Wealth management mobile app use has come on strong during the coronavirus pandemic, but customers are less satisfied with these apps than they are with ones provided by other financial institutions, according to a study released Tuesday by J.D. Power.
At the same time, advisor contact via apps is low across the industry, J.D. Power said, noting that only 35% of profiled wealth apps offer chat functionality and just 41% support secure messaging, two features frequently requested by users.
Yet advisor interaction with clients via apps drives higher investor satisfaction, according to the study. Overall satisfaction among full-service investors who interact with their advisors via the wealth management firm’s mobile app is 40 points higher than among those who do not.
“No industry is immune to the consumer shift toward mobile apps, as usage continues to increase across the board,” Amit Aggarwal, senior director of digital solutions at J.D. Power, said in the statement.
Apps are increasingly becoming wealth management firms’ front door, Aggarwal explained: “Accordingly, they need to spend the time making sure that this channel is addressing customer needs, easy to navigate and seamlessly integrated into all facets of their business.”
The study’s results are based on a survey fielded in July and August among 2,724 full-service and self-directed wealth management firm clients.
More App Usage
According to survey responses, 33% of both advised investors and do-it-yourselfers have used their wealth management firm’s mobile app more frequently during the pandemic.
Among respondents with advisors, 36% say their usage has increased, compared with 17% DIY investors. Forty-five percent of millennial investors and 30% of Gen Xers state they have used wealth apps more frequently this year.