40% Faster Onboarding: Digitizing Client Experience at Summit Capital

40% Faster Onboarding: Digitizing Client Experience at Summit Capital

Executive Summary

Summit Capital, a leading RIA managing over $800 million in assets, struggled with a cumbersome, paper-based client onboarding process that hampered advisor productivity and negatively impacted the initial client experience. By implementing a fully digital onboarding process leveraging Salesforce Financial Services Cloud, DocuSign, and custom API integrations, Summit Capital reduced onboarding time by 40%, significantly improving client satisfaction scores and freeing up valuable advisor time to focus on strategic financial planning. This digitization initiative, spearheaded by David Park, serves as a powerful example of how technology can transform client relationship management and drive operational efficiency in the wealth management industry.

The Challenge

Summit Capital's legacy onboarding process was a significant bottleneck. The firm, managing assets for approximately 350 high-net-worth families, relied heavily on paper forms, manual data entry, and physical signatures. This resulted in several critical challenges:

• Time-Consuming Process: Onboarding a new client took an average of 10 business days. This included sending physical documents via mail, waiting for clients to complete and return them, manually entering data into multiple systems (CRM, portfolio management software, compliance tools), and following up on missing information. For a complex client with multiple accounts and trust structures, the process could stretch to 15 days or more.
• Inefficient Data Entry: Manually transferring client information from paper forms to digital systems was prone to errors, leading to inconsistencies and potential compliance issues. For instance, errors in account registration forms could delay account openings by several days, impacting client investment timelines. We estimated that at least 5% of all new client onboarding paperwork contained errors that needed to be rectified.
• Poor Client Experience: Clients found the paper-based process inconvenient and frustrating. Filling out lengthy forms manually, mailing documents, and dealing with multiple follow-up requests created a negative first impression. A client survey revealed that only 65% of new clients rated the onboarding experience as "very good" or "excellent."
• Compliance Risks: Maintaining physical paper records posed a risk of data loss, unauthorized access, and non-compliance with regulatory requirements like Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Audits were time-consuming and required significant effort to locate and retrieve relevant documents. The estimated cost of responding to a regulatory audit was approximately $5,000 per incident, primarily due to the manual effort required.
• Advisor Time Drain: Advisors were spending a significant portion of their time on administrative tasks related to onboarding, rather than focusing on client relationships, financial planning, and business development. We calculated that each advisor spent approximately 8 hours per month on onboarding-related administrative tasks, equating to a significant opportunity cost of approximately $2,000 per month per advisor (based on an average advisor salary and billable hours).

These challenges were impacting Summit Capital's bottom line, slowing growth, and hindering their ability to provide exceptional client service. The firm recognized the need for a streamlined, digital onboarding solution to address these inefficiencies.

The Approach

David Park, the Chief Operating Officer at Summit Capital, spearheaded the initiative to transform their client onboarding process. The approach involved a phased implementation focusing on technology integration, process redesign, and change management:

1. Needs Assessment & Solution Selection: David began by conducting a thorough needs assessment, gathering input from advisors, compliance officers, and client service staff. This involved mapping the existing onboarding process, identifying pain points, and defining the key requirements for a digital solution. After evaluating several options, Summit Capital selected Salesforce Financial Services Cloud as their core CRM platform, recognizing its ability to centralize client data, automate workflows, and integrate with other key systems.
2. Platform Configuration & Customization: The Salesforce Financial Services Cloud was configured to align with Summit Capital's specific business processes and compliance requirements. This included creating custom objects for tracking client onboarding progress, designing automated workflows for task assignment and approval, and implementing data validation rules to ensure data accuracy.
3. E-Signature Integration with DocuSign: DocuSign was integrated into the Salesforce platform to enable clients to electronically sign onboarding documents securely and conveniently. This eliminated the need for physical signatures and reduced the turnaround time for document completion. DocuSign templates were created for all standard onboarding forms, including account registration forms, investment advisory agreements, and risk disclosure documents.
4. Custom API Development: A custom API was developed to securely transfer client data between Salesforce Financial Services Cloud, Summit Capital's portfolio management software, and their compliance system. This ensured data consistency across all systems and eliminated the need for manual data entry. The API employed encryption protocols and security measures to protect sensitive client information during data transfer.
5. Pilot Program & Refinement: Before a full-scale rollout, the digital onboarding process was tested with a small group of advisors and clients. Feedback was gathered and used to refine the process, address any technical issues, and improve the user experience.
6. Training & Change Management: Comprehensive training was provided to all advisors and client service staff on the new digital onboarding process. This included hands-on training sessions, user guides, and ongoing support to ensure that everyone was comfortable using the new system. The training also emphasized the benefits of the new process, such as increased efficiency, improved data accuracy, and enhanced client experience.

Technical Implementation

The technical implementation involved integrating several key technologies and developing custom solutions to streamline the onboarding process:

• Salesforce Financial Services Cloud: Served as the central hub for managing client data, automating workflows, and tracking onboarding progress. Custom objects and workflows were created to capture and manage all relevant client information, including KYC data, investment objectives, and risk tolerance.
• DocuSign Integration: Integrated seamlessly with Salesforce to enable electronic signatures on onboarding documents. DocuSign Connect was used to automatically update the status of documents in Salesforce as they were signed. Templates were created for various onboarding documents, pre-populating fields with data from Salesforce to minimize client effort. The integration also ensured compliance with e-signature regulations.
• Custom API: A RESTful API was developed using secure coding practices to facilitate data transfer between Salesforce, the portfolio management system (e.g., Black Diamond, Tamarac), and the compliance system (e.g., ComplySci). This API used JSON format for data exchange and implemented OAuth 2.0 for secure authentication and authorization. Data encryption was used to protect sensitive client information during transmission. The API also included error handling mechanisms to ensure data integrity and prevent data loss. This ensured ACAT (Automated Customer Account Transfer) requests were processed quickly and efficiently.
• Security Measures: Robust security measures were implemented to protect sensitive client data, including encryption, access controls, and regular security audits. Data at rest was encrypted using AES-256 encryption, and data in transit was encrypted using TLS 1.2. Role-based access control was implemented to restrict access to sensitive data based on user roles and permissions. Regular security audits were conducted to identify and address any potential vulnerabilities.
• Calculations and Financial Terms: The ROI calculation was based on the time savings achieved through the digital onboarding process. The time saved was multiplied by the average hourly rate of advisors and client service staff to determine the cost savings. This also factored in the cost of paper, printing, mailing, and storage. The annualized cost savings were then compared to the cost of implementing and maintaining the digital onboarding solution to calculate the ROI.

Results & ROI

The implementation of the digital onboarding process yielded significant improvements in efficiency, client satisfaction, and compliance:

• Reduced Onboarding Time by 40%: The average onboarding time was reduced from 10 business days to 6 business days, a 40% improvement. For complex clients, the onboarding time was reduced from 15 days to 9 days. This translated to a significant time savings for both advisors and clients.
• Improved Client Satisfaction Scores: The percentage of new clients rating the onboarding experience as "very good" or "excellent" increased from 65% to 85%. This indicates a significant improvement in client satisfaction.
• Reduced Errors by 60%: The number of errors in onboarding paperwork was reduced by 60% due to automated data validation and pre-population of forms. This improved data accuracy and reduced the need for follow-up corrections.
• Increased Advisor Productivity: Advisors spent approximately 4 hours per month less on onboarding-related administrative tasks, freeing up their time to focus on client relationships and business development. This translates to an estimated increase in revenue generation of $1,000 per month per advisor.
• Reduced Compliance Costs: The digital onboarding process streamlined compliance audits and reduced the risk of non-compliance. The estimated cost of responding to a regulatory audit was reduced by 50% due to the easy accessibility of digital records.
• Increased AUM: By focusing on client relationship and business development, Summit Capital saw a 15% increase in their Assets Under Management in the first year, directly linked to the increased time advisors could spend with clients.
• ROI Calculation: The total cost of implementing the digital onboarding solution (including software licenses, implementation services, and training) was approximately $50,000. The annualized cost savings resulting from the reduced onboarding time, improved data accuracy, and reduced compliance costs were estimated to be $75,000. This translates to a return on investment of 50% in the first year.

Key Takeaways

1. Embrace Digitization: Moving to a digital onboarding process can significantly improve efficiency, enhance client experience, and reduce compliance risks. Don't underestimate the power of automating manual tasks and streamlining workflows.
2. Integrate Your Systems: Connecting your CRM, e-signature, portfolio management, and compliance systems through APIs can eliminate data silos and ensure data consistency across your organization. This also allows for ACAT requests and transfers to flow through the system quicker and easier.
3. Focus on the Client Experience: A positive onboarding experience sets the tone for the entire client relationship. Invest in technology that makes it easy and convenient for clients to provide the information you need.
4. Prioritize Training and Change Management: Ensure that your advisors and staff are properly trained on the new digital onboarding process and understand the benefits it offers. Effective change management is crucial for successful implementation.
5. Measure and Track Your Results: Track key metrics such as onboarding time, client satisfaction scores, and error rates to measure the effectiveness of your digital onboarding process and identify areas for improvement. This allows for continuous process refinement and optimization.

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