Why Financial Advisors Need a Digital-First Mindset

Advances in technology have many advisory firms investing in new and powerful solutions, a trend that is certainly paramount to our industry’s future. However, reports indicate there are both delivery and execution gaps in many advisor tech stacks. Despite an emphasis on putting the client experience at the center of the business, a recent Qualtrics report on financial advisor-client experience showed that 15% of clients are still disappointed by their advisor’s lack of personalized service. 

Instead of checking the traditional boxes of CRM, portfolio manager and financial software, firms should be looking for an agile technology solution that grows with them and enhances their client’s experience. This cannot be done without strategic thought, research, and testing new solutions that may offer a surprisingly smooth and intelligent client experience. Selecting the right technology partner is no longer just about ensuring your back office runs smoothly. The key to differentiation is in delivering a top-notch client experience supported by technology.  

Fortunately, there are solutions that check every box and then some, ensuring the client experience is enhanced. How can advisors embrace this client-centric mentality when evaluating their current technology? There are an ample number of opportunities to reinforce a personalized client experience through a digital-first mindset right now. 

Accessibility – Consider how easy it should be for clients to stay up-to-date on their information and maintain a dialogue with their advisor. Accessibility also means offering a digital platform that is mobile-ready and legible when viewed on a mobile device. Today’s client expects unrestricted access to their financial dashboard, so ensuring consistency in platform performance is vital to this user-experience. 

Customization – Your dashboards and reports should be customizable so that depending on a client’s risk tolerance, investment preferences, life stage, and goals, the information is displayed in a way that is easily understood. Additionally, you want your personal brand to shine through across all your platforms and services. Having the option to brand your reports ensures consistency and a polished, professional appearance.

Provides an Holistic View – A majority of your clients expect a one-stop experience where they can view their entire financial picture. Numerous institutions and platforms offer open APIs with flexible views into held-away assets including emerging asset classes, allowing advisors to embrace a more complete financial picture. If your clients don’t have this capability, it may be time to look for new software. 

Communication – As much as 72% of clients have fired an advisor due to poor communication. Your platform should allow two-way interaction, meaning clients should be able to view their current financial plan, but also make notes and ping advisors with their questions or concerns. This level of interaction saves both clients and advisors’ time, eliminating the need to constantly align schedules for a 30-minute meeting to review a plan that could be viewed on-demand online. Virtual messaging is the optimal solution, but it’s hard to find a compliance-friendly solution, such as Valian, which offers a fully archived, SEC-compliant chat feature. 

There’s a reason J.D. Power Client Surveys continue to show wealth management mobile apps rank low in customer experience year over year. But that oversight across the industry represents a tremendous opportunity for you and your firm. When you’re thinking about where to invest in your technology to ensure a substantial advantage over your top competitors, consider spending it on solutions that elevate your clients’ experience. 

Reducing client turnover alone can deliver ample revenue growth. Retaining a client is significantly cheaper than attracting a new one, and the majority of advisors believe their poor technology has cost them clients. Wealth management firms cannot afford to ignore the value of delivering a personalized client experience.

Ready to take your client experience to the next level? Book a Demo with AssetBook today.