Customer experience (CX) has emerged as a critical differentiator in the wealth management sector in recent years, and rightly so. With wealth management considered as potentially one of THE defining service industries, we look at how the service aspect of the industry can be maintained if not further improved as aspects of delivery are digitised and move online. This interview explores the multifaceted aspects of CX in wealth management, from understanding diverse client segments to leveraging cutting-edge technologies, drawing insights from leading consultancies such as Alpha FMC, EY, PwC, Bain & Company, and BCG.

For this iinterview, we talked to Ian Ewart, a Board Director with Instinct Digital, and asked him to share his view on the evolution of customer experience in modern wealth management.

Question: What are the main trends in wealth management that are seeing wealth management firms focus increasingly on CX? Why is this becoming more and more important?
As client expectations shift and technology advances at an unprecedented pace, wealth management firms worldwide are compelled to adapt and deliver modern, personalised, and seamless experiences.

Global events and societal changes, with massive intergenerational wealth transfers occurring, are significantly shaping client expectations and challenges in wealth management. According to a recent EY Global Wealth Management Report, with 51% of clients now preferring to interact with their wealth managers through digital channels. Alpha FMC notes that sustainability and social responsibility have also become key considerations, with clients increasingly seeking investments aligned with their values.
Innovative CX approaches from other industries are being adapted for wealth management. PwC highlights the potential of augmented reality (AR) in enhancing client portfolio visualisations, while Bain & Company emphasises the importance of omnichannel experiences inspired by retail banking.

Question: This might sound obvious, but why the ever-increasing focus on (and near obsession with) personalisation?
Striking a balance between personalisation and privacy concerns is crucial. BCG suggests that wealth management firms can achieve this by adopting a 'privacy by design' approach, integrating data protection measures into their CX strategies from the outset. AI and Machine Learning (ML) are enhancing the personalisation of financial advice and services. EY reports that 41% of wealth management firms are already using AI to provide personalised investment recommendations.

Question: What do you see as the role of technology in the delivery of CX going forward?
Emerging technologies like blockchain and virtual reality are poised to play significant roles in future wealth management CX. Alpha FMC predicts that blockchain could revolutionise asset transfer and verification processes, while virtual reality might enable immersive client meetings and portfolio reviews. To ensure technological advancements enhance rather than complicate the client experience, PwC advises firms to focus on user-centric design and continuous client feedback.

Question: Do you see differences in attitudes to and needs for CX across generations?
Millennial and Gen Z clients have markedly different expectations compared to older generations. Bain & Company notes that younger clients prioritise digital-first interactions, socially responsible investing, and holistic financial planning. To cater to multiple generations simultaneously, BCG recommends a flexible service model that allows clients to choose their preferred level of digital versus human interaction.

Question: Will technology make the adviser role and therefore the human touch redundant?
According to EY, clients generally prefer digital interactions for routine tasks such as checking account balances or making simple transactions. However, human expertise is still valued for complex financial planning, major life events, and during market volatility. Alpha FMC suggests that wealth management firms can create a seamless blend of digital and human touchpoints by implementing 'hybrid' advisory models, where digital tools augment rather than replace human advisers.

Question: How should wealth management firms best measure the success of their CX efforts?
Key performance indicators (KPIs) for evaluating CX success include Net Promoter Score (NPS), client retention rates, and share of wallet. PwC emphasises the importance of real-time feedback mechanisms and sentiment analysis to gather and act upon client feedback effectively.

Question: And how do firms balance delivery of an enhanced CX, with greater levels of personalisation, with ongoing regulatory compliance?
Navigating regulatory requirements while providing an exceptional client experience remains a challenge. However, BCG sees opportunities in 'RegTech' solutions that can automate compliance processes, freeing up advisers to focus on client relationships. EY suggests that firms can improve CX within compliance constraints by adopting a 'compliance by design' approach, integrating regulatory considerations into CX strategies from the outset.

Question: What should firms be considering over and above delivering a great CX?
Client expectations are evolving beyond traditional wealth management to encompass overall financial wellness. Bain & Company observes a growing demand for services such as health and lifestyle planning, career coaching, and family governance. Innovative partnerships with FinTech firms, healthcare providers, and lifestyle brands could help address these broader financial needs.

Alpha FMC stresses the importance of client education in modern wealth management CX, suggesting that firms should provide personalised learning experiences through digital platforms. To empower clients while still providing expert guidance, PwC recommends implementing 'guided choice' models that offer curated options based on individual client profiles. Global Perspectives. Client expectations vary significantly across global markets. EY notes that Asian clients generally have higher expectations for digital services, while European clients place greater emphasis on sustainable investing. BCG suggests that firms can enhance their CX by adopting best practices from different regions, such as the advanced digital capabilities seen in China or the sophisticated ESG integration observed in Nordic countries.

Question: What other factors are impacting CX?
Client demands for sustainable and socially responsible investing are profoundly impacting CX in wealth management. Bain & Company reports that 75% of wealth management clients now consider ESG factors in their investment decisions. Innovative approaches to incorporating ESG factors include interactive sustainability scorecards and impact measurement tools, as highlighted by Alpha FMC.

Question: In conclusion, what do you see as the big picture items impacting CX in the near future?
Looking ahead, PwC envisions the next big revolution in wealth management CX to be the integration of artificial intelligence with human expertise, creating 'augmented advisers' capable of providing highly personalised, data-driven advice at scale. To prepare for future client expectations, EY recommends that firms invest in flexible technology platforms, cultivate a culture of innovation, and continuously upskill their workforce.

In conclusion, as the wealth management landscape continues to evolve globally, firms that prioritise and differentiate their customer experience and adapt to changing client expectations, with fast-learning and agile positioning will be best placed to thrive. By leveraging technology, embracing personalisation, and maintaining a balance between digital efficiency and human expertise, wealth management firms can create differentiated experiences that resonate with clients across generations and geographies. This cross-generational aspect will be key to maintaining relevance and to meeting the intergenerational transfer of wealth.

About the interviewee:
Ian Max Ewart
Board Director, Instinct Digital
Adviser FinTech and Financial Services
ian.ewart@instinctdigital.io

Ian is a C-suite marketing, sales, business, commercial and relationship development professional with extensive customer success experience. He is a Fellow of the IoD, and a non-executive director with board and executive committee experience in financial services, FinTech, RegTech, working in the marketing and management consulting industry. He has extensive experience across in business planning, operations management, risk and control, CRM, investment & asset management, and people management.

About Instinct Digital:
The Instinct Digital mission is to modernise the investment industry by making it accessible, intelligible and client centric. We deliver digital first solutions to simplify investor communication and redefine how investment managers engage with their clients. This is made possible by our investment communication platform that brings investment firms and their clients together across the entire client journey by delivering accurate data, consistent reporting and a superior client experience from one single platform.  We are changing how investment managers deliver information to their investors and how their investors interact with them and that information in a digital age. Headquartered in London, we have built long term partnerships with investment managers in the UK, Europe and North America.