Fintech on Friday: Using visual design to build strong relationships in wealth management

From Uber to Netflix to Airbnb, some of the world’s most disruptive businesses have shown how carefully crafted visual experiences can build recognisable brands – and generate trust in radically new products and services.

For wealth managers, using design and visualisation to add value and engender client trust is now vital to remaining competitive. Here we look at some of the measures that firms should be considering to improve the visual client experience.

Why looks matter

In today’s data-driven online world, the role of smart design and visualisation in helping consumers navigate information, make decisions and take action has become critical.

Retail sectors are leading the way in using online visual design to build brands and engender consumer trust. But wealth management – with its legacy focus on human engagement – is still falling short.

Such inaction is high risk in a sector that is ripe for disruption. Challenger banks and robo-advisers have already altered the relationship management model by offering online-only wealth management at scale. While these solutions may not appeal to all clients, their very existence is changing expectations about what clients want to see when it comes to a digital financial experience.

Differentiating through design

Wealth managers who take action now to enhance client visual interactions and the digital user experience are in a strong position to stand out in an industry where differentiation is difficult to discern. Here are four key actions for management teams to consider:

Embrace technologies that are transforming financial decision-making: Wealth firms often assume that clients are averse to using technology. But in our research, 73 per cent of clients felt that emerging technologies (such as smartwatches and wearable tech) can help them achieve their financial goals. Wealth management firms need to ensure their platforms are compatible across different devices, are user-friendly as less tech-savvy clients start to adopt new technology, and that investment insight is optimised for consumption on the go.

Accommodate the changing content expectations of clients:  Thanks to micro-targeting, consumers are becoming used to seeing online content that’s highly relevant to them. So wealth managers need to work harder to engage attention and deliver content that genuinely stands out. According to Scorpio's research, many investors believe that wealth managers should be investing in technology that can facilitate more efficient, tailored and real-time delivery of information.

Transform information into actionable insight: Only a minority of investors express a high level of confidence that they can leverage the data provided by their wealth manager to make actual investment decisions. Investor education, for example about risk and reward, will become a crucial differentiator. Simplification of portfolio optimisation models will also help clients assess progress towards their financial goals.

Use data visualisation to improve client engagement: Most firms provide a wealth of investment information to their clients But 59 per cent of investors say they find it hard to discern the key points from this information – a proportion that rises worryingly to 72 per cent among ultra high net worth clients. However, some investors believe that simple presentational changes could be transformative in their interaction with investment information and, in turn, their ability to manage their own wealth – from a one-page market review to a highlighted set of actions to take.

Clarity is key

Clients are confronted by vast amounts of data, information and visual noise across almost every aspect of their lives. In this environment, a wealth manager that can distil, and deliver information in a way that empowers the client to think with clarity and confidence about their wealth goals will be increasingly valued.

By harnessing new technologies, design and visualisation techniques to manage information delivery, firms can build stronger long-term client relationships and remain agile and competitive in an age of digital disruption.

Caroline Burkart is associate partner at wealth management think-tank Scorpio Partnership