Cut Costs 20% with Paperless Onboarding Workflow

Cut Costs 20% with Paperless Onboarding Workflow

Executive Summary

Richardson & Associates, a growing RIA firm, faced escalating operational costs due to a paper-intensive client onboarding process. Golden Door Asset partnered with Richardson & Associates to develop and implement a fully paperless onboarding workflow. By leveraging digital forms, secure cloud storage, and automated data transfer, Richardson & Associates reduced their operational costs by 20%, significantly improving profitability and freeing up valuable staff time.

The Challenge

Richardson & Associates, managing over $350 million in assets, experienced significant inefficiencies in their client onboarding process. Their existing workflow relied heavily on paper forms, manual data entry, and physical document storage, resulting in a number of critical challenges:

• High Paper Consumption & Printing Costs: Each new client required an average of 60 pages of printed documents, including account applications, risk tolerance questionnaires, and advisory agreements. With an average of 25 new clients onboarded per month, this translated to 1,500 pages of paper and approximately $300 in printing costs (including toner and maintenance) monthly, or $3,600 annually.

• Excessive Manual Data Entry: Client information from paper forms had to be manually entered into Wealthbox CRM, a time-consuming and error-prone process. It took an estimated 2 hours of administrative staff time per client to complete data entry, costing the firm approximately $10,000 per month in labor costs (assuming an average hourly rate of $25 for administrative staff).

• Document Storage & Retrieval Issues: Physical storage of client documents required dedicated office space and made it difficult to quickly retrieve information when needed. Searching for specific documents often took up to 30 minutes, further impacting staff productivity. The annual cost of renting and maintaining physical storage space was estimated at $2,000.

• Compliance & Security Risks: Storing sensitive client information in physical form presented security risks, including potential loss, theft, or unauthorized access. The firm also faced challenges in ensuring compliance with regulations related to data privacy and security.

• Client Experience: The lengthy and cumbersome onboarding process negatively impacted the client experience. Clients often expressed frustration with the amount of paperwork involved and the time it took to complete the onboarding process. The firm estimated this inefficient process contributed to a 5% lower client satisfaction score on onboarding experience.

In summary, the paper-based onboarding workflow was a significant drain on Richardson & Associates' resources, costing them approximately $125,600 annually, negatively impacting client satisfaction and increasing potential compliance risk.

The Approach

Golden Door Asset worked closely with Richardson & Associates to design and implement a comprehensive paperless onboarding solution, focusing on the following key areas:

1. Workflow Analysis & Design: We conducted a detailed analysis of Richardson & Associates' existing onboarding workflow to identify pain points and opportunities for improvement. This included mapping out the entire process, from initial client contact to account setup, and identifying all documents and data elements involved.

2. Digital Form Development: We developed a set of interactive digital forms to replace the paper-based forms used in the onboarding process. These forms were designed to be user-friendly and accessible on various devices, including computers, tablets, and smartphones. We prioritized data validation within the forms to minimize errors.

3. Secure Cloud Storage: We implemented a cloud-based document management system (Box) to securely store all client documents. This eliminated the need for physical storage space and provided easy access to documents from any location with an internet connection. Box was selected due to its robust security features, compliance certifications (e.g., SOC 2, HIPAA), and integration capabilities with Wealthbox.

4. CRM Integration: We integrated the digital forms and document management system with Richardson & Associates' existing Wealthbox CRM system. This enabled automated data transfer from the digital forms to the CRM, eliminating the need for manual data entry. Data mapping ensured accuracy of transfers and data integrity.

5. E-Signature Integration: We integrated HelloSign, an e-signature platform, into the onboarding workflow. This allowed clients to electronically sign documents, eliminating the need for printing, scanning, and mailing.

6. Training & Support: We provided comprehensive training and support to Richardson & Associates' staff on the new paperless onboarding process. This included training on how to use the digital forms, document management system, CRM integration, and e-signature platform. We also provided ongoing support to address any questions or issues that arose.

Our strategic approach focused on minimizing disruption to Richardson & Associates' existing operations while maximizing the benefits of a paperless workflow. The decision to integrate with existing systems like Wealthbox and leverage cloud-based solutions like Box and HelloSign minimized upfront investment and ensured a smooth transition.

Technical Implementation

The technical implementation involved the following key components:

• Cloud-Based Document Management (Box): A secure Box instance was configured for Richardson & Associates, with specific folders created for each client. Permissions were set to ensure only authorized personnel could access sensitive client data. Integration with Wealthbox was achieved via Box’s API, allowing for seamless document storage and retrieval directly from the CRM.

• Digital Forms (Custom Developed): Using a low-code platform, we created digital versions of all onboarding forms, including:

  • Client Information Form: Captures basic client details, contact information, and financial goals.
  • Risk Tolerance Questionnaire: Assesses client risk tolerance to inform investment recommendations.
  • Advisory Agreement: Outlines the terms of the advisory relationship between Richardson & Associates and the client.

  These forms were designed with conditional logic, meaning that certain questions only appear based on the client's previous answers. This streamlined the data collection process and improved the client experience. Data was automatically validated at entry, reducing the risk of errors.

• CRM Integration (Wealthbox API): The digital forms were integrated with Wealthbox using the Wealthbox API. This integration allowed for the automatic transfer of data from the forms to the corresponding fields in the CRM. For example, the client's name and contact information from the Client Information Form were automatically populated into the client's profile in Wealthbox.

  We calculated the efficiency gain by tracking the time spent on manual data entry before and after the implementation. Before the integration, it took an average of 2 hours per client. After the integration, it took an average of 15 minutes to review and verify the automatically populated data. This resulted in a time savings of 1 hour and 45 minutes per client.

• E-Signature Integration (HelloSign API): HelloSign was integrated into the workflow to allow clients to electronically sign the Advisory Agreement and other required documents. A standardized template was created within HelloSign and pre-populated with client data from Wealthbox. The integration enabled clients to securely sign documents online from any device. The completed documents were automatically saved in the client's folder in Box and linked to their profile in Wealthbox.

We calculated the hard dollar cost savings from the reduced paper and supply costs:

• Paper Savings: 1,500 sheets per month * $0.01 per sheet = $15 per month
• Toner & Printing Savings: $300 per month
• Shipping/Postage Savings: Previously $5 per onboarding * 25 new clients per month = $125 per month
• Total Monthly Savings: $15 + $300 + $125 = $440
• Total Annual Savings: $440 * 12 = $5,280
• Calculated the FTE (Full-Time Equivalent) labor savings for manual data entry.
• Reduced the time per client by 1.75 hours, or 43.75 hours per month (1.75 hours x 25 clients)
• Assuming 160 billable hours per employee FTE, this equated to 0.27 FTE reduction.

Results & ROI

The implementation of the paperless onboarding workflow at Richardson & Associates yielded significant results and a strong return on investment:

• Cost Reduction: Richardson & Associates reduced their overall onboarding costs by 20%, representing an annual savings of approximately $25,120. This was achieved through:

  • Reduced Paper & Printing Costs: Elimination of paper forms and printing resulted in an annual savings of $5,280 (as calculated in Technical Implementation).
  • Reduced Labor Costs: Automation of data entry saved approximately 1 hour and 45 minutes of administrative staff time per client, translating to a significant reduction in labor costs, estimated at $20,000 annually. This is based on 43.75 fewer labor hours spent x $45/hour blended rate for administrative and managerial staff.

• Improved Efficiency: The paperless onboarding process significantly streamlined the onboarding workflow. The time required to onboard a new client was reduced by an average of 50%, from 4 hours to 2 hours.

• Enhanced Client Experience: Clients reported a more positive onboarding experience. Client satisfaction scores related to onboarding increased by 15%, indicating a significant improvement in client perception.

• Reduced Storage Costs: Elimination of physical document storage saved Richardson & Associates approximately $2,000 per year in storage costs.

• Increased Compliance & Security: The cloud-based document management system provided a secure and compliant environment for storing client data.

• Increased Profitability: The cost savings and efficiency gains directly translated into increased profitability for Richardson & Associates. The firm was able to reallocate resources to other areas of the business, such as client service and business development.

• FTE (Full-Time Equivalent) impact: 0.27 FTE labor saved from manual data entry.

These improvements clearly represent a substantial improvement to the operational bottom line.

Key Takeaways

Here are 3 actionable insights for other advisors considering a paperless onboarding workflow:

1. Prioritize CRM Integration: Integrating your digital onboarding process with your CRM system is crucial for automating data transfer and streamlining workflows.
2. Security is Paramount: Ensure that any cloud-based solutions you choose meet industry-standard security and compliance requirements to protect sensitive client data.
3. Client Communication is Key: Clearly communicate the benefits of the paperless onboarding process to your clients and provide support to ensure a smooth transition.

About Golden Door Asset

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