This is how you increase customer engagement in wealth management.

According to a Statista study from 2024, we spend an average of about 3 hours and 50 minutes per day on our smartphones. In contrast, banking apps are used for only a few minutes and not even daily. The reason for this is that customers are occupied elsewhere and managing finances brings neither fun nor relaxation; for many, it is just a task that needs to be done.

As a Wealth Manager in Private Banking, you might now think that the retail banking sector simply has its own rules. Or that "your" clients have different usage habits and in the end, everything takes place in personal meetings.

These assumptions could be a great mistake! In this article, we have listed six insights from our discussions with wealth managers and private banks and also provide you with recommendations on how to leverage digital channels in wealth management to enhance customer engagement.

1. Real-time Reporting vs. PDF

Digital customer channels in wealth management are often not as modern as in retail banking. Real-time data is not always available, and mobile communication channels often offer only basic functions, such as a mailbox for quarterly PDF reports. While these channels meet regulatory requirements, they are not user-friendly or up-to-date.

2. Meeting new customer expectations

In the coming years, a significant amount of wealth will be inherited. The next generation of clients expects an excellent digital user experience in wealth advisory – after all, they are accustomed to digital banking. This very generation is ready to switch banks if their expectations are not met. Providers like True Wealth in Switzerland already offer affordable portfolio management services with an outstanding digital user experience. Therefore, traditional banks must provide clear added value – and maintain regular contact with their clients.

3. Creating digital experiences

The main argument against digital competitors was long the individual competence of advisors. However, the new generation no longer has an emotional attachment to bank branches. Their loyalty wanes when you only send them a quarterly PDF report. These clients are used to real-time market data – don't disappoint them! Platforms like Trade Republic, Scalable, or Robinhood are setting new standards for digital user experience – even in the high-net-worth sector.

4. Holistic wealth aggregation in one app

To convince these clients, you need to combine digital experiences with professional advisory. Advisory should not be limited to quarterly meetings – it should be available at all times. The advisor must be reachable for your clients with just one click, directly on their smartphones.

How do you wow your clients with an app?

Functions that allow the management of non-bankable assets like real estate, watches, or cars within the app create real value. This way, your clients get a comprehensive picture of their total wealth and are more likely to integrate additional assets with you. You can answer the question: “How wealthy am I really?”

5. Communication as the key to success

Basic functions are not enough. Legally compliant messaging, video chat, and co-browsing make the crucial difference. Yet many banks do not offer these features. Platforms like WhatsApp are user-friendly but do not comply with data protection regulations (GDPR). The use of such channels has already led to significant penalties.

6. Proactive engagement through data-driven insights

Utilize data-driven approaches with AI and machine learning to provide your clients with valuable insights into their financial situations. With Open Banking, you can aggregate account and deposit data from competing banks. This allows your clients to manage multiple banking relationships through your app. For example: Recognize excess liquidity in checking accounts and make proactive investment suggestions.

This is how we can support you!

With our software Fincite CIOS, we enable banks to provide their advisors and clients with a modern, digital experience. Our platform offers:

• Real-time overview of all assets and liabilities

• Management of non-bankable assets such as real estate, luxury cars, or private equity

• Real-time market valuations of real estate

With the Open Banking features, you can aggregate data from various financial institutions and provide your clients with a comprehensive overview of their financial situation. Communication takes place through regulatory-compliant channels such as legally secure messaging, video chat, or co-browsing. Of course, a digital mailbox is also integrated.

CIOS not only meets the rising expectations of your clients – it sets a new standard in digital customer advisory.

Did we capture your interest? Contact our WealthTech experts and we will get back to you within the next 24 hours. Do you want to test our software yourself? Register here for a free 14-day trial account.