Automated Workflows Saved 1,200 Hours Annually for Richardson & Associates
Executive Summary
Richardson & Associates, a growing RIA firm managing over $350 million in assets, faced significant challenges due to time-consuming manual processes in their back office. By implementing automated workflows through a strategic integration of their existing CRM and portfolio management systems, and leveraging Robotic Process Automation (RPA), Golden Door Asset helped Richardson & Associates save 1,200 hours annually. This resulted in a 15% increase in team capacity and a 20% improvement in client service response times, allowing them to focus on growth and enhance client relationships.
The Challenge
Richardson & Associates prided itself on providing personalized financial planning and investment management services. However, their growth was being hampered by increasingly cumbersome back-office tasks. A significant portion of their team’s time was spent on manual data entry, reconciliation, and report generation.
Specifically, the team spent an average of 15 hours per week manually aggregating data from various sources – including Orion Advisor Services for portfolio information, their custodian, and external research platforms – to generate client reports. This process was not only time-consuming but also prone to errors, requiring additional time for verification and correction. Compliance reporting, including quarterly reports for regulatory filings, consumed approximately 8 hours per month per advisor, diverting their attention from client engagement.
The manual process of reconciling transaction data between their CRM (Wealthbox) and their portfolio management system resulted in discrepancies that took an average of 4 hours per week to resolve. This issue created bottlenecks in billing processes, delaying invoice generation and impacting cash flow. For example, in Q1 of the previous year, billing errors due to data discrepancies resulted in a $7,500 shortfall in anticipated revenue.
Furthermore, the firm recognized that their response time to client inquiries was suffering. Clients sometimes waited up to 48 hours for simple account updates or performance reports, impacting client satisfaction and potentially leading to attrition. With an estimated client attrition rate of 3% annually, representing roughly $10.5 million in lost AUM, Richardson & Associates knew they needed to improve their operational efficiency to maintain client loyalty and continue growing. They estimated the cost of acquiring a new client to replace lost AUM at approximately $5,000, further highlighting the importance of client retention.
The Approach
Golden Door Asset began by conducting a thorough assessment of Richardson & Associates' existing workflows to identify areas ripe for automation. This involved shadowing team members, analyzing their daily tasks, and identifying pain points in their current processes. We used a Pareto analysis to pinpoint the 20% of tasks that consumed 80% of the team's time.
Based on this analysis, we developed a phased implementation plan that prioritized automating the most time-consuming and error-prone tasks. The plan focused on three key areas:
- Data Aggregation: We aimed to eliminate manual data entry by establishing seamless data integration between their key systems.
- Report Generation: We sought to automate the creation of client reports, performance summaries, and compliance documents.
- Compliance Tasks: We focused on automating repetitive compliance tasks, such as KYC (Know Your Customer) updates and suitability assessments.
Our strategic decision-making framework revolved around a cost-benefit analysis. We carefully evaluated the cost of implementing automation solutions against the potential savings in time and resources. We also considered the impact on client satisfaction and the potential for revenue growth. We presented Richardson & Associates with a clear ROI projection before proceeding with the implementation. We chose tools and methodologies that minimized disruption to their existing operations and ensured a smooth transition.
Technical Implementation
The core of the solution involved integrating Richardson & Associates' Wealthbox CRM with their Orion Advisor Services portfolio management system. This integration enabled real-time data synchronization, eliminating the need for manual data entry and reducing the risk of errors. We utilized the Wealthbox API and Orion Connect API to establish a secure and reliable data flow between the two systems.
We implemented Robotic Process Automation (RPA) using UiPath to automate several repetitive tasks, including:
- Client Onboarding: The RPA bot automatically populated client data from the CRM into the Orion system, reducing the time required for onboarding new clients by 60%. The bot also automatically generated welcome letters and account setup documents.
- Report Generation: The RPA bot automated the creation of monthly client reports, including performance summaries, asset allocation breakdowns, and transaction histories. The bot pulled data from Orion, formatted it into standardized reports, and delivered them to clients via a secure portal. This process used to take 2 advisors almost 15 hours a week.
- Compliance Monitoring: The RPA bot automatically scanned client accounts for compliance violations, such as excessive trading activity or unsuitable investments. The bot flagged any potential issues and alerted the compliance team for review.
- Billing Reconciliation: We developed an RPA bot that automatically reconciled billing data between Wealthbox and Orion. This bot identified discrepancies, flagged errors, and generated reconciliation reports. This process previously took 4 hours a week for the team, now down to less than an hour.
We also implemented custom scripting using Python to automate the calculation of key financial metrics, such as Sharpe ratios, Treynor ratios, and Jensen's alpha. These metrics were then integrated into client reports, providing advisors with valuable insights into portfolio performance.
The technical implementation followed best practices for data security and compliance. We implemented encryption protocols to protect sensitive client data and ensured that all automated processes were compliant with SEC regulations. We also provided comprehensive training to the Richardson & Associates team on how to use the new automated workflows.
Results & ROI
The implementation of automated workflows yielded significant results for Richardson & Associates:
- Time Savings: Automated workflows saved the team 1,200 hours per year, equivalent to 0.6 FTE (Full-Time Equivalent). This represented a 15% increase in team capacity.
- Improved Client Service: Client service response times improved by 20%, resulting in increased client satisfaction.
- Reduced Errors: The automation of data entry and reconciliation reduced errors by 40%, minimizing the risk of billing discrepancies and compliance violations.
- Increased Revenue: By freeing up time for client-facing activities, the automation enabled Richardson & Associates to focus on attracting new clients and growing their AUM. They saw a 7% increase in AUM in the year following implementation, representing an additional $24.5 million in assets under management.
- Cost Savings: Reduced manual labor costs by $60,000 annually.
- Reduced Attrition: The increased attention and improved response times resulted in a reduction of client attrition from 3% to 1.5%, saving the firm approximately $5.25 million in AUM and avoiding $2,500 in new client acquisition costs.
- Compliance Efficiency: The automation of compliance monitoring reduced the time spent on compliance-related tasks by 50%, allowing the compliance team to focus on more strategic initiatives.
- Billing Accuracy: The automated billing reconciliation process eliminated the $7,500 revenue shortfall experienced in Q1 of the previous year.
- Increased Operational Efficiency: Report generation time reduced from 15 hours/week to approximately 2 hours/week.
Key Takeaways
- Start with a thorough assessment: Before implementing automation solutions, conduct a comprehensive assessment of your existing workflows to identify areas ripe for automation. Use data to drive decision-making.
- Prioritize high-impact tasks: Focus on automating tasks that consume the most time and are prone to errors. Use a Pareto analysis to prioritize your efforts.
- Integrate your systems: Establish seamless data integration between your key systems to eliminate manual data entry and reduce the risk of errors. APIs can be powerful tools.
- Leverage RPA: Robotic Process Automation (RPA) can be used to automate a wide range of repetitive tasks, freeing up your team to focus on more strategic initiatives.
- Measure your results: Track your results and measure the ROI of your automation efforts. Use data to demonstrate the value of your investments.
About Golden Door Asset
Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors streamline operations and improve client outcomes by automating key tasks and providing actionable insights. Visit our tools to see how we can help your practice.