IHS Markit has released Onboarding Accelerator, a solution to help banks and other service providers open accounts with institutional clients more quickly and ultimately in one day.
The company says that, on average, the onboarding process including collection of all required information to satisfy Know Your Customer (KYC), Anti-Money Laundering (AML), credit, legal and tax requirements, takes 40 days. Onboarding Accelerator allows firms to reduce this time to as little as one day and is suitable for any servicer relationship an investment fund or corporation might have with banks, custodians, fund administrators, trade repositories, technology platforms, as well as providers outside financial services.
The accelerator is built on Counterparty Manager, an IHS Markit service used by 12,000 buyside customers and over 150 dealers, brokers and other financial services providers to centralise the exchange of documents and data related to KYC, account onboarding and maintenance.
The technology provides a customisable digital framework that allows service providers to define which documents and data they require for any type of account or client. Dashboard tracking makes it easy for both clients and service providers to see what information has been delivered, apply exception management processes to improve operational efficiency and identify the root cause of any delay in onboarding, while analytics show account status to both clients and service providers, bringing transparency to the information black hole that plagues onboarding.
Brittany Garland, director at IHS Markit, comments: “Same-day onboarding is within reach for the industry. Our goal is to lead the market toward digitising institutional identity and enabling system-to-system communication for onboarding and other KYC and regulatory processes.”