40% Faster Client Onboarding with Form CRS Automation

40% Faster Client Onboarding with Form CRS Automation

Executive Summary

Santos Financial, a growing Registered Investment Advisor (RIA) managing over $350 million in assets, struggled with the time-consuming and error-prone process of manually delivering and tracking Form CRS documents during client onboarding. Golden Door Asset helped Santos Financial implement an automated Form CRS solution integrating DocuSign, Redtail CRM, and AdvisorEngine. This resulted in a 40% reduction in client onboarding time, freeing up valuable staff resources and improving the overall client experience.

The Challenge

Santos Financial was experiencing significant bottlenecks in its client onboarding process, primarily due to the manual handling of Form CRS (Client Relationship Summary) documents. Prior to automation, the process involved the following steps for each new client:

• Manual Generation: Staff spent approximately 30 minutes per client manually generating the Form CRS, ensuring it was accurate and up-to-date. This included cross-referencing information from various sources and inputting it into the document.
• Physical or Digital Delivery: Forms were either printed and mailed to clients (adding delays and postage costs) or emailed as PDF attachments. Email delivery was vulnerable to spam filters and often required follow-up to confirm receipt.
• Tracking & Confirmation: Manually tracking which clients had received, reviewed, and signed the Form CRS was a nightmare. Santos Financial used a cumbersome spreadsheet, which was frequently outdated and prone to errors. Staff estimated spending 15 minutes per client on this task alone.
• Paperwork Management: Signed Form CRS documents had to be physically filed and stored, consuming valuable office space and creating potential for loss or misplacement.
• Compliance Risk: The manual process increased the risk of non-compliance. Missing signatures, outdated forms, and incomplete documentation exposed Santos Financial to potential regulatory scrutiny and penalties. One compliance audit flagged several instances of missing acknowledgment receipts, requiring significant staff time to rectify.
• Impact on Growth: With an average of 10 new clients per month, the manual Form CRS process consumed over 7.5 hours of staff time weekly (45 minutes per client x 10 clients = 450 minutes/week). This diverted resources from higher-value activities such as client relationship management, business development, and financial planning. In Q2 alone, lost opportunity costs were estimated at $5,000 based on billable hours reallocated to the CRS process.

The firm recognized that this inefficient process was unsustainable and hindering its ability to scale effectively. They needed a solution that would streamline Form CRS delivery, ensure compliance, and free up staff time to focus on strategic growth initiatives. The firm also faced increasing client complaints on redundant paperwork with the manual process.

The Approach

Golden Door Asset worked closely with Santos Financial to understand their specific needs and challenges. Our approach involved a three-pronged strategy:

1. Process Analysis: We began by conducting a thorough analysis of Santos Financial's existing client onboarding workflow, identifying the pain points and inefficiencies associated with Form CRS delivery and tracking. This included shadowing staff, reviewing existing documentation, and conducting interviews with key stakeholders.
2. Technology Integration: Based on our analysis, we recommended a technology solution that integrated seamlessly with Santos Financial's existing systems. This included DocuSign for e-signature capture, Redtail CRM for client data management, and AdvisorEngine for automated Form CRS updates and version control.
3. Workflow Automation: We designed an automated workflow that triggered Form CRS delivery upon creation of a new client record in Redtail CRM. The system automatically populated the Form CRS with client-specific information from Redtail, delivered it to the client via DocuSign, tracked the client's progress, and automatically stored the signed document back into Redtail CRM.

Our strategic decision framework focused on achieving the following key objectives:

• Efficiency: Reduce the time required to complete the Form CRS process.
• Accuracy: Minimize the risk of errors and ensure compliance with regulatory requirements.
• Scalability: Enable Santos Financial to onboard new clients more efficiently as the firm grows.
• Client Experience: Improve the overall client onboarding experience by making it more convenient and seamless.

Technical Implementation

The automated Form CRS solution was implemented through a combination of software integrations and workflow configurations. Here's a detailed breakdown of the technical implementation:

• DocuSign eSignature Integration: We integrated DocuSign's eSignature API into the client onboarding workflow. When a new client record is created in Redtail CRM, a trigger is initiated that generates the Form CRS. The system then automatically sends the Form CRS to the client via DocuSign for electronic signature.
• Redtail CRM Integration: Redtail CRM serves as the central repository for client data. The integration with DocuSign ensures that all client information is automatically populated into the Form CRS, eliminating the need for manual data entry. Furthermore, once the client signs the Form CRS in DocuSign, the signed document is automatically stored back into the client's record in Redtail CRM.
• AdvisorEngine Form CRS Management: We utilized AdvisorEngine's capabilities to automatically update the Form CRS with the latest regulatory changes. This ensures that Santos Financial is always using the most current version of the document, reducing the risk of non-compliance. AdvisorEngine also provides version control, allowing Santos Financial to track changes to the Form CRS over time.
• Workflow Automation: The entire process is automated using Redtail CRM's workflow automation features. The workflow includes the following steps:
  1. New client record created in Redtail CRM.
  2. Trigger initiates Form CRS generation.
  3. Form CRS is populated with client data from Redtail.
  4. Form CRS is sent to client via DocuSign.
  5. Client signs the Form CRS electronically.
  6. Signed Form CRS is automatically stored back into Redtail CRM.
  7. Notification is sent to Santos Financial staff confirming completion.
• Data Security: All data is encrypted in transit and at rest, ensuring the security and privacy of client information. The solution is compliant with all relevant regulatory requirements, including SEC regulations and data privacy laws.
• Calculation: The 40% reduction in client onboarding time was calculated by comparing the average time it took to onboard a new client before and after the implementation of the automated Form CRS solution. Before automation, the average onboarding time was 2.5 hours. After automation, the average onboarding time was 1.5 hours. The difference of 1 hour represents a 40% reduction (1 hour / 2.5 hours = 0.4 or 40%).

Results & ROI

The implementation of the automated Form CRS solution yielded significant results for Santos Financial:

• 40% Reduction in Client Onboarding Time: As mentioned previously, the automated solution reduced the average client onboarding time from 2.5 hours to 1.5 hours. This equates to a saving of 1 hour per client.
• Improved Operational Efficiency: The automation of the Form CRS process freed up valuable staff time, allowing them to focus on higher-value activities such as client relationship management and financial planning. Staff estimated saving an average of 45 minutes per client, allowing them to manage an extra 5 clients per month.
• Reduced Compliance Risk: The automated solution ensures that all clients receive the most up-to-date version of the Form CRS and that all required signatures are obtained. This significantly reduces the risk of non-compliance and potential regulatory penalties. Instances of missing acknowledgements decreased by 95%.
• Enhanced Client Experience: The automated process makes it easier and more convenient for clients to review and sign the Form CRS. Clients appreciated the ability to complete the process electronically from anywhere, at any time. Client satisfaction scores related to onboarding increased by 15% based on post-onboarding surveys.
• Cost Savings: The elimination of paper-based processes reduced printing and postage costs by an estimated $500 per year. More importantly, the increased efficiency allowed Santos Financial to onboard more clients without hiring additional staff, resulting in significant labor cost savings. It is estimated that the firm saved approximately $6,000 in labor costs within the first six months.
• Scalability: The automated solution enables Santos Financial to scale its business more efficiently. The firm can now onboard new clients more quickly and easily, without being constrained by manual processes. The firm projects an increase in new client acquisitions of 10% in the next year.

Key Takeaways

Here are some key takeaways for other RIAs considering automating their Form CRS process:

1. Integrate your systems: Look for solutions that integrate seamlessly with your existing CRM and e-signature platforms. This will streamline the workflow and minimize the need for manual data entry.
2. Automate the entire process: Don't just automate the delivery of the Form CRS. Automate the entire process, from generation to signature to storage.
3. Focus on compliance: Ensure that your automated solution is compliant with all relevant regulatory requirements. This will reduce the risk of non-compliance and potential penalties.
4. Consider the client experience: Make sure that the automated process is easy and convenient for clients. This will improve client satisfaction and enhance your firm's reputation.
5. Track your results: Measure the impact of your automated solution on key metrics such as onboarding time, staff efficiency, and client satisfaction. This will help you demonstrate the value of the investment and identify areas for further improvement.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors automate compliance tasks and improve client engagement. Visit our tools to see how we can help your practice.