Case Study: Transforming Client Onboarding for Brokerage Firms

Improving the client onboarding process is critical for brokerage firms that want to provide the best possible client experience to drive customer acquisition and retention. Effort and resources invested toward client acquisition are negated if customers are inconvenienced during sign up with troublesome manual processes, increasing the likelihood of abandonment.

As obliged entities, brokers must ensure compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) laws. As part of the customer due diligence process brokerage firms need to verify an applicant’s identity. Traditionally, this would mean a trip to the broker, filling in numerous forms and presenting a physical ID.

While in days-gone-by, this was the norm and people didn’t know any other way, now customers sign up for services online or on their mobile all the time. They love the speed and convenience of online registration and have come to expect it. In fact, one popular online brokerage firm boasts that people can open an account in under four minutes. In this environment, being able to onboard customers quickly offers a huge competitive advantage.

Manual processes are not only onerous on customers, they are unwieldy on compliance and support staff. Inputting data is monotonous and prone to errors. Checking ID with an untrained eye is not the most secure method because without other safeguards in place, it’s potentially an entry point for fraudulent and money laundering activities.

Automated and Secure Onboarding

Enabling streamlined onboarding processes also sets up a brokerage for expansion, both within present markets and internationally. Having systems that are proven to work and are scalable allow a brokerage to take on new customers and new markets cost effectively and without undue risk.

Trulioo has helped numerous brokerage firms in meeting their AML/KYC compliance requirements and to quickly onboard new clients with our electronic identity verification service. One particular firm — the largest brokerage in the United States — dramatically improved response times for the inflow of new applications. Thanks to Trulioo, they were no longer working on a backlog that forced new customers to wait days – or even weeks – to begin transacting.

Download the Brokerage Case Study

The Brokerage Case Study demonstrates how brokerage firms leverage Truiloo’s AML/KYC compliant solution to verify global investors in seconds. Learn more about how electronic identity verification can assist brokerage firms in onboarding new clients.