Wealth managers must embrace digital to future proof

The digital revolution has impacted wealth management more slowly than other industries and the sector must embrace digital to future proof

The need for wealth managers to embrace digital comes as an annual survey by business consultancy Compeer found that investors have switched their financial provider in the last two years. 

Compeer said another 48% of respondents were unsure if they would stay with their current provider or switch to another.

Wealth managers must adapt to keep customers as the number of investors switching rises 20% in just three years, according to Compeer.

Digital capabilities are a key consideration for many investors, with over two thirds of those asked (66%) rating the digital offering of their main provider as either “good” or “excellent.”

Over half (58%) currently access their investment portfolio online and a fifth (22%) via mobile.

However, many investors are still slow to adapt a multichannel approach: 43% say that they have access to their portfolio via mobile but don’t use it. For those where a mobile application is not currently available only 21% suggested that they would like one.

As Compeer, head of client’s services, James Brown has said: “The digital revolution has had a much slower impact in wealth management than in other industries with many traditional firms still struggling to adapt.

“But with so many investors more empowered to compare and contrast providers, it is essential that wealth managers embrace new capabilities – be that by offering access to portfolios via mobile, or deep-diving into newer, more advanced technologies.

“Wealth managers need to future proof now or they risk missing out on the next generation of investors who have grown up organising every aspect of their lives online and are used to that convenience.”

It’s time for all wealth managers to embrace digital in order to future proof themselves.