Pacific Gate Automates 70% of Initial Document Collection Process

Pacific Gate Automates 70% of Initial Document Collection Process

Executive Summary

Pacific Gate Capital, a leading wealth management firm, struggled with a time-consuming and inefficient client onboarding process heavily reliant on manual document collection. By implementing a secure, online document portal integrated with automated reminders and verification tools, Pacific Gate was able to automate 70% of their initial document collection process. This resulted in an average time savings of 5 hours per client, an 80% reduction in paper consumption, and a significantly improved client experience.

The Challenge

Pacific Gate Capital prides itself on providing personalized financial planning services to high-net-worth individuals. However, their client onboarding process presented a significant bottleneck. The initial document collection phase, essential for compliance and accurate financial analysis, was particularly cumbersome.

Prior to implementing a digital solution, the process involved multiple manual steps:

• Initial Contact & Document Request: Advisors would manually compile a list of required documents based on the client's specific financial profile. This often involved reviewing past financial statements, tax returns, and investment holdings. A standard request list could include items such as:
  • Proof of Identity (Driver's License, Passport)
  • Social Security Card
  • Bank Statements (past 3 months)
  • Brokerage Account Statements (past 3 months)
  • Tax Returns (past 2 years)
  • Estate Planning Documents (Will, Trust)
  • Insurance Policies
• Document Submission: Clients were typically asked to either mail physical copies of documents or scan and email them. The mailing option was slow and introduced potential security risks, while scanning often resulted in low-quality, difficult-to-read documents.
• Manual Review and Verification: Support staff would then manually review each document for completeness and accuracy. This was a time-consuming and error-prone process. For example, if a client submitted an incomplete bank statement, the staff would have to follow up with the client and request the missing pages.
• Storage and Organization: Paper documents were physically stored in filing cabinets, requiring significant storage space and making it difficult to quickly retrieve information. Electronic documents were often stored in shared network drives, leading to version control issues and potential security vulnerabilities.

The manual process created several significant challenges:

• Time Consumption: Advisors were spending an average of 7 hours per new client just on the initial document collection phase, diverting their attention from higher-value activities such as client meetings and financial planning. This represented a significant cost in terms of advisor time and productivity. Assuming an average advisor billing rate of $300 per hour, this equates to $2,100 per client spent on this initial phase.
• Client Frustration: Clients found the process cumbersome and inconvenient, particularly those who were accustomed to digital solutions in other areas of their lives. The need to mail or scan documents, combined with multiple follow-up requests, created a negative first impression.
• Compliance Risks: The manual process increased the risk of errors and omissions, potentially leading to compliance violations. For example, if a client failed to provide complete and accurate information about their assets, the advisor could provide inappropriate financial advice.
• Inefficient Resource Allocation: The manual process required significant administrative support, diverting resources from other important tasks. The firm estimated that it was spending approximately $15,000 per month on administrative costs associated with document collection.
• Security Concerns: Mailing paper documents and emailing sensitive information created security vulnerabilities. There was a risk of documents being lost or intercepted, potentially exposing client data to unauthorized access.

Pacific Gate recognized that these inefficiencies were negatively impacting their bottom line and client experience. They needed a more efficient, secure, and client-friendly solution.

The Approach

Benjamin Chow, Pacific Gate Capital’s Chief Technology Officer, championed the initiative to streamline the document collection process. He approached the challenge by focusing on three key objectives:

1. Digitization: Eliminate paper-based processes and transition to a fully digital workflow.
2. Automation: Automate repetitive tasks such as document requests, reminders, and verification.
3. Security: Ensure the security and confidentiality of client data.

Chow started by conducting a thorough review of Pacific Gate's existing onboarding process, identifying key pain points and opportunities for improvement. He then researched various solutions available in the market, considering factors such as security, functionality, ease of use, and cost. He specifically considered integrations with existing CRM systems.

After evaluating several options, Chow recommended implementing a secure client portal integrated with automated reminders and document verification tools. His decision framework was based on the following criteria:

• Security: The solution must comply with industry regulations and standards for data security, such as SOC 2 and GDPR. It must also provide robust encryption and access controls to protect client data from unauthorized access.
• User Experience: The solution must be easy to use for both clients and advisors. It should provide a seamless and intuitive user interface, minimizing the need for training and support.
• Integration: The solution must integrate seamlessly with Pacific Gate's existing CRM system and other key applications. This would allow for the automatic transfer of data between systems, reducing the need for manual data entry.
• Automation: The solution must automate repetitive tasks such as document requests, reminders, and verification. This would free up advisors and support staff to focus on higher-value activities.
• Scalability: The solution must be scalable to accommodate Pacific Gate's growing client base. It should be able to handle a large volume of documents without compromising performance.

Chow ultimately selected Citrix ShareFile as the secure client portal platform, citing its robust security features, ease of use, and integration capabilities. He also decided to integrate it with identity verification services like Trulioo for enhanced security.

The implementation process involved the following steps:

1. Configuration of Citrix ShareFile: Chow configured the platform to meet Pacific Gate's specific requirements, including setting up user roles and permissions, defining document workflows, and configuring security settings.
2. Integration with Identity Verification Services: Chow integrated ShareFile with Trulioo to verify the identities of new clients. This involved setting up an API connection between the two systems and configuring Trulioo to verify client information against government databases.
3. Development of Automated Reminders: Chow developed a series of automated reminders to prompt clients to upload required documents. These reminders were sent via email and SMS, and could be customized based on the client's individual situation.
4. Training and Support: Chow provided training and support to advisors and support staff on how to use the new system. He also created a comprehensive user guide to help clients navigate the portal.
5. Pilot Program: Before rolling out the solution to all clients, Chow conducted a pilot program with a small group of clients to test its functionality and identify any potential issues.

Technical Implementation

The core of the solution lies in the integration of Citrix ShareFile with identity verification services. Here’s a breakdown of the technical implementation:

1. Secure Client Portal (Citrix ShareFile):

   • A dedicated ShareFile folder structure was created for each new client, mirroring the required document list.
   • Access permissions were granular, ensuring that only authorized personnel could access sensitive client data.
   • Encryption at rest and in transit was enabled using AES 256-bit encryption, complying with FINRA and SEC regulations.
   • Two-factor authentication (2FA) was mandatory for all users accessing the portal.

2. Identity Verification (Trulioo):

   • The Trulioo API was integrated into the ShareFile workflow. When a new client creates an account, their provided information (name, address, date of birth, etc.) is automatically sent to Trulioo for verification.
   • Trulioo verifies this information against a range of global databases, including credit bureaus, government registries, and sanctions lists.
   • If the verification fails, the client is prompted to provide additional documentation or contact Pacific Gate for assistance. This significantly reduces the risk of fraud and ensures compliance with KYC (Know Your Customer) regulations.
   • The entire verification process takes place within seconds, providing a seamless and efficient client onboarding experience.

3. Automated Reminders:

   • A custom script was developed using Python and the ShareFile API to automate the sending of reminder emails and SMS messages.
   • The script monitors the status of each client's document folder. If a required document is missing, the script automatically sends a reminder email to the client.
   • The reminder emails are personalized and include a direct link to the client's ShareFile folder.
   • The frequency and timing of the reminders can be customized based on the client's individual needs and preferences.

4. Data Integration:

   • A secure API connection was established between ShareFile and Pacific Gate's CRM system (Salesforce).
   • Client data is automatically synchronized between the two systems, ensuring that all information is up-to-date.
   • This integration also allows advisors to access client documents directly from within Salesforce, streamlining their workflow.
   • The integration utilizes OAuth 2.0 for secure authentication and authorization.

5. Calculation of Time Savings:

   • Prior to the implementation, the average time spent on initial document collection was 7 hours per client.
   • After the implementation, the average time spent on initial document collection was reduced to 2 hours per client.
   • This represents a time savings of 5 hours per client.

Results & ROI

The implementation of the secure client portal and automated document collection process yielded significant results for Pacific Gate Capital:

• Automation of Document Collection: The firm successfully automated 70% of the initial document collection process. This means that 70% of the tasks previously performed manually by advisors and support staff are now handled automatically by the system.
• Time Savings: The average time spent on initial document collection was reduced from 7 hours per client to 2 hours per client, a savings of 5 hours per client. This translates to significant cost savings, freeing up advisors and support staff to focus on higher-value activities. If Pacific Gate onboards 100 new clients per year, this represents a total time savings of 500 hours. At an average advisor billing rate of $300 per hour, this equates to a cost savings of $150,000 per year.
• Reduction in Paper Consumption: Paper consumption was reduced by 80%. This not only reduces costs associated with paper, printing, and storage, but also aligns with Pacific Gate's commitment to environmental sustainability. The firm estimates that it saves approximately $5,000 per year on paper-related expenses.
• Improved Client Experience: Clients reported a significantly improved onboarding experience, citing the convenience and ease of use of the online portal. The firm's Net Promoter Score (NPS) for new client onboarding increased by 15 points, indicating a higher level of client satisfaction.
• Enhanced Security: The secure client portal and identity verification tools significantly reduced the risk of fraud and data breaches. The firm has not experienced any security incidents since implementing the new system.
• Increased Efficiency: The automated process streamlined the onboarding workflow, reducing the time it takes to onboard new clients. This allows Pacific Gate to onboard more clients in a given timeframe, increasing revenue potential.
• Reduced Administrative Costs: The firm estimates that it has reduced administrative costs associated with document collection by approximately $8,000 per month. This includes savings on labor, storage, and supplies.
• Compliance: Improved and automated KYC procedures and documentation for compliance.

Key Takeaways

For other Registered Investment Advisors and wealth managers looking to streamline their client onboarding process, here are some key takeaways from Pacific Gate Capital's experience:

1. Prioritize Security: Invest in a secure client portal that complies with industry regulations and standards. Implement robust encryption and access controls to protect client data.
2. Automate Repetitive Tasks: Automate as many tasks as possible, such as document requests, reminders, and verification. This will free up advisors and support staff to focus on higher-value activities.
3. Integrate with Existing Systems: Ensure that your client portal integrates seamlessly with your CRM system and other key applications. This will allow for the automatic transfer of data between systems, reducing the need for manual data entry.
4. Focus on User Experience: Design a client portal that is easy to use for both clients and advisors. Provide training and support to help them navigate the system.
5. Measure Results and Iterate: Track key metrics such as time savings, paper consumption, and client satisfaction. Use this data to continuously improve your onboarding process.

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