In the fast-moving world of fintech, traditional client onboarding methods have become outdated and inefficient. Digital transformation, including AI, has officially become a necessity. For financial institutions, the shift from paper-based processes to AI-driven solutions is transforming the way they interact with clients, reducing errors, saving time, and ultimately enhancing customer relationships.

Clients should no longer have to wait in long lines or deal with mountains of paperwork to open an account. Today, customers expect a seamless, digital-first experience that allows them to open accounts in just a few clicks. AI-powered onboarding systems not only meet this demand, but they also offer significant operational advantages for financial institutions. AI is no longer a futuristic concept; it is a practical tool that reduces manual work, decreases the risk of errors, and frees up time for relationship-building and portfolio management.

The wealth management client onboarding process

When discussing wealth management onboarding, it’s essential to recognize that while the principles remain the same, these ideas apply across the broader financial landscape, not just wealth management. The wealth management client onboarding process is an essential first step in building strong client relationships and ensuring a smooth transition into a partnership. It involves various stages designed to gather necessary information, understand the client’s goals, and provide a personalized experience. A successful onboarding process can significantly enhance client satisfaction and retention, and with the help of AI, financial institutions can streamline this process to improve efficiency and accuracy.

However, this discussion isn’t just about wealth management; it’s also about improving the client onboarding process across all types of financial platforms. Whether in digital banking, investment platforms, or insurance firms, these same principles can be applied to create a smoother experience for every type of financial client.

The benefits of AI in wealth management onboarding

AI-driven wealth management onboarding is revolutionizing the finance sector in several important ways. We can take a look at examples across the larger digital banking sector to see how onboarding in general can benefit from AI:

1. Time Efficiency: Traditional onboarding processes often involve manual data entry, document verification, and compliance checks, all of which can take hours. AI, however, can reduce this time to just minutes. For example:
   • Tatra Banka has moved 59% of its new accounts to mobile.
   • OTP Bank Romania saw a 630% increase in online registrations.
     This highlights the demand for faster, more efficient onboarding, not just in wealth management but in digital banking and other financial sectors as well.
2. Enhanced Compliance: Compliance with ever-growing regulatory requirements, such as AML (Anti-Money Laundering) and MiFID II, places a heavy administrative burden on financial institutions. AI helps reduce this burden by automating real-time KYC (Know Your Customer) checks, biometric face verification, and sanction list screening in just seconds. This means faster, more accurate compliance checks and less risk for the business, across all types of financial institutions.
3. Error Reduction: Manual data entry is prone to errors, which can lead to costly mistakes and client dissatisfaction. With AI-powered systems, accuracy is significantly improved. For instance, optical character recognition (OCR) technology and AI-driven document processing achieve more than 90% accuracy without the need for copy-pasting or manual data input.
4. Client Retention: The faster and more efficient the onboarding process, the happier the client. A lengthy, paper-based process can lead to client frustration and, ultimately, attrition. By offering a smooth, automated onboarding experience, institutions can increase their client retention rates and gain a competitive edge. If clients don’t get the seamless experience they expect, they will likely turn to competitors that offer faster, digital solutions. This applies to wealth management onboarding just as much as it does to broader financial services.

The AI-driven onboarding process

The key to AI’s success in onboarding lies in its ability to automate and streamline every aspect of the process. Whether you’re looking at wealth management onboarding or onboarding for any financial platform, these AI capabilities are critical to success:

• Real-time KYC & compliance: AI systems can instantly verify a client’s identity using biometric face verification and compare the image to the document provided. At the same time, AML checks are conducted automatically. If everything checks out, the system prepares the contract for an e-signature, without the need for paper or queues.
• Document processing with AI: With advanced AI, financial institutions can scan and process documents in seconds. AI can read and analyze documents, extracting key information and sending it directly to the system, once again without the need for manual data entry. This is particularly useful for verifying IDs and extracting relevant data for further processing.
• Automation of administrative tasks: The AI autopilot can handle a wide range of tasks, including reading and processing documents, analyzing content, and automating workflows. This eliminates the need for employees to manually check and input data, allowing them to focus on more valuable tasks, such as client relationship building.

Case Study: The power of AI in action

Let’s take a look at a real-world example of how AI has transformed the onboarding process. Prior to adopting AI, the onboarding process for Tatra Banka took over 4 hours. With AI, that time was reduced to just 15 minutes, that’s an 85% reduction in onboarding time. Additionally, the number of errors dropped by 85%, while the number of clients increased by six times, even outside of regular business hours. These statistics demonstrate the significant impact that AI can have on both operational efficiency and client satisfaction.

This transformation is not limited to one institution. Across the industry, financial institutions, whether focused on wealth management onboarding or more general financial services are seeing similar results. AI-powered onboarding systems are not only reducing errors and improving compliance, but they are also increasing customer acquisition and retention rates. The research speaks for itself. 

The roadmap to AI-driven onboarding (90 Days)

Implementing AI in onboarding doesn’t need to be a painful or disruptive process. In fact, it can be done in as little as 90 days. Here’s a simple roadmap for getting started:

1. Pilot with New Clients: Begin by testing the AI-driven onboarding process with a small group of new clients. This allows you to gather feedback and refine the system before scaling it.
2. Integrate with Core Systems: Once the system is ready, integrate it with your existing infrastructure. AI can be seamlessly connected to your current system, or you can even reprogram the core system with AI for better alignment.
3. Build Custom Dashboards: Create a dashboard that allows you to track the progress of the onboarding process in real-time. This will help you identify bottlenecks, track saved hours, and measure the overall success of the implementation.
4. Monitor Progress and Gather Data: As you scale the system, continue to gather data and refine your approach. Monitor key metrics, such as the time saved, client satisfaction, and the number of clients onboarded, to measure success.

Don’t wait for a full core overhaul. Use robotic processes to “press buttons” for legacy systems, and large language models (LLMs) to interpret screen data. Within months, you’ll bypass bottlenecks and measure real savings.

Why start now?

Every month without AI means lost revenue and frustrated clients. The time to act is today. By integrating AI, you can significantly improve operational efficiency, reduce errors, enhance compliance, and ultimately build stronger client relationships. Starting with small steps like automating the onboarding process can lead to major improvements in your business, all while meeting the growing expectations of today’s tech-savvy clients.

Understanding the basics of client onboarding in wealth management 

The wealth management client onboarding process

1. Initial Contact and Client Engagement
Establish first contact and build rapport with the client.

• Greet the client and introduce the firm’s services.
• Schedule an initial consultation to discuss needs and expectations.
• Tools: Email, phone call, or virtual meeting.

2. Gathering Client Information
Collect essential personal and financial details to understand the client’s profile.

• Gather personal information like income, assets, liabilities, and tax status.
• Understand the client’s risk tolerance, financial goals, and any constraints.
• Obtain necessary documents (bank statements, tax returns, legal docs).
• Tools: Digital forms, document upload portals, or secure email systems.

3. Client Needs Assessment
Gain deeper insight into the client’s financial goals and life objectives.

• Conduct an assessment to understand short- and long-term financial goals.
• Evaluate investment preferences, retirement plans, and milestones.
• Discuss expectations for returns, risk management, and investment types.
• Tools: Questionnaires, AI-based tools, or in-depth interviews.

4. Customizing Wealth Management Solutions
Design a tailored financial strategy that aligns with the client’s goals.

• Create a personalized wealth management plan with investment strategies, asset allocation, and risk mitigation.
• Present various solutions and explain how they meet the client’s goals.
• Tools: Financial planning software, AI-powered portfolio optimization tools.

5. Risk Profiling and Compliance Checks
Align the client’s risk profile with the wealth management strategy and ensure regulatory compliance.

• Assess risk appetite using structured profiling tools.
• Perform compliance checks to meet regulatory requirements.
• Tools: Risk assessment tools, KYC and AML checks.

6. Client Agreement and Documentation
Formalize the relationship through documentation and agreements.

• Review and explain the wealth management strategy to the client.
• Have the client sign necessary agreements (investment contracts, consent forms, etc.).
• Tools: Electronic signature platforms, secure document storage systems.

7. Account Setup and Asset Transfer
Set up client accounts and transfer assets into the management system.

• Create accounts (investment, retirement, or trust) as needed.
• Coordinate the transfer of assets from existing accounts to new ones.
• Ensure all transfers are secure and timely.
• Tools: Account management systems, secure transfer tools, API integrations for bank and brokerage accounts.

8. Onboarding Review and Feedback
Review the onboarding process and gather feedback to ensure satisfaction.

• Follow up with the client to confirm understanding and comfort with the strategy.
• Collect feedback on the onboarding process for future improvement.
• Tools: Surveys, feedback forms, follow-up calls.

9. Ongoing Client Support and Relationship Building
Ensure the client feels supported throughout the wealth management partnership.

• Provide regular updates on portfolio performance, market changes, and necessary strategy adjustments.
• Maintain communication to build a long-term relationship and demonstrate value.
• Tools: Client portal, email updates, financial reports.

10. Continuous Monitoring and Adjustments
Keep the client’s plan aligned with evolving goals and market changes.

• Continuously monitor the client’s financial situation and risk tolerance.
• Adjust the wealth management strategy as needed to stay on track.
• Tools: Portfolio management tools, AI-powered predictive analytics, regular performance reviews.

What is client onboarding in wealth management?

Client onboarding in wealth management refers to the initial steps taken by financial institutions to bring new clients into their system. This includes gathering essential personal and financial information, understanding the client’s needs and goals, and establishing the groundwork for a long-term relationship. The process typically involves a combination of manual and automated steps, but with advancements in AI, many aspects of onboarding can now be automated, allowing for a more efficient and seamless experience for clients. For a detailed guide, check out this article on client onboarding in wealth management.

Why is client onboarding in wealth management important?

Client onboarding is one of the most critical aspects of wealth management, and any new service in the financial world, because it sets the tone for the entire client relationship. A smooth, efficient onboarding process builds trust, reduces client drop-offs, and leads to higher retention rates. It also helps ensure compliance with regulatory requirements and provides financial institutions with an opportunity to understand their clients’ unique needs and goals.

The three major phases of wealth management onboarding process

1. Gathering information: The first phase involves collecting essential personal and financial information from the client. This can include identification, financial statements, investment preferences, and risk tolerance.
2. Strategy and goal setting: Once the information is gathered, the next step is to develop a customized strategy based on the client’s goals. This may involve setting long-term investment objectives, tax planning, and risk management strategies.
3. Racing goals: Finally, the wealth manager and client work together to implement the strategy, with ongoing assessments and adjustments made to ensure the client’s financial goals are met.

Digitizing the financial services client onboarding process

AI is revolutionizing the wealth management onboarding process by automating key tasks, reducing manual work, and improving the speed and accuracy of client data collection. By integrating AI tools for KYC, compliance checks, and document processing, wealth management firms can significantly enhance the client experience and free up valuable time for relationship-building.

How to build an onboarding process for wealth management

Building an effective client onboarding process for wealth management involves several key steps. With AI tools, this process can be made more efficient, secure, and client-friendly.

Know the customer journey 

1. Initial Contact: The first step is to establish contact with the client and gather basic information about their financial situation.
2. Documentation: Next, all necessary documentation is collected, such as proof of identity, tax documents, and financial statements.
3. Account Setup: Once documentation is processed, the client account is set up in the system.
4. Risk Profiling: Understanding the client’s risk tolerance and investment preferences is essential in creating a personalized strategy.
5. Strategy Implementation: The final step is implementing the client’s strategy and continuing with regular reviews and adjustments.

Map touchpoints

Mapping the touchpoints in the onboarding process is essential for creating a seamless client experience. These touchpoints should be optimized to reduce friction and ensure clients receive timely information at every stage.

Choose your tools 

Choosing the right software for your onboarding process is crucial for efficiency. We offer a variety of tools, including KYC verification, document processing, and AI-powered onboarding solutions, which can integrate seamlessly with your existing systems to streamline the process.

Security and consent

Security is a top priority in the onboarding process. Ensure that all client data is securely processed and stored. Gaining explicit consent for data collection and processing is also essential for compliance with privacy laws and regulations.

Collect feedback, analyze behavior

It’s important to regularly collect feedback from clients and analyze their behavior during the onboarding process. Monitoring drop-off rates, engagement levels, and satisfaction can provide valuable insights to improve the overall client experience.

Your partner in AI-driven solutions

Let’s work together to eliminate paper. Without losing any clients.

At Vacuumlabs, we specialize in creating innovative fintech solutions that leverage the power of AI. Our end-to-end services go beyond engineering to include product strategy, design, and managed services. Whether you’re looking to modernize your onboarding process or build a comprehensive wealth tech solution, we have the expertise to help you succeed.

We’ve even designed our own Digital Onboarding Kit and AI Toolkit (it’s not a secret, but our experts can present it best if you reach out), specifically designed to help financial institutions transform their onboarding process. We can help you integrate AI seamlessly into your existing infrastructure, automate key tasks, and ultimately provide a smoother, faster experience for your clients. Read more about AI automation and AI transformation.