Full-service and self-directed wealth management clients expect tailored guidance to help them meet personal financial goals. But how most digital channels from wealth management firms have a long way to go when it comes to meeting the mark on this reports JD Power.
It’s not that they aren’t delivering on the basics; they are doing that. But wealth management clients want something more in the form of advice and guidance. Only a small percentage are delivering. That’s clearly not a positive dynamic for the space. Beyond that, the results of JD Power’s 2024 US Wealth Management Digital Experience Study show the importance of data security and perceptions of clients that their information is secure.
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The report concludes that there are a lot of similarities between different services and brands. However, taking their offerings to the next level may help some stand out.
“The majority of apps and websites for investors are delivering the basics of a foundational digital experience with the requisite design aesthetics and core capabilities to get by,” said Craig Martin, executive MD and global head of wealth and lending intelligence at JD Power.
“Delivering at this level is the minimum threshold but the bar is being quickly raised. Failing to keep up will put firms at a major disadvantage in their efforts to drive organic growth. Leading-edge firms are delivering truly valuable experiences that offer proactive, personalised guidance and tools that support the increased focus on establishing financial plans and the tools that help investors achieve their goals. While many firms have increased their focus on planning and related tools, they are struggling to deliver on the digital experiences that provide the higher-order values that clients are being told to expect.”
JD Power 2024 US Wealth Management Digital Experience Study key findings
Moving beyond basics of digital functionality
A majority of full-service apps (70%); full-service websites (75%); self-directed apps (73%); and self-directed websites (76%) are delivering basic foundational functionality by organising information in a logical way to convey a clean, modern look and feel. When it comes to delivering truly valuable digital experiences, however, those numbers fall sharply. For example, just 18% of full-service apps and 14% of self-directed apps deliver a valuable user experience that includes proactive guidance, ability to set financial goals and help reaching financial goals.
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By GlobalDataMore do-it-yourself clients expect personalised guidance
Among self-directed clients, 44% say they “strongly agree” that they expect their wealth management firm’s websites and apps to help them meet their financial goals. That percentage is up from 40% a year ago. Among this group who expect these tools, 30% say they do not “strongly agree” that their firm is delivering on this expectation. Also noteworthy is that this percentage rises to nearly 80% among those who say they “somewhat agree” that they are expecting help.
Overall satisfaction highest when digital experiences exceed basics
Overall satisfaction scores are substantially higher among both full-service and self-directed clients when websites and mobile apps meet key criteria for delivering beyond foundational levels. Average investor satisfaction is more than 100 points higher (on a 1,000-point scale) when clients indicate their experience achieves both foundational and findable experiences. Moving to the top of the hierarchy results in truly differentiated experiences, according to clients.
Data security is crucial
Overall satisfaction scores are heavily influenced by clients’ perceptions of data security. Among full-service clients, customer satisfaction scores are 147 points lower when clients have concerns about their personal information being very secure. Among self-directed clients, scores are 145 points lower when they have concerns about their information being very secure.
JP Morgan tops study rankings
JP Morgan Wealth Management ranks highest in overall customer satisfaction with the full-service wealth management digital experience, with a score of 843. US Bank (817) ranks second and Wells Fargo Advisors (805) ranks third.
JP Morgan Wealth Management also ranks highest in overall customer satisfaction with the self-directed wealth management digital experience for a second consecutive year, with a score of 783. Stash (751) ranks second and Robinhood (749) ranks third.
