Wealth management firms must offer more than just basic digital platforms

US wealth management firms know that you have to be part of the digital landscape, but too many are only scraping the surface of what clients want and risk being left behind.

A new report from J.D. Power shows that the industry is doing better in meeting transactional demands and provide core functions and good design, but with more full-service and self-directed investors seeking tailored advice on achieving financial goals on digital channels, this basis provision is not enough in a fast-evolving world.

“Failing to keep up will put firms at a major disadvantage in their efforts to drive organic growth,” Craig Martin, executive managing director and global head of wealth and lending intelligence at J.D. Power. “Leading-edge firms are delivering truly valuable experiences that offer proactive, personalized guidance and tools that support the increased focus on establishing financial plans and the tools that help investors achieve their goals. While many firms have increased their focus on planning and related tools, they are struggling to deliver on the digital experiences that provide the higher-order values that clients are being told to expect.”

The study found that around three quarters of apps and websites are providing clean and modern experiences for clients, but when it comes to proactive guidance, ability to set financial goals and help reaching financial goals, just 18% of full-service apps and 14% of self-directed apps deliver a valuable user experience.

Most respondents said they expect their wealth management firms’ apps and websites to help them meet financial goals. However, among the 44% who said they strongly expect this, only 30% said they do not strongly agree it’s being provided, along with 80% of those who somewhat expect this service.

Investors’ satisfaction scores were boosted by the provision of experiences that go beyond foundational, and where perceptions of data security are higher.

“In a world in which firms are offering no-fee trades and many of the basics of the user experience are similar from one brand to the next, the digital experience hierarchy has increasingly become a critical means of differentiation,” said Jon Sundberg, senior director of digital solutions at J.D. Power. “The fastest path to delivering on growing customer expectations for digital is to deliver a truly personalized level of engagement that takes each client’s unique needs and goals into account.”

WHO’S DOING BEST?

The report also reveals which firms are leading the industry for their wealth management digital experience.

J.P. Morgan Wealth Management ranks highest in overall customer satisfaction with the full-service wealth management digital experience, with a score of 843 out of 1000. Second is US. Bank (817) and Wells Fargo Advisors (805) ranks third.

J.P. Morgan Wealth Management also ranks highest in overall customer satisfaction with the self-directed wealth management digital experience for a second consecutive year, with a score of 783. Stash (751) ranks second and Robinhood (749) ranks third.