High net worth clients want better technology from their advisers and wealth managers but are not so interested in AI chatbots, a report has found.
Online valuations and secure online messaging were most important to customers while artificial intelligence chatbots ranked lowest.
The report, Digital Services in Wealth Management, was written by Compeer in partnership with Moneyinfo and spoke to 515 high net worth investors.
The report said the frequency of engagement with advisers had actually declined over the past 12 months which could be down to automation and the ability for clients to check valuations online.
Tessa Lee, managing director of Moneyinfo said: “While most IFAs and wealth managers offer a portal, this research shows that higher net worth clients are looking for much more in terms of digital services and that this could be a deciding factor in terms of client loyalty.”
Online valuations ranked top in terms of importance, with secure messaging only slightly behind as 69 per cent of all investors gave secure messaging via a client portal a four or five rating.
Also of high importance was the ability to store documents and sign others.
However, virtual events and AI chatbots ranked lowest, at under three out of five.
More than two thirds of those surveyed said they would consider moving providers if they felt digital performance was not up to scratch.
While wealthier clients and those aged 40 and under had the highest expectations.
More than half investors with more than £1mn claimed they wanted improvements in client portals, mobile apps, client reporting and client on-boarding
Moneyinfo’s Lee added: “We all live on our phones now and firms should bear in mind that each time the client unlocks their phone, their brand is right there on their screen.”
She said Moneyinfo’s own app receives four times as many logins as the desktop portal.
“Mobile and tablet apps are now part of our daily lives, from shopping and socialising to travelling and finance and it's their very intuitiveness and ease of use that drives engagement,” said Lee.
“They are simply more convenient than a website login. It's clear that firms need to invest in apps if they want to build client loyalty and benefit from the increased profitability that client engagement can bring.”
The report said since the pandemic, wealth firms have increased their spend on IT threefold to £598mn, which Compeer believed could grow to £18bn by 2030.
Last month, Dylan Samuel, senior relationship manager at Lombard Odier, told FT Adviser there was strong demand for cutting edge technology from high net worth clients.
He said: “We've always taken a very strong view that technology is there to help enhance the relationships and the dialogues that we can have with our clients not to replace them.”
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
