At first glance, opening new accounts manually might seem like the most straightforward and cost-effective way to bring on new clients. But dig a little deeper, and the inefficiencies start to stack up — from time lost on repetitive tasks to increased risk of errors and compliance issues. The truth is, manual account opening comes with hidden costs that can drain your team’s capacity, impact client satisfaction and slow down growth. In this post, we’re breaking down five ways manual processes may be costing your firm more than you realize — and how to fix it.
1. Time Lost to Redundancy
Manual account opening processes, by their nature, are time-consuming. Tasks like gathering client data and completing forms manually require hours of tedious labor. When you scale this, you’re looking at significant time lost to functions that could otherwise be automated.
The Solution: By introducing a paperless onboarding system, you can automate repetitive tasks like data entry and document uploads. This cuts down on time spent in the onboarding process and supports consistency in the client experience.
2. Higher Risk of Errors
As the saying goes, “to err is human.” Even the most competent back-office professional succumbs to oversight when managing a significant amount of paperwork. Misspelled client information, missing compliance requirements or misplaced documents can slow down the process and even expose practices to regulatory scrutiny.
The Solution: Automated account opening systems reduce human error by validating real-time data and ensuring all required fields are completed before submission. Digital checks and balances offer peace of mind in terms of compliance and minimize mistakes.
3. Lower Client Satisfaction Scores
The manual process is often marked by delays, frequent back-and-forth communications and lost trust if someone drops the ball. Clients today expect integrated digital experiences. Lengthy or antiquated processes can leave them frustrated and jeopardize loyalty. Don’t leave anything to chance when you can rely on proven systems. According to Julia Littlechild’s 2022 research, only about 26% of clients are engaged.
The Solution: A seamless digital onboarding experience is the best way to keep clients engaged and happy. Integrating conveniences like e-signatures, automated notifications and real-time updates can improve the process for your team and the client.
4. Compliance and Regulatory Risks
Manually tracking compliance requirements can expose you to mistakes or oversights. One innocent mistake can create headaches like steep fines, audits or even reputational damage.
The Solution: Invest in technology built with financial compliance in mind. Many automated platforms have compliance checks baked in, to ensure all documents meet regulatory standards.
5. Hidden Operational Costs
While manual account opening may seem budget-friendly, operational costs over time are not insignificant. Printing costs and storing physical documents can impose burdens on administrative staff and drain your firm’s resources.
The Solution: Shifting to a paperless onboarding process can reduce operational costs, simplify workflows and allow your team to focus on what matters the most. Plus, it’s better for the planet.
Efficiency and accuracy are the currency in today’s world. While manual account opening might feel like the comfortable standard, the hidden costs may be sabotaging your practice. An automated account-opening solution gives you more hours back in your day, ensures compliance, supports client engagement and lowers operational costs. Supporting this claim, Cerulli Associates found that firms that extensively incorporate technology report higher productivity and efficiency. To gauge the return on investment, Michael Kitces suggests tracking time for up to 6 weeks to gather meaningful insights about how teams spend their time.
Efficiency and accuracy are the currency in today’s world. While manual account opening might feel like the comfortable standard, the hidden costs may be sabotaging your practice. An automated solution like PreciseFP gives you back hours, increases accuracy, and creates a better client experience.
Start your free trial of PreciseFP and experience the difference for yourself. Our platform can shave hours off the account opening process by automatically moving hundreds of gathered data fields exactly where they need to go — into your CRM, custodian forms, or financial planning software. You’ll reduce human error, streamline compliance and speed up onboarding. Plus, digital signature is included with every subscription at no extra cost.
Make the switch from manual to modern — and unlock time, accuracy and peace of mind.
