The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

How to use the LEI to Solve your Onboarding Problems and Cut Costs

Client onboarding and lifecycle management are an ongoing problem at many financial institutions, with inefficiencies often caused by layers of technologies and processes added to capture required data and avoid fines when new rules and regulations are introduced. A solution to the problem, which could save the global banking industry billions of dollars a year according to McKinsey & Co, has recently been proposed by the Global LEI Foundation (GLEIF).

The GLEIF solution proposes that financial institutions become Validation Agents and obtain LEIs on behalf of their clients. This should enhance the onboarding process, streamline internal operations and open the door to new cross-border client identity services.

Peter Warms, business development manager at GLEIF, acknowledges that chasing perfection using current onboarding practices is extremely difficult. He says: “Good entity identifiers are needed from the get-go. If your counterparties have an LEI, you have a fingerprint of who they are and where they are, and can drive an initial risk assessment that can be reviewed as necessary.

“The LEI is critical to uniquely identifying companies. It is an ISO standard and part of a trusted system that authenticates entities, improves data management for initial client onboarding, and can be used to refresh risk profiles and manage the client lifecycle. As part of an entity management system, use of the LEI can be extended to support a variety of other solutions.”

If your organisation is running a race with no finishing line when it comes to client onboarding and lifecycle management, join A-Team Group’s January webinar on entity identification to find out more about the GLEIF approach and the benefits it can deliver. Peter Warms will be in conversation with other experts including Isabelle Ornella Pete, head of KYC regulatory data at Société Générale, and Peter Serenita, chief data officer at  Scotiabank.

Related content

WEBINAR

Recorded Webinar: Leveraging data lineage to deliver tangible business benefits

Data lineage is central to data quality, accuracy and access. It is also essential to understanding your data and data flows, systems from simple applications to multiple business intelligence solutions, and how people in your organisation are using data. Implemented across the enterprise, data lineage can provide significant business benefits, including new business opportunities, better...

BLOG

Canoe Extends Data Ops Capability, Plans Geographic Expansion

Despite the coronavirus pandemic, 2020 has been a promising year for Canoe, a data ops vendor that takes manual effort out of alternative investment processes by using machine learning and AI to automate the digitisation of unstructured PDF reporting documents and provide actional data and intelligence for institutional investors, allocators and asset servicing firms. To...

EVENT

Data Management Summit New York City

Now in its 10th year, the Data Management Summit (DMS) in NYC explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Regulatory Data Handbook 2020/2021 – Eighth Edition

This eighth edition of A-Team Group’s Regulatory Data Handbook is a ‘must-have’ for capital markets participants during this period of unprecedented change. Available free of charge, it profiles every regulation that impacts capital markets data management practices giving you: A detailed overview of each regulation with key dates, data and data management implications, links to...