Client Onboarding in the Age of the Customer

8/10/2019 Client Onboarding in the Age of the Customer

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Making Leaders SuccessfulEvery Day


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Client Onboarding In The Age of TheCustomer

Forrester Research

Craig Le Clair

VP, Principal Analyst


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2014 Forrester Research, Inc. Reproduction Prohibited

Agenda

Research goals and approach

Current onboarding approach inconsistent with age ofcustomer trends

Client-centric onboarding is the goal for most Deployment approaches are a mix of BPM/Case Management and custom-built solutions

Recommendations


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Agenda




Recommendations


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Research Approach Targeted LOB Managers AndDirectors With 20% in IT Roles

Base: 140 Banking decision-makers in North America, Europe, and Asia PacificSource: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 20

20%

24%

$2 Billion to less than $5Billion in assets under management

$5 Billion to less than $20 Billion in assets under management

$20 Billion to less than $500 Billion in assets under management

$500 Billion or more in assets under management

Wholesalebanking

15%

Commercialbanking

31%

Investmentbanking

54%

N Am

APAC26%

EU48%


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Agenda




Recommendations


7/50 2013 Forrester Research, Inc. Reproduction Prohibited

We Have Entered The Age Of The CustomerOctober 2013 Competitive Strategy In The Age Of The Customer


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Most Enterprises Middle Of The Pack For CustomerExperience

Base: US online consumers who have interacted with brands in these industriesSource: North American Technographics Customer Experience Online Survey, Q4 2012 (US)


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Client On boarding Greatly Affects Life-TimeValue

88% believe the on-boardingprocess impacts life-time value

Not at all - once signed upno matter how painful - i.e.,

it depends on overallexperience

9%

The on-boardingexperience has astrong influenceon life-time value

40%

On boarding hasa moderate

overall effect oflife time value

48%



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2%

14%

11%

3%

21%

6%

Don't know

None

1-25%

26-50%

More than 50%

What percentage of revenue are lost due to problems in your current on-boardingprocess? And, what percentage of deals are lost due to problems in your current on-

boarding process?

Deals Revenue


Lost Deals And Revenue Can Run Into The Millions


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Time To Deal Consummation Is The Killer

9%

9%

15%

11%

14%

15%

26%

4%

13%

16%

20%

15%

16%

16%

9%

16%

11%

11%

16%

Lack of 'off-line' support

Filling in information that the company already has

Frustration due to use of old paper-based methods (e.g., paper forms, fax,and wet signature)

Just too much information required

Poor support of current methods of communication

Too many divisions or people to coordinate

It took too long to get a credit decision/other bank gave me response faster

When a customer drops out of the on-boarding process, what are the most common reasons?

1 2 3



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KYC And Drumbeat For Transparency Challenge Banks


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KYC Tops Lists Of Painful Areas

9%

12%

4%

12%

13%

14%

17%

19%

6%

11%

10%

10%

16%

11%

19%

17%

8%

9%

18%

15%

8%

15%

Sales engagement handoff

Application data gatheringClosing and funding of credit

Fulfillment of cash, trade, or investment accounts & services

Initial deal configuration & pricing

Final pricing/sales

Credit underwriting/Risk Sanctioning

Know your customer/due diligence

Please rank the following client on-boarding phases below in terms of which presents the top threechallenges.

1 2 3



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North America Sees Value In Client InteractionsAPAC Sees Cost Advantages

24%

22%

30%

46%

51%

38%

24%

31%

31%

40%

40%

48%

17%

33%

44%

Create more formal idea sharing among product groups

Ease the migration to a more mobile and digitized customer experience

Provide a more seamless self-service approach for client administration

Improve cross-sell and upsell revenue opportunities

Reduce redundant capabilities and costs that exist in multiple silos

Improved client interactions/experience that emphasize overall clientneeds across the entire value stream

What would be the top business benefits as a result of enhancing the customer experience with aunified 'client-centric' approach?

APAC EU North America



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Across All Banking Products, A Majority OfCustomers Still Get Paper Mailed To ThemNovember 2013 Time For US Banks To Get Tough And Turn Off Paper For eDelivery Customers

Base: US online adults (18+) who receive monthly account statements for the specified product/accountSource: North American Technographics Financial Services Online Benchmark Recontact Survey, 2013


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Agenda




Recommendations


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Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

How important to the overall on-boarding process is the creation of a unified 'client-centric' on-boarding experience to your firm?

34% 38% 24% 4%

5 4 3 2 1

Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific

Not importantat all: 0%72% of respondents list thisas important

Client-Centric Onboarding Is Important To Banks


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Which of the following describes your capability to create an initial 'client profile' by accessing acustomer information system, customer relationship management (CRM), or other repository first

to gather pre-existing information?

60% 24% 15% 1%


Grouped Currently implemented and looking to expand,Planning to implement in 2014, and Planning to implement

by the first half of 2015

The Majority Of Banks Cannot Create An Initial ClientProfile


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How important to the overall on-boarding process is the creation of a unified 'client-centric' on-boarding experience to your firm?

By Assets Under Management

24%

27%

39%

52%

50%

44%

32%

21%

$20Billion to less than $500Billion in assets under management



$500Billion or more in assets under management

5 - Very important 4 - Important 3 - Somewhat important 2 - Not that important 1 - Not imp

Base: 140 Banking decision-makers in North America, Europs, and Asia Pacific

The Bigger The Bank The More Important


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Thinking about internal processes, which improvement in communication do you believe will havestrongest positive impact on the onboarding process?

7%

8%

9%

14%

14%

24%

25%

11%

11%

12%

14%

21%

16%

15%

9%

13%

13%

19%

14

Better alerts and notification for tasks

Leverage internal social activity streams to optimize what should be done

Capturing E-mails and activity streams within the process to provide

greater context

Sharing information across departments, IT, and channels

Automate and simplify multichannel communication tasks

Better collaboration between customer and relationship manager during onboarding

Better collaboration among workers - front and back office - thru a singleon boarding process view

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Collaboration Will Break Down Silos


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Thinking about client interactions during onboarding, what would most improve the process?

4%

8%

12%

13%

19%

16%

28%

6%

11%

9%

13%

13%

24%

23%

6%

13%

16%

12%

14%

15%

Fax to mail technology to automate/STP fax collection

Tablet/mobile based initial onboarding steps and ongoing status/communications embedded in Sales/CRM tool

Leverage of public information for prefill followed by prompts for completing unknown data

Electronic signature

Prefill from existing databases for known client data eliminating re-entry

More timely and consistent customer communication with the customer through all channels (i.e., E-mail, mobile, secure portal)

On-line customer portal where request status, pre-filled documents andother communications can be shared during the onboarding process for

1 2 3


Self-Service Client Communication Is Sorely Needed


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29%

30%3

Ability for internal workers to have the flexibility to alter the standard g

A process that starts with a selection of goals allowing the flow of workRecommended experts or managers on a particular task in real time

An application that can be edited by the line of business or business

Ability to browse the related data of cases, independently of processes

Having information in context - the right information at the right time - at

Automated business rules applied for each product and step Use of

Intelligently route work based on best available resource for completing a

Automated extraction and capture of data into system of record or other

Thinking about future onboarding process, select 3 capabilities you would like to improve.


Basic Workflow Automation Is Sorely Needed


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Agenda


Current onboarding approach inconsistent with age ofcustomer trends Client-centric onboarding is the goal for most Deployment approaches are a mix of BPM/Case Management and custom-built solutions

Recommendations


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ProductionStraight through

follows thehappy path

75-80%

Opportunity forAdvice, cross-sell and

customer experience

Limitation of product-cetransaction sys

The cost of doing

business

The Onboarding Battleground Will Be Speed andHandling Exceptions


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75-80%

Opportunity forAdvice, cross-sell and

customer experience


The cost of doing

business


StructuredCollaboration

Requires interaction withcolleagues15-18%


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75-80%

Ad hoc Requires ad hoc interactions to resolveexceptions2-4%Opportunity for

Advice, cross-sell andcustomer experience


The cost of doing

business





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75-80%

Ad hoc Requires ad hoc interactions to resolveexceptions2-4%

Unique problem, requiring supervision1-2%Opportunity for

Advice, cross-sell andcustomer experience


The cost of doing

business





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22%

27%

30%

35%

30%

38%

49%

21%

21%

36%

33%

28%

37%

33%

14%

8%

19%

Don't know

Moving to a SaaS model

Provider of business process management (BPM) or case management

technology

Your core system provider, e.g., loan origination system

BPM/case management provider with on-boarding framework (e.g., thatgives you 60% of solution rules and processes to be extended /configured

CRM vendor with modifications

New applications developed in house (e.g., java programming)

Built-for-purpose application, built specifically for on-boarding

APAC EU North America

Base: 140 Banking decision-makers in North America, Europs, and Asia Pacific

Where do you believe new functionality to improve your on-boarding process will come from?

Client-Centric Onboarding May Come From A Mix OfSources


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Agenda


Current onboarding approach inconsistent with age ofcustomer trends Client-centric onboarding is the goal for most Deployment approaches are a mix of BPM/Case

Management and custom-built solutions Recommendations

Tomorrows Onboarding Work Requires New


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Tomorrow s Onboarding Work Requires NewAdaptive Features

March 2014 Knowledge Work Pushes The Dynamic Case Management Market


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Which of the following is the most important measure of success for the on-boarding process?

12%

25%

28%

Cycle time

Cross-sell upsell during or as a result of

Quality/error measures

Customer experience metrics


And New Ways To Measure Progress


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Thank youCraig Le ClairVP, Principal [email protected]


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Overview


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2014 Pegasystems Inc.36

Overview

- Better Business Software

Framework Accelerators Built on Pega 7

Pega Solves Key Onboarding Pain Points

Pega Clients Journey to Unified Onboarding

Solution Comparison

Framework Example Onboarding & KYC/FATCA

Why Pega for Onboarding

Better Businesses Software Delivers


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Better Businesses Software Delivers

The Power toEngage

30% REVENUE GROWTH

The Power toSimplify

40% PRODUCTIVITY GAIN

The Ch

5X FASIncreased disputeresolution speedby 70%

Group-widesimplification tocut 1.5B

Boosted end-to-end lendingefficiency 50%

Serviceautomationbackbone across104 countries

Raised customersatisfaction 40%above competition

Global multi-channel customercare excellence

Achieved 400%increase in onlineaccount opening

Improved KYC toreduce time torevenue by 70%

How Better Businesses Engage , Simpl i fy & CCEnga Simpl i


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Execution Gap

SYSTEMS OF

How Better Businesses Engage , Simpl i fy & CCe

Enga g e

Simpl i fy

eBam

How Better Businesses Engage , Simpl i fy & CCEnga Simpl i


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SYSTEMS OF

How Better Businesses Engage , Simpl i fy & C

DECISIONING CASE MOBIL

EBUSINESS PROCESS SOCIAL INTEGRATION ANALYTICS

Ce

Enga g e

Simpl i fy

eBam

Customer Engagement & Business Process SolutionsFRAMEWORK ACCELERATORS BUILT O N P E G A S AWA R


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Pre-built software, targeting highROI-yielding areas

5x speed to market

30% lower costs

g g

Built By Industry Experts For R

Enterprise Success And Agil

FEATURES

Pre-defined work types and objects

Foundational data sets

Core work processes and decisioning

Packaged user portals and UIs

Standards and best practices built-in

FRAMEWORK ACCELERATORS BUILT O N P E G A S AWA RWINNING BPM PL ATFORM

Sales ForceAutomation

Next BestAction

Marketing

KYCwith

FATCA

ClientOnboarding

ClientServicing

&

Service CaseManagement

E

In

Pega 7 Technology Solves Onboarding Pain Points


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g gy gTop Pain Points

From Forrester Survey

For each phase, select top internalprocess and systems issues encountered

in onboarding new business accounts

Salesengagement

handoff

Applicationdata

gathering

Know yourcustomer/due diligence

Initial dealconfiguration & pricing

Creditunderwriting

/RiskSanctioning

Finalpricing/sales

Closing andfunding of

credit

Fulfillmentof cash,trade, or

investmentaccounts &

services

Collecting the right information whilemaintaining customer experience 47% 53% 41% 42%

Presenting the right information toclients at the right stage in the process 32% 33% 55% 40%

Too complex a process for assigningand managing system permissions forcustomers

35% 49% 40%

Re-keying or wasted time coordinatingvarious systems of records, coresystems, and packaged apps eachwith its own record-keeping needs

60% 36% 36% 37%

Connecting with the institution viadigital channels 37%

Operational Reporting / KeyPerformance Indicators 45% 38% 46%

Poor response and escalationmechanisms for issues 39% 37%

The Unified Onboarding Journey


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g yPEGA CLIENT CAPABILITY PROGRESSES IN STAGES

In working with our clients we find the are beginning to fall into a patternPoint Solution

The first implementation on the journey. Examples:Regulatory penalties or scrutiny causes an urgent need. Example KYC/FATCA, or other process improvemSingle business case speed of corporate lending underwriting response causing lost business.

Radiation The extension of point solution capabilities to adjacent products, divisions or client lifecycle stExamples: (This is typically where a packaged application and custom development become a

A KYC/FATCA solution is extended to onboarding.

An onboarding solution is extended from Capital Markets to Transaction Services

Strategic TransformationClient has made the decision to extend Pega to multiple divisions and products for all stages ofonboarding

Client creates a roadmap of highest revenue/customer impact/cost onboarding processes across C&IB and marches dow

Solution Type Comparison


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yp pPEGA 7 LEADS THE PACK W ITH SPEED TO REVENUE, AGILITY & SCALABI

Key Features

Solution TypesKnowledge, expertise, and

processes from multipleclients built-in

Ability for business users tochange rules, process &

workflow in days vs months

Can easily scale intomultiple regions, product

lines or business units withre-use of rules &

integrations

Speed to revenue across allonboarding phases pc

WithFrameworks & Extenders

Built For Purpose Package Application

In-house custom

development (e.g.., Javaprogramming)

CRM Vendor withmodifications

Other BPM/CaseManagement tools

Unified Onboarding, KYC/FATCA STREAM LINED O NBOARDING AND 70% FASTER


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On-boarding

Audit & Reporting

Rules-Driven Suitability/ProductSelection Age

Income

Risk ToleranceInvestmentExperience

Investment Objectives

Products

Booking Location

Security Futures Higher Risk

Hedge Fund Higher Risk

Mutual Fund Lower Risk

System of Reco

Tax Reporting Sys

Rules-Driven KYC Technology Relationship Management: 360 View

CRM

DriverData

MultipleStreams

Agility: Designated busers can update ruleprocesses as risks and

ABC Corp Jane Doe

J

Country ProductsDynamic

Risk Rating

Driver Data Type Risk Legal/Mailing

SDDRequirements

EDDRequirements

ScreeningIntegration Existing Client

Legal Entity/Booking Entity

Underlying Parties

SuitabilityRequirements FINRA MiFid

FATCARequirements

gSTREAM-LINED O NBOARDING AND 70% FASTERTIME TO REVENUE

eBam

Situational Layer Cake Example KYC & FAT


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y p

Business Rule Changes Regulations Change Risks Change

Europe MiFID

Common CDD/EDD Policies and Procedures (i.e. AML)

Global Corporate Governance

APAC FATCA

US UK SingaporeFATCA: IGA

Wealth Investment Banking Asset ManagementSecurities

Suitability

SPECIALIZED RULES BY GEOGRAPHY AND BUSINESS L

Dashboarding and Case Urgency Solves


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POOR RESPONSE AND ESCALATION MECHANISMS FOR ISSUES &OPERATIONAL REPORTING / KEY PERFORMANCE INDICATORS

KYC Dashboard

Why Clients Choose Pega for Onboarding Solutions


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Optimize the Client Experience Deliver consistent, organized, and client-centr

onboarding experiences to start the relationshi

Accelerate Response to Change Respond immediately to changing regulations

competitive challenges and new business

Maximize Onboarding Efficiency Eliminate error-prone manual processes and e

integrate with legacy systems to streamline thto-end process, thereby reducing cost & cycle

Automate and Improve Compliance Improve KYC/FATCA due diligence with rule

processing that dynamically supports specializby regulatory jurisdiction, country, line of busand other key factors

www.pegaR E G I S T E R AT:
http://www.pegaworld2014.com/http://www.pegaworld2014.com/


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Learn the Latest in Pega Technology withHands-on Training Sessions and Workshops

50+ Customer Success Presentations

200+ Worlds Leading Compan

Unlimited Networking Oppor

www.pegaR E G I S T E R AT:

Questions
http://www.pegaworld2014.com/http://www.pegaworld2014.com/


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Q

Ron WellmanIndustry Principal Commercial Banking

Phone: 617 866 6735

Email: [email protected]: www.pega.com

LinkedIn:www.linkedin.com/in/ronmwellman/

Twitter: @ronmwellman

Reetu KhoslaDirector, Industry Principal RCompliance

Phone: 617 866 6423

Email: [email protected]

Website: www.pega.com

LinkedIn: http://www.linkedin.khosla/4/b31/11b
http://www.pega.com/http://www.linkedin.com/in/ronmwellman/https://twitter.com/ronmwellmanhttp://www.pega.com/http://www.linkedin.com/pub/reetu-khosla/4/b31/11bhttp://www.linkedin.com/pub/reetu-khosla/4/b31/11bhttp://www.linkedin.com/pub/reetu-khosla/4/b31/11bhttp://www.linkedin.com/pub/reetu-khosla/4/b31/11bhttp://www.pega.com/https://twitter.com/ronmwellmanhttp://www.linkedin.com/in/ronmwellman/http://www.pega.com/


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