Digital wealth management apps could “eclipse” traditional channels as clients move towards new technology faster than previously anticipated, new research shows.
The popularity of mobile apps among wealth management clients has increased faster than predicted, with 41 per cent of clients saying they would prefer to use a mobile app over websites, face-to-face interaction and phone calls.
A survey in 2016 found that only 24 per cent of clients expected to shift their preference to mobile apps by 2019.
The number of wealth management clients using fintech providers is also expected to increase from 38 per cent to 45 per cent in the next three years, according to EY’s Global Wealth research report.
The report said: “As wealth managers prioritise their digital investments across multiple channels, they need to consider how client engagement may evolve in the coming years.
“This may mean reallocating budgets from websites to voice-enabled sooner rather than later, and capitalising on hybrid models, where clients have access to both digital tools and human interaction.”
One-third of wealth management clients have switched managers in the last three years and a further 33 per cent plan to change providers by 2021.
The report found that no single provider is able to meet all clients needs, with clients maintaining relationships with five different types of providers on average.