Reduced Onboarding Time by 85% with Automated Workflows

Reduced Onboarding Time by 85% with Automated Workflows

Executive Summary

Luminary Wealth Partners, a growing RIA managing over $500 million in assets, struggled with a lengthy and manual client onboarding process that averaged three weeks. This inefficient process hindered their ability to rapidly acquire new clients and burdened advisors with administrative tasks. By implementing an automated onboarding workflow powered by Golden Door Asset’s recommended integrations, Luminary Wealth Partners slashed their onboarding time by 85%, leading to a significant boost in client acquisition and advisor productivity and a 20% increase in new client revenue within the first quarter.

The Challenge

Luminary Wealth Partners recognized that their client onboarding process was a major bottleneck to growth. The process, which involved multiple manual steps, including paper-based forms, physical signatures, and redundant data entry, was both time-consuming and prone to errors.

Specifically, the challenges included:

• Lengthy Onboarding Time: On average, it took three weeks (15 business days) to fully onboard a new client. This prolonged period often led to frustration for new clients eager to start investing and occasionally resulted in lost opportunities as clients opted for more agile firms.
• High Administrative Burden: Advisors spent an estimated 20% of their time on administrative tasks related to onboarding, pulling them away from crucial client relationship management and financial planning activities. This translated to approximately 8 hours per week per advisor spent on paperwork and follow-up.
• Manual Data Entry & Errors: The manual nature of the onboarding process led to frequent data entry errors, requiring corrections and consuming additional time. It was estimated that approximately 15% of new client applications contained errors requiring follow up. This created risk and reduced data integrity.
• Compliance Risks: Maintaining compliance with industry regulations required meticulous record-keeping, which was challenging with a paper-based system. Ensuring proper documentation and adherence to Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements was a constant concern, with potential penalties for non-compliance costing the firm up to $10,000 per incident.
• Client Frustration: The slow and cumbersome onboarding process often resulted in client frustration and a negative first impression. Clients, accustomed to the speed and convenience of digital services in other areas of their lives, found the wealth management onboarding experience archaic and cumbersome. The Client Satisfaction Score (CSAT) for onboarding was a low 65%, significantly below the firm's overall CSAT of 85%.

These challenges collectively impacted Luminary Wealth Partners' ability to scale their business efficiently and effectively. Their goal was to streamline the onboarding process, freeing up advisors to focus on building client relationships and growing assets under management (AUM). They projected that reducing onboarding time by 50% would allow them to acquire 15% more new clients per quarter, translating to an additional $25 million in AUM annually.

The Approach

Luminary Wealth Partners partnered with Golden Door Asset to implement a comprehensive, automated onboarding solution. The approach focused on digitally transforming the entire onboarding workflow, eliminating manual steps, and integrating key systems.

The strategic framework included:

• Process Mapping & Analysis: The first step involved a thorough analysis of the existing onboarding process to identify pain points and areas for improvement. This included mapping the workflow, documenting the steps involved, and identifying the systems and individuals involved in each step.
• System Integration: The core of the solution was integrating Luminary Wealth Partners' existing Customer Relationship Management (CRM) system (Salesforce Financial Services Cloud) with a digital signature platform (DocuSign) and a secure document management system (Laserfiche). This integration allowed for seamless data flow and automated task management.
• Automated Workflow Design: Golden Door Asset worked with Luminary Wealth Partners to design a fully automated onboarding workflow. This workflow included automated document generation, digital signature requests, automated data entry, and automated notifications.
• Client Portal Implementation: A secure client portal was implemented to provide clients with a centralized location to access onboarding documents, track progress, and communicate with their advisors. This portal improved the client experience and reduced the need for phone calls and emails.
• Compliance Automation: The automated workflow was designed to ensure compliance with industry regulations. This included automated KYC and AML checks, automated document retention, and automated audit trails.
• Training & Support: Golden Door Asset provided comprehensive training and ongoing support to Luminary Wealth Partners' advisors to ensure they were comfortable using the new system. This included on-site training sessions, online tutorials, and dedicated support staff.

By adopting this approach, Luminary Wealth Partners aimed to create a streamlined, efficient, and compliant onboarding process that would improve the client experience, reduce administrative burden, and enable them to scale their business effectively. The selection of vendors focused on ease of integration with their existing Salesforce environment, as well as proven security and regulatory compliance measures. They also weighed cost effectiveness and long-term scalability.

Technical Implementation

The technical implementation involved a phased approach to ensure a smooth transition and minimal disruption to Luminary Wealth Partners' operations.

• Salesforce Financial Services Cloud Configuration: Salesforce Financial Services Cloud was configured to serve as the central hub for the onboarding process. Custom objects and fields were created to capture all relevant client information, and workflows were designed to automate tasks and trigger events.
• DocuSign Integration: DocuSign was integrated with Salesforce Financial Services Cloud to enable digital signatures on onboarding documents. This integration allowed advisors to send documents to clients for signature directly from Salesforce, and automatically update client records once the documents were signed. DocuSign envelopes were pre-populated with client data from Salesforce, eliminating manual data entry and reducing errors.
• Laserfiche Integration: Laserfiche was integrated with Salesforce Financial Services Cloud to provide secure document management and storage. All onboarding documents, including signed agreements and identification documents, were automatically stored in Laserfiche, ensuring compliance with regulatory requirements. Laserfiche's advanced search capabilities allowed advisors to quickly locate documents when needed.
• Workflow Automation: Salesforce Workflow Rules and Process Builder were used to automate tasks such as sending welcome emails, scheduling initial meetings, and triggering KYC and AML checks. These automations significantly reduced the manual effort required to onboard new clients.
• Custom API Integrations: Custom API integrations were developed to connect Salesforce Financial Services Cloud with other key systems, such as Luminary Wealth Partners' portfolio management system and their custodian. This ensured that client data was seamlessly synchronized across all systems.
• Security Measures: To ensure data security and compliance, robust security measures were implemented, including encryption, access controls, and audit trails. These measures protected client data from unauthorized access and ensured compliance with industry regulations.

The initial investment for the technology implementation, including software licenses, consulting fees, and training, was $75,000. This investment was projected to pay for itself within the first year through increased efficiency and client acquisition.

Results & ROI

The implementation of the automated onboarding workflow yielded significant results for Luminary Wealth Partners:

• Reduced Onboarding Time: The average onboarding time decreased from three weeks (15 business days) to just three days, representing an 85% reduction. This allowed Luminary Wealth Partners to onboard clients much faster and provide a more positive initial experience.
• Increased Advisor Productivity: Advisors spent significantly less time on administrative tasks related to onboarding, freeing up an estimated 15% of their time. This allowed them to focus on more valuable activities, such as client relationship management and financial planning.
• Improved Client Satisfaction: The streamlined onboarding process resulted in a significant increase in client satisfaction. The Client Satisfaction Score (CSAT) for onboarding increased from 65% to 92%.
• Reduced Errors: The automated data entry and validation features significantly reduced the number of errors in new client applications. The error rate decreased from 15% to less than 2%.
• Increased Client Acquisition: The improved onboarding process and increased advisor productivity contributed to a 20% increase in new client revenue within the first quarter after implementation. Luminary Wealth Partners acquired 25 new clients within the quarter, adding $4 million in new AUM.
• Cost Savings: The reduced administrative burden and improved efficiency resulted in significant cost savings. Luminary Wealth Partners estimated that they saved approximately $20,000 per year in administrative costs.
• Enhanced Compliance: The automated compliance features ensured that Luminary Wealth Partners were consistently meeting regulatory requirements.

The overall ROI was significant. The $75,000 investment yielded an estimated $100,000 in increased revenue and cost savings within the first year. This represents a 133% return on investment. Furthermore, the intangible benefits, such as improved client satisfaction and enhanced compliance, were invaluable.

Key Takeaways

The success of Luminary Wealth Partners' automated onboarding initiative provides valuable lessons for other RIAs and wealth managers:

1. Prioritize Automation: Identify manual and repetitive tasks in your onboarding process and automate them using technology. This will free up advisors to focus on more valuable activities and improve efficiency.
2. Integrate Key Systems: Integrate your CRM, digital signature platform, and document management system to create a seamless and automated workflow. This will eliminate data silos and reduce the risk of errors.
3. Focus on the Client Experience: Design your onboarding process with the client in mind. Make it easy for clients to provide information, sign documents, and track their progress. A positive onboarding experience can set the tone for a long and successful relationship.
4. Ensure Compliance: Implement automated compliance features to ensure that you are consistently meeting regulatory requirements. This will reduce the risk of penalties and protect your firm's reputation.
5. Invest in Training: Provide comprehensive training and ongoing support to your advisors to ensure they are comfortable using the new system. This will help them to maximize the benefits of automation.

About Golden Door Asset

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