1. What is client onboarding in banking?
   

   Within banking, corporate client onboarding refers to the process of setting up and opening a business bank account. There are a series of steps involved in onboarding, designed to ensure that the bank confirms who will own and operate the account and whether there is a risk of either money laundering, reputational damage to the bank or bribery and corruption.

2. How do you onboard new clients?
   

   Financial institutions onboard new corporate clients using a series of steps, the core processes underpinning onboarding include the completion of; know your client (KYC) checks; anti-money laundering (AML) questionnaires; risk assessment; and enhanced due diligence (EDD) for clients deemed to be high risk.

3. What is client lifecycle management?
   

   Client lifecycle management (CLM) is a term used in banking to describe the management of all aspects of a client relationship from the point of first contact with a prospective customer through to the eventual closure of their accounts and exit from the financial institution.

4. What are the stages in client lifecycle management?
   

   Client lifecycle management can be broken down into the following high-level stages; initial onboarding; ongoing maintenance; screening; triggers or events; periodic review; and client exit.

5. Why is client lifecycle management important?
   

   Client lifecycle management requires all client details to be regularly updated and appropriately checked. This process is essential, both to ensure that a client is able to trade efficiently and legally under relevant regulations and to demonstrate that a bank is actively managing it’s risk.

6. Why is client onboarding important?
   

   Client onboarding is an essential process. From a customer perspective the onboarding steps involve the creation of a brand new bank account which they can use to manage their financial affairs. From the bank’s point of view, successfully completing client onboarding procedures helps to mitigate and manage risk.

7. What is client onboarding KYC?
   

   Know your customer or KYC for corporate clients is a term used in banking to describe a series of individual processes used to determine the nature and identify of the parties opening and operating a business or corporate bank account.

8. What is customer screening?
   

   Customer screening refers to a process conducted by financial institutions to help determine the risk of doing business with any new or existing customers.

9. What is the purpose of customer screening?
   

   Customer screening helps financial institutions to reduce the risk of doing business with customers who could be linked to money laundering, bribery and corruption, terrorist financing, or another form of financial crime, and, if they are, to protect your business by taking evasive action.

10. What are the typical steps in a client onboarding process for non-retail clients?
    

    Client onboarding involves a number of steps that are required by the regulator, including KYC and AML, Customer Risk Assessment, Regulatory, Legal, Credit, Tax, Account Opening.

Have a different question on client onboarding or CLM? Email us at info@beyondfs.co.uk and we’ll answer it!