The pandemic has raised expectations amongst investors about digital wealth services and many wealth management firms are falling behind on digital transformation.
A research report released by financial services software provider CREALOGIX suggests that digital transformation will be high on the agenda for wealth management firms in 2021. The research, carried out in partnership with leading City of London specialist research group Compeer, found that expectations around digital service provision have been raised during the last year and some firms may be struggling to keep up.
Client portal, mobile app and reporting have room for improvement
The survey of senior executives in wealth management carried out this summer revealed that only 22% of wealth management firms view digital provision as a market differentiator which appeals to investors, but the client satisfaction levels, together with the growing number of younger investors who expect integrated digital services, may accelerate digital transformation across the industry.
Joining the dots between digital services and ROI
The survey found that along with cost and reliability, the potential return on an investment in a digital solution was high on the list of firms’ priorities. The same study found that only 11% of firms offered end-to-end digital onboarding, suggesting that wealth management firms are slow to realise the commercial and efficiency benefits that would drive the ROI.
Digital wealth services can bring clients closer to wealth management firms
Wealth management firms often suggest that a focus on digital solutions will take their attention from providing a high quality, personal service to clients. However, improved efficiency through digital-first processes and implementing online self-service solutions at the right touch points can boost the relationship between wealth manager and client. In the past year, the markets have been volatile and additional research by Compeer found that 21% of investors were logging on to check their portfolio daily. Additional research by Compeer suggests that investors want to engage with their wealth management firms at their convenience and that means a user-friendly, highly functional digital solution that integrates seamlessly with in-person services.
Wealth Management product lead at CREALOGIX Kim Woodhall said:
“After the events of the last year, digital transformation is set to be a key priority for 2021. Demand for digital services is increasing – online-only challenger brands are gathering momentum at a time when younger investors are entering the market and expect a world-class digital solution. Combined with the effects of lockdown and remote working this year, 2021 could see a step change in digital capabilities across the wealth management industry.”
CREALOGIX has produced a full report on how wealth management firms can prepare for the future and make digital wealth services a commercial success story. The report contains all the research conducted with senior industry executives and provides an indication of how wealth management firms can match their digital transformation strategy with investors’ expectations.
