Like blocking and tackling, digital onboarding may not be sexy, but you can’t succeed if you don’t do it well.
Onboarding is the first impression a new client has of your firm, and you obviously want it to be favorable. A traditionally tedious process can be turned into your first quick win.
State-of-the-art digital onboarding will be highly customizable for clients, featuring a questionnaire with tailored, personalized questions that can accommodate either a high-touch, advisor-led approach or a less complex, client-led experience.
“The ultimate goal is ease of use for clients,” says Jennifer Veenhuizen, manager of client operations for RegentAtlantic in Morristown, New Jersey. “That’s what we always keep in mind.”
Indeed, the best digital onboarding solutions will enhance client engagement, enrich the client experience and deliver optimal client service.
Account opening workflows and funding for new clients with digital onboarding should be fast and easy and include digital signature capabilities with two-factor authentication. At the same time, RIAs should be able to have instant connectivity with their custodians.
Leading digital onboarding software will be able to gather all necessary data, have intuitive layout flows, appealing graphics, comprehensive integration and core functionality that includes features such as financial planning tools and portfolio tracking.
Critically, RIAs should see increased operational efficiency as a result of digital onboarding. A process that took hours to complete manually should now take only minutes. Advisory firms will also save time and money as back-office busywork is minimized and key administrative support functions become automated and integrated.
The ability to efficiently and profitably serve smaller clients has been one of the biggest operational benefits Forum Financial Management, a $6 billion RIA based in suburban Chicago, has seen from digital onboarding, according to co-managing partner Jonathan Rogers.
“What used to take us 15 hours for smaller clients now takes one to two hours,” Rogers explains. “We’ve been able to broaden our market and work with younger clients who may not have a lot of assets yet but are high earners. We’re also getting more referrals as a result.”
Advisors who are launching a new RIA and deciding what kind of digital onboarding vendor to work with should carefully vet the software, Rogers says.
“Count the number of times you have to enter the client’s name,” he says. “See how long the whole process takes and how efficient it is. Set up your own account. Are you happy with how it went? And make sure the software is mobile-friendly. That will tell you how many years ahead of the game – or behind it – the vendor is.”
RegentAtlantic’s Veenhuizen cautions advisors to carefully scrutinize the contract for hidden fees and ask vendors what stage of development the software is in. “If there are still bugs you’ll be better off waiting for the next update,” she says.
RIAs in the market for digital onboarding products should be sure it offers a complete solution to the firms’ needs, is as straightforward as possible and comes with two-factor authentication, says consultant Joel Bruckenstein, president of T3 (Technology Tools for Today) and producer of the firm’s widely attended annual tech showcase conference.
Multiple ‘envelopes’ and any manual steps in the onboarding process should be avoided, Bruckenstein says. “Everything should be seamless and authorized,” he says. “You never want any paper.”