Streamlined Onboarding: 40% Faster Client Integration

Streamlined Onboarding: 40% Faster Client Integration

Executive Summary

Reeves Institutional Advisors faced a significant bottleneck in their client onboarding process, leading to delays and potential client attrition in the crucial initial stages. Golden Door Asset collaborated with Reeves to streamline the process through digitization, automation, and a personalized client portal. The result was a 40% reduction in onboarding time, significantly improving client satisfaction and reducing the risk of early departures.

The Challenge

Reeves Institutional Advisors, a boutique RIA managing over $300 million in assets, experienced growing pains as their client base expanded. Their traditional, paper-based onboarding process proved increasingly cumbersome and inefficient. The process involved multiple rounds of paperwork, manual data entry into their CRM (Client Relationship Management) system, and numerous phone calls to address client queries. This lengthy process created several critical pain points:

• Time-Consuming Paperwork: New clients were required to complete an average of 25 pages of forms, including account applications, risk tolerance questionnaires, and regulatory disclosures. This process alone could take clients several hours and often resulted in errors or incomplete information. Each error took approximately 15 minutes of staff time to correct and reconcile with the original document.
• Manual Data Entry Errors: Staff spent an average of 8 hours per new client manually entering data from paper forms into the CRM. The risk of data entry errors was high, leading to inaccuracies in client profiles, investment recommendations, and reporting. The error rate was around 5%, which translated to an average of 1.25 data inaccuracies per client. These errors could lead to compliance issues, inaccurate financial projections, and ultimately, client dissatisfaction.
• Delayed Account Funding: The lengthy onboarding process delayed the funding of new client accounts, causing frustration and potential opportunity costs. On average, it took 10 business days for a new client account to be fully funded and ready for investment. For a client transferring $500,000 in assets, even a 10-day delay could result in a loss of potential gains, especially in a volatile market.
• Increased Client Attrition Risk: The cumbersome onboarding process created a negative first impression and increased the risk of client attrition. A survey conducted by Reeves revealed that 15% of new clients expressed dissatisfaction with the onboarding process, and a further 5% considered switching to another advisor before their accounts were even fully established. Losing just one $500,000 client would cost Reeves significant revenue and damage their reputation.

The overall cost of this inefficient process was substantial, impacting both Reeves' bottom line and their client relationships. Jonathan Reeves, the firm's founder, recognized the urgent need for a more streamlined and client-centric onboarding experience.

The Approach

Golden Door Asset worked closely with Reeves Institutional Advisors to develop a comprehensive solution to address their onboarding challenges. Our approach involved a three-pronged strategy:

1. Digitization of Paperwork: We transitioned Reeves from paper-based forms to digital forms using DocuSign. This allowed clients to complete and sign all necessary documents electronically, eliminating the need for printing, scanning, and mailing. We customized the forms to reflect Reeves' brand and ensure compliance with regulatory requirements.
2. Automation of Data Entry: We integrated DocuSign with Reeves' CRM system using API connections. This enabled the automatic extraction of data from completed forms and its population into the CRM, eliminating the need for manual data entry. We implemented data validation rules to ensure data accuracy and consistency.
3. Personalized Client Portal: We developed a custom-branded client portal that served as a central hub for all onboarding-related activities. The portal provided clients with a secure and convenient way to:
   • Access and complete onboarding documents.
   • Track the progress of their onboarding process.
   • Communicate with their advisor and support team.
   • Upload necessary supporting documents.
   • View welcome materials and introductory information.

Our strategic thinking was grounded in the belief that technology should enhance the client experience, not replace the personal touch. We focused on automating tasks that were repetitive and time-consuming, allowing Reeves' advisors to spend more time building relationships and providing personalized financial advice. We also emphasized the importance of clear and transparent communication throughout the onboarding process, ensuring that clients felt informed and supported every step of the way.

Technical Implementation

The technical implementation involved a combination of off-the-shelf tools and custom development:

• DocuSign Integration: We leveraged DocuSign's eSignature API to create digital versions of Reeves' onboarding documents. These documents were designed to be user-friendly and intuitive, with clear instructions and helpful tooltips. The integration with DocuSign allowed for secure and legally binding electronic signatures. We implemented a multi-factor authentication (MFA) process as well to ensure secure access and sign-off.
• CRM Integration (via API): A custom API (Application Programming Interface) was developed to connect DocuSign with Reeves' existing CRM system. This API automatically extracted data from completed DocuSign forms and populated the corresponding fields in the CRM. We implemented data validation rules to ensure data accuracy and consistency. The API was built using Python and hosted on AWS Lambda. This process cut down on 5% CRM field error rate to 0.1%.
• Client Portal Development: The client portal was developed using a modern web framework (React) and hosted on a secure cloud platform (Azure). The portal was designed to be responsive and accessible on all devices. We implemented role-based access control to ensure that clients could only access information relevant to their accounts. We also integrated the portal with Reeves' CRM system, allowing advisors to track client progress and communicate with clients directly through the portal. Calculations for onboarding completion progress used a weighted algorithm based on the complexity and importance of each onboarding step.
• Security Measures: Security was a top priority throughout the implementation process. We implemented industry-standard security measures to protect client data, including encryption, access controls, and regular security audits. We also ensured compliance with all relevant data privacy regulations, such as GDPR and CCPA.

Results & ROI

The streamlined onboarding process delivered significant results for Reeves Institutional Advisors:

• 40% Reduction in Onboarding Time: The average onboarding time for new clients decreased from 10 business days to just 6 business days. This improvement was primarily due to the elimination of paper-based processes and the automation of data entry.
• 90% Reduction in Data Entry Errors: The automatic data entry process significantly reduced the number of data entry errors, improving data accuracy and reducing the risk of compliance issues. The error rate dropped from 5% to less than 0.5%.
• Improved Client Satisfaction: A post-implementation survey revealed a significant increase in client satisfaction with the onboarding process. 95% of new clients rated the onboarding experience as "excellent" or "very good," compared to only 85% before the implementation.
• Reduced Client Attrition: The streamlined onboarding process helped to reduce client attrition during the initial stages. The number of clients who considered switching to another advisor before their accounts were fully established decreased from 5% to less than 1%.
• Increased Advisor Productivity: By automating repetitive tasks, the streamlined onboarding process freed up advisors to spend more time building relationships and providing personalized financial advice. Advisors reported an average increase of 10% in their productivity.
• Cost Savings: The reduction in paper, printing, and mailing costs, combined with the increased advisor productivity, resulted in significant cost savings for Reeves. We estimate that the streamlined onboarding process saved Reeves approximately $15,000 per year in operational expenses.

The ROI of the streamlined onboarding process was substantial. By reducing onboarding time, improving client satisfaction, and reducing attrition, Reeves was able to attract and retain more clients, increase revenue, and improve profitability. Jonathan Reeves noted that the new onboarding system also allowed him to reallocate one full-time employee from onboarding support to client service and business development.

Key Takeaways

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

1. Embrace Digital Transformation: Ditching paper and embracing digital tools is essential for improving efficiency and client satisfaction.
2. Automate Data Entry: Automating data entry not only saves time but also reduces the risk of errors and improves data accuracy.
3. Prioritize Client Experience: Make the onboarding process as easy and convenient as possible for clients. A personalized client portal can go a long way.
4. Integrate Your Systems: Integrating your CRM system with other tools, such as DocuSign, can streamline workflows and improve data accuracy.
5. Measure and Track Your Results: Track key metrics, such as onboarding time, client satisfaction, and attrition rates, 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 tasks, improve client communication, and gain deeper insights into their business. Visit our tools to see how we can help your practice.