Exploring the Complexities of Onboarding a High-Net Worth Customer

 Let’s say, for the purposes of the following thoughts, you are wealthy. You’ve invented something or honed a special skill or ascended to a level of performance that has elevated your net worth to something between “very, very comfortable” and “filthy rich.” Congratulations.

What you need now is someone to help you manage your wealth. For a professional of your considerable means, getting that process initiated shouldn’t take too long, should it? A couple of days maybe?

Sadly, no. The correct answer is 41 days.The 41 Day Challenge

Forty-one days. That, according to a recent report on technology, is the amount of time it takes a wealth management firm to onboard a new, high-net worth client. Why? Because the process complexity associated with non-digital means of wealth management requires time, plain and simple. Shortening the time frame associated with onboarding depends upon a financial services firm’s digital transformation.

This assessment comes to light in the pages of Harnessing the Power of Digital in Wealth Management Client Onboarding, revealing digital imperatives in wealth management client onboarding, including:

  • The emerging role of enhanced communication and personalized guidance in wealth management
  • Modernizing infrastructure and reducing costs while meeting regulatory compliance requirements
  • Key facts and figures, including the 2015 AITE finding that digital wealth advisors are significantly outperforming advisors still relying on traditional, paper-based tools—38% of digitally enabled practices surveyed reported revenue growth of at least 10%.

The Cost and Value of Efficiency

High-net worth investors can afford to demand—and expect—efficiency. Javelin Research found in 2015 that a wealthy customer is 400% less likely to defect to a competitor if service-related problems are handled efficiently. And to say that efficiency is more likely in a digital environment is an almost laughable understatement; 41 days to onboard flatly will not cut it in this environment and with this clientele. But efficiency benefits more than the wealthy investor. CEB Wealth Management deduced that a five percent reduction in the wealth customer defection rate can increase firm profits by up to 95%.

The Easiest Choice of All

In a 2016 AITE survey of 400 financial advisors, less than 40% said they have the technology to open accounts completely electronically.  About a third still require some paper in the process. Given the perspective offered by your newfound wealth (which is about to evaporate), which advisor are you more likely to work with: the one who can bring you onboard electronically or the one who wants you to fill out paper forms and wait 41 days to get started?

Take the Next Step to Digitize Your Onboarding Process.

If your financial services organization is seeking thought leadership and guidance on digital client onboarding, download Harnessing the Power of Digital in Wealth Management Client Onboarding now.


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