Unlocking Faster Onboarding: How Rule 1033 Can Benefit RIAs

Onboarding new clients remains one of the biggest pain points for wealth advisors. The process often involves repetitive communication and time-consuming fact-finding. The key to a faster, smoother onboarding process lies in data aggregation. While this solution has gained momentum, it remains underutilized by many Registered Investment Advisors (RIAs) and other wealth management firms.

Understanding Rule 1033 and the Push Toward Open Finance

Rule 1033, established under the Dodd-Frank Act, grants consumers access to their personal financial data and allows them to share this data across financial institutions. With the latest ruling at the end of October, certain financial institutions are now required to provide seamless data access. This means that data points like personally identifiable information, account balances, and cost basis are one step closer to being shared seamlessly, paving the way for a digital identity that clients can carry from institution to institution.

What Rule 1033 Means for Advisors: A New Workflow

With Rule 1033, onboarding becomes more efficient. Here’s a look at the potential streamlined process:

1. Seamless Data Access
   In the first meeting, advisors request client authorization to access financial data electronically. Instead of collecting physical documents, advisors use data aggregators to pull information directly from financial institutions.

2. Automated Financial Picture
   Account balances and transaction history flow securely into the advisor’s platform, saving time and reducing manual input errors. Advisors instantly gain a comprehensive financial picture.

3. Immediate Analysis
   With up-to-date client data in hand, advisors can quickly move to strategy development. This frees up time to focus on personalized, high-value advice that can’t be generated by a computer.

4. Clean Client Paperwork
   Data is transferred onto new account forms, significantly reducing the need for client involvement.

A Catalyst for Growth

These changes offer wealth advisors a powerful opportunity to improve efficiency and client satisfaction. By simplifying data collection and minimizing onboarding delays, advisors can shift their focus to strategic growth and building stronger client relationships. Embracing this approach positions advisors to scale their practices more effectively.