New Horizons Achieves 40% Faster Client Onboarding with Automation

New Horizons Achieves 40% Faster Client Onboarding with Automation

Executive Summary

New Horizons Financial, a growing RIA firm, faced significant challenges with a manual and time-consuming client onboarding process that hindered efficiency and client satisfaction. By implementing a CRM-integrated workflow automation system spearheaded by Rebecca Hayes, New Horizons streamlined data collection, document generation, and account setup. This strategic shift resulted in a 40% reduction in client onboarding time and a 15% increase in client satisfaction scores, demonstrating the power of automation in enhancing practice management and client experience.

The Challenge

New Horizons Financial, managing over $250 million in assets for high-net-worth individuals and families, experienced rapid growth, leading to increased strain on their existing client onboarding process. The entirely manual system involved significant paperwork, repetitive data entry, and multiple rounds of email correspondence, creating bottlenecks that impacted both staff productivity and client satisfaction.

Specifically, onboarding a new client, typically involving investment accounts, retirement planning, and estate planning considerations, required an average of 2 weeks (10 business days) to complete. This included:

• Manual Data Entry: Advisor assistants spent approximately 8 hours per client manually entering client information into various systems, including the CRM, portfolio management software, and custodial platforms. This repetitive task was prone to errors and diverted valuable time from higher-value activities.
• Paper-Based Forms: Clients were required to complete and return numerous paper-based forms, including account opening applications, risk tolerance questionnaires, and beneficiary designations. Tracking the status of these forms and ensuring their accurate completion was a logistical nightmare. Missing signatures or incomplete information often resulted in delays and required multiple follow-up calls.
• Redundant Documentation: Similar information was often requested on multiple forms, creating frustration for clients and inefficiency for the firm. For example, contact information and social security numbers were often required on separate documents for different account types.
• Lack of Transparency: Clients had limited visibility into the onboarding process, leading to anxiety and uncertainty. They often had to call the firm to inquire about the status of their accounts, further burdening staff and increasing response times.
• Compliance Concerns: Maintaining a paper-based system made it challenging to ensure compliance with regulatory requirements, such as KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations. Auditing the onboarding process was time-consuming and resource-intensive.
• Opportunity Cost: The extended onboarding time meant that new clients' assets were not immediately put to work. A delay of 10 days for a client investing $500,000, with an expected annual return of 8%, translated to approximately $1,095 in potential lost earnings during the onboarding period alone.

These challenges resulted in increased operational costs, reduced staff morale, and a potential negative impact on client acquisition and retention. New Horizons realized the need for a more efficient and client-centric onboarding process to support its continued growth and maintain its competitive edge.

The Approach

Rebecca Hayes, Director of Operations at New Horizons Financial, recognized the urgent need for improvement and spearheaded the implementation of a comprehensive workflow automation system. Her strategic approach focused on several key principles:

1. CRM Integration: Recognizing the CRM as the central hub for client information, Rebecca prioritized a solution that seamlessly integrated with their existing Wealthbox CRM system. This was crucial for avoiding data silos and ensuring a unified view of client interactions.

2. Digital Transformation: The goal was to eliminate paper-based processes and embrace digital solutions for data collection, document generation, and signature capture. This required careful selection of tools and technologies that were both user-friendly and secure.

3. Client-Centric Design: Rebecca emphasized the importance of creating an onboarding experience that was intuitive and convenient for clients. This involved simplifying forms, providing clear instructions, and offering proactive communication throughout the process.

4. Workflow Automation: The core of the solution was the automation of repetitive tasks, such as data entry, email communication, and account setup. This required mapping out the entire onboarding process and identifying areas where automation could be implemented.

5. Incremental Implementation: Rather than attempting a complete overhaul, Rebecca adopted an incremental approach, starting with the most pressing pain points and gradually expanding the automation to other areas of the onboarding process. This allowed for continuous improvement and minimized disruption to existing operations.

The decision framework involved a thorough assessment of various technology solutions, considering factors such as cost, functionality, security, and ease of integration. After careful evaluation, Rebecca selected Zapier as the primary automation engine, along with DocuSign for digital signatures. She chose Zapier for its flexibility and ability to connect Wealthbox with other critical business applications.

The strategic thinking behind this approach was to create a scalable and sustainable onboarding process that would not only improve efficiency but also enhance the overall client experience, ultimately contributing to the firm's long-term growth and profitability.

Technical Implementation

The technical implementation involved a phased approach, focusing on key areas of the onboarding process:

1. Data Collection & CRM Integration:

   • New Horizons utilized Wealthbox’s built-in custom fields to capture all relevant client information.
   • Zapier was configured to automatically transfer data from online forms (created using a secure form builder) directly into Wealthbox. This eliminated manual data entry and ensured data accuracy.
   • Automated tasks were set up to trigger when a new contact was added to Wealthbox with the label "Prospect".

2. Document Generation & Digital Signatures:

   • Custom document templates were created within Wealthbox for common forms, such as account opening applications, advisory agreements, and risk tolerance questionnaires.
   • Zapier was used to automatically populate these templates with client data from Wealthbox, creating personalized documents for each new client.
   • DocuSign was integrated to enable clients to electronically sign documents securely and efficiently. Zapier automatically sent the completed documents back to Wealthbox for storage and archival. For example, the advisory agreement, averaging 15 pages, now takes just minutes to send and sign.

3. Automated Email Sequences:

   • A series of automated email sequences were designed to guide clients through the onboarding process, providing clear instructions and proactive communication.
   • These sequences were triggered based on specific events in Wealthbox, such as the completion of a form or the signing of a document.
   • Emails included personalized greetings, progress updates, and links to relevant resources. For instance, a series of 5 onboarding emails was created to nurture clients in the first 30 days.

4. Account Setup & Funding:

   • Zapier was integrated with the firm's custodial platforms (e.g., Schwab, Fidelity) to automate the account setup process.
   • Client data from Wealthbox was automatically transferred to the custodial platforms, streamlining the creation of new accounts.
   • Instructions for funding the accounts were automatically sent to clients, along with links to wire transfer instructions or check deposit information.

5. Workflow Customization:

   • The entire onboarding workflow was customized within Wealthbox to reflect the firm's specific processes and requirements.
   • Automated tasks were created to ensure that all necessary steps were completed in a timely manner, such as verifying client information, conducting compliance checks, and setting up investment strategies.
   • Custom reports were generated to track the progress of each client through the onboarding process, allowing staff to identify and address any potential bottlenecks.

The technical implementation also included rigorous testing and quality assurance to ensure the accuracy and reliability of the automated workflows. Security protocols were implemented to protect client data and comply with regulatory requirements. For example, two-factor authentication was enforced for all users accessing the CRM and automation platforms. The cost of the implementation was approximately $5,000 in initial setup costs (including consulting fees and software licenses) plus ongoing monthly subscription fees for Wealthbox, Zapier, and DocuSign, totaling approximately $800 per month.

Results & ROI

The implementation of the automated onboarding system yielded significant positive results for New Horizons Financial:

• Reduced Onboarding Time: The average client onboarding time decreased from 10 business days to 6 business days, representing a 40% reduction.
• Increased Client Satisfaction: Client satisfaction scores, measured through post-onboarding surveys, increased by 15%. Clients reported a more streamlined, efficient, and user-friendly experience.
• Improved Staff Productivity: Advisor assistants reduced the time spent on manual data entry and paperwork by approximately 50%, freeing them up to focus on higher-value tasks, such as client relationship management and financial planning support. Time spent on data entry decreased from 8 hours to approximately 4 hours per client.
• Increased Revenue Potential: By accelerating the onboarding process, New Horizons was able to put new clients' assets to work sooner, generating additional revenue. For example, with an average new client investment of $500,000 and an expected annual return of 8%, the 4-day reduction in onboarding time translated to approximately $438 in additional earnings per client during that period.
• Reduced Operational Costs: The elimination of paper-based processes and reduced manual labor resulted in significant cost savings. Printing and mailing costs were reduced by approximately 75%.
• Enhanced Compliance: The automated system improved compliance with regulatory requirements by ensuring that all necessary documentation was completed and stored securely. Auditing the onboarding process became much more efficient, reducing the time spent on compliance checks by approximately 60%.
• Higher Client Acquisition: The improved onboarding experience contributed to a 10% increase in client referrals and a higher conversion rate of prospects into clients.

Overall, the ROI of the automation project was significant, with the benefits far outweighing the costs. The improved efficiency, enhanced client experience, and increased revenue potential positioned New Horizons Financial for continued growth and success.

Key Takeaways

Here are key actionable insights for other Registered Investment Advisors (RIAs) and wealth managers:

1. Integrate Your CRM: Your CRM is the central nervous system of your practice. Prioritize solutions that seamlessly integrate with it to avoid data silos and ensure a unified view of client interactions.
2. Embrace Digital Signatures: Eliminate the friction of physical signatures. DocuSign or similar tools dramatically speed up document completion and improve client satisfaction.
3. Automate, Automate, Automate: Identify repetitive tasks in your onboarding process and automate them using tools like Zapier. Even small efficiencies can add up to significant time savings and improved productivity.
4. Prioritize the Client Experience: Design your onboarding process with the client in mind. Make it easy for them to provide information, sign documents, and understand the process. Proactive communication is key.
5. Measure Your Results: Track key metrics such as onboarding time, client satisfaction scores, and staff productivity to measure the effectiveness of your automation efforts and identify areas for further improvement.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors identify high-potential clients and personalize financial planning with greater precision. Visit our tools to see how we can help your practice.