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5 Ways Financial Advisors Should Approach Visualization for End-Investors

Data Science and Technology

By FactSet Insight  |  November 19, 2018

In March 2018, FactSet, in association with Scorpio Partnership, conducted a global online poll of 877 investors with an average net worth of $4.88 million. Respondents hailed from the U.S., the UK, Singapore, and Switzerland, and answered questions concerning the digital transformation of the wealth management industry. One of the key debates focused on data visualization.

Our research shows that even traditional wealth firms that rely heavily on the personal relationship as a source of differentiation must consider how to support their trusted advisor status with an online and intuitive interface as expectations shift.

Challenger banks and robo-advisors have altered the relationship management model by offering online-only services at scale. Their use of visualization techniques has been shown to add value and build trust between advisors and high net worth investors. This extends to include even those in the discretionary segment, causing disruption across the industry. A key to remaining competitive lies in the ability of wealth management firms to harness the power of design. That is, making portfolio performance, investment, and market insight available on demand, and turning that insight into intelligence.

Here are five ways advisors should approach visualization to deliver enhanced value to end-investors.


1) Learn from Industry Disruptors by Using Great Design to Build Trust

Carefully-crafted visual interactions and digital user experiences can help build recognizable brands and increase client confidence in new solutions. Differentiation in the wealth industry is difficult to discern, so firms should enhance their design to remain competitive and generate trust.

2) Embrace the Technologies That Are Transforming Financial Decision-Making

Over 70% of clients feel that emerging technologies such as smartwatches and wearable tech could help them better achieve their financial goals. Wealth management firms should ensure that investment insight is optimized for consumption on-the-go and through different devices.

3) Work Harder to Be Heard by Clients

Investors are swamped with online information from multiple financial and non-financial brands. To be effective, firms should adapt their approach to clients’ changing attention spans, which means delivering bite-size and real-time portfolio insights that have been tailored to their interests.

4) Investor Education Is Crucial to Improving Understanding of Investment Performance

Over half of self-directed and two-thirds of advisory investors lack full confidence in their ability to leverage information from their wealth management platform. Firms must get better at explaining how to use these investor resources if they are to be valued inputs in their decision-making.

5) Simple Presentation Changes Can Improve Engagement with Investment Insights

A majority of clients (59%) find it difficult to discern the key points from graphs and charts used by their wealth managers. Top of their wish-lists are straightforward changes, such as a succinct market summary, interactive portfolio tools and a highlighted set of actions to be taken on their investments.

For more insight, download our latest eBook: Disrupting Advisory Through Design

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