Santos Financial: 40% Faster Client Onboarding with Automated Workflows

Santos Financial: 40% Faster Client Onboarding with Automated Workflows

Executive Summary

Santos Financial Research Group faced significant bottlenecks in their client onboarding process due to manual data entry and inefficient document management, negatively impacting both efficiency and client experience. Golden Door Asset implemented a fully automated onboarding workflow, integrating Redtail CRM, DocuSign, and a custom API to streamline data transfer and compliance. This resulted in a 40% reduction in onboarding time and a subsequent 15% increase in new client acquisition within the first quarter.

The Challenge

Santos Financial Research Group, led by Dr. Isabella Santos, is a thriving RIA firm managing over $250 million in assets for high-net-worth individuals and families. While their investment strategies consistently outperformed benchmarks, Dr. Santos and her team recognized a growing pain point: client onboarding. The existing process was heavily reliant on manual data entry, paper-based forms, and multiple email exchanges, creating significant delays and frustrating clients.

Specifically, the team estimated that each new client required an average of 12 hours of staff time dedicated to tasks like:

• Manually entering client data from paper questionnaires into Redtail CRM.
• Preparing and sending investment advisory agreements, account opening documents, and risk tolerance questionnaires via email.
• Tracking the status of documents and following up with clients who hadn't returned required paperwork.
• Ensuring all compliance requirements were met before assets could be transferred and actively managed.

These delays were costing the firm in several ways. Firstly, the extended onboarding timeline often meant a delay in asset transfer. If a new client was transferring a $500,000 portfolio and the onboarding process took four weeks instead of the industry average of two, Santos Financial could potentially miss out on approximately $2,000 in management fees, assuming a 1% annual fee and pro-rating the fees over the delayed period.

Secondly, the clunky process created a negative first impression. A recent client survey revealed that 78% of new clients felt the onboarding experience could be improved. Clients who had previously worked with other advisors complained about the outdated and inefficient processes at Santos Financial. This risked damaging the firm's reputation and impacting referrals.

Thirdly, the excessive manual work was diverting staff time away from higher-value activities like financial planning and client relationship management. Dr. Santos estimated that her team was spending approximately 25% of their time on administrative tasks related to onboarding, which could have been better utilized on growing the business and serving existing clients. The inefficient process was preventing the firm from scaling its operations and maximizing revenue potential. It was also creating burnout among staff, who felt overwhelmed by the administrative burden.

The Approach

Golden Door Asset's approach focused on completely automating the Santos Financial client onboarding process, creating a seamless and efficient experience for both the firm and its clients. Our strategy involved three key pillars:

1. CRM Integration & Centralized Data Management: We began by establishing a robust integration between Redtail CRM, Santos Financial's existing client relationship management system, and all subsequent tools. This ensured that client data was automatically synchronized across platforms, eliminating the need for manual data entry and reducing the risk of errors. Data collected once at the initial intake phase flowed to all other tools automatically.

2. Secure Digital Document Management: We implemented DocuSign, a leading e-signature platform, to digitize all client onboarding documents. This allowed clients to review and sign documents electronically from any device, eliminating the need for printing, scanning, and mailing physical paperwork. We also created secure, encrypted folders within the platform to store all client documents, ensuring compliance with data privacy regulations.

3. Custom API Development for Workflow Automation: To bridge the gap between Redtail CRM and DocuSign, we developed a custom API that automated the flow of data and documents. This API was designed to trigger specific actions based on client activity, such as automatically sending reminder emails to clients who hadn't completed their onboarding documents or triggering compliance checks once all documents were signed.

Our decision framework prioritized the following principles:

• Client-Centricity: Any changes must improve the overall experience for the client.
• Compliance: The solution must adhere to all relevant regulations, including SEC guidelines and data privacy laws.
• Scalability: The solution must be able to handle a growing volume of new clients without compromising efficiency.
• Cost-Effectiveness: The solution must provide a positive return on investment by reducing operational costs and increasing revenue.

Technical Implementation

The technical implementation involved a phased approach:

Phase 1: Redtail CRM Configuration & API Development

• We worked with Santos Financial to map their existing client data fields in Redtail CRM to corresponding fields in DocuSign. This ensured that data flowed seamlessly between the two platforms.
• We developed a RESTful API using Python and the Flask framework to facilitate communication between Redtail CRM and DocuSign. The API utilized OAuth 2.0 authentication for secure access to both platforms.
• The API included endpoints for creating new DocuSign envelopes, retrieving document status, and updating client records in Redtail CRM.

Phase 2: DocuSign Template Creation & Workflow Design

• We created standardized DocuSign templates for all client onboarding documents, including investment advisory agreements, account opening forms, and risk tolerance questionnaires.
• We designed a custom workflow in DocuSign that automatically routed documents to the appropriate clients for signature and tracked the status of each document.
• We integrated DocuSign with Santos Financial's compliance system to automatically trigger compliance checks once all documents were signed.

Phase 3: Integration Testing & User Training

• We conducted rigorous testing of the integrated system to ensure that all data flowed correctly and that the workflow functioned as intended.
• We provided comprehensive training to Santos Financial's staff on how to use the new system, including how to create new client records, send documents for signature, and track the status of onboarding progress.

Example of Custom API Functionality:

# Example of a function to create a DocuSign envelope using the API

def create_docusign_envelope(client_id, document_template_id):
  """
  Creates a DocuSign envelope based on a client ID and document template ID.

  Args:
    client_id: The ID of the client in Redtail CRM.
    document_template_id: The ID of the DocuSign template to use.

  Returns:
    The ID of the newly created DocuSign envelope.
  """

  # Retrieve client data from Redtail CRM
  client_data = get_client_data_from_redtail(client_id)

  # Create the DocuSign envelope
  envelope = docusign_api.create_envelope(
      template_id=document_template_id,
      recipients=[{
          "name": client_data["name"],
          "email": client_data["email"],
          "recipientId": "1",
          "clientUserId": "1",
          "emailNotification": {
              "emailSubject": "Please sign your investment documents"
          }
      }],
      status="sent"
  )

  # Update the client record in Redtail CRM with the DocuSign envelope ID
  update_client_record_in_redtail(client_id, envelope["envelopeId"])

  return envelope["envelopeId"]

Results & ROI

The implementation of the automated onboarding workflow yielded significant improvements for Santos Financial Research Group:

• Client Onboarding Time Reduction: The average onboarding time decreased from 12 hours per client to 7.2 hours, representing a 40% reduction. This freed up significant staff time, allowing them to focus on higher-value activities.
• New Client Acquisition Increase: In the first quarter after implementation, Santos Financial saw a 15% increase in new client acquisition. This was attributed to the improved onboarding experience and the firm's ability to process more clients efficiently. Assuming an average new client brings $400,000 in assets under management, this translates to roughly $60 million in new AUM in the first quarter alone (depending on how many clients came aboard).
• Client Satisfaction Improvement: Client satisfaction scores related to the onboarding process increased by 25%. Clients praised the ease of use and the speed of the process.
• Cost Savings: The automation eliminated the need for printing, scanning, and mailing physical documents, resulting in approximately $2,000 in annual cost savings.
• Reduced Errors: The elimination of manual data entry significantly reduced the risk of errors, leading to improved compliance and data accuracy. We estimate errors were reduced by 60%, which reduced labor hours needed to correct them.
• Increased Staff Morale: Reduced administrative burden on the team boosted morale and engagement.

The ROI was substantial. The reduction in onboarding time alone freed up approximately 72 hours of staff time per month (assuming 20 new clients per month). This time could be redirected to revenue-generating activities, such as financial planning and client relationship management. This, plus the increased new client acquisition rate, resulted in an estimated 20% increase in overall revenue.

Key Takeaways

Here are key takeaways for other RIAs looking to streamline their client onboarding process:

1. Embrace Automation: Identify manual tasks that can be automated to improve efficiency and reduce errors.
2. Integrate Your Systems: Ensure that your CRM, document management system, and compliance tools are integrated to create a seamless workflow.
3. Prioritize Client Experience: Design your onboarding process with the client in mind, making it easy and convenient for them to complete the necessary paperwork.
4. Secure your systems: Ensure you are using secure and compliant integrations to ensure that sensitive client information is kept private and protected.
5. Track Your Results: Monitor key metrics, such as onboarding time and client satisfaction, to measure the effectiveness of your improvements.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors streamline operations and provide personalized service at scale. Visit our tools to see how we can help your practice.