Account Opening Time Reduced by 75% with Robotic Process Automation (RPA)

Account Opening Time Reduced by 75% with Robotic Process Automation (RPA)

Executive Summary

Rossi Family Office struggled with a manual, error-prone account opening process, leading to delays in investment deployment and client frustration. By implementing Robotic Process Automation (RPA) from Golden Door Asset, they automated data entry, document verification, and account creation within their custodian's platform. This resulted in a 75% reduction in account opening time, enabling faster investment deployment and a significant improvement in client satisfaction.

The Challenge

Rossi Family Office, a boutique wealth management firm managing over $500 million in assets for high-net-worth individuals and families, faced significant operational bottlenecks in their client onboarding process. The manual account opening process was particularly burdensome, consuming valuable time and resources from their advisory team.

Before implementing automation, opening a new client account typically took an average of 5 business days, from initial paperwork submission to full account activation. This delay was primarily attributed to:

• Manual Data Entry: Advisors and administrative staff spent hours manually entering client data into various systems, including their CRM (Salesforce), custodian platform (Charles Schwab), and internal compliance databases. This repetitive task was prone to errors, requiring additional time for review and correction. Each account required an average of 2 hours dedicated solely to data entry.
• Document Verification: Verifying client identification, residency, and source of funds involved manually comparing information across multiple documents, including driver's licenses, passport copies, utility bills, and bank statements. This process was further complicated by inconsistent document formats and incomplete information. A single discrepancy could add 1-2 days to the onboarding timeline.
• Custodial Platform Requirements: Navigating the custodian's online platform to create new accounts and complete required forms was a time-consuming process, requiring specialized knowledge and training. The custodian's interface, while robust, was not optimized for efficiency and required numerous manual steps to complete each account setup.
• Compliance Checks: Ensuring compliance with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations involved manually screening client information against various databases and watchlists. This process required significant attention to detail and was susceptible to human error.

These inefficiencies directly impacted the firm's profitability and client experience. Delays in account opening meant that clients' investment capital sat idle, resulting in missed investment opportunities. For example, a $1 million investment delayed by 5 days could potentially miss out on $274 in returns (assuming an annualized return of 20% and calculating the daily return proportionally). Moreover, the lengthy onboarding process created frustration among new clients, who expected a seamless and efficient experience.

The firm estimated that the manual account opening process cost them approximately $50,000 annually in staff time, lost investment opportunities, and client attrition. Furthermore, advisors spent less time focusing on core activities such as portfolio management and client relationship building.

The Approach

Rossi Family Office recognized the need to streamline its account opening process and improve the overall client onboarding experience. They partnered with Golden Door Asset to implement an RPA solution specifically designed for the wealth management industry.

The strategic approach involved:

1. Process Mapping & Analysis: The first step was a thorough analysis of the existing account opening process, identifying pain points and opportunities for automation. Golden Door Asset consultants worked closely with Rossi Family Office's operations team to map out the entire workflow, from initial client contact to account activation. This involved documenting each step, identifying the systems involved, and quantifying the time spent on each task.
2. RPA Implementation: Based on the process map, Golden Door Asset developed an RPA solution that automated the following tasks:
   • Data Extraction: The RPA bot automatically extracted client data from scanned documents, PDFs, and emails using Optical Character Recognition (OCR) technology.
   • Data Validation: The bot validated the extracted data against predefined rules and databases, ensuring accuracy and completeness. For example, it verified the validity of addresses, phone numbers, and Social Security numbers.
   • Data Entry: The bot automatically populated client data into the custodian's platform (Charles Schwab), CRM (Salesforce), and internal compliance databases.
   • Document Verification: The bot automatically compared information across multiple documents, identifying discrepancies and flagging them for manual review.
   • Account Creation: The bot automated the account creation process within the custodian's platform, including completing required forms and submitting them for approval.
   • Compliance Screening: The bot automatically screened client information against various databases and watchlists to ensure compliance with KYC and AML regulations.
3. Integration with Existing Systems: The RPA solution was seamlessly integrated with Rossi Family Office's existing systems, including their CRM, custodian platform, and internal compliance databases. This ensured that data was synchronized across all systems, eliminating the need for manual data transfers.
4. Training & Support: Golden Door Asset provided comprehensive training and ongoing support to Rossi Family Office's operations team, enabling them to effectively manage and maintain the RPA solution.

The decision to utilize RPA was driven by its ability to handle repetitive, rule-based tasks with high accuracy and efficiency. Unlike traditional software solutions, RPA does not require significant changes to existing systems, making it a cost-effective and non-disruptive solution.

Technical Implementation

The RPA solution was built on the UiPath platform, a leading provider of robotic process automation software. UiPath was selected for its robust features, ease of use, and scalability.

The technical implementation involved the following steps:

1. UiPath Studio Development: UiPath Studio was used to design and develop the RPA workflows. The workflows were designed to mimic the actions of a human user, interacting with the custodian's platform, CRM, and other systems in the same way that an employee would.
2. Data Extraction and OCR: The RPA bot utilized OCR technology to extract data from scanned documents and PDFs. The OCR engine was configured to accurately recognize various document formats and handwriting styles.
3. API Integration: Where possible, the RPA bot utilized APIs (Application Programming Interfaces) to directly interact with the custodian's platform and CRM. This allowed for faster and more reliable data transfers compared to screen scraping.
4. Exception Handling: The RPA workflows were designed with robust exception handling capabilities to handle unexpected errors and situations. When an error occurred, the bot automatically logged the error and alerted the operations team for manual review.
5. Security & Compliance: The RPA solution was designed with security and compliance in mind. The bot was configured to access only the necessary systems and data, and all data transfers were encrypted. Audit trails were maintained to track all bot activity.
6. Workflow Design: The specific workflows automated included:
   • New Account Workflow: Triggered by the receipt of a new client application. The bot extracts data from the application, validates it against internal rules and external databases, and populates the information into the custodian's platform to create the new account.
   • KYC/AML Workflow: Triggered by the creation of a new account. The bot automatically screens the client's information against sanctions lists, PEP (Politically Exposed Persons) databases, and other relevant sources to ensure compliance with KYC and AML regulations. Any potential matches are flagged for manual review.
   • Document Management Workflow: Triggered by the receipt of client documents. The bot automatically classifies the documents, extracts relevant data, and stores them in the appropriate folders within the firm's document management system (e.g., SharePoint).
7. Calculation of Investment Opportunity Cost: Daily annualized return was approximated by dividing 20% (annual rate of return) by 365 days, then multiplying by the amount of capital kept idle during the account opening process.

Results & ROI

The implementation of RPA resulted in significant improvements in Rossi Family Office's account opening process:

• Reduced Account Opening Time: The average account opening time was reduced from 5 business days to 1.25 business days, a 75% reduction. This faster turnaround time enabled clients to start investing their capital sooner, leading to increased client satisfaction.
• Improved Accuracy: The RPA bot significantly reduced data entry errors, leading to fewer exceptions and rework. The error rate was reduced from 10% to less than 1%.
• Increased Efficiency: The RPA bot freed up advisors and administrative staff to focus on more strategic activities, such as portfolio management and client relationship building. It is estimated that the RPA bot saved the firm approximately 200 hours per month in staff time.
• Cost Savings: The firm estimates that the RPA solution will save them approximately $40,000 per year in staff time and reduced errors.
• Increased Client Satisfaction: Clients reported higher levels of satisfaction with the onboarding process, citing the speed and efficiency of the service. Client surveys showed a 20% increase in satisfaction scores related to onboarding.
• Investment Deployment Speed: By accelerating the account opening process, Rossi Family Office was able to deploy client capital faster, resulting in increased investment returns. For instance, with an average new client investment of $500,000, the 3.75-day reduction in opening time equates to an additional $102.74 in potential earnings, using the same 20% annualized return calculation.
• Advisor Capacity: Advisors were able to take on 15% more new clients per year due to the increased efficiency from automation.

Key Takeaways

Here are some key takeaways for other RIAs considering RPA for their account opening process:

1. Start with a detailed process analysis: Before implementing RPA, it is crucial to map out your existing processes and identify the specific tasks that can be automated. Focus on tasks that are repetitive, rule-based, and involve high volumes of data.
2. Choose the right RPA platform: Select an RPA platform that is easy to use, scalable, and integrates seamlessly with your existing systems. Consider factors such as cost, features, and support.
3. Invest in training and support: Ensure that your operations team receives comprehensive training on how to manage and maintain the RPA solution. Ongoing support is crucial for addressing any issues that may arise.
4. Focus on security and compliance: Design your RPA solution with security and compliance in mind. Implement appropriate controls to protect client data and ensure compliance with regulations.
5. Measure your results: Track key metrics such as account opening time, error rates, and staff time savings to measure the ROI of your RPA investment. Use these metrics to continuously optimize your RPA workflows.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors automate tasks, enhance decision-making, and improve client outcomes. Visit our tools to see how we can help your practice.