3 Proven Advantages of Paperless Onboarding in Wealth


May 9, 2016


This is the second part of a three part series on “How to create a paperless onboarding platform in wealth management.” Take a look at part one here and part three here.


Blog Series #2 - Pic 1


The Solution


The first post in this series focused on the problems paper-based onboarding causes your firm. It’s frustrating clients, frustrating advisors and costing you money.


Now we come to the solution.


The process of implementing an onboarding automation platform can feel exciting. Expectations are high and your hope is that it will revolutionize your onboarding process. Ideally, it will create better work flow, improve the advisor experience and ultimately grow your business. But, often the hype that comes with adopting a new technology doesn’t match up to the actual usefulness of the product.


How can you know that the onboarding automation platform you choose will provide real benefit for your company? Before we get into the “how-to” of implementation, which will be found in part three of this series, here are three real benefits to expect from a paperless onboarding platform.


  1. Convenience


It’s the reason Blockbuster went out of business. They may have had more selection than Netflix, but people would rather stay in their pajamas than actually see the movie they want to see.


An onboarding automation platform means convenience for all parties involved. It’s convenient for the client who can provide your firm with their information as they’re on their couch watching…well, Netflix. But it’s also convenient for your advisors and administrators who can track their client’s progress and easily compile their information as it comes in. On top of this, most common client mistakes, such as miswriting information or not filling in certain required fields, won’t be a problem. Just like a typical web form, clients will not be able to continue unless they have filled in all required fields.


  1. Savings


While the initial costs of implementing a digital onboarding system may seem large, paperless onboarding will save you significant money in the long run. It does so in three key ways.


  1. Administration hours.


Data entry already costs you money and time. Yet, when there are clerical errors or clients miss certain fields than that cost may double or even triple. After implementing an onboarding automation platform, one HollisWealth advisor found that his administrative workload was reduced by 50%, freeing him up to focus on revenue-generating activities. Administration hours are one of the costliest aspects of paper-based onboarding and cutting that work in half would mean massive savings for your firm.


  1. Organizational Efficiency


Think about how much paper actually goes into paper-based onboarding. There’s not only the application form, but there are also client profile forms, forms for transferring equity, forms to open a new account at your custodian, etc.. Paperless onboarding won’t just save you money on your paper supplies budget. Substantial savings will come in the form of increased organizational efficiency. Rather than passing around a physical piece of paper, client forms will be digitally received, categorized, and shared. Implementing an onboarding automation platform will be an organizational dream, reducing the risk of client information being lost or misplaced and increasing office productivity.


  1. Opportunity costs


Though advisors aren’t doing the majority of administration work (unless it’s a smaller firm), they still have paperwork to do during the client onboarding process. Whenever that paperwork is elongated due to a data or administrative error, your advisors needs to work outside revenue generating activities in order to correct any oversights. With an onboarding automation platform, client information is consolidated and compiled in a central dashboard. This gives advisors greater capacity to spend one on one time with clients and to develop client portfolios.


  1. Measurable Process Improvement


Convenience and cost savings don’t necessarily mean an onboarding automation platform is the best fit for your firm. If everything cost effective and convenient is always the best option, then whenever you were hungry you would get hot dogs at the closest 7/11. Your onboarding automation platform needs to go beyond the convenient and cost effective and provide measurable improvement to your onboarding process.


Here’s three measurable benchmarks of real improvement:


Client defection decreases: Latching on to the ease and simplicity that comes with filling out your online forms, less clients will drop off during the onboarding phase.


Advisor administration decreases: Your advisors are spending less time sorting through piles of paperwork and more time building wealth for their clients.


Lower turnaround and higher engagement: As advisors and client satisfaction goes up, you’ll see lower turnaround and higher online engagement. One of the perks of most digital onboarding platforms is that client engagement is something you’ll be able to track and measure.


Now that you’ve heard the reasons for choosing a paperless onboarding system, you’re ready to see what it practically looks like to integrate an onboarding automation software into your firm. Start taking action by downloading this free eBook “How to create a paperless onboarding platform in wealth management,” to get a greater overview of the onboarding automation process.


Download eBook Here