The future of client communication in wealth management is paradoxically old fashioned. At its core, finance operates in the cold realm of binaries, yet for wealth managers to retain clients, build deeper levels of trust and drive the top-line, they cannot overlook the importance of the human connection in their day-to-day activities.

Today’s wealth management client is drowned under a wave of constant communications. Clients are inundated with newsletters, product offering updates, and all manner of communications that often miss the mark in terms of relevance or impact. How did we arrive at this juncture?

There are two reasons for this; Firstly, human nature excels at increasing efficiency, but not necessarily effectiveness. We are adept at doing more and faster, yet we struggle to make a meaningful impact. This has led to an overwhelming flow of information. Secondly, the ongoing identity crisis across wealth management: are we a retail business? In the entertainment industry?

What we desire is relevant content, and we want it immediately. If that cannot be delivered, better not to bother at all.

In a world where even TikTok and Netflix refrain from spamming us with irrelevant content, why does the wealth management industry have a tendency to focus on quantity over quality and relevance? The modern consumer’s attention span is fleeting - unless you are announcing a Black Friday sale on your relationship manager's bonus, newsletters are about as captivating as watching paint dry.

Remember, in a world full of noise, the one who whispers becomes the most intriguing.

So, what does the future hold?
If wealth managers can embrace the TikTok or Netflix revolution, they should. Google's study showing Gen Z’s preference for TikTok over traditional search engines is a wake-up call for the industry to revamp its communication strategies.

A community of peers remains a wealth manager’s most valuable offering. In the future, wealth management firms will need to cultivate these communities, creating platforms for client connection and shared learning.

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