Lisa Tanaka: 40% Faster Client Onboarding with Automation

Lisa Tanaka: 40% Faster Client Onboarding with Automation

Executive Summary

Precision Financial, led by Lisa Tanaka, faced a major bottleneck in its client onboarding process, consuming valuable advisor time and potentially impacting client satisfaction. By implementing a fully automated onboarding workflow leveraging CRM and document management integration, Precision Financial reduced its onboarding time by 40%. This significant efficiency gain has freed up advisors to focus on building stronger client relationships and growing the firm's assets under management.

The Challenge

Precision Financial, a thriving RIA managing over $250 million in assets for high-net-worth individuals, experienced growing pains as its client base expanded. Lisa Tanaka, the firm's Chief Operating Officer, recognized that the manual client onboarding process had become a significant drain on resources.

The old process looked something like this:

• Data Collection: Advisors manually gathered client information using paper forms and spreadsheets. This process was prone to errors, requiring multiple rounds of communication to clarify discrepancies. A typical client profile, including investment goals, risk tolerance, and financial history, could take up to 2 hours to compile.
• Document Preparation: Once the data was collected, administrative staff manually populated client information into various documents, including advisory agreements, account applications, and risk disclosure forms. This painstaking process took an average of 3 hours per client.
• Document Signing: Clients were required to physically sign and return the documents, often involving mailing or faxing. This step alone could take several days, delaying the onboarding process and potentially leading to frustration. Follow-up calls to remind clients to sign added to the administrative burden.
• Account Setup: After receiving the signed documents, the operations team manually entered the client information into the CRM and trading platforms. This involved double-checking for errors and inconsistencies, adding another 2 hours per client.
• Compliance Review: Finally, the compliance officer reviewed the entire onboarding package to ensure accuracy and completeness, a process that consumed an average of 1.5 hours per client file.

In total, the manual onboarding process consumed approximately 8.5 hours of staff time per client. With an average of 10 new clients per month, Precision Financial was spending over 85 hours each month just on onboarding. This translated to significant labor costs and limited the advisors' ability to focus on strategic initiatives and client relationship management. Furthermore, the slow onboarding process occasionally resulted in delays in funding accounts and implementing investment strategies, potentially impacting clients' returns. For instance, one client was estimated to have missed out on $1,500 in potential gains due to a two-week delay in account funding.

The manual process also increased the risk of errors and compliance issues. The reliance on manual data entry made it more likely that mistakes would occur, potentially leading to regulatory scrutiny and financial penalties. Lisa knew a streamlined, automated solution was crucial to scale the firm efficiently and mitigate these risks.

The Approach

Lisa Tanaka spearheaded the initiative to automate Precision Financial’s client onboarding process. She adopted a phased approach, focusing on identifying bottlenecks, selecting appropriate technology solutions, and implementing a seamless integration strategy.

Phase 1: Process Mapping and Bottleneck Analysis

Lisa began by meticulously mapping out the existing onboarding process, identifying each step, the responsible party, and the time required. This revealed that data collection, document preparation, and manual data entry were the primary bottlenecks. She also noted that the lack of integration between the CRM and other systems resulted in duplicated effort and increased the risk of errors.

Phase 2: Technology Selection and Integration Strategy

Based on the process map, Lisa identified key technology requirements:

• CRM Integration: A CRM platform that could serve as a central repository for client data and seamlessly integrate with other applications. Precision Financial already used Wealthbox CRM, so the focus was on maximizing its integration capabilities.
• Document Automation: A document management solution that could automatically populate client information into various documents and facilitate e-signatures. DocuSign was chosen for its ease of use, security features, and seamless integration with Wealthbox.
• Financial Planning Software Integration: Integration with the firm’s financial planning software, RightCapital, to ensure data consistency across all platforms and streamline the investment planning process.
• Automation Platform: A platform to orchestrate the data flow between different applications and automate repetitive tasks. Zapier was selected for its wide range of integrations and user-friendly interface.

Lisa prioritized solutions that offered robust APIs (Application Programming Interfaces) to enable seamless data exchange and automation. She also considered factors such as security, compliance, and scalability when evaluating different technology options.

Phase 3: Implementation and Testing

Lisa worked closely with the technology vendors and the firm's IT team to implement the automated onboarding workflow. This involved configuring the integrations between Wealthbox, DocuSign, RightCapital, and Zapier, as well as creating custom workflows to automate specific tasks. The implementation process included rigorous testing to ensure data accuracy, security, and compliance.

Phase 4: Training and Adoption

Once the automated workflow was implemented, Lisa provided comprehensive training to the advisors and administrative staff. The training focused on the benefits of the new system, the new processes, and how to troubleshoot common issues. Lisa emphasized the importance of adopting the new workflow consistently to maximize its impact.

Technical Implementation

The automated onboarding process leverages a suite of interconnected tools and processes, orchestrated by Zapier, to streamline data flow and minimize manual effort.

1. Initial Client Information Input:

• Advisors initiate the onboarding process within Wealthbox CRM.
• They populate key client information, including name, contact details, investment objectives, and risk tolerance, directly into Wealthbox.

2. Automated Document Generation:

• A Zapier integration triggers when a new client record is created in Wealthbox.
• Zapier pulls the client data from Wealthbox and automatically populates it into pre-defined templates in DocuSign, including:
  • Advisory Agreement (Form ADV Part 2A)
  • Client Account Application (Brokerage Custodian specific forms, e.g., TD Ameritrade, Schwab)
  • Risk Disclosure Document
• DocuSign then sends the documents to the client for electronic signature.

3. Financial Planning Integration:

• Concurrently with document generation, Zapier transfers key client data from Wealthbox to RightCapital.
• This pre-populates the client's financial planning profile, saving advisors significant time and ensuring consistency of data across platforms.
• Calculations related to retirement planning, investment projections, and insurance needs are performed in RightCapital using the imported data.

4. E-Signature and Data Return:

• Once the client electronically signs the documents in DocuSign, Zapier automatically retrieves the completed documents.
• The signed documents are then automatically attached to the client's record in Wealthbox.
• Metadata from the signed documents, such as the signing date and IP address, is also stored in Wealthbox for audit trail purposes.

5. Automated Account Setup:

• Based on the signed account application, the operations team initiates the account setup process with the appropriate custodian.
• Key data from the signed application is automatically extracted and used to pre-populate account opening forms, minimizing manual data entry.

6. Compliance Workflow:

• Upon completion of the account setup process, the client's onboarding package is automatically routed to the compliance officer for review.
• The compliance officer can review all the documents and data within Wealthbox, ensuring that all regulatory requirements are met.
• Any discrepancies or missing information are flagged within Wealthbox, triggering automated notifications to the responsible parties.

Calculations:

• Time Savings: The automated onboarding process reduced the time required to onboard a new client from 8.5 hours to approximately 5.1 hours, a reduction of 40%.
• Cost Savings: Assuming an average hourly rate of $75 for advisor and administrative staff time, the automated onboarding process saves Precision Financial approximately $255 per client (3.4 hours x $75).
• Increased Capacity: By freeing up 3.4 hours per client, advisors can now dedicate more time to client relationship management, business development, and strategic initiatives.

Results & ROI

The implementation of the automated onboarding process has yielded significant results for Precision Financial:

• Reduced Onboarding Time: The onboarding time was reduced by 40%, from an average of 8.5 hours per client to 5.1 hours per client.
• Increased Advisor Productivity: Advisors can now onboard new clients more efficiently, allowing them to focus on other high-value activities such as client meetings, financial planning, and business development. Advisors reported a 15% increase in client meeting frequency within the first quarter after implementation.
• Improved Client Satisfaction: The faster onboarding process has resulted in increased client satisfaction, as clients can start benefiting from Precision Financial's services more quickly. Client satisfaction surveys showed a 20% increase in overall satisfaction with the onboarding experience.
• Reduced Errors: The automation of data entry and document preparation has significantly reduced the risk of errors, leading to improved data accuracy and compliance. The number of compliance-related errors decreased by 35% in the six months following implementation.
• Cost Savings: The reduced onboarding time has resulted in significant cost savings for Precision Financial. Based on an average of 10 new clients per month and a savings of $255 per client, the firm is saving approximately $2,550 per month, or $30,600 per year.
• Increased Revenue: By freeing up advisor time, the automated onboarding process has enabled Precision Financial to onboard more clients and grow its assets under management. The firm's assets under management increased by 8% in the year following implementation, partly attributable to the increased onboarding capacity.

Key Takeaways

Here are key takeaways for other advisors considering automating their onboarding processes:

1. Prioritize Integration: Choose technology solutions that seamlessly integrate with your existing CRM and other core systems. This will minimize data silos and streamline workflows.
2. Map Your Process: Before implementing any automation, thoroughly map out your current onboarding process to identify bottlenecks and opportunities for improvement.
3. Start Small, Scale Gradually: Begin by automating the most time-consuming and error-prone tasks, and then gradually expand the automation to other areas of the onboarding process.
4. Invest in Training: Provide comprehensive training to your staff on the new automated workflows. This will ensure that they understand the benefits of the system and can use it effectively.
5. Measure Results: Track key metrics such as onboarding time, error rates, and client satisfaction to measure the impact of your automation efforts.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors identify and act on client opportunities faster than ever. Visit our tools to see how we can help your practice.