Increasing Customer Engagement in Wealth Management

According to the latest research from 2024  from Statista, the average global customer spends 3 hours and 50 minutes per day on their smartphone. In contrast, banking apps are used only for a few minutes at a time and not typically daily. This is because customers are busy with their lives, and managing finances is neither fun nor relaxing; it is just something that needs to be done.

Wealth Managers might think “The retail banking industry has its own rules” or “Clients in Wealth Management are just different, and in the end, the advice process will still happen in personal meetings”. These assumptions could be a big mistake! Out of our discussion with wealth managers, we have listed six findings of how to increase customer engagement in this blog article - and yes, even in private banking!

1. Real Time vs. PDF

Digital customer channels in wealth management are not as advanced as those in retail banking. Real-time data is often unavailable, and mobile channels are outdated, offering only basic features like a postbox for quarterly reports in PDF format. While compliant, this approach is far from user-friendly and certainly not state-of-the-art.

2. Adapt new Customer Expectations

A significant wealth transfer is happening, and the next generation of customers, accustomed to digital banking, expects better digital experiences. They are open to switching banks if their needs are not met. Digital challengers like True Wealth in Switzerland offer more cost-effective portfolio management services with an excellent digital user experience, making it crucial for traditional wealth management services to prove their value and maintain regular contact with clients. The key argument against such digital-only players has always been the individual competence of the advisor. While the next generation of wealth management clients may have once walked into the physical branch of the bank of their parents in their childhood years, their loyalty is waning. They are used to real-time market data, don´t bother them with sending them a standardized report once a quarter!

3. Creating digital experiences

For affluent customers and high-net-worth individuals (HNWIs) of tomorrow, platforms like Trade Republic, Scalable, or Robinhood have set high digital expectations. Banks need to offer compelling digital experiences combined with expert advisory services to retain and attract these clients. The investment advisory should not happen only once a quarter, but always reachable in the client's pocket through their smartphone.

4. Holistic wealth aggregation within one App

Keeping clients engaged through your app is essential to keep high customer loyalty. Offering features that allow clients to manage non-bankable assets, like real estate, watches, or cars, within the app will increase their engagement. This helps clients see the full picture of their total wealth and encourages them to bring more assets under the bank’s management. Eventually, Wealth Managers can give their clients an answer to the question: "How rich am I?". Furthermore, if clients are positively engaging with your app, they are not engaging with your competitor. The probability of hitting the moment of truth when they need financial and/or investment services is very likely to happen for those who own the customer engagement.

5. Communication is key - but neglected!

Communication channels in Wealth Management need to go beyond basic functionalities. Features like secure messaging, video chat, and co-browsing are essential but often missing. While platforms like WhatsApp are user-friendly, they are non-compliant with data privacy regulations like GDPR, which has resulted in significant fines for banks.

6. Proactive Engagement through Data-Driven Insights

Use data-driven approaches, based on AI or machine learning, to provide clients with valuable insights about their financial lives which will enhance engagement. Open banking can be leveraged to aggregate information from competitor banks, allowing clients to manage multiple accounts from one app. For example, alerting clients about excess liquidity in their accounts and offering investment options can be a proactive engagement strategy.

How we support Financial Institutions to lead the way in Wealth Management?

Fincite is well-positioned to spearhead the transformation in wealth management. Our SaaS Fincite CIOS puts banks in a position to provide advisors and clients with a state-of-the-art reporting front end, displaying real-time customer data of assets and liabilities in various, easy-to-digest ways. The software answers the question about net wealth comprehensively in a heartbeat. To address this need holistically, CIOS also assists in managing non-bankable assets. Within the application, Wealth Managers get real-time market valuations of real estate and have various options to manage e.g. luxury cars, watches, or private equity.

Furthermore, CIOS can harness open banking to aggregate data from various financial institutions, providing clients with comprehensive financial insights, accompanied by top-notch and compliant communication options like secure messaging, video chat, or co-browsing. The digital postbox is a commodity. By adopting the six strategies mentioned above, CIOS not only meets the evolving expectations of next-generation clients but also sets a new standard in digital wealth management.

If you are curious about the software, you can either contact one of our WealthTech Experts who will get in touch with you within the next 24 hours or get the 14-day trial version and discover the features yourself. The choice is yours!