Why a strong digital offering is important for wealth managers to keep customers

A fifth of retail investors have stopped using a wealth management service due to a weak digital offering, new research from Nucoro claims.

The cloud-based wealth management solution provider for businesses found that 25% of male retail investors switched providers because of this reason, compared to 18% of women.

Willingness to change loos to decline for older investors. Only 11% of those aged between 55 and 64 said they changed service providers due to poor experience, and only 8% of those aged 65+ said the same.

While poor digital experiences seem to be a key driver in customer happiness, 17% of retail investors said their wealth management service did not offer a digital service to manage their investments. Further to this, 22% of respondents were unsure if there were digital services.

Nucoro CEO Lennart Asshoff said, “People are using more digital services for all aspects of their lives and how they manage their money is no exception.

“Our research shows that many retail investors are willing to switch wealth managers if they feel the digital service is not good enough and we see this trend continuing, driven very much by younger investors.

“A strong digital proposition is a necessity for any organisation offering wealth management services and not a luxury. We expect to see more wealth managers outsourcing this part of their proposition to specialist third parties like us to ensure that they can focus on their core proposition of offering advice.”

Digital services are clearly important to retail investors, with 24% of respondents stating their digital activity made up more than half of their investments.

Nucoro provides tools to help build wealth management offerings from client onboarding through to portfolio construction and bulling automations.

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