Within the wealth management community, conversations frequently revolve around the concept of enhancing the client experience, with much speculation about its future. However, at its core, the essence of what constitutes a good (or even great) client experience remains unchanged. So, what has happened?

Firstly, the increasing complexity of the global financial services industry, with its flood of information, regulations, and a plethora of products and services, has overshadowed and diluted the essentials that truly matter. Secondly, client expectations have been significantly shaped by the entertainment industry. We have become accustomed to immediate gratification and to the allure of engaging digital experiences, often desiring things we had not even realised we wanted and perhaps did not even need.

As a result, the vision for the future of client experience in wealth management is often portrayed as a cornucopia of exhilarating possibilities akin to the offerings of Netflix and TikTok. This ideal service is envisioned as all-knowing and driven by algorithms, capable not only of responding to clients’ inquiries preemptively but also of revealing unexpected insights that clients had not considered. Some might call it the WealthTech dream.

Yet, is this really the future? Or does the future lie maybe in the past? It is worth considering how technology can help us recapture the elements we have lost to complexity and, thus, augment the client experience to match evolving, not new, client expectations.

Indeed, the path to transforming client experience lies in five fundamental cornerstones, each overlapping each other and each being pivotal to adapting and meeting the heightened expectations of today’s clients.

The human touch
Overshadowed by the demands of paperwork and the complexity of modern financial landscapes, the human element has increasingly taken a backseat. This shift has made an impact on the depth and quality of client relationships. Moreover, the evolving expectations of clients to have their needs anticipated, sometimes even before they fully recognise them as needs themselves, adds another layer of complexity. This is about seeing the client as a whole, beyond numbers in a portfolio, recognising the client’s unique traits and aspirations and paving a path towards their lifetime financial goals. Using tools that will relieve the administrative burden to make time for meaningful dialogue and that capture the client story perfectly to convey a feeling of being seen, heard and fully understood will be key to reclaiming the human aspect of the client-adviser relationship.

Trust - reputation, security, and independence
In a world where clients are increasingly wary of data breaches and privacy concerns, trust is paramount. The WealthTech industry can learn from technology platforms, which have earned user trust by ensuring security and avoiding spam or viruses. This trust extends to the use of third-party suppliers, advocating for open architecture, and fostering independent networks. The key is to offer flexibility of choice while ensuring security and reliability. To do so, the capacity to integrate reliable and validated third-party providers is central.

Client communication
Over the years, there has been a significant shift in client communication in wealth management - from providing relevant and targeted information - to an overwhelming deluge of data. This flood of information, often lacking in personalisation and relevance, has obscured the valuable investment insights that clients truly need. The key challenge now is to reclaim the essence of what was once a more focused exchange: delivering pertinent, valuable information that resonates with each client.

Products, advice, and content
In the age of information overload, cutting through the noise is essential. Clients expect specific, personalised, and timely advice that makes use of the wealth of data at our disposal. This involves striking while the iron is hot - providing proactive advice at the right moment, tailored to the individual’s current circumstances and future aspirations. It is about curating content that addresses their current queries and guides them towards financial decisions they had not yet considered, perhaps for the longer term. In addition, wealth management needs to provide a wider range of solutions through an open architecture. Ultimately, it is essential to be specific, personalised, and proactive. Simplifying the number of touchpoints where possible is key to ensure a frictionless and rich client experience and to ensure decisions taken actually deliver value.

Data - knowledge is power
The cornerstone of modern WealthTech is data. Essential to understanding client details, financial markets and relevant fiscal and legal matters impacting decision-making for clients and their advisers of choice.

Yet data is more than numbers; it is a window into client behaviours and market movements. This knowledge empowers wealth managers to develop informed, implementable, and value-adding recommendations. It marks the start of a journey where technology, personalisation, and market insights converge to enhance wealth management beyond mere portfolio management.

Each of the pieces that follow examines the five elements more closely, shedding light on just what makes a good client experience and how technology underpins and enables the delivery of a great client experience, which has, of course, the potential to positively impact the top line.

Interested in reading the full report? You can read this edition of the Swiss WealthTech Landscape Report 2024 online here.