Digital Wealth Management: 3 Tips for Improving Client Engagement

October 11, 2016 Teddy Griffin

digital wealth management

Client engagement strategies in the digital wealth management space are facing a time of unprecedented change. Is your firm ready?

Assets under management by robo-advisers are estimated to increase 68 percent annually to about $2.2 trillion in five years, according to A.T. Kearney.

As robo-advisors and traditional advisors that leverage robo-technologies gain market share, they are increasingly focusing on client engagement. As it gets increasingly difficult to differentiate among service offerings like customized passive investment portfolios, low cost services, and automated depositing and rebalancing, digital wealth management firms are implementing innovative client engagement strategies.

This makes sense, right? Most organizations, no matter what business you are in, must identify ways attract, grow and maintain their client base.

From my perspective, here’s where they should focus their attention:

1) Go beyond the portfolio

Personalized updates on progress should take information into account outside their portfolio like age, location and family size. David Blanchett and Phillip Strael’s “No Portfolio Is an Island” from the Financial Analyst Journal stresses the need for investors to consider things like their age, the riskiness of their home ownership, and the industry in which they work when building an optimal portfolio. 

As novice and advanced investors use digital wealth management tools, they need to understand how these things impact the long-term success of their portfolios. This includes understanding how one should change their investments if they start a new job in a new industry or if they’ve recently taken on a large mortgage, for example.

At the end of the day, personalized updates that are relevant, timely and useful to the end user will increase their level of engagement and understanding.

2) Reach out to everyone

A 2013 Aite Group report found that 75% of Gen X and Gen Y investors are satisfied with the amount of proactive outreach they get from their financial advisors compared with 87% satisfaction from their baby boomer counterparts. Expectations of communications are changing generationally and you’ll lose clients if you treat everyone the same. Related, mobile-based communications should start becoming part of your strategy.

As Gen X and Gen Y investors are increasingly using mobile and digital devices, the importance of easily accessible and consumable content is becoming all the more important. Firms continually need to focus on improving their mobile push notifications for investor outreach.

3) Implement tools that support both advisors and clients

One challenge facing traditional advisors is the ability to scale and provide consistent service to all of their clients, regardless of account size. And as discussed earlier, investors expect a clear understanding of what is happening to their account(s) on an on-going basis with timely updates and recommendations. Advisors, traditional and robo, can leverage digital tools like automated client communications to help generate personalized content at scale for both advisors and clients.

With our solution, Quill Portfolio Review, advisors automatically receive bulleted points of discussion regarding a client’s performance towards his or her goals, ensuring they are easily prepped and ready for every client meeting. For clients, Quill Portfolio Review generates personalized communication regarding portfolio performance so clients have on-demand access to goal-based information via any channel, including their portal, emails, letters and mobile alerts.

It’s exciting to see the next wave of innovative technologies and business strategy in wealth management that both traditional and modern organizations can leverage.


Are you interested in learning more about how we can help you improve your client engagement strategy? Get in touch today!

Quill Portfolio Review demo

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