Vanguard Point Saves $10K Annually with Paperless Onboarding

Vanguard Point Saves $10K Annually with Paperless Onboarding

Executive Summary

Vanguard Point Advisors faced significant operational inefficiencies and costs stemming from a paper-intensive client onboarding process. Recognizing the need for modernization, Vanguard Point partnered with Golden Door Asset to implement a fully digitized onboarding system. This strategic shift eliminated paper forms, streamlined workflows, reduced processing time by 50%, and ultimately saved the firm $10,000 annually in printing, storage, and administrative expenses.

The Challenge

Prior to implementing a digital onboarding solution, Vanguard Point Advisors struggled with a paper-based system that was both costly and time-consuming. The process began with mailing a 25-page packet to each new client, requiring printing, postage, and manual collation – each packet costing an average of $7.50 in hard costs alone. Considering an average of 40 new clients per quarter, this translated to approximately $1,200 in direct printing and mailing expenses each quarter – totaling nearly $5,000 annually.

Beyond the direct costs, the reliance on paper created several downstream inefficiencies. Client forms were often incomplete or incorrectly filled out, requiring follow-up phone calls and emails, adding an average of 2 hours of administrative time per client. This manual review process contributed to a 7-day average turnaround time for onboarding a new client, impacting client satisfaction and delaying the firm's ability to deploy assets. Furthermore, physical storage of completed forms required dedicating valuable office space, adding to overhead expenses. The cost of off-site storage was averaging $500 per year, representing an additional strain on the firm's resources. The firm estimated that the opportunity cost of delayed asset deployment was, on average, $5,000 annually, assuming a modest 1% return on assets under management during the onboarding delay. Finally, the lack of a centralized, digital document management system increased the risk of lost or misplaced documents, creating potential compliance concerns and further increasing administrative burden.

The Approach

Vanguard Point Advisors recognized that a comprehensive digital transformation of their onboarding process was essential. They adopted a phased approach, starting with a thorough assessment of their existing workflows and identifying key pain points. This involved analyzing the types of forms used, the number of manual steps involved, and the time required to complete each step. They benchmarked their processes against industry best practices, consulting with other RIAs who had successfully implemented digital onboarding solutions.

Following the assessment, Vanguard Point developed a detailed implementation plan, focusing on these key areas:

• Electronic Forms: Converting all paper-based forms into interactive electronic forms that could be completed and submitted online. This included using conditional logic to dynamically display relevant sections based on client responses, reducing errors and improving the client experience.
• Electronic Signatures: Integrating an electronic signature solution to enable clients to sign documents digitally, eliminating the need for printing, signing, and scanning. Vanguard Point selected Adobe Sign for its robust security features and compliance with industry regulations.
• Secure Document Management: Implementing a secure, cloud-based document management system to store and manage all client onboarding documents. Box was chosen for its scalability, security features, and integration capabilities with other business applications.
• CRM Integration: Integrating the electronic forms and document management system with the firm's existing CRM (Customer Relationship Management) system to streamline data management and improve workflow efficiency. This integration allowed for automated data entry, eliminating the need for manual data transfer and reducing the risk of errors.
• Client Training and Support: Providing clients with clear instructions and ongoing support to ensure they could easily navigate the new digital onboarding process. This included creating online tutorials and offering phone support to address any questions or concerns.

A critical aspect of Vanguard Point’s approach was the development of a detailed change management plan to ensure a smooth transition for both employees and clients. This included training employees on the new systems and processes, communicating the benefits of the digital onboarding solution to clients, and providing ongoing support to address any challenges that arose.

Technical Implementation

The technical implementation involved a seamless integration of Adobe Sign and Box with Vanguard Point's existing Salesforce CRM.

• Adobe Sign Implementation: All existing paper forms were converted into fillable PDF documents. Using Adobe Sign's APIs, these forms were then embedded within Vanguard Point's onboarding portal. Clients were directed to the portal via a secure link sent through Salesforce. The link automatically pre-populated the forms with client data already stored in Salesforce, minimizing manual data entry. Adobe Sign's authentication process ensured the client's identity before allowing access to the forms. Once completed, the forms were electronically signed using Adobe Sign's certificate-based digital signature technology, providing legal enforceability and ensuring compliance with regulatory requirements.

• Box Integration: Upon completion and signing of the forms in Adobe Sign, the documents were automatically routed to a secure folder within Box. Each client was assigned a unique folder within Box, with granular access controls to ensure only authorized personnel could access sensitive information. Box's version control features tracked all changes to the documents, providing an audit trail for compliance purposes.

• Salesforce Integration: Data extracted from the completed forms was automatically updated in Salesforce, creating a centralized repository of client information. This integration eliminated the need for manual data entry and reduced the risk of errors. Furthermore, workflow rules were configured in Salesforce to automate tasks such as assigning follow-up activities and generating reports. This reduced the administrative burden and improved overall efficiency. The integration leveraged Salesforce's Apex programming language to create custom integrations between Adobe Sign, Box, and Salesforce. Specifically, webhooks were used to trigger events in Salesforce upon completion of the forms and document uploads to Box.

The entire implementation was overseen by a team of IT professionals with expertise in financial services compliance and data security. Rigorous testing was conducted throughout the process to ensure the security and reliability of the solution. The project timeline was carefully managed, with regular status updates provided to stakeholders. The total cost of the technical implementation, including software licenses, consulting fees, and internal labor, was approximately $5,000.

Results & ROI

The implementation of the digital onboarding solution yielded significant results for Vanguard Point Advisors:

• Cost Savings: Annual savings of $10,000 were achieved through the elimination of paper, printing, storage, and administrative costs. The $5,000 spent on printing/mailing, plus $500 on storage, plus $4,500 in administrative savings (calculated from a reduction in average onboarding hours and hourly labor costs) equaled $10,000 in savings annually.

• Reduced Processing Time: The average onboarding time was reduced by 50%, from 7 days to 3.5 days. This faster turnaround time allowed Vanguard Point to deploy assets more quickly, generating revenue sooner.

• Improved Data Accuracy: The elimination of manual data entry resulted in a significant reduction in data errors, improving data quality and reducing the risk of compliance issues. Data entry errors decreased by an estimated 75%.

• Enhanced Client Experience: Clients appreciated the convenience of completing and submitting forms online, leading to increased client satisfaction. Client satisfaction scores, measured through post-onboarding surveys, increased by 15%.

• Increased Efficiency: Automated workflows and streamlined processes freed up administrative staff to focus on more value-added activities, such as client service and business development. This resulted in a 10% increase in overall staff productivity.

• Environmental Impact: Reduced paper consumption by 80%, contributing to Vanguard Point's sustainability efforts and aligning with their commitment to environmental responsibility.

• Return on Investment (ROI): The ROI of the digital onboarding solution was calculated as follows: (Savings - Investment) / Investment = ($10,000 - $5,000) / $5,000 = 100%. This translates to a payback period of approximately six months.

Key Takeaways

1. Digital transformation is essential for RIAs: Embracing digital technologies can significantly improve efficiency, reduce costs, and enhance the client experience.
2. Focus on integration: Seamless integration between different systems is crucial for streamlining workflows and maximizing the benefits of digital solutions.
3. Invest in training and support: Providing employees and clients with adequate training and support is essential for ensuring a successful implementation and driving adoption.
4. Prioritize security and compliance: Implement robust security measures and ensure compliance with all relevant regulations to protect sensitive client data.
5. Track and measure results: Regularly monitor key metrics to track the impact of digital solutions and identify areas for improvement.

About Golden Door Asset

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