Is Your Firm A Digital Dinosaur?

Oct 3rd '18

Many Financial Advisers & Wealth Managers Are Kidding Themselves That Their Client’s Don’t Want Digital Communications Or Tools To Manage Their Affairs.


A Report From One Of The Big Four Bears Out The Facts That Many Are Dinosaurs In A Digital Age.


The report is entitled ‘Sink or swim: why wealth management can’t afford to miss the digital wave’, and is published by PwC.


The findings are based on a survey of wealth relationship managers, CEOs, FinTech innovators and HNWIs. The figures revealed that over half of HNWIs surveyed by PwC believe it is important for their financial advisor, or wealth manager, to have a strong digital offering.


Financial advisors are far behind their clients in using online tools and communication media. The report shows that just a quarter of wealth managers offer digital channels beyond email, yet 59% of respondents consider their company is above average with regards to its digital offering. If you then contrast this with 85% of High Net Worth Individuals (HNWIs) who use at least three digital services in their day-to-day lives, there is quite a mismatch from where they are, where they think they are and what level their clients are at already are. The report also highlights the fact that more than two thirds (69%) of HNWIs use online/mobile banking and 47% use online means to review their portfolio, or investment markets while 39% use online portfolio management.


Only 37% of clients are happy with their financial adviser and only 39% of HNWIs are likely to recommend their current wealth manager. Over 27% of clients currently use an automated advice platform when investing.


Further revelations (are they really?) is that 63% are unhappy their adviser takes into consideration their wider goals when providing advice. 67% are unhappy because they consider their adviser doesn’t use the information provided to tailor their advice and a massive 53% are concerned at their data being kept safe.


The report’s main conclusion is that financial advisers & wealth management are the least tech-literate sectors of the financial services industry and is falling well behind other industries.


Perhaps the ostrich syndrome is more evident in the fact that many wealth relationship managers do not consider robo-advisors a threat to their business and repeatedly insist their clients do not want digital functionality. This, say the report, directly contradicts the importance their clients place on it.


Isn’t it time to get onboard and build a complaint suite of interactive tools to service your clients positively and increase your client advocacy?


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When you face business or regulatory challenges, we provide solutions that are tailor-made to your needs with a view to releasing your energies to focus on your clients.


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