6 Things Advisors Should Look For in Client-Friendly Technology

During the pandemic, consumer adoption of digital technology skyrocketed, sparking consumer expectations of the digital experience to do so, as well. Businesses — including financial advisors — who invested in digital tools saw dividends in the form of increased overall customer satisfaction.

A new three-part study from Money Management Institute and Aon explores trends and gaps that have emerged between client expectations, advisor perceptions and firms’ delivery capabilities in the post-pandemic era.

“Investor and advisor views of the digital experience and tools offered by the financial services industry are shaped by the type of interactions they have grown accustomed to in other areas of their daily lives, such as e-commerce or media consumption,” Craig Pfeiffer, president and CEO of MMI, said in a statement.

The second part of the study looks at the digital experience for both investors and advisors, particularly as it relates to adoption and satisfaction with existing tools.

See the gallery for six ways wealth managers can improve their clients’ digital experience.

1. Avoid tools that are overcomplicated and difficult to learn or use.

Investors said they are generally satisfied with their wealth managers but are significantly less satisfied with their digital tools. Only 45% of investors expressed satisfaction with the digital tools on offer from their wealth manager, while 59% said they are satisfied with the relationship overall.

Among the report's recommendations: "Coach clients on the financial planning and communication tools available to them by demonstrating the tools during a financial planning update to help improve adoption/ utilization rates."

(Image: Adobe Stock)

2. Focus on simplicity and better integration with other applications.

Seventy-two percent of advisors and 58% of clients said they would prefer tools that are simpler and better integrated with other applications rather than ones with more features.

"The wealth management industry has tended to add more and more features and functionalities to applications without giving enough thought to how simple or integrated they are for clients and advisors to use," noted Ainslie Simmonds, president of Pershing X. "We can generate much more satisfaction by simplifying our tools so that a tutorial isn’t needed on how to use them. It should be self-evident.”

(Image: Shutterstock)

3. Emphasize communication tools that are central to the advisory experience.

Sixty-nine percent of clients favored advisor communication tools, such as video conferencing and messaging, while 66% cited account aggregation tools and 65% personal goal-tracking tools. The report recommended asking clients about their communication preferences, how often they would like to receive communications, and which topics and they would most like to see.

(Image: Shutterstock)

4. Promote income and lifestyle forecasts rather than asset forecasts.

Many investors place a priority on understanding their income and its lifestyle implications. In the study, 56% of clients favored income forecasting tools, compared with 49% who wanted asset forecasting.

According to the report, "advisors can more strongly engage clients in financial planning discussions by highlighting income scenarios that will resonate more strongly with them."

(Image: Shutterstock)

5. Less is more when it comes to app design.

The study noted that clients would be more satisfied with their digital experience if their wealth managers provided easier navigation functionality and eliminated the need to input the same information across different platforms. Streaming users by life stage is one way to surface the features most relevant to each segment, it said. In addition, the report recommended moving or eliminating features with low utilization.

(Image: Adobe Stock)

6. Personalize content to client interests and communication preferences.

Seventy-one percent of investors said they prefer short-form content and easily digestible visualizations to research reports with longer narratives that are more typical of research outputs. However, this differs between demographics, with nearly half (49%) of clients under age 35 preferring detailed, long-form reports.

Besides streamlined content, 69% said they also want content personalized to their interests and situations as opposed to general market information. Budgeting tools are most popular among 35- to 44-year-olds, for example, whereas retirement planning tools will have greater relevance to those ages 55 to 59.

(Image: Shutterstock)

6 Things Advisors Should Look For in Client-Friendly Technology

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1. Avoid tools that are overcomplicated and difficult to learn or use.

2. Focus on simplicity and better integration with other applications.

3. Emphasize communication tools that are central to the advisory experience.

4. Promote income and lifestyle forecasts rather than asset forecasts.

5. Less is more when it comes to app design.

6. Personalize content to client interests and communication preferences.

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6 Things Advisors Should Look For in Client-Friendly Technology

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1. Avoid tools that are overcomplicated and difficult to learn or use.

2. Focus on simplicity and better integration with other applications.

3. Emphasize communication tools that are central to the advisory experience.

4. Promote income and lifestyle forecasts rather than asset forecasts.

5. Less is more when it comes to app design.

6. Personalize content to client interests and communication preferences.

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