Digital apps and websites have become critical touchpoints for wealth management clients as their expectations have evolved beyond the transactional, according to a new study from J.D. Power.
Clients expect their wealth managers' digital channels to provide tailored guidance on meeting their financial goals, the study found.
Many firms are delivering on basic needs of transactional relationships, with enough design aesthetics and core capabilities to get by.
“Delivering at this level is the minimum threshold, but the bar is being quickly raised,” Craig Martin, global head of wealth and lending intelligence at J.D. Power, said in a statement. “Failing to keep up will put firms at a major disadvantage in their efforts to drive organic growth.”
Martin said leading-edge firms are providing proactive, personalized guidance and tools that support the increased focus on establishing financial plans and the tools that help investors achieve their goals. At the same time, many firms that have increased their focus on planning and related tools are struggling to deliver on the digital experiences that provide the higher-order values that clients are being told to expect.
J.D. Power’s study evaluates customer satisfaction with the wealth management digital experience, inclusive of both apps and websites, based on visual appeal, navigation, speed and information/content. The 2024 study, fielded from June through August, is based on responses from 5,871 full-service and self-directed investors.
Key Study Findings
The study found that three-quarters of full-service apps and websites and self-directed apps and websites are delivering basic foundational functionality by organizing information in a logical way to convey a clean, modern look and feel. But the numbers plummet when it comes to delivering truly valuable digital experiences.
For example, just 18% of full-service apps and 14% of self-directed ones deliver a valuable user experience that includes proactive guidance, ability to set financial goals and help reaching those goals.
