When it comes to mobile apps, the wealth management industry has some catching up to do, according to J.D. Power.
The research group — which plans to release a detailed study on how satisfied investors are with mobile apps of firms like Ameriprise Financial, Merrill Lynch, TD Ameritrade and others in November — says wealth managers have fallen behind industries like hotels, utilities and health insurers (on a 1-to-1,000 scale).
“The wealth management industry has been a laggard with respect to developing a truly robust mobile client experience,” said Michael Foy, senior director of wealth management for J.D. Power.
That’s the bad news.
The good news, Foy explains, is that there is “a consensus … that what exists today is not good enough, and they need to do better.”
The J.D. Power preliminary report on wealth management mobile apps, released Monday, “is part of a wake-up call … that this area needs to be a priority,” he added.
The firm’s research aims to move the industry in the right direction “of how to improve the customer experience, by both sharing data on user experience … and sharing best practices that other industries that are a bit further along in the process are taking.”
High-net-worth customers are “significantly less satisfied” with their wealth mobile apps than other client segments, according to J.D. Power.
More than half (55%) believe information sharing on their mobile app is “very secure.” But 45% give their app a failing grade.