When we talk about meeting client needs, what do we mean? What themes is the industry talking about when defining who the client is? What does that mean in terms of servicing them appropriately?
Carina Schaurte, Vice President, Financial Services Lead Switzerland, at Capgemini Invent, commented: “In the short term and over the next ten years, we will see the transfer of wealth and the increase of female investors having an impact on the market. Both client types have different servicing needs and require guidance in making investment decisions. Then those in their 40s and 50s will inherit and will need advice while they are still in the wealth accumulation stage.”

Marco Borer, Executive Director, Global Wealth Management Digitalisation and Innovation, at UBS, added: “If you look at clients, then the age profile is just one element. The aim should be to have an ongoing conversation with the client, regardless of their age bracket, about their needs. Having digital tools means we can reach out to people who are still acquiring wealth or have just inherited and engage with them where they are right now rather than waiting until they reach a higher wealth bracket.”

He added: “The context of the client is so relevant. Face-to-face with the adviser in the right mindset, then it is easy to make a decision, but it is less straightforward and instant with digital channels. Finding the right context at the right time is essential.”

And Christine Ciriani, CEO EMEA at InvestCloud, says: “Today it is not just about AUM. It is about retaining clients, and when it comes to the next-gen, it is all about capturing their attention through the right channel at the right time, improving their ability to self-serve, and being relevant. For this demographic, behavioural science is coming into play a lot more, and their ability to share insight and investments with others is also important. Those in a lower age bracket are far more likely to share information and thoughts in a community setting and, in doing so, become a referral source for others.”

What can the industry rely on in terms of a stable base to work up from? What are the basics?
Schaurte thought that a basic answer is wealth preservation for 80% of assets and then 10% for lifestyle. That leaves 10% for investing to play around with. “Preservation is becoming more important as we see gaps in pensions planning and general uncertainty in the world reflected in market volatility. This has been core to the wealth management proposition historically and will continue to be so,” she said. 

Ian Keates, CEO of Altoo, agreed: “Wealth preservation and succession are the primary aims. The wealthier and more complex the client is, the trickier this is to deliver. This has always been the case.”

But the challenge of delivering that within a legacy framework is an issue. How should wealth managers deliver a tech infrastructure to meet today’s and tomorrow’s demands?
Ciriani said: “The trick is to use what you already have, and then leverage ecosystems and go back to basics. This used to be just having a client portal, but now it is about using all digital channels and being able to engage a client to use those channels and the collaboration tools they find there. Servicing has gone up a notch, and rightly so.”

Keates added: “There is no point in having digital channels and sophisticated tools if clients do not see their value and do not engage with them. We know that people only use technology if they think it serves a purpose. Wealth managers, therefore, need to put the time and effort into understanding what clients need and find useful, and then deliver that.”

As important as the tools is the content sent to the client.
Borer commented: “Wealth managers should be mindful about what is and is not relevant and the level of detail that the client will find useful versus overwhelming. If we understand our clients, we can get the channel, the context, and the timing right.

“Small touches like using a digital market (a post-it note equivalent) to signpost the client to the relevant bit of a report or some interesting stats all add up – it is a nice and personalised touch and is a proactive move that shows the client that the adviser really understands what they need next.”

And Ciriani added: “Using data intelligently is important. Clients do not want to input data multiple times, so capturing and reusing data is key. An aggregated view is also essential so that the adviser does not have to toggle between different systems and is more able to provide an instant response during the course of a conversation.”

So should the client be at the heart of any tech development, and should UX be at the forefront of design?
Keates commented: “Our whole development lifecycle is very much geared up around clients, providing modularity and then being able to do the analytics and find out what tools and functions are being used and how frequently. In this way, we can tailor the offering to what people want, need, and are willing to pay for. As a bank, it is about picking and choosing the right tech to give both client and adviser the best experience possible.” 

Borer says that getting client feedback in the development stage is important but can also be tricky, given that retirees often are most willing to help but are not representative of the client base as a whole. “We have to consider a multitude of facets of what clients need as part of the development stage,” he says. 

Ciriani added: “Sometimes there needs to be a change in culture and the win here is incremental - making things intuitive and easy to use and providing training. It has to be beneficial to the adviser and client alike at the end of the day so that the result is better levels of service and engagement and, ultimately, retention.”

This article is a write-up from The Wealth Mosaic’s Swiss WealthTech Live Event 2022 to launch the Swiss WealthTech Landscape Report 2022. You can access the full report here.