Today’s wealth management clients are more tech-savvy than ever before. According to research from FactSet and Scorpio Partnership, HNWIs now conduct 44% of their interactions with wealth managers online, and the proportion of interactions conducted online rises to 48% among those whose wealth exceeds $20 million. Coupled with the fact that three-in-five HNWIs believe that innovation will enhance their wealth manager relationship, it’s clear expectations are changing.
However, despite the obvious demand for innovation, the advice gap is widening as traditional wealth managers struggle to bring their strategies into the digital era. Put simply, the wealth management industry is missing a huge opportunity. Adding to this pressure are the successes of companies like Google, Amazon, and Apple which have revolutionized the customer relationship using data to anticipate and deliver personalized content. Wealth managers now have similar obligations to create personalized services with 24/7 interaction for their clients.
Those wealth mangers willing to step up to this challenge recognize that they must partner with technology providers so they can focus on what they do best; look after their clients’ wealth. For example, 7IM’s app, My Future, was built with the help of Nintendo gaming experts to engage younger investors and encourage financial planning. Such a shift in thinking can prepare wealth managers to tailor their services to new audiences, innovate their businesses, and become more attractive to the next generation of HNWIs.
For a deeper explanation of how the industry is changing, here's an interview I recently did with The Telegraph:
Between the changing advisory landscape and the approaches necessary for success in a digital world, translating the opportunities of a demanding digital ecosystem is no easy task.
Learn how you can address these shifting headwinds, in our most recent eBook: The Resilience Agenda: The Wealth Manager’s Guide to the New Era of Volatility.