Faster client onboarding with Open banking for law firms

A significant business risk, slow client onboarding is more than just a minor setback. It can take up to 24 days for many UK law firms to begin the process. Customers won’t wait in this digital age. According to a study on related procedures, 68% of users quit an application because they thought it was too complicated or slow.

The “paper chase”—the traditional process of manually gathering and confirming bank statements for AML and Source of Funds checks is nearly always the cause of this detrimental delay. It’s a slow, dangerous, and annoying system for your client and your company.

This blog will explain:

• How Open Banking solves this exact problem.
• The key benefits of this modern approach.
• Why it is a safer, more secure way to meet compliance rules.

What is Open Banking?

In simple terms:

• It’s a secure, UK-regulated system.
• It lets clients share their financial information directly from their bank with their permission.
• This means a bank can send secure bank data to your law firm.
• It’s fast, safe, and replaces the need for paper statements.
• It gives you data you can trust for your compliance checks.

📚 How Law Firms Use Open Banking

Problems with the Manual Client Onboarding Process

The client onboarding procedure at many UK law firms is a slow and annoying beginning for all parties. Companies have been battling these compliance issues for years, so this is not a brand-new issue.

The “paper chase” nature of this traditional client onboarding procedure leads to a great deal of onboarding friction:

• You must request that clients locate, scan, and email private documents, such as utility bills and passports.

• They must submit months’ worth of printed bank statements in order to issue Source of Funds (SoF) checks.

• After that, every page must be manually reviewed by your staff before being filed away.

This outdated approach is dangerous and slow. Your team’s valuable time is wasted, and your new client finds it frustrating. The most significant issue with your AML (Anti-Money Laundering) and KYC (Know Your Customer) checks is that paper documents can be falsified.

How does Open Banking help UK law firms

The government has approved Open Banking as a secure system. If clients agree, it merely allows them to provide your company with their bank information.

You can simply ask a client’s bank to verify their information for you rather than requesting paper statements.

Here is how it works:

1. Request: Your firm sends the client a secure, one-time link.
2. Consent: The client clicks the link, which then takes them to their bank’s website.
3. Authentication: The client logs in securely, just as they always do. Their bank then asks them for permission to share specific information with your firm.
4. Verification: The bank instantly sends the information straight to your firm’s system. It’s all encrypted and secure.

The whole process can be finished in minutes, not days or weeks. This makes the client onboarding process so quick and easy.

Some key benefits of using Open Banking

Meet Compliance Rules More Easily

This is the main advantage. Since the data is directly from the bank, it cannot be altered or falsified. Your SoF and AML checks become much more robust as a result. You receive a clear digital record that is ideal for presenting to regulators.

A Faster Process for Everyone

What once took days of emailing documents back and forth can now be done in a few minutes. This is a big improvement, especially for time-sensitive work like conveyancing. You can start the actual legal work much faster.

A Better Experience for Your Client

You are replacing your client’s most annoying task (the “paper chase”) with one simple, secure digital step. It’s a process most people are already familiar with. This shows your firm is modern and respects their time, building trust from day one.

Less Manual Work for Your Staff

Your team no longer has to sift through stacks of paper, the most tiring part of their days will be made easier and faster. An Open Banking system can automatically check the data and spot large transactions. This lets your compliance team focus on the important analysis, not just data entry.

What this helps you check 

This single tool can help you with several client onboarding tasks at once:

• KYC (Know Your Customer): It can check your client’s name and address against their official bank details.
• Source of Funds (SoF): Instead of scanning statements, you get a clean list of transactions. This makes it much easier to see where a house deposit came from.
• Source of Wealth (SoW): You can get a verified summary of their accounts to build a clear financial profile.

How Finexer Helps You

Finexer makes Open Banking simple for UK law firms. Our platform is a fast and secure way to handle client onboarding and compliance.

• 99% UK Bank Connectivity: We connect to virtually all UK banks, so the system works seamlessly for your clients.
• Fully Compliant: Our platform is built to meet strict AML, KYC, and SoF requirements, giving you a secure, auditable record.
• Simple for Everyone: You send one secure link, your client approves in minutes, and you get the secure bank data you need. No more chasing paper.

Wrapping Up

Manual client onboarding is slow, risky for compliance, and frustrating for clients.

Open Banking is the clear solution. It provides UK law firms with secure bank data directly from the source.

This modern approach saves time, strengthens your AML and SoF checks, and gives your clients the simple, fast experience they now expect. It’s a simple way to remove onboarding friction and focus on your real work.