For registered investment advisors (RIAs), client onboarding is a crucial part of the job. With client assets at stake, firms must get the process right to protect their revenue. Unless an RIA has a solid client onboarding process in place, they run the risk of losing clients and revenue.

But precisely what is client onboarding? How does this process impact an RIA’s revenue? Read on to find out.

What Is Client Onboarding?

Client onboarding is orienting new clients to a financial advisor’s services. The goal is to provide clients with the information they need to make informed investment decisions and feel comfortable working with their advisors.

How Onboarding Impacts Revenue

A well-executed onboarding process can lead to increased client retention and higher client satisfaction rates. Conversely, not knowing how to properly onboard new clients can have the opposite effect. In addition to losing clients, an RIA may miss out on potential revenue if clients are not properly onboarded.

For instance, if an RIA does not take the time to review a client’s investment goals and objectives, the client may be less likely to stick with the advisor over the long term. This is because the client may not feel confident that their investments are aligned with their goals. As a result, they may seek out another advisor who is better able to meet their needs.

In addition, if a financial advisor does not provide clients with the necessary educational resources, the client may be less likely to understand the advisor’s investment recommendations. This can lead to client frustration and ultimately result in the client seeking guidance from another source.

Finally, if an RIA does not adequately review a client’s risk tolerance, the client may be more likely to experience investment losses. This can lead to client dissatisfaction and cause the client to withdraw their assets from the advisor.

To avoid these outcomes, RIAs must focus on providing a positive client experience during the onboarding phase.

Get It Right When Onboarding Clients

Client onboarding is a critical part of an RIA’s business. RIAs can protect their revenue and client relationships by orienting new clients to the firm’s services and providing them with the information they need to make informed investment decisions.

Would you like a top-grade onboarding solution guaranteed to give the best results? Then, schedule a demo today and see what OnBord offers.