2014 - what a year! Digitization has only started to disrupt the financial industry through innovations like robo-advisors. Mobile apps for various financial areas have really taken off in 2014: wealth management, financial advisors, and fund management, are catching up fast on the mobile battle field. And social media is quickly becoming the most important customer support channel for banks.
But digital change in the wealth management industry is not slowing down. Here are our top-10 trends for 2015:
10.) Personalized marketing based on big data: Social content mining tools deliver a clear client profile, making it easy and convenient to address wealthy clients’ dedicated needs.
9.) Margins under pressure: Wealth managers must be prepared for an increasing pressure on their margins due to the emergence of automated investment/advisory services and the emergence of commission free brokerage.
8.) Messaging becomes ever more important: Particularly the high-net-worth clients expect to be able to reach their advisors anytime and everywhere they are. Instant messaging services, video chat, social media, and co-browsing are gaining momentum.
7.) Advisors become client communication managers: Thanks to client portals and social media dashboards, financial advisors are now able to manage and monitor their client communication through one single tool, thereby increasing efficiency and productivity.
6.) Security remains crucial: Comprehensive security and privacy protection stay on top of wealthy clients’ wish list with regard to banks’ and wealth managers’ digital offerings.
5.) Advisors become coaches: Through content collaboration tools, financial advisors are able to add value to their clients as real sources of expertise and deliver high quality educational material.
4.) Social finance as a new definition of charity: Banks are increasingly recognizing the benefits – social as well as financial – of social finance as opposed to donating to charities by highlighting the investment character of social finance projects.
3.) Social media become most important channel for customer support: Mainly Twitter and Facebook serve increasingly as a public interface to deliver support to clients – first in the mass affluent and retail segments but later also for the HNWI.
2.) Mobile touch-points will start to see, feel, and navigate for the client: As more and more sensors are added to mobile phones plus new devices are getting ready for apps like smart watches or glasses, mobile apps will use contextual data to deliver value to the client.
1.) Automated investment advice is becoming part of traditional wealth managers: Robo advisor start-ups have made a splash in 2014. But 2015 will be the year of established wealth management firms implementing automated investment advice as part of their own business model.
The whole MyPrivateBanking team wishes our clients and readers wonderful holidays and a happy, successful new year 2015!