Diana Rossi: 40% Faster Client Onboarding with Automation

Diana Rossi: 40% Faster Client Onboarding with Automation

Executive Summary

Rossi Family Office Services, experiencing rapid growth, struggled to maintain efficient client onboarding processes, leading to advisor burnout and potential delays in investment execution. Golden Door Asset implemented a CRM-integrated workflow automation system, streamlining document collection, data entry, and initial investment setup. The result was a 40% reduction in client onboarding time, freeing up advisors to dedicate more time to client relationship management and strategic portfolio planning, while also improving client satisfaction.

The Challenge

Rossi Family Office Services, managing over $350 million in assets for high-net-worth individuals and families, had experienced a period of rapid growth, adding an average of 8 new clients per month over the last year. While this growth was positive, it placed a significant strain on their existing client onboarding processes. The firm primarily served clients with complex financial needs, often requiring the review of multiple accounts across various custodians, including Fidelity, Schwab, and Pershing.

The existing onboarding process was heavily manual. It involved advisors manually collecting client information through paper forms and email exchanges, then manually entering this data into their CRM system (Salesforce) and custodian platforms. This process was time-consuming, prone to errors, and frustrating for both advisors and clients.

Specifically, the challenge manifested in the following ways:

• Extended Onboarding Times: The average time to fully onboard a new client – from initial consultation to fully funded accounts – was 5 business days. In some cases, particularly for clients with complex financial structures, onboarding could take up to 7-10 business days. This delay impacted the ability to quickly deploy capital and generate returns for new clients.
• Advisor Time Drain: Each advisor spent an estimated 25 hours per week on administrative tasks related to onboarding, including data entry, document chasing, and compliance checks. This left less time for client relationship management, portfolio analysis, and strategic planning, which are crucial for retaining clients and driving AUM growth.
• Increased Risk of Errors: Manual data entry increased the risk of errors, which could lead to compliance issues and potential financial losses for clients. The firm estimated that it spent approximately $5,000 per month on correcting errors related to inaccurate data entry during onboarding.
• Client Frustration: The lengthy and cumbersome onboarding process often led to client frustration, potentially impacting client satisfaction and retention. Clients were often required to provide the same information multiple times, leading to a negative first impression.
• Scalability Concerns: The manual onboarding process was not scalable. As the firm continued to grow, the administrative burden on advisors would only increase, potentially hindering future growth and profitability. The firm projected that without a solution, they would need to hire an additional administrative assistant within the next 6 months to manage the workload, at a cost of approximately $60,000 per year.

These challenges highlighted the need for a more efficient and automated client onboarding process to support the firm's continued growth and maintain a high level of client service.

The Approach

Golden Door Asset worked closely with Rossi Family Office Services to develop and implement a tailored workflow automation system designed to address their specific onboarding challenges. Our approach was based on the following key principles:

• CRM Integration: We recognized that the CRM system (Salesforce Financial Services Cloud) was the central hub for client information. Therefore, we focused on building a solution that was seamlessly integrated with Salesforce, leveraging its capabilities to automate various aspects of the onboarding process.
• Data-Driven Automation: We identified key data points that were required for onboarding and designed automated workflows to collect and populate this data. This included using intelligent forms with pre-populated fields, automated data validation, and integration with custodian platforms.
• Compliance and Security: We ensured that all automated workflows were compliant with relevant regulations, including KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements. We also implemented robust security measures to protect client data.
• Client-Centric Design: We designed the onboarding process with the client experience in mind, ensuring that it was simple, intuitive, and transparent. This included providing clients with clear instructions and automated progress updates.

The specific steps we took included:

1. Process Mapping: We conducted a detailed process mapping exercise to identify all the steps involved in the existing client onboarding process, from initial consultation to account funding. This allowed us to pinpoint bottlenecks and areas for improvement.
2. Requirements Gathering: We worked closely with Rossi Family Office Services to gather their specific requirements for the new system. This included defining the data points that needed to be collected, the workflows that needed to be automated, and the integrations that needed to be established.
3. Solution Design: Based on the process map and requirements, we designed a custom workflow automation system using Salesforce Financial Services Cloud and Zapier. This system included:
   • Digital Onboarding Forms: Online forms that clients could easily complete and submit securely. These forms were designed to be user-friendly and pre-populated with information from the CRM system whenever possible.
   • Automated Data Validation: Automated checks to ensure that the data entered by clients was accurate and complete. This reduced the risk of errors and the need for manual review.
   • CRM Integration: Seamless integration between the online forms and Salesforce Financial Services Cloud, automatically updating client records with the information provided by clients.
   • Custodian Integration: Integration with custodian platforms (Fidelity, Schwab, and Pershing) to automatically initiate account opening and funding requests.
   • Automated Task Management: Automated task assignments to advisors to ensure that all necessary steps were completed in a timely manner.
   • Compliance Checks: Automated compliance checks to ensure that all regulatory requirements were met.
4. Implementation and Testing: We implemented the new system and thoroughly tested it to ensure that it was working as expected. This included conducting user acceptance testing with advisors and clients.
5. Training and Support: We provided comprehensive training to Rossi Family Office Services advisors on how to use the new system. We also provided ongoing support to address any questions or issues that arose.

This structured approach allowed us to create a tailored solution that addressed Rossi Family Office Services' specific challenges and enabled them to achieve significant improvements in their client onboarding process. The strategic decision to leverage existing technology like Salesforce, combined with automation tools, minimized disruption and maximized the return on investment.

Technical Implementation

The workflow automation system was built using a combination of Salesforce Financial Services Cloud and Zapier, a popular automation platform that facilitates integrations between different applications.

• Salesforce Financial Services Cloud: Served as the central CRM system, housing all client data and providing a platform for managing client relationships. We utilized custom objects and workflows within Salesforce to track the progress of each client through the onboarding process. Specifically, custom "Onboarding Status" fields were created to provide advisors with real-time visibility into the stage of each new client's onboarding.
• Zapier: Used to automate the flow of data between Salesforce and other applications, including the digital onboarding forms and custodian platforms. We created "Zaps" (automated workflows) to:
  • Automatically create new client records in Salesforce when a client submitted an onboarding form.
  • Populate client records with data from the onboarding forms, eliminating the need for manual data entry.
  • Trigger automated task assignments to advisors based on the stage of the onboarding process.
  • Send automated email notifications to clients to keep them informed of the progress of their onboarding.
  • Initiate account opening and funding requests with custodian platforms (Fidelity, Schwab, and Pershing) via their APIs. This involved mapping data fields between Salesforce and the custodian platforms to ensure accurate and consistent data transfer.
• Digital Onboarding Forms: Built using a secure online form builder that integrated seamlessly with Salesforce. The forms were designed to be user-friendly and mobile-responsive, allowing clients to complete them from any device. We implemented data validation rules to ensure that all required fields were completed and that the data entered was accurate.
• Custodian Platform Integration: The integration with custodian platforms involved using their APIs to automate the account opening and funding process. We developed custom integrations for each platform, mapping data fields between Salesforce and the custodian platforms to ensure accurate and consistent data transfer. This allowed advisors to initiate account opening requests directly from Salesforce, eliminating the need to manually enter data into the custodian platforms.

Calculations & Methodologies

The 40% reduction in onboarding time was calculated by comparing the average onboarding time before and after the implementation of the workflow automation system. The pre-implementation average was 5 business days (40 hours), and the post-implementation average was 3 business days (24 hours). The calculation is as follows:

((Pre-Implementation Time - Post-Implementation Time) / Pre-Implementation Time) * 100

((40 hours - 24 hours) / 40 hours) * 100 = 40%

The 15 hours per week saved per advisor was calculated based on the estimated 25 hours per week that each advisor spent on onboarding-related tasks before the implementation, and the estimated 10 hours per week after the implementation. The calculation is as follows:

Pre-Implementation Time - Post-Implementation Time = Time Saved

25 hours - 10 hours = 15 hours

This represented a significant efficiency gain, allowing advisors to dedicate more time to client relationship management, portfolio analysis, and strategic planning.

Results & ROI

The implementation of the workflow automation system yielded significant results for Rossi Family Office Services, including:

• 40% Reduction in Client Onboarding Time: The average time to onboard a new client decreased from 5 business days to 3 business days. This allowed the firm to deploy capital more quickly and generate returns for new clients sooner.
• 15 Hours Per Week Saved Per Advisor: Advisors spent 15 fewer hours per week on administrative tasks related to onboarding. This freed up time for client relationship management, portfolio analysis, and strategic planning, leading to improved client service and increased AUM growth.
• Improved Data Accuracy: Automated data validation and CRM integration reduced the risk of errors, leading to fewer compliance issues and financial losses for clients. The estimated cost of correcting errors related to inaccurate data entry decreased from $5,000 per month to less than $1,000 per month, a decrease of 80%.
• Increased Client Satisfaction: The streamlined onboarding process improved the client experience, leading to increased client satisfaction. Client satisfaction scores, measured through post-onboarding surveys, increased by 15% after the implementation.
• Enhanced Scalability: The automated onboarding process enabled the firm to scale its operations without adding additional administrative staff. The projected need to hire an additional administrative assistant was eliminated, saving the firm approximately $60,000 per year.
• Increased AUM: With advisors spending more time on client relationship management and strategic planning, the firm experienced a 10% increase in AUM over the following 6 months, directly attributable to the improved efficiency and increased client retention.

The ROI of the workflow automation system was significant. The estimated cost of implementing the system was $20,000. The annual savings from reduced error correction costs and avoided administrative hiring totaled approximately $108,000. In addition to the cost savings, the increased AUM generated an additional $35,000 in revenue (assuming a 1% management fee on the $3.5 million increase in AUM). The total ROI was estimated to be 515% in the first year.

Key Takeaways

Here are some key takeaways for other advisors looking to improve their client onboarding processes:

1. Embrace Automation: Identify repetitive tasks that can be automated, such as data entry, document collection, and task assignments. Automation can significantly reduce the administrative burden on advisors and free up time for more value-added activities.
2. Integrate Your Systems: Ensure that your CRM system is seamlessly integrated with other applications, such as custodian platforms and digital onboarding tools. This will streamline data flow and eliminate the need for manual data entry.
3. Focus on the Client Experience: Design your onboarding process with the client in mind, ensuring that it is simple, intuitive, and transparent. Provide clients with clear instructions and automated progress updates to keep them informed and engaged.
4. Measure Your Results: Track key metrics, such as onboarding time, advisor time savings, and client satisfaction scores, to measure the impact of your onboarding improvements. This will allow you to identify areas for further optimization and demonstrate the value of your efforts.
5. Start Small, Scale Later: Implementing automation doesn't have to be an overwhelming project. Start by automating a few key tasks and then gradually expand the automation as you gain experience and confidence.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors automate compliance, personalize client communications, and uncover new growth opportunities. Visit our tools to see how we can help your practice.