New client onboarding is more than a formality. In fact, it lays the foundation for your whole relationship with them. This critical time is when you establish expectations regarding the client services experience. It isn’t the time to cut corners. Still, you might wonder how much time you should spend on this process and how you compare to others.
Timelines will vary, but here are some industry standards to consider:
- Simple accounts and goals: 1–2 weeks
- Moderate complexity (i.e., 1–2 investment accounts): 2–3 weeks
- Complex clients (i.e., high net-worth individuals, trusts, or multiple account types): 4–6 weeks
The best client onboarding experiences are efficient for the client, and simple and seamless for your back-office staff. Don’t get so caught up in meeting arbitrary timelines that you dampen client satisfaction or accuracy. We’ve outlined considerations and strategies to help you find efficiencies in onboarding without putting quality or your reputation on the line.
Slow Onboarding? These Four Areas May Be To Blame
The length of your onboarding process can vary depending on several factors:
1. Compliance Requirements
Regulatory requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) laws, can introduce complexities. While necessary for compliance reasons, they can also create extra layers in the onboarding process. A thoughtful approach to compliance documentation can minimize delays, however.
2. Client Cooperation
Onboarding is bidirectional. Sometimes, back-office staff get caught up in other priorities. However, sometimes delays stem from the clients themselves. Whatever the reason for lags, proactive communication can be the antidote.
3. Technology and Workflow
Firms that adopt the range of modern technology, like client portals, e-signature tools, and automated workflows, can see significant reductions in onboarding time. Inefficient processes or failure to get with the program, on the other hand, can cost you operationally.
4. Firm’s Internal Processes
Your team members need to be in lockstep when it comes to roles and responsibilities. The same goes for a standardized workflow in place. The strength of your internal processes and staff’s agility can determine how quickly new clients can be onboarded.
5 Ways To Tighten Your Process
If you’re struggling to deliver on these fronts, it may be time to revisit your onboarding process. Here are some strategies to help focus your attention and efforts:
1. Standardize and Automate Workflows
Use practice management software designed to streamline workflows. Automate routine tasks like gathering standard documents or sending reminders. According to June 2023 research from McKinsey, half of today’s work activities could be automated between 2030 and 2060.
2. Invest in Digital Tools
Using DocuSign for e-signatures, financial planning software, and secure client portals can keep paperwork to a minimum and allow for faster processing. Younger clients might even expect technology to be baked into the onboarding process.
3. Communicate Expectations with Clients
Be clear about what clients need to provide and by when. Clear communication helps you develop a better working relationship.
4. Assign Clear Responsibilities
Define who handles what during onboarding. Assigning specific roles minimizes confusion and duplicating efforts. Plus, it’s good for employee engagement. In 2024, Gallup and Workhuman found that employees who fully understand what’s expected of them at work are 47% less likely to experience frequent burnout and 23% less likely to report struggles with work-life balance a few times a week or more.
5. Monitor and Optimize Progress
Use performance metrics to calculate average onboarding timeline, identify bottlenecks, and refine as necessary. Parse feedback from clients and staff to gain objectivity that you can translate into action.
No matter your specific key performance indicators, your firm will come out ahead if you invest in processes and platforms that support both efficiency and client engagement.
See for yourself how Docupace can transform your client onboarding. Click here to book a discovery call and schedule a free demo!
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