Digital wealth management provides financial advisors with the digital tools they need to create seamless client experiences across all devices and platforms, allowing them to scale solutions to reach more customers. High-touch consultancy has always been a critical part of the advisor relationship; however, in the digital age, clients expect financial advisors to get up to speed quickly regarding their needs, wants and goals to provide personalized financial advice. Digitization of the financial services industry allows firms to share data-driven insights with advisors that encourage engagement and strengthen relationships.
Wealth management firms face a common set of challenges in their attempts to leverage digital technology to engage with clients, and many of them are related to data collection. The client interactions of most firms are characterized by a vast collection of data that is often fragmented and scattered across an entire organization. A lack of third-party data (on spending and saving habits, values, and interests, as well as related transactional data), also makes it more difficult to deliver customized insights and relevant services. Connecting firms with automated marketing tools and technologies offer data-driven insights and the opportunity to engage in cross-channel strategic messaging.
Even when digital wealth management is adopted at a firm, the rate of adoption is low. This is often due to the resistance of advisors to leverage data-driven insight across channels, and that the technology may not be user-friendly. Inadequate training of support staff can also leave client support teams ill-prepared to handle inquiries that result from data-driven campaigns. To realize successful digitization, it is equally important have the proper support and training in place throughout an organization.