Client Experience Delivers Walletshare Gains


Client Experience Delivers Walletshare Gains

Using technology to streamline asset consolidation is key to growing walletshare

September 2019, BOSTON - Although a sizeable percentage of investors express interest in consolidating their assets at one provider, a much smaller group actually does so. The steps needed to consolidate assets often cause clients to abandon the effort. Providers committed to expanding account assets should explore how they can use technology to complement the asset transition specialists who shepherd investors through this process.

Close to half (49%) of affluent market respondents indicate that they would prefer to use a single institution to serve the bulk of their financial needs. Despite these reported preferences, new research from Cerulli Associates, a global research and consulting firm, indicates that adoption of the option is fairly limited. To build and maintain retail investor marketshare, creating a path of least resistance will be crucial.

“While the idea of consolidating finances is appealing, the steps needed to get there are not. Investors want the outcome without the laborious process of getting there,” says Scott Smith, director of advice relationships at Cerulli. “Using technology to assist investors with asset consolidation is expensive, but this type of high-touch service can create client advocates more likely to promote a firm among their peers.”

The majority of investors report using digital solutions to monitor their portfolios and track progress toward goals. Some industry stakeholders focus on the importance of technology in serving the “next generation” of investors. Smith urges providers to plan and prepare for the next generation of investors in the immediate future. As platforms react to the evolving demand of investors across age cohorts, Smith sees technology that enables account aggregation and improved face-to-face exchange via video chat as table stakes. He adds, “Investors have come to expect their providers to seamlessly serve them across any possible communication channel with no degradation in functionality across industries.”

Anticipating demand and maximizing adoption are the core of an effective digital strategy. To strengthen and scale their client relationships, financial platform providers will not only have to develop digital applications that interest clients and prospects, but they will also need to assure that they are used frequently and effectively. “In addition to their normal quality control tests, developers should include extensive product usability demos by testers across age cohorts,” Smith concludes.

These findings and more are from the September 2019 issue of The Cerulli Edge—U.S. Asset and Wealth Management Edition, which explores how the use of technology to streamline asset consolidation and focusing on Generation X investors can help build walletshare.

These findings and more are from: The Cerulli Edge—U.S. Asset and Wealth Management Edition, September 2019 Issue.


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