By Nathan Keeley, Co-Founder of Summa Tech
The accounting profession is undergoing rapid transformation, driven by technological advances that can streamline how firms operate.
For a long while, client onboarding has been a necessary, but sometimes onerous, process for many firms.
This is an area that has become ripe for the integration of technology.
Artificial Intelligence (AI) and smart automation are poised to revolutionise how many firms onboard clients, reducing administrative burdens while enhancing compliance and client experience and not forgetting the ability for any solution to be tailored to the specific requirements of the firm.
From our own experience, the demand for effective onboarding solutions, supported by a technology partner has never been greater.
The challenges of traditional onboarding
Client onboarding involves numerous tasks: Anti-Money Laundering (AML) and Know Your Customer (KYC) checks, collecting and verifying client documentation, drafting letters of engagement, and more.
Historically, these processes have resulted in duplications, been manual and fragmented, requiring significant time and effort from staff – from the receptionist up to the Partner.
Firms not only face the pressure of regulatory compliance but also the challenge of delivering a smooth, professional client experience – after all, first impressions count.
Errors, delays, and inefficiencies during onboarding can harm a firm’s reputation and discourage potential clients.
AI: The next frontier in onboarding
AI is set to transform the onboarding process by introducing capabilities that were once out of reach.
Here are some of the key ways AI will shape onboarding in the years ahead:
- Automated document analysis
AI-powered tools can scan, analyse, and verify documents such as IDs and proof of address with remarkable accuracy. By leveraging machine learning, these systems can quickly identify discrepancies or anomalies, reducing the risk of human error. - Intelligent risk assessment
AI can enhance risk profiling by analysing data from multiple sources, identifying patterns, and flagging potential compliance risks. This ensures firms meet AML and, KYB / KYC obligations without manual intervention. - Predictive onboarding assistance
AI algorithms can predict client needs based on historical data and trends, tailoring the onboarding experience for individual clients. For instance, high-risk clients can automatically be routed through enhanced due diligence processes. - Natural Language Processing (NLP)
NLP-powered chatbots and virtual assistants can handle client queries during onboarding, providing immediate answers and collecting necessary information. This improves efficiency and ensures a seamless client experience.
The role of Smart Automation today
While AI continues to evolve it isn’t yet able to achieve many of these processes using current platforms, but smart automation is already transforming onboarding.
Automation tools streamline repetitive tasks, freeing up staff for higher-value work. Here’s how automation is making a difference right now:
- Streamlined compliance checks
Automated AML and KYC processes ensure compliance with minimal manual intervention. Platforms can cross-reference multiple databases, verify client identities, and generate reports in minutes. - Centralised client data management
Automation eliminates the need for siloed systems by centralising client data on a secure cloud platform, often fed by or to a dedicated client portal. This ensures information is easily accessible and reduces duplication. - Customised letters of engagement
Pre-configured, but tailored templates and automated workflows simplify the creation and delivery of letters of engagement, ensuring accuracy and compliance with legal requirements. - Seamless integration
Automation tools integrate with existing accounting and practice management software, enabling seamless data flow between systems. This reduces duplication, the risk of errors and ensures consistency across platforms.
Balancing technology with human expertise
While AI and automation bring unprecedented efficiency, the human element remains vital.
The key lies in balancing technology with human expertise. Automate repetitive and compliance-heavy tasks, but ensure that client-facing interactions remain personal and engaging and each firm operates a degree of judgement when assessing their clients.
By doing so, firms can provide a fast, efficient service while maintaining the trust and relationship-building that clients value.
Preparing for the future
Firms looking to embrace the future of onboarding should start by assessing their current processes and identifying areas for improvement. Questions to consider include:
- Are your compliance checks fully automated and up to date with the latest regulations?
- How integrated is your onboarding process with other operational systems?
- Are you leveraging automation to improve efficiency and reduce staff workload?
By taking incremental steps to adopt automation tools today, firms will be well-positioned to incorporate AI capabilities as they become more widely available.
When will AI onboarding be fully fledged?
There are several developers, like ourselves, who are invested in exploring AI and the benefits it can bring.
However, the smart automation already integrated into our systems represents a transformative opportunity for the accounting profession – much of which still relies on manual processes, which are inefficient and subject to human error.
By streamlining onboarding, firms can not only improve compliance and efficiency but also provide an enhanced client experience.
As these technologies continue to evolve, the firms that embrace them will not only stay ahead of the curve but also position themselves as leaders in the industry—ready to attract and retain the next generation of clients. At Summa Tech we make it our goal to keep up to date with these changes and embrace them when there is a benefit to do so.