Client Experience – Toolkit Report 2024 : What should wealth management firms focus on to deliver a great CX ?

Customer experience – what’s all the fuss about?

We should probably start by asking – and then answering – the fundamental question: why is there so much talk about client experience (CX) in the wealth management industry today? What is all the fuss about?

There are several reasons why CX has risen to the top of the agenda. One of the driving factors behind the rise of CX is, of course, competition. The dynamics and make-up of the industry have changed significantly in recent years – and continue to do so.
Traditional players, potentially ‘held back’ by large, complex and in some cases outdated technology infrastructures, are now facing nimble, more agile and innovative FinTechs and Neobanks that don’t have to deal with legacy systems or complex and siloed processes. These new entrants, eager to capture market share and attract customers, offer a comprehensive omni-channel suite of products and services. They are targeting an evolving client demographic that prefers digital interactions with their wealth manager to face-to-face discussions over a round of golf. Delivering a truly exceptional CX has become table stakes in today’s marketplace.

Client expectations have risen in line with the increasing influence of competitive offerings. With the much-discussed ‘great wealth transfer’ and the customer experiences seen in other industries, clients are now demanding more from their wealth managers.
Accelerated by Covid, clients want 24/7 access to their investment portfolios, real-time access to market information and personalised recommendations. While some segments of the market still value the human touch, many are increasingly relying on technology and digital channels to interact with their wealth managers and advisers. And they expect wealth management to be able to deliver the same, if not better, levels of CX than they might experience elsewhere, whether it is with their airline loyalty programme, their online shopping or their consumption of online entertainment.
If it can be done elsewhere, surely financial services can – must – keep up?

Finally, a key driver is differentiation. CX and the ability to consistently deliver a world-class experience at every touchpoint, from onboarding to the end of a client-adviser relationship, has become a key area of differentiation for wealth managers looking to build lasting, trusted relationships with clients. With the advent of AI and data analytics, and their combined potential to further enhance CX, wealth managers have recognised that CX is a critical area of differentiation to attract and retain clients, and ultimately increase assets under management (AUM) and profitability.

What should wealth management firms focus on to deliver a great CX?

Let’s be clear from the outset: no single part of the value chain! No single step in the client lifecycle should be considered in isolation. Rather, every single touchpoint with a customer across the value chain needs to be well orchestrated, with the links between each step carefully considered and the downstream impact of decisions considered. Do this well and you will deliver a strong and, crucially, consistent CX. Of course, we all know that we only have ‘one chance’ to make a good impression on a customer, at the beginning of the relationship through customer onboarding. This step needs to be simple, quick, efficient and frictionless (and compliant, of course!).
Creating transparency and building trust with clients at this stage is key – much like the first impression on a first date! To build and maintain a long-term relationship, every subsequent touch point with the customer must reinforce the promises and expectations created at the outset. One misstep can jeopardise the entire relationship. Whether delivering services via mobile applications or web-based interactions, the user experience (UX) and user interface (UI) must provide intuitive ways to engage with the adviser and wealth manager, while ensuring security. There is little point in delivering a great onboarding experience, only to have a poor execution of a client request at some point down the line undermine the level of service and client expectations set at the outset of the relationship.
Consistency, quality and immediacy are key.

Building on this, the way in which problems – should they arise – are addressed and resolved is as key to delivering a great CX as the service delivery itself. The importance of a strong problem resolution process and a ‘delightful’ experience is paramount. A great product, a great service – both can be quickly undermined if problems arise and are poorly handled, a point overlooked by many institutions today. In a world where experiences and dissatisfaction can be shared, liked and amplified at the touch of a button on a phone screen, dealing with problems or even anticipating them efficiently and effectively can quickly make the difference between winners and losers.

It’s not just about technology

Many will say today that technology is the Holy Grail and the panacea for every wealth management challenge. I beg to differ. While this may be true for operations such as Revolut, traditional banking, where the client-adviser relationship relies heavily on human interaction, cannot, should not and must not do without this element. Of course, technology is essential for banking, but the human touch remains key.
Especially when it comes to solving problems, as I mentioned earlier. All the chatbots and AI in the world cannot solve every problem.
Customers want an ongoing relationship based on transparent communication, a consistent experience, trust, and the relevance and personalisation of the information and recommendations they receive. The reality is that there needs to be a symbiotic relationship between technology and the adviser. And equally, if not more importantly, no amount of technology can compensate for poor business processes.

The adviser’s ability to continually listen to the client, use technology to create feedback loops to learn and subsequently improve products and services is critical and is a fundamental aspect of a strong CX. Last but not least, the importance of upskilling and reskilling staff to efficiently use the technology at their disposal to consistently deliver exceptional CX cannot be overlooked.

Where to look for best practice?

Many will point to the examples of Amazon or Netflix when discussing the importance of personalised recommendations based on understanding the customer and using data to predict future consumption.
But what about the automotive industry? Far more complex than financial services, the automotive industry is a powerful example of an industry built on seamless and streamlined processes. Major retail chains and the entertainment industry demonstrate the effective use of customer data and multiple communication channels to deliver a personalised, relevant and frictionless CX that fosters long-term loyalty and trust.

What’s next for CX?

Technology will continue to evolve. There will always be a critical role for human interaction between client and adviser. The real game-changer? Data. How data can be used – by humans, AI or a combination of both – to deliver predictive, low to no risk investment strategies AND a great CX. That’s the game changer.
We all know that the industry is awash with data, whether it’s sitting in legacy systems or being captured through front-end digital interactions. The trick is what that data can be used for to drive a better CX and, in turn, value for the wealth manager.

As always, the key to continued success will be finding the balance between using technology, using the human touch to build trust for long-term relationships and, of course, delivering a consistently excellent CX.