An Outstanding Digital Experience: What Investors Expect

by | Feb 3, 2022

By Claudine Martin, VP Head of Marketing, CircleBlack

The Covid-19 pandemic changed how many financial firms viewed investors and what they expected from their advisors. Before 2020, the wealth management’s business, as usual, was mainly through face-to-face meetings between an advisor and their client. Then came COVID-19, which dramatically changed the way the industry did business.

FinTech firms were already shifting the industry toward digital transformation, but COVID-19 helped to catapult the adoption of digital engagement between investors, advisors, and providers to help ensure client loyalty and protect AUM. The wealth management industry started to fully understand what they were missing if they didn’t have what investors expected from their digital experience.

“The pandemic accelerated everyone’s focus on providing a more robust digital experience…out of necessity.” –Sarah Rasmuss, Chief Product Officer, CircleBlack.

While some firms may still believe that digital adoption and user experience are for the young investor, research proves otherwise. Digital tools are preferred across the ages and older and wealthier clients prefer digital engagement just as much as younger investors:

  • 89% of Baby Boomers, 89% UHNW and billionaires, and 89% of Millennials use their wealth provider’s mobile app
  • 67% of Baby Boomers, 74% of UHNW and billionaires, and 62% of Millennials access their financial information through their wealth provider’s website
  • 63% of Baby Boomers, 63% of UHNW and billionaires, and 65% of Millennials use virtual conferencing with their advisor

Source: Debunking Wealth management myths: Three outdated assumptions about investors, Refinitiv.

The same Refinitiv study indicates that wealth managers and investors agree that they anticipate moving to a 75% digital, 25% non-digital engagement model within the next two years. These statistics highlight that digital engagement and investor-centric technology are critical for advisors and firms to retain clients regardless of their age or assets. A positive effect of advancements in financial technology digital experiences is increased financial inclusion and digital transactions, an individual’s ability to monitor fraud, and financial literacy promotion through mobile devices and mobile apps.

While FinTech adoption was already on the rise before the pandemic, data from McKinsey suggests that the U.S. advanced five years ahead in consumer and business digital adoption in only eight weeks. The bar for outstanding digital experiences will only continue to rise. 

“For the Advisors & Investors the wealthtech landscape is serving, they are accustomed to superior user experiences & retail like settings.  So they are comparing their experiences to the likes of Netflix, Amazon and Roku… rightfully so.” -Sarah Rasmuss, Chief Product Officer, CircleBlack

The wealth management industry must be agile and adapt to investors’ higher expectations of service, accessibility, convenience, and security, or risk losing investors, advisors, and AUM.

Claudine Martin is the VP, Head of Marketing for CircleBlack, 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.