued identification from their device or upload pre-saved images. The information and images are then quickly verified by a third-party service provider while they wait.
Step 4: Accredited Investor Status –There are two ways for investors to prove accredited investor status: 1) They can upload evidence of income directly, or 2) They can have a qualified third party (lawyer, accountant, broker, investment advisor) verify that information on their behalf. For third-party verification, investors provide an email address and Harbor handles the outreach and acceptance of the signed attestation.
Step 5: Suitability Questionnaire –An investor suitability questionnaire is built into the onboarding flow and can be customized as needed.
Step 6: Issuer or Broker Verifies Investor Information –Final verification must be completed by a properly licensed professional. Harbor has licensed compliance professionals on staff, or this can be completed by the issuer or broker.
Issuer and broker-dealer dashboard and controls – Behind the scenes, the issuer and brokers have access to review and verify information and documents for their investors (brokers only have access to their investor information). Through the Harbor workflow, information and documents are organized and records are saved with timestamps for reporting and audit requirements.
Would you like to see more? Have questions?