The wealth management industry continues to evolve, requiring financial technology to advance with it. Over the past year and a half, thanks partly to the pandemic, FinTech company product roadmaps have accelerated to keep up with the demand for advancing technologies. In this three-part series, we will cover the three trends driving FinTech in 2022 and beyond:
- Digital Experience
- The greatest intergenerational wealth transfer ever
- Demand for financial wellness by investors
Part 1: Digital Experience
The time for digital experience is now and is accelerating faster than ever, thanks to the pandemic. In part, the great migration away from large metropolitan areas toward less-dense, more affordable places that offered more space and remote work helped to accelerate FinTech advancements. Investors were now using technology in every area of their daily lives and expecting their advisors would provide similar digital experiences regardless of their location.
Today, both self-directed and advisory clients expect an ‘Amazon-like’ experience with hyper-personalization at scale for digital experiences. Zoom meetings, web interactions, and a mobile-first experience have become a part of everyday life. While phone calls and face-to-face meetings have their place in the client-advisor relationship, digital experiences will continue to be the preference for investors to monitor their portfolios and interact with their advisors. Location flexibility makes omnichannel delivery imperative to maintaining the advisory relationship.
Investors will continually seek new digital capabilities to take advantage of investment opportunities and avoid risks and will require more advanced digital tools to personalize their experience. A recent study by Refinitiv supports that clients have higher expectations of their digital experience:
- 43% of investors use mobile applications to access their investments
- 80% of investors say real-time data would enhance their analysis
- 20% of investors are not receiving alerts they would find helpful
- 29% of Millennials are willing to switch providers compared to 10% of other investors due to digital capabilities
- 20% of Advisory clients will consider switching providers compared to 11% of self-directed investors
By adopting a digital-first technology platform, advisors can offer their clients unparalleled user experiences through broad digital channels for mobile apps, mobile sites, tablets, laptops, and desktop experiences. These platforms continuously deliver efficiency for the advisor, allowing them to build client relationships and grow the business.
In looking ahead to the post-pandemic era, investors will continue to use omnichannel solutions in all areas of their lives. Investors’ desire for a robust digital experience from their advisor will continue to increase along with their expectation of access and control over their investments.
Sarah Rasmuss is Chief Product Officer for CircleBlack, a unified best-of-breed wealth management platform that consolidates data from multiple custodians and allows advisors to choose the best solutions to fit their tech stack.