Client Onboarding: 40% Faster with Digital Automation

Client Onboarding: 40% Faster with Digital Automation

Executive Summary

Harrington Legacy Advisors, a growing RIA managing over $350 million in assets, faced significant inefficiencies in its client onboarding process, leading to delays and frustration for both clients and staff. By implementing a digital client onboarding platform that automated data collection, document signing, and account setup, Harrington Legacy Advisors slashed onboarding time by 40%. This improvement not only enhanced client satisfaction but also freed up valuable staff time, enabling them to focus on client relationship management and business development.

The Challenge

Harrington Legacy Advisors experienced a surge in new clients following a successful marketing campaign focused on retirement planning for pre-retirees. While this growth was positive, it quickly exposed critical bottlenecks in their existing client onboarding process. The firm's traditional, paper-based approach was slow, error-prone, and required significant manual effort.

Specifically, the process involved:

• Manual Data Entry: New clients had to physically complete lengthy paper forms, which were then manually entered into the firm’s CRM system. This process alone consumed an average of 3 hours of staff time per client.
• Physical Document Delivery: Sensitive documents, such as investment policy statements and advisory agreements, had to be printed, mailed, and physically signed. This added an average of 5 days to the onboarding timeline due to postal delays and client response times.
• Compliance Risks: The manual handling of documents increased the risk of errors, lost paperwork, and potential compliance violations. A single missed signature or incorrect data entry could lead to significant regulatory penalties.
• Suboptimal Client Experience: Clients frequently expressed frustration with the repetitive requests for information and the cumbersome paperwork involved. This created a negative first impression and potentially impacted client retention. The onboarding process took, on average, 2 weeks per client.
• Lost Revenue Opportunities: The time spent on manual onboarding tasks diverted staff attention from revenue-generating activities, such as client portfolio reviews and new business development. They estimated they were missing out on an additional $25,000 in revenue per quarter due to this lack of focus.

The manual process resulted in an average onboarding cost of $150 per client, considering staff time, printing costs, and mailing expenses. With plans to onboard at least 50 new clients in the upcoming quarter, Harrington Legacy Advisors realized the urgent need for a more efficient and client-friendly onboarding solution. They estimated they would be spending $7,500 per quarter on onboarding alone.

The Approach

To address these challenges, Harrington Legacy Advisors adopted a phased approach focused on digital automation and process optimization. The core strategy involved implementing a digital client onboarding platform that integrated with their existing CRM and other key systems.

1. Needs Assessment: First, Harrington Legacy Advisors conducted a thorough assessment of their existing onboarding process, identifying pain points and areas for improvement. They mapped out the entire workflow, documenting each step and the time required.
2. Platform Selection: Based on their needs assessment, Harrington Legacy Advisors evaluated several digital client onboarding platforms, ultimately selecting a solution that offered:
   • Secure online data collection
   • Electronic signature capabilities
   • Seamless integration with their CRM (Redtail)
   • Automated workflow management
   • Compliance features
   • Integration capabilities with document storage. They chose a combination of DocuSign for e-signatures and PreciseFP for secure client data collection.
3. Customization and Integration: The selected platform was customized to align with Harrington Legacy Advisors’ specific branding and compliance requirements. Integrations were established with their CRM and other key systems to ensure data consistency and streamline workflows. Data fields from PreciseFP were mapped directly into Redtail, eliminating manual data entry.
4. Workflow Optimization: Harrington Legacy Advisors redesigned their onboarding workflow to leverage the capabilities of the digital platform. This involved:
   • Creating automated email sequences to guide clients through the onboarding process.
   • Implementing digital forms with built-in validation rules to minimize errors.
   • Setting up automated reminders for clients to complete required tasks.
   • Establishing approval workflows to ensure compliance with regulatory requirements.
5. Staff Training: Comprehensive training was provided to all staff members on how to use the new platform and manage the updated onboarding process. This included hands-on training sessions and ongoing support.
6. Pilot Program and Rollout: The digital onboarding process was initially tested with a small group of new clients to identify any issues and refine the workflow. Based on the feedback from the pilot program, adjustments were made before rolling out the platform firm-wide.

The firm also decided to create a video walk-through to demonstrate the ease and efficiency of the new platform for prospective clients. They decided that this visual communication would help to further reduce client anxieties and increase uptake in the platform.

Technical Implementation

The successful implementation of the digital client onboarding platform relied on several key technical components and integrations:

• PreciseFP Integration: PreciseFP was integrated with Harrington Legacy Advisors’ CRM (Redtail) using API connections. This allowed client data collected through PreciseFP to be automatically populated into the CRM, eliminating manual data entry and reducing the risk of errors. PreciseFP was configured to collect all necessary client information, including KYC (Know Your Customer) data, risk tolerance assessments, and investment preferences. Custom templates were created within PreciseFP to align with Harrington Legacy Advisors’ specific requirements.
• DocuSign Integration: DocuSign was seamlessly integrated into the onboarding workflow to enable electronic signatures on all required documents. This eliminated the need for printing, mailing, and physically signing documents, significantly accelerating the process. Harrington Legacy Advisors utilized DocuSign’s advanced features, such as:
  • Automated routing of documents for signature
  • Secure document storage
  • Audit trails for compliance purposes Templates were set up in DocuSign for frequently used documents, such as advisory agreements and investment policy statements.
• Workflow Automation: The onboarding platform included a workflow automation engine that allowed Harrington Legacy Advisors to define and automate various tasks and processes. This included:
  • Automated email reminders for clients to complete required forms or sign documents.
  • Automated notifications for staff members when tasks were completed or required their attention.
  • Automated creation of client accounts in the firm’s portfolio management system.
• Security Measures: The digital onboarding platform was designed with robust security measures to protect sensitive client data. This included:
  • Encryption of data at rest and in transit
  • Multi-factor authentication
  • Regular security audits
  • Compliance with industry standards, such as SOC 2.
• Calculation of ROI: The ROI was calculated based on the time saved per client, the cost of labor, and the estimated increase in revenue due to increased efficiency. The formula used was: (Total Time Saved * Hourly Labor Cost) + Increased Revenue - Platform Cost = ROI.

The integrations were tested and validated to ensure seamless data flow and accurate reporting. The firm also established a process for monitoring the platform’s performance and identifying any issues that needed to be addressed.

Results & ROI

The implementation of the digital client onboarding platform yielded significant results for Harrington Legacy Advisors:

• Reduced Onboarding Time: Client onboarding time was reduced by 40%, from an average of 2 weeks to approximately 8 days. This improvement was primarily attributed to the elimination of paper-based processes and the automation of data entry and document signing.
• Increased Client Satisfaction: Client satisfaction scores increased by 25%, as measured by post-onboarding surveys. Clients appreciated the convenience and efficiency of the digital onboarding process, as well as the improved communication and responsiveness from the firm.
• Reduced Staff Time: Staff time spent on onboarding tasks was reduced by 50%, freeing up valuable time for client relationship management and new business development. This reduction in staff time translated to significant cost savings for the firm.
• Lower Onboarding Costs: The average onboarding cost per client decreased from $150 to $80, representing a 47% reduction. This cost savings was primarily due to the elimination of paper, printing, and mailing expenses, as well as the reduction in staff time required for onboarding tasks.
• Increased Revenue: By freeing up staff time for revenue-generating activities, Harrington Legacy Advisors was able to increase their new business revenue by 15% in the first quarter after implementing the digital onboarding platform. They were able to focus more on upselling services to existing clients.
• Improved Compliance: The digital platform helped Harrington Legacy Advisors improve their compliance with regulatory requirements by providing a secure and auditable onboarding process. This reduced the risk of errors, lost paperwork, and potential compliance violations.
• Increased efficiency: The firm was able to onboard 65 new clients in the first quarter after implementation, compared to 50 in the previous quarter. This demonstrates a 30% increase in the number of clients that can be handled.

In terms of ROI, the firm estimates the platform costs around $2,000 per month, or $6,000 per quarter. The firm estimates that by reducing staff time, they saved at least 20 hours of employee time per week, which equates to a $3,000 per week or $39,000 per quarter (salary calculated as $75/hr). They also saw an additional $25,000 in revenue per quarter. The ROI is therefore calculated as ($39,000 + $25,000) - $6,000 = $58,000 per quarter.

Key Takeaways

For other RIAs and wealth managers looking to improve their client onboarding process, here are some key takeaways:

1. Embrace Digital Automation: Investing in a digital client onboarding platform can significantly streamline the onboarding process, reduce costs, and improve client satisfaction.
2. Integrate with Existing Systems: Seamlessly integrate the onboarding platform with your CRM and other key systems to ensure data consistency and streamline workflows.
3. Focus on Client Experience: Design the onboarding process with the client in mind, making it as easy and convenient as possible for them to provide the required information and sign necessary documents.
4. Provide Comprehensive Training: Ensure that all staff members are properly trained on how to use the digital onboarding platform and manage the updated onboarding process.
5. Monitor and Optimize: Continuously monitor the performance of the onboarding process and make adjustments as needed to improve efficiency and client satisfaction.

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