The increase in mobile and tablet applications, as well as online resources and educational tools, has created new opportunities for investors to take a more self-directed approach to their finances and investments – while also creating new challenges for investment firms, who must adapt to the changing profile of today’s investor and deliver a unified wealth management experience to their clients.
According to recent Aite Group research, current financial advisors are not prepared to deliver the digital experience that younger generations need and expect. Failure to incorporate digital channels into service offerings puts advisors at risk of losing clients. As a result, the reevaluation of technology budgets is taking on new importance, as firms look to digital solutions in order to reach and retain existing clients, while also opening up opportunities to bring in new customers.
With that said, research indicates that without the presence of a motivating advisor, user rates for personal financial management technology will remain low. Therefore, in addition to enabling digital service, wealth management firms must also consider how to enhance their service with unique advisor-driven data, tools and insights. For example, within the Scivantage Wealth Management Platform, integrated wealth management workstation Scivantage Professional brings together the critical tools and resources needed to help brokers and financial advisors successfully manage their books, make critical decisions and grow their business. For the client side, Scivantage Investor provides a comprehensive wealth management, customer service and advanced trading online brokerage solution that delivers personalized, on-demand access to high-quality investment applications and real-time information that retail investors need to proactively manage their investments.
By introducing a unified wealth management platform with new tools and information into its service model, investment firms can fully optimize their relationships with clients. Moreover, by viewing clients as both dependent on advisors through their need for financial counsel, as well as independent of them through their self-directed user habits, firms can increase their own value to customers, while also meeting their financial needs.
Overall, investment firms must rethink their client-facing offerings in order to address emerging trends in portfolio access and management.