How to Increase Paperless Adoption in Wealth Management

by | Aug 26, 2021

Research reveals the top tactics successful wealth management firms use to drive paperless adoption

Your wealth management firm most likely sends a lot of transactional and regulatory communications to its clients. These documents probably include, but are not limited to, statements, trade confirms, and tax documentation, which are not only necessary, but also an important contributor to the overall client experience (CX).

For that reason, your wealth management firm needs to proactively manage its transactional communications by ensuring they are provided in a way that is seamless, frictionless and above all, meets the client’s immediate needs.  Paperless communications tick all these boxes. They are more cost effective, more environmentally friendly, and more immediately available to clients. Plus, they enable interactive digital experiences, which lead to increased client engagement and satisfaction.

But, achieving paperless adoption in wealth management can be a challenge. Recent research by Keypoint Intelligence sheds light on how many wealth management firms are meeting paperless adoption targets and uncovers the tactics successful firms use to drive adoption, and the barriers to achieving those targets.

The State Of Paperless Adoption In Wealth Management

The COVID-19 pandemic has accelerated the shift to digital channels across the board. This presents an opportunity for wealth management firms to increase their online paperless adoption rates, further than they might have previously believed possible.

In fact, while 45% of financial services respondents to the Keypoint Intelligence study said they are meeting their paperless adoption targets for bills and statements, and 43% say they are exceeding them, there’s no need for wealth management firms to rest on their laurels.

The current environment represents a unique opportunity for these organizations to further increase their targets and encourage even more of their client base to move towards digital communications.

The truth is, some clients, especially those in older demographics, may always prefer printed communications, even though they are slower to arrive and offer more limited opportunities for engagement. But, now more than ever, many clients can be swayed to adopt cost-effective and convenient digital communications – if a firm uses the right tactics to persuade them.

Top tactics for boosting paperless adoption rates

There are several tactics that your wealth management firm can employ to optimize the adoption of digital transactional communications, but one stands out from the rest.

Research by Keypoint Intelligence, shows that 64% of financial service firms that meet or exceed their paperless adoption goals cite providing a better customer experience as the top reason for their success. Meeting security and privacy concerns comes second, while having an effective multi-channel marketing strategy is close behind.

Financial Services  (N=47)

Better customer experience  – 64%

Meeting security and privacy concerns  – 49%

Effective multi-channel marketing strategy  – 47%

Source: Doxim CCM Vertical Market Study (US): Keypoint Intelligence 2021

What does a better customer experience look like for wealth management clients?

Most wealth management clients that are naturally drawn to digital options have already migrated all or a portion of their transactional communications to paperless. Theyy don’t need to be educated on the benefits of digital, but some may need additional motivation to switch their remaining communications.

For the rest of your client base, providing a better customer experience is critical to motivating adoption, and the way to achieve this is to design transactional communications with the client at the core of all decisions. Paying attention to what clients want to see primarily on transactional communications is the difference between a complex, client-unfriendly document and one that meets their requirements immediately. Taking advantage of the digital format to add features like personalized explainer videos or targeted offers can help  set your digital communications apart from their less robust paper counterparts.

As the Keypoint Intelligence data suggests, wealth management clients are also very focused on the security and privacy of their sensitive documents online. Providing clear and comprehensive information on how your firm keeps their data safe is, therefore, a critical part of any paperless adoption campaign in wealth management.


What is preventing some firms from reaching their paperless adoption targets?

The financial services respondents to the Keypoint Intelligence survey that indicated their organization was not meeting paperless adoption targets, identified three equally challenging barriers to success:

Financial Services  (N=5)

Not easy enough for customers to switch – 40%

Not easy enough for customers to use  – 40%

Lack internal consensus on our strategy  – 40%

Source: Doxim CCM Vertical Market Study (US): Keypoint Intelligence 2021

These results show that high rates of paperless adoption in wealth management result from two factors. Firms need to offer the right communications technology, by choosing a solution that is easy for clients to adopt, navigate, and benefit from. But, technology alone won’t lead to high levels of paperless adoption. Wealth management firms also need to agree upon, and implement, an effective multi-channel marketing strategy that clearly outlines the advantages of paperless communications and makes it simple for clients to switch.

How Doxim can help increase paperless adoption in wealth management

Working with an experienced customer communication management (CCM) vendor, such as Doxim, can offer your wealth management firm the technology and tactics it needs to boost paperless adoption. Our CCM experts ensure that communications are designed with the client experience front and center. By leveraging our digital solutions, your firm can make it more compelling for clients to adopt a digital format, thereby increasing paperless adoption rates.

Our responsive solutions will allow your clients to view their regulatory documents on the device of their choice, without compromising the intended experience.

Doxim also offers expert consulting to help you craft a plan to increase your firm’s digital adoption rate.

With 20+ years of experience in helping companies go paperless, let us help you move the needle on your paperless adoption rates, which will improve the client experience and decrease your operational costs.

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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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