The top 5 challenges of investor onboarding and the need for digitization

May 27, 2021

The top 5 challenges of investor onboarding and the need for digitization

May 19, 2021 | Jonathan Marr, Sr. | SS&C

Investor onboarding in today’s environment is crucial; organizations are choosing to digitize their investor onboarding experience to create a solid, long-term, mutually profitable relationship with investors.

Today, if an investor wants to invest in a fund, they have to manually complete a subscription document. These documents are usually 50-80 pages long, full of legal language, with complex forms embedded within them. Investors are then left to decipher the forms to complete them correctly. 

SS&C’s analysis finds that only about 20%of subscription documents are completed successfully on the first pass using traditional manual methods. This low success rate can be traced to five key challenges or obstacles that are inherent in the process:

The common challenges to increasing the life cycle of investor onboarding are:

• Document complexity—Increases time to complete and chances of mistakes.
• Data completeness—Slows down process, requires back and forth.
• AML collection—Slows down process, increases back and forth requests.
• Signature collection—Entity investors with multiple authorized signatories can delay processing.
• Process transparency—Monitor investor progress without manual follow-ups.

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Thomas E. Burns, III
July 29, 2015
February 22, 2016

I subscribe to Blue Vault to keep up with the sponsors and their wholesalers! The analysis keeps me up to date with the various portfolios and the way they are managed, including the differences between them.