The initial interaction between a financial advisor and client is crucial not only for building the trust and confidence needed to sustain that relationship, but also for the long-term health of the wealth management firm.
According to a new report from Aite Group, “In an increasingly competitive environment, wealth management firms realize they do not have a second chance to make a first impression.”
With that in mind, many wealth management firms have automated their client onboarding processes, providing an easy, fast, visible and interactive process that many clients are demanding today, according to the report, “Client Onboarding in Wealth Management: Market Overview.”
This digitized process, in turn, helps to support a firm’s compliance regime, keep costs under control, and optimize operations—all allowing the firm be more competitive in an increasingly digital and complicated market.
Almost 40% of the 400 financial advisors surveyed for the report said they can open accounts completely electronically, including e-signature. About one-third still require some paper in the process, indicating there is still room for more automation in the onboarding process.
About 60% of advisors reported they can open a new client account in one hour or less; a similar percentage reported that advisors, not support staff or the clients themselves, opened accounts.