Panel participants:
- Andreas Borg, CEO, Finfox / ECOFIN
- David Navama, CEO & Co-founder, Storyline
- Matthias Plattner, Head of Channels and Digital Services, Julius Baer
- Sanjeev Premchand, Partner, swisspartners AG
- Ingo Rauser, Partner, Wealth and Asset Management Consulting Lead, EY
- Arash Sorouchyari, Strategic Technology Advisor for FinTechs and Banks
In a recent panel discussion at The Wealth Mosaic’s CX Toolkit Roadshow event in Zurich, hosted at EY (attended by a cross-section of wealth managers, consultants and technology vendors), industry leaders from the wealth management sector gathered to discuss trends in client experience in wealth management, in light of rapid technological advancement and tightening regulatory landscapes.
The panel explored how trust, technology, and personal interaction can be leveraged to improve the overall client journey in banking. The panellists examined key trends and strategies that financial institutions should adopt to build stronger relationships with clients, adapt to technological advancements, and stay competitive.
The importance of trust in banking
Trust is the foundation upon which the banking industry is built. Without trust, the client relationship cannot thrive. The panel stressed the importance of creating trust through shared values, security, and reliability. In today’s digital world, clients need to feel that their assets are safe, their personal information is protected, and that the institutions managing their wealth share their values.
One of the panellists introduced a "trust formula" that encapsulates this idea: (shared values + safety + reliability) / self-interest. This formula underscores that trust grows when clients believe that their interests are aligned with those of the bank, and that their safety is a priority.
To further build trust, the panel advocated for an omnichannel approach that gives clients access to services through various channels – be it digital, in-person, or via mobile. Additionally, the rising threat of cybercrime was discussed, with an emphasis on the importance of advanced cybersecurity measures to safeguard client assets and data.
The conversation also touched on the growing demand for self-servicing features in digital channels, with clients seeking greater transparency and control. Moreover, banks were urged to incorporate more engaging storytelling elements in digital banking to foster deeper connections with clients. Engaging digital platforms that tell a story and guide the client through the process can significantly enhance trust and satisfaction.
Client demands and technology integration
As technology continues to disrupt the financial sector, client demands are shifting. The integration of generative AI into client portfolios was a major focus of the discussion. AI has the potential to revolutionise the way portfolios are managed by offering insights that were previously unavailable. However, one of the challenges is communicating the exposure to AI-driven assets to clients, ensuring that they understand the benefits and risks involved.
Clients, particularly those in the ultra-high net worth (UHNW) segment, are becoming more sophisticated in their demands. They are asking for more frequent and varied insights into their portfolios and expect relationship managers to maintain a personalised approach in managing their wealth. The panel emphasised the need for adaptive personalisation, where banks tailor services and solutions to meet the evolving needs and preferences of individual clients.
Behavioural changes in UHNW clients were also discussed. As these clients become more accustomed to the convenience of digital solutions, they expect wealth managers to offer a seamless blend of human interaction and technological efficiency. Relationship managers, therefore, must leverage technology to offer a personalised and enhanced client experience.
Technology deployment and emerging trends
The deployment of technology was a key theme, with the panel highlighting the importance of simplicity and visualisation in advisory solutions. Wealth management tools should not be overly complex but should focus on providing clear, actionable insights that enhance decision-making for both clients and advisers.
A shift is taking place towards more client-focused meeting solutions, with an emphasis on simplifying the process for both clients and advisers. The current complexity of advisory tools was noted as a challenge, and simplifying these tools will not only make the adviser's job easier but will also lead to a better overall client experience (CX).
Dedicated solutions for a core satellite approach, where clients’ core portfolios are managed alongside more flexible, peripheral investments, are gaining traction. As these solutions evolve, the panel suggested that banks continue to refine and develop tools that support simplicity and client engagement.
Striking the balance between digital and human interaction
One of the central discussions revolved around the balance between digital tools and human interaction in banking. As digital solutions become more prevalent, the industry must determine how much emphasis should be placed on technology versus personal relationships. While technology can streamline processes and improve efficiency, the panel reiterated that human advisers remain critical to ensuring a high-quality client experience.
A key point raised was the need for a better separation between education and strategy in client communications. Educational tools can empower clients, while strategic advice should remain the domain of experienced advisers. Furthermore, the growing role of social media in customer experience was discussed. Social platforms can be leveraged not only for marketing purposes but also as channels for client engagement and education.
The panel also introduced the concept of client co-creation groups, where clients are directly involved in the development of new banking solutions. This collaborative approach could lead to more innovative services tailored to client needs, further strengthening the client-bank relationship.
Key takeaways for wealth managers
The panel provided several key insights for wealth managers looking to enhance their client experience. First, increasing the level of self-servicing features in digital banking will meet the growing demand for client autonomy. Second, developing more engaging and storytelling elements in digital platforms can foster a deeper connection with clients. Simplifying advisory solutions and improving visualisation tools will also be critical moving forward.
Additionally, wealth managers must focus on offering more frequent and diverse portfolio insights, implementing adaptive personalisation, and integrating social media into their customer experience strategies. Finally, establishing client co-creation groups will allow banks to stay ahead of the curve by directly involving clients in the innovation process.
By focusing on trust, technology, and personal interaction, wealth managers can not only meet client expectations but exceed them, creating a more fulfilling and secure client experience.
About The Wealth Mosaic CX Toolkit Roadshow:
Following the publication of our CX Toolkit report, we have so far hosted events in Geneva, Zurich, London, with plans to host further events in Singapore and Dubai in 2025. These are free to attend for any form of wealth manager and provide technology vendors an opportunity to sponsor or demo.
About The Wealth Mosaic CX Report:
The Client Experience Toolkit 2024 is the first in a new series of toolkit reports focused on key technology themes and tools impacting global wealth management. Each toolkit report focuses on a key industry theme, segment or geography.
This first issue takes the form of a thematic report and shines a light on the trends and solutions influencing the successful delivery of client experience (CX) in wealth management. It features 11 showcases, each centred around a dedicated CX-relevant topic and related solution.
You can access the report online here.
