Ways To Elevate Your Firm’s Digital Client Experience

89% of RIAs agree that a high-quality digital client experience is an important competitive differentiator according to Franklin Templeton’s survey of more than 150 RIAs.

While many firms and advisors acknowledge this to be true, there is only a handful of them that prioritize the digital client experience to deliver something truly valuable to clients. 

But to no fault of their own; this is often much easier said than done. 

There are usually two challenges firms face when delivering exceptional client experience. First, advisors find it difficult to break away from the activities they're currently doing that seem to be “working”; and second, knowing where to start or what to implement can be overwhelming. 

However, advisors who can find unique ways to add more value to their clients’ lives by incorporating digital interactions into their current client engagement process will, undoubtedly, reap the benefits for generations to come.

In this article, we'll explore the shift in demographics, important considerations to keep in mind, and several proven ways advisors can deliver an enhanced digital client experience. 

Shifting Demographics Are Paving The Way For More Digital Interactions 

The shift in demographics toward younger generations is causing a disruptive change in the wealth management industry. As Millennials and Gen Z begin to accumulate wealth, they are looking for a different kind of experience from their financial advisors.

Having grown up in a digital world, younger generations expect personalized digital (or hybrid) interactions and services from their financial advisors. 

Advisors who successfully deliver a digital client experience that meets the needs and expectations of younger generations are better positioned to capture and retain those relationships. 

It goes without saying, however, that to achieve this, advisors must embrace digital technologies that allow for seamless communication, easy access to information, and personalized recommendations. They must also be able to offer more customized investment options, flexible payment structures, and alternative investment opportunities to cater to the changing preferences of younger clients.

Here are some significant takeaways on what we know with respect to the shifting demographics: 

• Millennials and Gen Z prefer digital interactions (or a hybrid approach) 
• Expect on-demand readiness and digital services – What’s the easiest way for them to access their financial goals? Notes, Reports, etc?
• Seamlessness across how they interact with your firm – Communication, Investment Management, Education
• Gen Z and Millennials are not the only ones wanting a better digital experience – Gen X has also adopted many digital preferences

With the impending impact of the Generational Wealth Transfer resulting in more than $80 trillion being passed down to younger generations over the next couple of decades, firms and advisors must actively take steps to prepare for a digital transition

Ways To Improve The Digital Client Experience 

Let's look at a few proven ways firms and advisors are leveraging technology to deliver more value to clients and across the household. 

Digital Onboarding 

Implementing a digital onboarding process streamlines the account opening process for new clients, making it easier for them to work with you and communicate any questions or concerns. Not to mention that this can significantly reduce the administrative efforts for front and back office teams. 

The onboarding process is often the first significant interaction that new clients have with advisors; getting this part right makes for a good chance to continue building a great relationship with clients.

Leveraging technology like:

• e-signatures
• digital forms and 
• automated workflows

allows firms to streamline the process, minimize paperwork and errors, and accelerate time-to-account-opening. This improves the overall client experience and will enable advisors to focus on relationship-building and delivering personalized advice. 

Client portals and digital vaults

Client-facing portals have become a major centerpiece of client interaction and engagement, and are vital tools for financial advisors to deliver added value. 

By utilizing a client portal for secure and convenient access to financial, data, information, and documents such as account statements, performance reports, and tax documents, advisors can confidently keep clients informed about their finances while ensuring their sensitive information is protected and remains private. 

Client portals or digital vaults also provide a secure channel for clients and advisors to communicate any notes that might streamline the financial planning process. For example, in preparation for an annual client review, an advisor might find it helpful to upload the Issues To Consider In Annual Client Review Meetings or Master List of Goals checklists. By flagging issues prior to the review meeting, advisors can prepare a plan of attack on these issues, streamlining the meeting and ultimately providing more value to the client.

For firms looking to invest in a client portal, consider how a portal (or Vault) can improve the engagement between advisors and clients, and ultimately, make it easier for your clients to do business with your firm. 

Digital Financial Planning 

Utilize financial planning and portfolio management software to provide clients with personalized plans and recommendations, empowering them to make informed financial decisions.

Through digital financial planning, clients can engage effortlessly with their advisors while keeping tabs on their financial progress, making it easier for them to engage in the right type of conversations with their advisors, in real-time. 

Clients want to feel as if they are in control of their finances while receiving the right type of guidance along the way; modern digital financial planning tools can provide just that. 

Mobile Applications 

Offer mobile apps or digital tools for convenient financial tracking and transactions. These tools are essential in today's digital landscape, providing clients with on-the-go access to their financial information and services. 

Mobile apps are especially valuable for clients who are on-the-go or lack computer access. They offer a seamless and integrated experience, allowing clients to view account balances, monitor investments, access planning tools, and communicate with advisors. With features like push notifications and in-app messaging, mobile apps enhance engagement and provide personalized experiences. They are game changers for wealth management firms, enhancing the digital client experience and fostering lasting relationships.

Providing Real-Time Communication And Information

Providing real-time information and communication further enhances the digital client experience. Including personalized education and check-ins that build trust with every interaction. New research suggests that advisors who engage in more frequent, personalized communication with their clients end up retaining and winning more business. Consider digital channels such as email, social media, and video conferencing.

Final Thoughts On Creating The Ultimate Digital Client Experience

The firms that prioritize, invest in, and center their businesses around the best digital client experience will ultimately gain massive advantages compared to those that don’t. 

The future of wealth management is led by personalized and value-added digital client experiences that extend value across the household and all areas of clients’ lives.

How will your firm stand out to your current clients expecting the best experience, and especially to the next generation of clients and investors? For ways to expand your firm’s digital experience, find out how FutureVault's industry-leading Digital Vault can provide massive value for your firm, your advisors, and importantly, your clients and the next generation.