Pre pandemic, 7/10 UK wealth management firms were looking to review their digital architecture over the coming 12-36 months. The pace of change has been accelerated due to Covid and the new/next normal we find ourselves in. One of the main drivers for this change was to improve the client experience. This is a must for wealth management firms if they are to retain and attract clients in the next normal.
According to Oliver-Wyman’s global world wealth report 2020, there has been a 7-10 fold increase in client engagement across all digital channels during the pandemic. This includes a 5 fold increase in digital research consumption and a 3 fold increase in the number of virtual client meetings. Compeer’s UK client research shows that clients suggest a significant or very significant improvement in their current digital experience. Some of the main areas mentioned include: Client portal, reporting, on boarding experience. Alarmingly, a significant proportion of clients will leave if no improvements are made. Therefore firms must act now.
So what do firms need to do? Research shows that clients are demanding a more personalised experience which is accessible on demand and opti channel ie: the channel which suits them best. This is a challenge for firms who are often laden with legacy architecture with layers of spreadsheets and manual workarounds to integrate systems. Also, historically a great client digital experience would not have been a priority for firms or clients. Capgemini’s recent wealth report 2020 warns of the dangers of ‘Big tech’ such as Google, Amazon etc being able to take advantage of vulnerable touchpoints in the current client journey. Indeed at least 60% of high net worth clients believe that Big tech may be able to offer a more personalised experience when it comes to products and services and receiving tailored market information reports. Firms who do not deliver on an enhanced digital promise to clients risk losing out to more savvy competitors from within and potentially outside of the sector.