How law firms use Xapien for Initial Due Diligence in client onboarding

_{Nick Morgan, Head of Legal Professionals Sales • February 1 2024}

A common problem we hear from legal clients is process overwhelm. Firms must assess every new client from a money laundering perspective, so resources are heavily invested in conducting due diligence on often low-risk clients. Consequently, compliance teams are left with limited resources to further investigate the risky 1%.

Get a flavour of risk with Initial Due Diligence

Traditionally, there has been a trade-off between thoroughness and efficiency in Customer Due Diligence (CDD). But that’s no longer the case. Firms are realising that Initial Due Diligence plays an important role in shaping how they analyse clients. This process sits between early screening and deep dives. Its objective is to facilitate quick risk analysis and streamline the low-risk category as much as possible. As a result, clients are moved through the firm quickly, allowing them to start fee-earning work faster.

How one law firm uses Xapien for Initial Due Diligence 

A legal client tested us with their riskier clients and found the information invaluable. As a result, Xapien was adopted for the entire client onboarding process. Xapien’s success in client onboarding led to its adoption across the firm for third-party due diligence as well. Our in-depth, fully sourced due diligence reports take minutes to generate—a task that analysts would spend hours or even days on. This means the firm can quickly and efficiently determine whether a potential client has any visible risk flags or a generally satisfactory profile, eliminating the need for exhaustive research in cases where it’s clear that the client poses little risk.

Read more: 20 questions to ask: Law firm buyer’s guide to compliance tools

In-depth due diligence in minutes

Xapien’s value extends beyond the clear-cut cases. In instances where a company has a limited or less transparent profile—common with smaller, unregulated businesses—the tool guides analysts towards more in-depth investigation. This helps identify cases that require detailed scrutiny due to their potentially higher risk.

Integrating Xapien into due diligence allows law firms to effectively differentiate between these two workflows. By quickly identifying a client’s risk level, firms can make informed decisions about whether to proceed with onboarding. Faster client onboarding equals starting billable work sooner.

Read more: How legal firms can start billing clients quicker with AI-enabled taxi reports.

Xapien is changing how law firms approach due diligence. Interested in learning more about how law firms are using Xapien for Initial Due Diligence? Complete the form to connect with our legal experts.