A recent J.D. Power study shows that clients in wealth management expect more personalized, goal-oriented digital experiences. The latest findings from the J.D. Power 2024 U.S. Wealth Management Digital Experience Study highlight a significant trend: both full-service and self-directed wealth management clients now expect their digital platforms to provide proactive, personalized guidance to help them achieve their financial goals.
While many wealth management firms are still meeting the basic needs of transactional relationships, most are falling short in delivering truly customized digital experiences that set them apart in a competitive market.
According to J.D. Power Executive Managing Director and Global Head of Wealth and Lending Intelligence, Craig Martin, “The majority of apps and websites for investors are delivering the basics of a foundational digital experience with the requisite design aesthetics and core capabilities to get by. Delivering at this level is the minimum threshold but the bar is being quickly raised. Failing to keep up will put firms at a major disadvantage in their efforts to drive organic growth. Leading-edge firms are delivering truly valuable experiences that offer proactive, personalized guidance and tools that support the increased focus on establishing financial plans and the tools that help investors achieve their goals. While many firms have increased their focus on planning and related tools, they are struggling to deliver on the digital experiences that provide the higher-order values that clients are being told to expect.”
J.D. Power Senior Director of Digital Solutions Jon Sundberg added, “In a world in which firms are offering no-fee trades and many of the basics of the user experience are similar from one brand to the next, the digital experience hierarchy has increasingly become a critical means of differentiation. The fastest path to delivering on growing customer expectations for digital is to deliver a truly personalized level of engagement that takes each client’s unique needs and goals into account.”
The study shows that 70% of full-service apps, 73% of self-directed apps, 75% of full-service websites, and 76% of self-directed websites deliver basic digital functionality criteria, organize data logically, and deliver a modern, clean aesthetic. However, only 18% of full-service apps and 14% of self-directed apps enhance the user experience by offering proactive guidance in setting and reaching financial goals.
Moreover, 44% of self-directed clients expect their wealth management firm to help them meet their goals through their firm's apps and websites, a 40% higher percentage than last year’s study.
The study also showed that overall satisfaction increases significantly when wealth management apps and websites exceed basic functionality. Investor satisfaction scores are more than 100 points higher on a 1,000-point scale when clients feel their digital experience goes beyond being merely foundational and includes the tools and features they need.
The survey also showed that data security is a top concern and is critical to clients experiencing satisfaction. Among full-service clients, satisfaction scores drop by 147 points when there are concerns about the security of personal information. For self-directed clients, scores fall by 145 points under the same circumstances.
Learn more about the study here: https://www.jdpower.com/business/press-releases/2024-us-wealth-management-digital-experience-study
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