The wealth management industry can learn from business disruptors.
Take Uber. In 2009, the founders built technology that made it easy via a phone app for anyone to request a ride. It was fast, cheaper than a taxi and money didn’t exchange hands. Quick, simple, convenient and a great customer experience.
What does this have to do with wealth management?
Starting in 2017, the industry began to see the emergence of digital technologies that helped clients instantly connect to their financial advisor.
In fact, Accenture’s Financial Services Global Distribution and Marketing Consumer Study reflected that back then, we were beginning to see a “shift in consumer behaviors and expectations.”
Most notability: how consumers receive advice from their advisors. Over 78% of consumers said that they “welcomed automated support” and wanted “speed and convenience.”
Enter 2020 with a world-wide pandemic leaving millions isolated at home, and it’s no surprise we have witnessed a massive migration to digital client experiences (DCX) offered by advisory firms. The goal: improve client support by more quickly and conveniently helping with their concerns, servicing their needs and finding investment opportunities.
Firms with the highest growth rates in 2020 had one thing in common: Their DCX models were already in place prior to the pandemic.
What is a DCX model? Let’s begin with what it’s not.
There are two common misconceptions about DCX models. First, some believe they are a “quick-fix” technology platform, that is, many firm leaders believe they can go out and buy a DCX solution.