A large majority of investors prefer to go digital instead of using the phone or mail to see nearly all core activities, including checking their account balances.
A new Forrester report on "Digital Wealth Management" shows that although the preference for this channel has changed over the years, not many wealth management firms are investing in digital touchpoints.
The majority (17 percent) of companies use phone for contacting their customers as compared to eight percent using a PC, and one percent using a tablet.
The survey of more than 5,400 US investors' digital behaviour indicates early adoption of mobile and social by E-Trade and Morgan Stanley respectively. ANZ Private Bank and Fidelity are also early leaders in collaborative advice, and usability.
"Digital disruption is arriving later to wealth management than to other industries like media and retail, because the wealthiest investors are older," says Bill Doyle, vice president and principal analyst at Forrester Research. "But the massive shift to digital touchpoints is already on, with a large majority of investors now using digital first instead of the phone or mail to see ‘how am I doing?’."
Web on a PC
Forty-one percent of wealth management firms said that web on a PC is their channel of choice for checking account balances.
Forty-four percent of the firms use it for viewing portfolio holdings, 19 percent use it for transferring money and trading stocks. Fourteen percent use it for viewing mutual funds, eight percent for exchange-traded funds and seven percent use it for bonds.
Three percent of investors check their account balance on a mobile phone, two percent check on a tablet and 14 percent using mail.
E-business is low priority at many wealth management firms and Forrester advises them to give it proper attention. Success can be achieved if digital touchpoints become more human, and firms effectively integrate their human representatives into these touchpoints.
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