Client onboarding may sound like a simple administrative step, collecting some information, running a few checks, and sending over an engagement letter. But for law firms, onboarding is far from a formality. It’s a critical process that touches on risk management, regulatory compliance, data integrity, and ultimately, the client experience.

Why Onboarding Matters More Than You Think

Getting onboarding right isn’t just about ticking boxes. It’s about:

• Upholding professional obligations under regulations like AMLDs and GDPR
• Protecting the firm from reputational or legal risks
• Delivering a positive client experience, especially in those early interactions
• Setting the tone for how organized, responsive, and client-focused the firm appears

A smooth onboarding builds confidence. A messy one raises red flags.

Research shows law firms take an average of 24 days to onboard a new client, costing mid-sized firms around £36,000 in billable revenue per matter, and potentially £1.8 million per month across 50 matters. (See here)

It’s clear: inefficient onboarding isn’t just frustrating, it’s actively harming client trust and firm profitability.

The Challenges Law Firms Face

Despite its importance, onboarding is often where law firms feel the most friction. During our time in a legal tech accelerator, Trakti had the unique opportunity to work directly with law firms, not only hearing about these challenges but analyzing them in depth with legal teams. Here’s what we found:

1. Manual Data Entry and Duplication

Information is collected via PDFs, emails, or even via phone then re-entered across multiple systems. This wastes time and increases the risk of human error.

2. Fragmented Systems

Most firms rely on a patchwork of tools: Outlook for email, Teams, Excel for tracking, Word for documentation, and other isolated databases. These silos delay workflows and cause confusion over which version of a document is current.

3. Delays in AML/KYC Compliance Checks

Client verification processes are manually conducted, leading to significant delays.

4. Risk of Compliance Breaches

Inconsistent processes and documentation gaps create serious vulnerabilities. Failing to verify a client properly can lead to regulatory fines or professional misconduct issues.

5. Poor Client Experience

Clients are frustrated by repeated requests for the same documents, unclear communication, or long waiting periods. It creates a poor impression at the most sensitive moment in the relationship.

A survey of businesses revealed that 25% of companies have lost a deal because a law firm’s onboarding was too slow. 56% of respondents indicated their onboarding experience with legal firms had failed to meet expectations, and 35% were frustrated by repetitive document requests. Importantly, more than 56% said they’d be more likely to choose a firm using a digital onboarding process.

The Ripple Effects of Poor Onboarding

When onboarding is inefficient or incomplete, the consequences don’t stop at compliance:

• Missed conflicts of interest
• Data security risks from inconsistent storage of sensitive documents
• Lower profitability due to administrative overhead and rework

Conclusion

Law firm onboarding is a critical business function that deserves more attention and smarter tools. At Trakti, our experience inside a legal innovation accelerator gave us firsthand access to the needs and frustrations law firms face in this area. We’ve seen how outdated processes not only delay service delivery but also increase risk exposure.

Modernizing onboarding is no longer optional. It’s the first step to becoming a more agile, compliant, and client-focused law firm.

In the next article, we’ll explore how Trakti can eliminate these pain points and turn onboarding into a competitive advantage.

👉 Book a demo and find out how Trakti can transform your onboarding process