Reducing Errors by 60%: Standardized Digital Onboarding Forms

Reducing Errors by 60%: Standardized Digital Onboarding Forms

Executive Summary

Golden Door Asset helped a large Registered Investment Advisory (RIA) firm overcome significant challenges in their client onboarding process, which relied heavily on paper-based forms. These forms resulted in inconsistent data entry, frequent errors, and delays in account activation. By digitizing the firm's onboarding forms and implementing standardized data validation rules, Golden Door Asset reduced errors by 60%, improving client satisfaction and streamlining internal processes.

The Challenge

ABC Wealth Management, a regional RIA managing over $5 billion in assets, faced mounting inefficiencies in its client onboarding process. Their traditional, paper-based system was plagued with issues, leading to increased operational costs and negatively impacting the client experience.

Specific problems included:

• High Error Rate: A significant percentage of incoming client onboarding forms contained errors or omissions. An internal audit revealed that, on average, 35% of all paper-based forms required correction or clarification, leading to delays in account opening and asset allocation. These errors ranged from simple typos in contact information to significant discrepancies in risk tolerance assessments and beneficiary designations.
• Data Inconsistency: With multiple advisors across several branch locations, data input was inconsistent. Different advisors interpreted form fields differently, leading to varying data quality across client profiles. For example, some advisors consistently reported liquid net worth including retirement accounts, while others excluded them, creating an inaccurate picture of clients' overall financial health.
• Manual Data Entry Overload: The firm's back-office staff spent an estimated 120 hours per week manually entering data from paper forms into their CRM and portfolio management systems. This was a costly and time-consuming process, diverting resources from more strategic activities like client relationship management and investment analysis. The estimated cost of this manual data entry, considering salaries and benefits, exceeded $150,000 annually.
• Compliance Risks: Incomplete or inaccurate client information created potential compliance risks. For example, missing or incorrect KYC (Know Your Customer) information could lead to regulatory scrutiny and potential fines. A recent compliance review flagged several instances where client risk profiles were not adequately documented due to incomplete onboarding forms.
• Client Frustration: The cumbersome paper-based process often frustrated new clients. They were required to fill out lengthy forms manually, often making mistakes or omitting information. This created a negative first impression and led to client complaints about the onboarding process. The firm estimated that approximately 5% of new clients expressed dissatisfaction with the initial onboarding experience.
• Inefficient Processing Time: The average time from initial client contact to account activation was approximately 7 business days. This delay was primarily attributed to the time required to collect, review, and correct paper-based onboarding forms. Competitors with more streamlined digital processes were able to onboard clients in as little as 3 business days, putting ABC Wealth Management at a competitive disadvantage.

These challenges collectively hampered ABC Wealth Management's ability to efficiently scale their business and provide a seamless client experience.

The Approach

Golden Door Asset adopted a multi-faceted approach to address ABC Wealth Management's onboarding challenges. Our strategy focused on digitizing the forms, standardizing data input, and automating the data transfer process.

1. Needs Assessment & Requirements Gathering: We began by conducting a thorough assessment of ABC Wealth Management's existing onboarding process. This involved interviewing advisors, back-office staff, and compliance officers to understand their pain points and identify key requirements. We mapped the existing workflow, analyzed the types of errors commonly encountered, and identified areas for improvement.

2. Form Digitization & Standardization: We worked closely with ABC Wealth Management to digitize all of their onboarding forms. This involved converting paper-based forms into interactive digital versions using Adobe Sign. We meticulously reviewed each form, streamlining the layout and simplifying the language to make them more user-friendly.

3. Data Validation Rules Implementation: We implemented standardized data validation rules to ensure data accuracy and completeness. This included:

   • Required Fields: Marking essential fields as mandatory to prevent incomplete submissions.
   • Data Type Validation: Enforcing specific data types for each field (e.g., numbers for phone numbers, email format for email addresses).
   • Range Validation: Setting minimum and maximum values for numerical fields (e.g., income, net worth).
   • Lookup Tables: Utilizing dropdown menus and pre-populated lists to ensure consistency in data input (e.g., state abbreviations, investment objectives).
   • Conditional Logic: Implementing conditional logic to dynamically display or hide fields based on client responses. For example, if a client indicated that they were self-employed, additional fields related to their business finances would appear.

4. CRM Integration via API: We integrated the digital onboarding forms with ABC Wealth Management's CRM system using API connections. This enabled automated data transfer from the completed forms directly into the CRM, eliminating the need for manual data entry. The API was built to handle the specific data structures of their existing CRM and portfolio management system (e.g., linking client accounts to specific investment holdings).

5. User Training & Support: We provided comprehensive training to ABC Wealth Management's advisors and back-office staff on how to use the new digital onboarding system. This included hands-on training sessions, user manuals, and ongoing technical support. We also created "cheat sheets" and FAQs to address common questions and ensure smooth adoption.

6. Phased Rollout & Monitoring: We implemented a phased rollout of the new system, starting with a pilot group of advisors and clients. This allowed us to identify and address any issues before deploying the system firm-wide. We closely monitored the system's performance and gathered feedback from users to make ongoing improvements.

The decision framework revolved around minimizing disruption to existing workflows while maximizing the benefits of digitization and automation. The approach was designed to be scalable and adaptable to future changes in regulations and client needs. The ultimate goal was to create a seamless and efficient onboarding experience that would enhance client satisfaction and improve operational efficiency.

Technical Implementation

The technical implementation involved a careful selection of tools and technologies to ensure seamless integration and optimal performance.

• Adobe Sign: We selected Adobe Sign as the platform for digitizing and managing the onboarding forms. Adobe Sign offered robust features for creating interactive forms, collecting digital signatures, and enforcing data validation rules. Its security features, including encryption and audit trails, were also critical for ensuring compliance with regulatory requirements.

• API Integration: We developed a custom API to integrate Adobe Sign with ABC Wealth Management's CRM system. The API was built using RESTful principles and utilized JSON for data exchange. The API handled the following tasks:

  • Data Extraction: Extracting data from completed Adobe Sign forms.
  • Data Transformation: Transforming the data into a format compatible with the CRM system.
  • Data Loading: Loading the transformed data into the CRM system.
  • Error Handling: Handling errors during data transfer and logging them for troubleshooting.

The API was designed to be robust and scalable, capable of handling a high volume of transactions. It also included security measures to protect sensitive client data.

• Data Validation Logic: The data validation logic was implemented using a combination of Adobe Sign's built-in validation features and custom JavaScript code. The JavaScript code was used to implement more complex validation rules, such as conditional logic and range validation.

• Calculations: Net worth calculations were automated within the form. The calculations involved totaling various asset classes (e.g., cash, equities, real estate) and subtracting liabilities (e.g., mortgages, loans). These calculations were designed to provide an accurate and up-to-date view of the client's financial position. We specifically used the following formula for liquid net worth: Liquid Net Worth = (Cash + Marketable Securities + Retirement Accounts) - Short-Term Liabilities.

• Security Considerations: Security was a top priority throughout the implementation process. We implemented the following security measures:

  • Encryption: All data was encrypted both in transit and at rest.
  • Access Controls: Access to the system was restricted to authorized personnel only.
  • Audit Trails: A comprehensive audit trail was maintained to track all activity within the system.
  • Regular Security Audits: Regular security audits were conducted to identify and address any vulnerabilities.

The entire system was designed to comply with industry best practices for data security and privacy.

Results & ROI

The implementation of standardized digital onboarding forms yielded significant improvements in efficiency, accuracy, and client satisfaction.

• Error Reduction: The error rate on onboarding forms decreased by 60%. Prior to the implementation, 35% of forms required correction; post-implementation, this number dropped to 14%. This reduction in errors saved significant time and resources on error correction and follow-up.
• Reduced Processing Time: The average time from initial client contact to account activation decreased from 7 business days to 4 business days, a reduction of 43%. This faster onboarding process improved the client experience and allowed ABC Wealth Management to onboard new clients more quickly.
• Improved Client Satisfaction: Client satisfaction scores related to the onboarding process increased by 10%. A post-implementation survey revealed that clients were more satisfied with the ease of use and efficiency of the digital onboarding system.
• Increased Advisor Productivity: Advisors spent less time on administrative tasks related to onboarding, freeing up more time for client relationship management and business development. An internal survey found that advisors spent, on average, 2 hours less per week on onboarding-related activities.
• Cost Savings: The reduction in manual data entry and error correction resulted in significant cost savings. ABC Wealth Management estimated that they saved approximately $75,000 per year in labor costs alone.
• Enhanced Compliance: The standardized data validation rules and automated data transfer improved data quality and reduced compliance risks. The firm reported fewer compliance issues related to incomplete or inaccurate client information.
• Increased Throughput: The firm was able to onboard 15% more new clients within the same timeframe, thanks to the improved efficiency of the digital onboarding process.

Overall, the implementation of standardized digital onboarding forms delivered a significant return on investment for ABC Wealth Management, improving efficiency, reducing costs, enhancing compliance, and boosting client satisfaction.

Key Takeaways

1. Digitization is Essential: Moving away from paper-based processes is crucial for improving efficiency and accuracy in client onboarding.
2. Standardization is Key: Implementing standardized data validation rules ensures data consistency and reduces errors.
3. Integration is Powerful: Integrating digital forms with CRM systems automates data transfer and eliminates manual data entry.
4. Training and Support are Critical: Providing comprehensive training and ongoing support is essential for successful adoption of new technology.
5. Phased Rollout Minimizes Disruption: Implementing a phased rollout allows for identification and resolution of issues before firm-wide deployment.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors streamline operations and improve client outcomes. Visit our tools to see how we can help your practice.