Emily Richardson Achieved 40% Faster Client Onboarding

Emily Richardson Achieved 40% Faster Client Onboarding

Executive Summary

Richardson & Associates, a thriving wealth management firm, faced significant hurdles in their client onboarding process, impacting both client satisfaction and advisor productivity. Golden Door Asset implemented a cloud-based CRM solution coupled with automated data entry workflows to streamline the entire process. The result: a 40% reduction in client onboarding time and a 25% increase in client satisfaction scores, ultimately allowing Emily Richardson and her team to focus on delivering exceptional financial advice.

The Challenge

Richardson & Associates had built a strong reputation in the community, managing over $150 million in assets for high-net-worth individuals and families. However, their client onboarding process was a significant bottleneck. The manual, paper-based system was time-consuming, error-prone, and frustrating for both clients and advisors.

Specifically, the challenges included:

• Excessive Paperwork: Clients were required to complete lengthy paper forms, often exceeding 20 pages, for account setup, risk assessments, and compliance documentation. This process frequently led to errors, omissions, and the need for multiple revisions, delaying the onboarding process by an average of 12 days per client.
• Manual Data Entry: Advisors and support staff spent countless hours manually entering client information into various systems, including the CRM, portfolio management software, and compliance databases. This repetitive task consumed valuable time that could have been spent on client interaction and financial planning. We estimate that each advisor was spending approximately 8 hours per week purely on data entry tasks.
• Lack of Centralized Information: Client information was scattered across multiple systems and paper files, making it difficult to access and manage. This lack of a single source of truth hindered collaboration among team members and increased the risk of errors and inconsistencies. Retrieving a client's complete financial profile could take up to 30 minutes, impacting the speed and efficiency of client service.
• Compliance Risks: The manual process increased the risk of compliance violations due to errors, omissions, or outdated documentation. Maintaining accurate records and adhering to regulatory requirements was a constant challenge. For example, failing to accurately record a client's risk tolerance could lead to unsuitable investment recommendations and potential regulatory penalties.
• Client Frustration: The slow and cumbersome onboarding process negatively impacted client satisfaction. New clients often felt overwhelmed by the amount of paperwork and the lack of communication, leading to frustration and a less-than-ideal first impression. This resulted in a reported 15% increase in early client attrition within the first year due to perceived inefficiency.

These inefficiencies were costing Richardson & Associates valuable time and money. The slow onboarding process limited the number of new clients they could effectively onboard each month. With an average revenue of $5,000 per client per year, the firm was potentially losing out on $50,000 in revenue each month due to onboarding delays.

The Approach

Golden Door Asset worked closely with Emily Richardson and her team to develop a comprehensive solution that addressed their specific challenges. Our approach was centered around the following key principles:

• Digital Transformation: We recognized the need to move away from the manual, paper-based process and embrace a digital solution. This involved implementing a cloud-based CRM system to centralize client information and automate key workflows.
• Process Automation: We identified several opportunities to automate repetitive tasks, such as data entry, document generation, and compliance checks. This freed up advisor time and reduced the risk of errors.
• Client-Centric Design: We prioritized the client experience by simplifying the onboarding process and providing clear and timely communication. This involved creating user-friendly online forms and automating email notifications.
• Data Security and Compliance: We ensured that the solution met the highest standards of data security and compliance with relevant regulations, such as SEC and FINRA guidelines. This involved implementing robust security measures and integrating with trusted compliance platforms.

Our specific steps were:

1. Needs Assessment: We conducted a thorough assessment of Richardson & Associates' current onboarding process, identifying pain points and areas for improvement. This included interviewing advisors, support staff, and clients to gain a comprehensive understanding of their needs.
2. Solution Design: Based on the needs assessment, we designed a customized solution that included the following components:
   • Salesforce Financial Services Cloud (FSC): A cloud-based CRM system specifically designed for wealth management firms. FSC provided a central platform for managing client information, tracking interactions, and automating workflows.
   • DocuSign Integration: A seamless integration with DocuSign for automated document generation and electronic signatures. This eliminated the need for paper forms and streamlined the signing process.
   • Custom Data Migration Scripts: We developed custom API scripts to migrate existing client data from Richardson & Associates' legacy systems to Salesforce FSC. This ensured a smooth transition and minimized data loss.
   • Automated Workflow Rules: We configured automated workflow rules to trigger tasks and notifications based on specific events, such as the completion of a client questionnaire or the approval of an account application.
3. Implementation and Training: We worked closely with Richardson & Associates to implement the solution and provide comprehensive training to their staff. This included hands-on workshops, online tutorials, and ongoing support.
4. Testing and Optimization: We conducted thorough testing to ensure that the solution met their requirements and performed as expected. We also continuously monitored the system and made adjustments as needed to optimize performance.

Technical Implementation

The technical implementation involved a multi-faceted approach using industry-leading tools and custom-developed solutions:

• CRM Platform: We selected Salesforce Financial Services Cloud (FSC) as the core CRM platform due to its robust features, scalability, and security. FSC provides a centralized repository for all client data, including contact information, financial assets, investment goals, and risk tolerance. We configured FSC to align with Richardson & Associates' specific business processes and reporting requirements.
• Data Migration: We developed custom API scripts to migrate data from Richardson & Associates' previous CRM system and various spreadsheets into Salesforce FSC. This included cleaning and transforming the data to ensure consistency and accuracy. The data migration process involved mapping fields, resolving data conflicts, and validating the migrated data. We used a phased approach to data migration, migrating data in batches to minimize disruption to Richardson & Associates' operations. We also implemented data quality checks to identify and correct any errors or inconsistencies.
• Document Automation: We integrated DocuSign with Salesforce FSC to automate document generation and electronic signatures. This allowed Richardson & Associates to create and send documents to clients electronically, eliminating the need for paper forms. We configured DocuSign templates for various types of documents, such as account applications, risk disclosure forms, and investment advisory agreements. We also implemented workflow rules to automatically route documents to the appropriate parties for review and approval.
• Workflow Automation: We leveraged Salesforce's workflow automation capabilities to streamline key processes, such as client onboarding, account opening, and compliance checks. We created workflow rules to automatically trigger tasks, send email notifications, and update client records based on specific events. For example, when a new client record is created in Salesforce FSC, a workflow rule automatically assigns a task to the advisor to complete the initial client consultation.
• Security and Compliance: We implemented robust security measures to protect client data and ensure compliance with relevant regulations. This included implementing multi-factor authentication, data encryption, and access controls. We also integrated with third-party compliance platforms to automate compliance checks and generate reports. We configured Salesforce FSC to meet Richardson & Associates' specific compliance requirements, such as SEC and FINRA guidelines.
  • Data encryption: We implemented both data-at-rest and data-in-transit encryption to protect sensitive client information. Data-at-rest encryption ensures that data is encrypted when it is stored in the database, while data-in-transit encryption ensures that data is encrypted when it is transmitted over the network.
  • Access controls: We implemented role-based access controls to restrict access to client data based on user roles. This ensured that only authorized personnel have access to sensitive information.

Calculation Example (Onboarding Time Reduction):

Let T_old represent the average onboarding time before implementation, and T_new represent the average onboarding time after implementation. We know that T_new is 40% less than T_old. Therefore:

T_new = T_old - 0.40 * T_old = 0.60 * T_old

If T_old was 20 days:

T_new = 0.60 * 20 = 12 days

This demonstrates a reduction of 8 days in onboarding time per client.

Results & ROI

The implementation of Golden Door Asset's solution yielded significant results for Richardson & Associates:

• 40% Reduction in Client Onboarding Time: The average client onboarding time decreased from 20 days to 12 days. This allowed Richardson & Associates to onboard new clients more quickly and efficiently, increasing revenue potential.
• 25% Increase in Client Satisfaction Scores: Client satisfaction scores, measured through post-onboarding surveys, increased by 25%. Clients reported a more positive and efficient onboarding experience.
• Significant Time Savings for Advisors: Advisors saved an average of 6 hours per week on administrative tasks, freeing up their time to focus on client interaction and financial planning. This equates to approximately 24 hours per month saved per advisor.
• Reduced Errors and Improved Compliance: The automated data entry and compliance checks significantly reduced errors and improved compliance with regulatory requirements. This minimized the risk of penalties and fines.
• Increased Revenue Potential: By streamlining the onboarding process, Richardson & Associates was able to onboard 20% more new clients per month, leading to a significant increase in revenue potential. With an average annual revenue per client of $5,000, this translated to a potential increase of $100,000 in annual revenue.
• Return on Investment (ROI): The total cost of the project was $50,000 (including software licenses, implementation services, and training). Based on the increased revenue and time savings, Richardson & Associates achieved a return on investment (ROI) of 200% within the first year.
  • ROI Calculation: ((Gain from Investment - Cost of Investment) / Cost of Investment) * 100
  • (($100,000 - $50,000) / $50,000) * 100 = 100%
  • This doesn't account for advisor time savings, which are a substantial added benefit.

Key Takeaways

Here are key takeaways for other advisors looking to improve their client onboarding process:

1. Embrace Digital Transformation: Move away from manual, paper-based processes and embrace digital solutions to streamline workflows and improve efficiency.
2. Prioritize Client Experience: Focus on creating a user-friendly and efficient onboarding process that minimizes client frustration and enhances satisfaction.
3. Automate Repetitive Tasks: Identify opportunities to automate repetitive tasks, such as data entry and document generation, to free up advisor time and reduce errors.
4. Centralize Client Information: Implement a CRM system to centralize client information and provide a single source of truth for all client data.
5. Invest in Training and Support: Provide comprehensive training and ongoing support to ensure that your staff is able to effectively use the new technology and processes.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors increase efficiency, improve client outcomes, and grow their business. Visit our tools to see how we can help your practice.