Streamlining Investor Communications and Avoiding the Scattershot Approach

21 November 2016


The results of an EY Wealth Management Survey show that four out of ten investors are open to switching wealth managers. According to the survey results, this means that globally up to US$200b in revenue may be at stake, and firms that aren’t delivering a superior client experience could risk losing business to competitors.

We are seeing many wealth managers, especially in the Alternative Investments space, take a “scattershot approach” to client reporting, where they are losing control over the customer journey and consequently losing business.

I refer to the scattershot approach when wealth management clients receive communications through multiple channels — hardcopy mail, email, web portals and sometimes directly from the external fund manager partner. This approach is unorganized, and it creates a lot of confusion for the parties involved. Financial advisors, for instance, are missing out on upsell opportunities because they don’t have a centralized view of a client’s wealth across multiple asset classes. In fact, AI is one of the last asset classes to adopt digital communications, which means, comparatively, AI is more difficult to allocate to.

Below are recommendations that can help you avoid the scattershot approach and simplify your process.

Embrace digital technologies

In the digital age, more and more clients are requesting paperless options and 24/7/365 access to their investment information. New digital platforms that integrate with existing wealth manager client portals can help to meet these new client demands without impeding existing internal workflows. Via these platforms, information is made available around the clock, and content is delivered in the investor’s preferred format.

Implement two-way automation

Collecting content from external fund manager partners, processing the information and then delivering it to clients is time consuming for internal teams. Traditional e-delivery solutions aren’t sufficient as they only provide push capabilities; wealth managers need to push as well as to automate the collection of content. New digital platforms provide two-way automation, which gives external partners self-service submission capabilities.

Protect your brand

In our heightened regulatory environment, more and more established brands are making headlines because of a data breach or a failed security audit. Wealth managers need to protect their brands by ensuring their communication practices are compliant with client and regulator expectations. Email lacks key security features and increases risk. Only encrypted, digital communication platforms can provide the security necessary to handle clients PII data. Technology vendors specialize in this, providing two-factor authentication and encryption.

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