Summit Capital Partners Automates Operations, Saves 1,200 Staff Hours Yearly

Summit Capital Partners Automates Operations, Saves 1,200 Staff Hours Yearly

Executive Summary

Summit Capital Partners, a rapidly growing wealth management firm with $750 million in AUM, faced significant operational bottlenecks due to manual processes in client onboarding, report generation, and compliance. These inefficiencies hindered scalability and diverted advisors' time from client relationships. Golden Door Asset implemented a Robotic Process Automation (RPA) solution, integrated with robust data analytics, resulting in a 1,200-hour annual reduction in manual work and a 20% increase in advisor time dedicated to client service.

The Challenge

Summit Capital Partners experienced rapid growth in recent years, expanding its client base by 30% year-over-year. This expansion, however, exposed significant inefficiencies in their back-office operations. Specifically, the following challenges threatened their continued growth and profitability:

• Manual Client Onboarding: The client onboarding process was heavily reliant on manual data entry and document verification. Each new client required approximately 8 hours of staff time to collect, verify, and input data across multiple systems, including the CRM, portfolio management software, and compliance platforms. With an average of 5 new clients per month, this consumed 40 hours of staff time monthly, or 480 hours annually, costing the firm an estimated $24,000 annually (based on an average hourly back-office staff cost of $50). The manual process also increased the risk of errors, leading to potential compliance issues and client dissatisfaction.

• Time-Consuming Report Generation: Generating client reports, including quarterly performance reviews and tax statements, involved manually pulling data from disparate systems and compiling it into presentable formats. This process took an average of 4 hours per client per quarter, translating to 16 hours annually per client. With 500 clients, this resulted in 8,000 staff hours dedicated to report generation annually. The estimated cost for this task was $400,000 annually. The delay in report delivery also impacted client satisfaction and hindered timely investment decisions.

• Compliance Reporting Burden: Regulatory compliance demanded meticulous record-keeping and frequent reporting. Manually gathering and submitting compliance data for audits and regulatory filings required significant staff time and resources. This included manually reviewing client accounts for KYC/AML compliance, which took approximately 2 hours per account annually. With 500 clients, this accounted for 1,000 hours annually. Furthermore, preparing for annual audits involved an additional 200 hours of staff time. The combined cost of compliance reporting was estimated at $60,000 annually, and the manual nature of the process increased the risk of non-compliance penalties.

• Data Silos and Inconsistent Information: Disparate systems lacked seamless integration, creating data silos and hindering access to a unified view of client information. This resulted in inconsistent data across platforms, increasing the risk of errors and inefficiencies. Advisors spent valuable time reconciling data between systems, reducing the time available for client interaction and strategic planning.

These operational inefficiencies limited Summit Capital Partners' ability to scale its operations efficiently, reduced advisor productivity, and increased the risk of errors and compliance issues, ultimately impacting client satisfaction and profitability. The firm recognized the need for a strategic automation solution to address these challenges and unlock its full potential.

The Approach

Golden Door Asset adopted a phased approach to automate Summit Capital Partners' key operational processes:

1. Process Assessment and Prioritization: We began by conducting a thorough assessment of Summit Capital Partners' existing workflows, identifying the most time-consuming and error-prone processes. We used process mapping and time-motion studies to quantify the time and resources consumed by each task. Based on this analysis, we prioritized the following processes for automation: client onboarding, report generation, and compliance reporting. We considered the potential impact of automation on efficiency, accuracy, and compliance in our prioritization framework.

2. Technology Selection and Integration: We selected UiPath for Robotic Process Automation (RPA) due to its robust capabilities and user-friendly interface. We chose Alteryx for data blending and analysis, enabling us to integrate data from disparate systems and create a unified view of client information. We developed a custom-built API to integrate with Summit Capital Partners' existing CRM system, ensuring seamless data flow between the automation platform and the client database. The decision to build a custom API, rather than use a pre-built connector, stemmed from a desire for greater control over data mapping and customization.

3. RPA Implementation and Workflow Design: We designed and implemented RPA bots to automate key tasks within each prioritized process. For client onboarding, the bot automatically extracts data from client applications, verifies information against external databases, and inputs data into the CRM and portfolio management systems. For report generation, the bot automatically gathers data from various sources, compiles it into pre-defined report templates, and distributes the reports to clients. For compliance reporting, the bot automatically monitors client accounts for KYC/AML compliance, generates compliance reports, and submits them to regulatory agencies.

4. Data Governance and Security: We implemented robust data governance policies and security measures to protect client data and ensure compliance with regulatory requirements. We utilized encryption, access controls, and audit trails to safeguard data privacy and integrity. We also provided comprehensive training to Summit Capital Partners' staff on data security best practices and compliance procedures.

5. Continuous Monitoring and Optimization: We established a system for continuous monitoring and optimization of the automated processes. We tracked key performance indicators (KPIs), such as processing time, error rates, and cost savings, to identify areas for improvement. We regularly updated the RPA bots and data analytics workflows to adapt to changing business needs and regulatory requirements.

Technical Implementation

The technical implementation involved a multi-layered approach leveraging RPA, data blending, and custom API development:

• Robotic Process Automation (RPA) with UiPath: UiPath was configured to automate several key processes.

  • Client Onboarding: The UiPath bot extracts data from electronic client application forms (PDFs and web forms), validates the information against third-party KYC/AML databases (using an API integration with a KYC provider), and automatically populates fields in the firm's CRM (Salesforce) and portfolio management system (Black Diamond). The bot also automatically generates and sends welcome emails with account access information. Rule-based decision trees within UiPath handle exceptions and flag potentially fraudulent or incomplete applications for manual review. The bot uses OCR (Optical Character Recognition) to process scanned documents.
  • Report Generation: The UiPath bot retrieves portfolio performance data from the Black Diamond system, tax data from the tax reporting system (e.g., 1099s and K-1s), and market data from a financial data provider (e.g., FactSet). It utilizes pre-defined Excel templates to generate quarterly performance reports, annual tax summaries, and ad-hoc reports based on client requests. The bot then automatically emails the reports to clients through secure email channels.
  • Compliance Reporting: The UiPath bot monitors client accounts for suspicious activity using predefined rules based on regulatory requirements (e.g., Reg BI, Suitability). It flags accounts that trigger alerts and generates reports for compliance officers to review. The bot also automates the process of filing SARs (Suspicious Activity Reports) with FinCEN, pre-populating the necessary forms with data extracted from the CRM and transaction history.

• Data Blending and Analysis with Alteryx: Alteryx was used to integrate data from disparate sources, clean and transform the data, and perform advanced analytics.

  • Data connectors were configured to pull data from Salesforce, Black Diamond, the tax reporting system, and the KYC/AML database.
  • Alteryx workflows were created to standardize data formats, remove duplicates, and resolve inconsistencies.
  • Alteryx was used to calculate key performance indicators (KPIs), such as portfolio performance, risk-adjusted returns, and client profitability.
  • Data visualization tools within Alteryx were used to create dashboards and reports for management and advisors.

• Custom CRM API: A custom API was built to facilitate seamless data exchange between the RPA platform, Alteryx, and the Salesforce CRM.

  • The API allowed the RPA bot to automatically update client records in Salesforce with information extracted from client applications and other sources.
  • The API enabled Alteryx to pull data from Salesforce for analysis and reporting.
  • The API ensured that data was consistent and accurate across all systems.
  • The API was built using RESTful principles and secured using OAuth 2.0 authentication.

• Calculation of Time Savings: Manual time spent * number of employees performing task * frequency of task. Automating each process reduces that time to near zero and reduces the frequency of employees performing the task.

Results & ROI

The implementation of the automation solution yielded significant results for Summit Capital Partners:

• Reduced Manual Work by 1,200 Staff Hours Annually: The automation of client onboarding, report generation, and compliance tasks reduced manual work by an estimated 1,200 staff hours per year. This represents a significant reduction in operational costs and freed up valuable time for advisors and support staff.
• Increased Advisor Time on Client Service by 20%: By automating routine tasks, advisors were able to dedicate an additional 20% of their time to client service and business development. This resulted in improved client relationships, increased client retention, and higher sales.
• Improved Client Onboarding Time by 75%: The automated client onboarding process reduced the average onboarding time from 8 hours to 2 hours per client, a 75% improvement. This streamlined the onboarding process, improved client satisfaction, and reduced the risk of errors.
• Reduced Report Generation Time by 80%: The automated report generation process reduced the average report generation time from 4 hours to 0.8 hours per client per quarter, an 80% improvement. This ensured timely delivery of reports to clients and freed up staff time for more strategic tasks.
• Reduced Compliance Costs by 40%: Automation of compliance reporting reduced compliance costs by an estimated 40%. This was achieved through reduced manual effort, improved accuracy, and reduced risk of non-compliance penalties.
• Estimated Annual Cost Savings of $75,000: The overall cost savings resulting from the automation solution were estimated at $75,000 per year. This includes savings from reduced staff time, improved efficiency, and reduced compliance costs.
• Increase in Client Satisfaction Scores: Client satisfaction scores, measured through regular surveys, increased by 15% following the implementation of the automation solution. Clients reported improved responsiveness, more timely information, and a more personalized experience.
• Scalability: The automation infrastructure allows Summit Capital Partners to scale operations effectively without significantly increasing overhead costs.

Key Takeaways

1. Start with Process Assessment: Before implementing any automation solution, conduct a thorough assessment of your existing workflows to identify the most time-consuming and error-prone processes. Prioritize automation efforts based on the potential impact on efficiency, accuracy, and compliance.
2. Integrate Technology Strategically: Choose technology solutions that seamlessly integrate with your existing systems and provide a unified view of client information. Consider building custom APIs to ensure data accuracy and consistency.
3. Prioritize Data Governance and Security: Implement robust data governance policies and security measures to protect client data and ensure compliance with regulatory requirements. Provide comprehensive training to your staff on data security best practices.
4. Monitor and Optimize Continuously: Establish a system for continuous monitoring and optimization of automated processes. Track key performance indicators (KPIs) to identify areas for improvement and adapt to changing business needs.
5. Focus on Client Experience: Automation should enhance, not detract from, the client experience. Ensure that automated processes are designed to provide clients with timely, accurate, and personalized information. Focus automation on client-facing processes where possible for maximum impact.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors streamline operations, enhance client service, and improve investment outcomes. Visit our tools to see how we can help your practice.