Why Client Communications Management in Wealth Is Key to Building Engagement

by | Jun 28, 2021

An Omnichannel, Client Communications Management Platform Can Help Meet The Current Expectations Of Wealth Management Clients

Digital transformation initiatives received an unprecedented boost from the global pandemic.

According to a 2020 survey by Twilio, COVID-19 accelerated companies’ digital communications strategy by an average of 6 years, while 79% of respondents reported that COVID-19 motivated an increase on the budget allocated to digital transformation.

92% Of the financial services companies surveyed say their organization is very or somewhat likely to expand digital communication channels as the world reopens. 54% Said COVID-19 propelled focus on omnichannel communications … ~Twilio

Client Communications Management in Wealth

Looking specifically at client communications management in wealth, more than half (53%) of wealth management firms in the same survey by Twilio said their clients are demanding an increase in digital engagement. They expect to interact with their wealth advisors through a broad range of digital channels, just as they do with their bank or favorite online retail store.

In addition to client-driven shifts, wealth management firms must also deal with rigorous regulatory requirements, competitive pressures from non-traditional wealth management alternatives and a slew of emerging digital technologies. What’s more, high net worth clients are hyper-aware of privacy and security issues and expect their wealth managers to prioritize the protection of their personal information.

The key challenge for wealth client communications management is to keep enhancing the client experience, by enabling the expected level of omnichannel communication in a compliant and integrated manner. Meeting this challenge requires having the right technology in place. Wealth management companies that failed to embrace enabling technologies are at risk of losing clients and wallet share to those that made smart and timely technology investments.

Is the expectation of digital engagement a generational thing?

According to a white paper by Celent, digital engagement expectations do differ between generations. Much attention is paid to what millennials want, with good reason, as this generation is the largest in the US workforce. Not only are millennials entering their peak earning years, but this age group will also be the recipient of the largest intergenerational wealth transfer from their baby boomer parents.

If millennials are a key segment for wealth managers to attract and retain, it is imperative to know what this group wants when it comes to engaging with a wealth manager. Enduring client relationships are built on 3 key criteria: trust, transparency, and loyalty. In the absence of the first two, achieving the third is highly unlikely.

Celent reveals that millennials expect their wealth management firm to be technically sophisticated. They have definite expectations around privacy and the sharing of their personal information. They also tend towards a low level of trust when it comes to financial institutions, in part due to a lack of interactions that they deem valuable. These factors contribute to a low level of loyalty towards wealth managers, and the ongoing risk that the investor might move their wealth to another management firm.

To address these expectations, wealth managers must maintain a program of consistent and relevant communication which reiterates their focus on transparency, security, and data protection. A millennial investor will appreciate the level of technical sophistication needed to provide this communication in any channel, with the ability to switch channels and still get a consistent experience.

How an omnichannel, client communications management platform can quickly fill the gap

In a world of instant gratification and self-service, wealth clients across generations, expect real-time information to be available at their fingertips, with the click of a button. They also want to select their preferred communication channels and be able to engage when and how they choose.

Wealth management firms can quickly close the gap between client expectations and their capabilities by outsourcing to a vendor experienced in wealth client communications management, that handles the inherent data complexities and regulatory requirements as part of a comprehensive cloud-based solution.

A comprehensive CCM platform will not only enable digital engagement with investors but will also support wealth managers by making all client communications and personal documents immediately available in the case of a query.

At Doxim, we understand the unique requirements of the wealth management sector and can advise on how to digitally transform wealth client communications management using Doxim solutions.

5 Reasons to source a wealth client communications management solution from Doxim:

  1. Award-winning, omnichannel CCM industry leader to drive your digital client communication strategy.
  2. Robust IT infrastructure and comprehensive data governance ensures enterprise-grade protection of client PII.
  3. Integrated consulting + technology + production approach drives enhanced client experiences, optimized operations, and empowered business users.
  4. Chosen partner to dozens of enterprise wealth management organizations across North America, helping them strengthen client relationships.
  5. Proven implementation methodology that delivers a flawless ‘go-live’ of your client communications on our platform.

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Scott Biel
Chief Revenue Officer
Scott has 25 years of experience in Customer Communications Management (CCM), with a primary focus on delivering exceptional results for the financial services industry. In his current position as CRO, Scott oversees all revenue-generating activities and works closely with executive leadership, sales, solutions and partners, to develop and execute a revenue strategy that further positions customers and the business for maximum shared success. He leverages his extensive knowledge of CCM, regulated and financial services to improve customer experience, drive operational effectiveness and achieve cost optimization through digital technologies.

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