Harness Technology to Better the Wealth Management Client Experience

By: Joseph Wang, Data Scientist at VRGL


At its core, technology is developed to make the lives of its users better. As more industries continue to embrace new technologies, everyday tasks have become more convenient. Wealth management is another industry that has accelerated the adoption of new technologies to improve the advisor and client experience. With new ways to acquire, onboard, and maintain clients, advisors have many new tools to help streamline their workflows and make their lives, as well as their clients’ lives, easier, more informed, and more convenient. Additionally, technology has been able to lower costs for clients and hold advisors more accountable. All these changes improve the overall wealth management ecosystem and allow clients to put more trust in their financial advisors.

Improve prospecting

Technology has made business development and client acquisition more efficient for wealth management firms of all sizes. Depending on the business model, a wealth manager might target the mass market or specific high net worth individuals. Both must go through the “marketing funnel” which is the process from discovery to consideration and evaluation and the purchase decision by the client. Growing technological developments can increase process efficiency and help wealth managers accelerate the prospect’s journey through the funnel.

Mass-market firms can leverage systems on social platforms to be discovered by the most likely clientele. Chatbots can be used to provide a more personalized client experience at scale. Advancements in natural language processing (NLP) allow automated phone calls to take on an increasingly natural and personal touch. Firms targeting select clients can also utilize the same marketing tools but could benefit from specific tracking and analytics on their clients to provide premium services.

Additionally, proposal generation with advanced and customizable analytical tools help advisors build rapport, showcase their capabilities, and help clients objectively evaluate the value of services they receive from wealth managers. With client-provided personal and demographic data, software can cater to a client’s specific life experiences and provide relevant scenarios to consider. Tools like this provide a strong argument for an individual wealth managers’ value-add or lack thereof. Technology ultimately provides transparency and personalized services to help efficiently convert people into paying customers thus, starting the process of building lasting loyalty from customers and continued success for a wealth management business.

Exceed client expectations

Technology can also help streamline the onboarding process. The operational challenge of switching from one service to another is preventing many advisors and clients from choosing the best solution. A growing number of technologies are offering simple API (Application Programming Interface) connections to many different applications and processes. Most importantly, the wide adoption of cloud computing for SaaS (Software as a Service) companies is cutting down the transition time from quarters to weeks. Many cloud-native companies also feature client-friendly interfaces that allow advisors and clients to trial the product, providing process transparency and building confidence. Additionally, because the process is automated and most cloud-native applications have built-in encryption, the likelihood of data leaking, human error, and biases are reduced.

Newer technologies such as robo-advisors, give clients increased visibility and ease of access into their finances. One commonly discussed advantage of robo-advisors is the ease of data access for clients. Rather than having to ask your financial advisors about how you’re doing, all the analytics you’d want to see are readily available online. However, technology startups are also providing human advisors with similar levels of analytics capabilities and transparency. Clients now have a breadth of data and analytics at their fingertips, allowing them to understand their financial situation on a deeper level.

After the client has onboarded, advisors have a wide array of technological options to report and analyze their client’s investments, from portfolio construction to performance reporting. Technology also reduces the advisors cost to service clients. By simplifying their workflows and reducing manual effort, financial advisors are able to scale their business. In addition, the robo-advisor is also attractive for clients looking for a little less personalization and a lower cost. By making financial advisors’ lives easier and providing a wide range of alternatives for clients, technology has made having a financial advisor, human or robotic, less expensive, and more accessible for all.

Foster trust with technology

Ultimately, the hardest-earned currency in the wealth management business is trust. The current technological developments in the wealth management space aim to foster that trust. By providing more visibility into processes, reducing friction in communications and customization, empowering more informed decision-marking, and enabling built-in risk control, fin-tech companies are helping wealth managers earn trust faster, cheaper, and more sustainably.


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