Automated Onboarding: 50% Faster Client Setup

Automated Onboarding: 50% Faster Client Setup

Executive Summary

Vanguard Point Advisors struggled with a manual, inefficient client onboarding process, causing significant delays and potentially impacting initial client impressions. Golden Door Asset implemented a fully automated digital onboarding workflow, leveraging DocuSign and integrating it with Vanguard Point Advisors' existing Wealthbox CRM. This streamlined process reduced client onboarding time by 50%, resulting in improved client satisfaction and freeing up advisors to dedicate more time to strategic relationship building and portfolio management, translating to potentially higher AUM retention and growth.

The Challenge

Vanguard Point Advisors, a growing RIA managing over $350 million in assets for high-net-worth individuals and families, faced increasing challenges with its client onboarding process. The traditional method involved a cumbersome paper-based system requiring clients to physically sign and return multiple documents, including investment advisory agreements, risk tolerance questionnaires, and account transfer forms. This manual process created several bottlenecks:

• Time-Consuming Paperwork: Completing the initial paperwork package often took clients an average of 7-10 days. This delay was frustrating for both clients eager to begin investing and advisors eager to start managing their assets. For example, a client looking to transfer a $500,000 IRA account could lose valuable market upside due to the onboarding delays.
• High Error Rate: Manual data entry from paper forms into the CRM and other systems was prone to errors, requiring additional time for verification and correction. These errors could lead to incorrect account setups, compliance issues, and potential client dissatisfaction. We estimate this error rate cost the firm approximately $5,000 annually in staff hours dedicated to correcting mistakes.
• Inefficient Communication: Tracking the status of each onboarding package required significant administrative overhead. Advisors and support staff spent considerable time chasing clients for missing information or signatures, hindering their ability to focus on core responsibilities like financial planning and client communication. A recent internal audit revealed that advisors spent an average of 5 hours per week on onboarding-related administrative tasks.
• Increased Compliance Risk: The manual handling of sensitive client data raised concerns about data security and compliance with regulations such as SEC Regulation S-P, which requires financial institutions to protect client information. Maintaining physical records also made it more challenging to track and audit the onboarding process for regulatory purposes. A single compliance violation could result in fines ranging from $5,000 to $10,000, not to mention damage to the firm’s reputation.
• Negative Client Experience: The lengthy and cumbersome onboarding process created a less-than-optimal initial client experience, potentially impacting client retention and referrals. Studies show that a negative onboarding experience can increase client churn by as much as 15% in the first year. For Vanguard Point Advisors, this translated to potentially losing approximately $5 million in AUM annually.

The Approach

Golden Door Asset collaborated closely with Vanguard Point Advisors to develop a comprehensive digital onboarding solution. Our approach was based on the following principles:

• Automation First: Prioritize automation wherever possible to minimize manual tasks and reduce the potential for errors.
• Seamless Integration: Integrate the new onboarding system with Vanguard Point Advisors' existing technology infrastructure, particularly Wealthbox CRM, to create a unified and streamlined workflow.
• Client-Centric Design: Design the onboarding process with the client's experience in mind, making it as simple and intuitive as possible.
• Compliance Focus: Ensure that the new system meets all relevant regulatory requirements and protects client data.

Our strategic decision framework involved the following steps:

1. Process Mapping: We began by thoroughly mapping Vanguard Point Advisors' existing onboarding process, identifying bottlenecks and areas for improvement. This involved shadowing advisors and support staff, reviewing existing documentation, and conducting interviews with key stakeholders.
2. Technology Selection: Based on the process map and Vanguard Point Advisors' specific needs, we selected DocuSign for electronic signatures and decided to leverage Wealthbox CRM's API for seamless integration. DocuSign was chosen for its security, reliability, and ease of use.
3. Workflow Design: We designed a customized onboarding workflow within Wealthbox CRM, which automated the following tasks:
   • Automatic generation of onboarding documents based on client data.
   • Secure delivery of documents to clients for electronic signature via DocuSign.
   • Automatic notification of advisors and support staff when documents are signed.
   • Automatic updating of client records in Wealthbox CRM with completed onboarding information.
4. Integration & Testing: We integrated DocuSign with Wealthbox CRM using the CRM's API, ensuring that data flowed seamlessly between the two systems. We conducted rigorous testing to ensure the system was functioning correctly and that all data was being accurately transferred.
5. Training & Implementation: We provided comprehensive training to Vanguard Point Advisors' advisors and support staff on how to use the new system. We also provided ongoing support to ensure a smooth transition to the new process.
6. Compliance Review: We worked with Vanguard Point Advisors' compliance team to ensure that the new onboarding process met all relevant regulatory requirements. This included implementing appropriate security measures to protect client data and ensuring that the system could be easily audited.

Technical Implementation

The core of the solution involved integrating DocuSign with Wealthbox CRM to automate the onboarding workflow. Here's a breakdown of the technical implementation:

• DocuSign API Integration: We utilized the DocuSign API to programmatically send onboarding documents to clients for electronic signature directly from within Wealthbox CRM. This eliminated the need for advisors to manually upload and send documents via DocuSign.

• Wealthbox CRM Custom Fields: We created custom fields within Wealthbox CRM to track the status of each onboarding document (e.g., "Sent," "Signed," "Completed"). These fields provided advisors with a real-time view of the onboarding progress for each client.

• Workflow Automation Rules: We configured Wealthbox CRM's workflow automation rules to automatically update the status of onboarding documents based on events triggered by DocuSign (e.g., when a document is signed, the status is automatically updated to "Signed").

• Data Mapping: We carefully mapped the data fields between Wealthbox CRM and DocuSign to ensure that client information was accurately transferred between the two systems. For example, client name, address, and contact information were automatically populated into the onboarding documents.

• Security Considerations: We implemented strict security measures to protect client data, including encryption of data in transit and at rest, and multi-factor authentication for access to the system. We also ensured that the system complied with all relevant data privacy regulations.

• Calculation of Onboarding Time Reduction: We utilized data from Wealthbox CRM before and after the implementation to calculate the reduction in onboarding time. This involved tracking the time it took to complete each onboarding step, from initial contact to account setup. The reduction was calculated as follows:

  (Average Onboarding Time Before - Average Onboarding Time After) / Average Onboarding Time Before * 100%

  For example, if the average onboarding time before was 10 days and the average onboarding time after was 5 days, the reduction in onboarding time would be 50%.

Results & ROI

The automated onboarding solution delivered significant results for Vanguard Point Advisors:

• 50% Reduction in Onboarding Time: The average onboarding time was reduced from 7-10 days to just 3-5 days. This faster onboarding process enabled clients to begin investing sooner and allowed advisors to start managing their assets more quickly.
• 80% Reduction in Errors: The automated data entry and verification process significantly reduced the number of errors in onboarding documents.
• Significant Time Savings for Advisors: Advisors saved an average of 3 hours per week on onboarding-related administrative tasks. This freed up their time to focus on more strategic activities, such as client relationship building and financial planning. This translates to roughly 150 hours annually per advisor, allowing them to manage more clients or dedicate more time to higher-value activities.
• Improved Client Satisfaction: Clients reported a significantly improved onboarding experience. A post-implementation survey revealed a 25% increase in client satisfaction with the onboarding process.
• Increased Compliance: The automated system improved compliance with regulatory requirements and reduced the risk of data breaches.
• Estimated ROI: Considering the time saved by advisors, the reduction in errors, and the improvement in client satisfaction, we estimate that the automated onboarding solution delivered an annual ROI of $25,000 for Vanguard Point Advisors. This includes factors like increased AUM retention due to improved client experience, and advisor time freed up to attract new clients and grow AUM. This calculation is based on industry average AUM growth rates and advisor billing rates.

Key Takeaways

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

1. Embrace Automation: Automate as much of the onboarding process as possible to reduce manual tasks, minimize errors, and improve efficiency.
2. Integrate Systems: Integrate your CRM and other key systems to create a seamless and unified onboarding workflow.
3. Focus on the Client Experience: Design the onboarding process with the client's experience in mind, making it as simple and intuitive as possible.
4. Prioritize Data Security: Implement robust security measures to protect client data and comply with regulatory requirements.
5. Measure and Track Results: Track key metrics, such as onboarding time and client satisfaction, to measure the effectiveness of your onboarding process and identify areas for improvement.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors automate workflows, personalize client experiences, and make smarter investment decisions. Visit our tools to see how we can help your practice.