Creating a compelling client experience is recognised as the key to a sustainable competitive advantage across multiple sectors – driven largely by the intuitive, seamless and highly personalised service delivered by big tech firms such as Apple, Uber and Amazon.
But what should a great client experience look like in wealth management? Drawing on the views of clients of wealth management firms across the UK, Germany, the US and India, we have identified five ways that firms could help make client experience one of their strongest selling points.
1. Focus on personalisation and proactivity
From the investor’s point of view, the most compelling wealth management experience is one that genuinely puts them at the heart of the service. That means providing content that is personalised to their interests and objectives, constantly assessing and anticipating their needs, and providing inspiring ideas to act on.
Intentionally or unintentionally, investors are starting to seek out services that – similarly to digital brands like Netflix and Spotify – can constantly learn from and respond to their behaviours and preferences. More than three-quarters of wealth management clients would like to see firms invest in smarter client data analytics so product suggestions are better tailored to them and can proactively stay ahead of their needs.
2. Connect advice to client milestones
Following the theme of proactively anticipating client needs, HNWIs are often prompted to seek out wealth management advice by a specific life event, such as a bonus or inheritance, a change in their professional life and – of course, approaching retirement.
By framing the wealth management experience around such ‘trigger events’ – and anticipating or asking when an event is arising for a client – advice can immediately become more relevant to a client’s real life and resonate with their current circumstances and, in turn, inspire action.
3. Invest in new technology – but not as a human substitute
Providing seamless and intuitive digital functionality is seen as fundamental to the client experience. The ability to self-serve, including fully-digital account opening, is seen as essential or important by three-quarters of clients, for example.
But digital servicing still not seen as more important than dedicated time with a human adviser – even among younger clients. In fact, when asked to value the input of their primary contact at their wealth management firm, clients under 55 valued their human contact marginally more than older investors.
Forty percent of high net worth clients want to interact with their primary wealth management contact at least monthly. But technology can still play a role in supporting this engagement. Two-thirds of clients (64 per cent) would be willing to use mobile apps to engage with their wealth manager, for example.
4. Educate as well as advise
Smart personalised advice may be the most sought-after aspects of the client experience. But a substantial proportion of clients would like to be better informed too. Around 40 per cent of clients would like their wealth manager to provide structured financial education, with the greatest demand coming from clients aged over 67 and investors who identify as risk seekers.
Many clients would like firms to take a leaf out of Google’s book and contextualise information wherever possible. Seventy-two per cent believe that providing educational content around a client’s investment options will become increasingly important to meet the needs of younger investors.
5. Learn from the convenience of big tech
In a world where consumers can order almost anything at any time, the speed and convenience clients experience in other areas of their lives is starting to be expected from wealth management too.
Clients across all markets say that the most important attribute of a wealth manager is their breadth of products and services – even more important than the firm’s pricing model. A wealth manager that can emulate Amazon’s single marketplace approach is seen as widely beneficial.
Younger clients under 55 are particularly keen to see their wealth manager offer complementary services such as pension planning, insurance and real estate advisory. Firms need to be careful not to lose their focus, however: forays into advising on luxury goods, for example, are much less welcome.
In short: High touch and human touch
Designed skilfully, customer experience can be a powerful weapon of differentiation in an industry that is so heavily focused on price and performance. Given the pricing pressures that wealth management faces, technology such as client data analytics will be important to delivering a personalised wealth management service at scale. But our findings show the sector must not lose sight of the fact it is a relationship business first and foremost.
Online efficiency and smart tools may help attract clients – but it is the originality of ideas, the nuanced understanding of a client’s life, the breadth of services and solutions, and the responsiveness of their primary contact that will keep them coming back.
Caroline Burkart is associate partner at Aon
