The alternative and private fund world is rapidly changing, evolving, and, like other businesses, under constant pressure to improve how it operates. In order to keep up with the competition, it is essential to embrace new technologies – such as artificial intelligence (AI). AI can help you in many different areas of your fund business, including investor relations.

Onboarding your investors with AI can have numerous benefits, such as more efficient and effective communication, increased accuracy and timeliness of information, and improved decision-making. Implementing an AI system into your fund’s investor onboarding process is not as difficult as you may think. With minimal (and in some cases zero) effort, your people can take full advantage of the potential this technology has to transform the investor onboarding process.

One important, and perhaps obvious, benefit of onboarding your investors with the help of AI is that it can help you save time. With an assistive AI system (such as most of the workflow found within Mesh ID) in place, you can automate many of the tasks associated with onboarding, such as sending out welcome emails and gathering information from new investors. This can free up your time so that you can focus on more important tasks, such as developing your business strategy and getting on with your core business – making money for your investors.

Mesh ID client experience has shown investor onboarding throughput times improve from an average of 12 weeks to 2 weeks.

Mesh ID client survey, December 2022

Another benefit of using AI for onboarding is that it can help you improve the quality of information that you collect from new investors. Systems that are supported by AI can be used to verify the accuracy of information and to flag any discrepancies (as we do at Mesh ID). This can help you avoid making mistakes that could cost you money or damage your reputation – a very important consideration when it comes to complying with anti-money laundering and know-your-client regulations.

Overall, using AI for onboarding your investors can have numerous benefits. By automating tasks and improving the quality of information, you can save time and dramatically improve your business.

Onboarding Your Investors with Artificial Intelligence.

Artificial intelligence (AI) is a type of computer science that focuses on creating intelligent machines that can work and react like humans. AI has the ability to learn and make decisions on its own, which makes it an essential tool for businesses in a variety of industries, including the fund management industry. The fund industry has seen the use of AI in other aspects of their operations, most notably portfolio management and trading strategies and execution. AI is now entering the middle and back-office.

There are many reasons why you should consider using AI-supported investor onboarding solutions for your fund business, but here are three of the most important:

First, AI can help you automate repetitive tasks, relieving your highly-trained (and expensive!) staff from this type of tedious work. For example, with Mesh ID’s AI-empowered investor onboarding technology, you can use AI to handle the collection and verification of investors’ AML/KYC information, such as collecting and verifying identity documents (which we do, using AI-powered biometric technology). This frees up your onboarding team’s time to focus on more important things, like human-powered assessments of the risk of taking on the new investor — not the tedious work of collecting the evidence upon which those decisions are made.

Second, AI can help you make better decisions. By analyzing data and recognizing patterns, AI can provide insights that humans might not be able to see on their own. This is especially useful in fields like AML/KYC compliance, where understanding the potential risks a ‘bad actor’ investor may pose to the fund’s reputation.

Finally, AI can help you improve your investor experience. By personalizing messages and interactions, AI can make customers feel like they’re being heard and understood. This leads to higher satisfaction rates and increased loyalty over time.

Not only are investors always looking for new opportunities to invest in funds that will give them the highest return on their investment, but they are also looking for funds that onboard them in as simple, clean and efficient a process as possible. So, if you want to attract investors to your fund, it’s important to show them how you have employed an onboarding solution that is AI-assisted to help them become an investor in your fund with as little fuss as possible.

The Benefits of Onboarding Your Investors with AI.

The biggest benefit of onboarding your investors with AI-assisted tools, like Mesh ID, is the improved speed to having your new investors operationally connected to your fund, and therefore committed to your funding goals. With AI-assisted onboarding tools, you can automate repetitive and time-consuming tasks, such as processing requests for KYC/AML information and prompting investors to provide that information. This frees up your time so that you can focus on more important tasks, such as focusing on other aspects of the fund launch or marketing your next fund. In addition, these AI-powered tools can help you ensure the best possible start to your relationship with your new investors with your fund, which naturally leads to an improvement in the quality of your AML/KYC decisions.

Increased accuracy and timeliness of information.

Another benefit of using AI for investor relations is the increased accuracy and timeliness of the AML/KYC information you are asking of your investors. With AI-powered onboarding tools, you can collect data from a variety of sources and analyze it quickly and efficiently. This allows you to make better decisions about where to allocate your resources and how to best communicate with your investors. In addition, AI can help you keep track of changes in the market or in your industry so that you can quickly adapt your strategy if necessary.

Improved decision-making.

Finally, onboarding your investors with AI can also help you make better decisions about your AML/KYC client acceptance regulatory obligations. With access to accurate and up-to-date data, you can more easily identify client acceptance risks that you might otherwise miss. You can also use AI to monitor your KYC/AML risks on an ongoing basis, and make changes as needed to reduce your overall compliance risks. In short, using AI for investor relations gives you a competitive advantage by helping you make better decisions about your business.

How to Onboard Your Investors with AI.

If you’re looking to onboard your investors with artificial intelligence, there are a few things you’ll need to do to get started. First, you’ll need to implement an AI-powered investor onboarding sytem into your fund (or insist this of your fund administrator). This can be done by working with firms that offer AI-powered onboarding solutions, such as Mesh ID. Once you have the system in place, you’ll not only need to train your employees on how to use it (with Mesh ID this is accomplished in a very short training session), but you will also need to manage your employees’ potential resistance to their new assistant. This will involve providing them with information on what AI in general is, and also specific to your onboarding solution, and how it can be used to improve investor relations.

Conclusion

Onboarding your investors with artificial intelligence-assisted onboarding solutions, such as Mesh ID, can help your fund business in many ways. It can improve communication, increase the accuracy and timeliness of information, and help you make better compliance decisions. You can implement an AI-powered investor onboarding system into your business by training your employees to use it and maintaining it regularly.

Please reach out to us (shoot us a message at info@meshid.com) if you would like to see for yourself how we help fund managers dramatically improve their investor onboarding experience.

Guide Investor Onboarding