Hybrid Advisory: The Future of Client Experience?
The digital revolution with its access to information has inspired investors worldwide to become more hands on with their wealth. Is this the case in Europe as well?
A recent Avaloq survey reveals an overwhelming preference among affluent and wealthier investors in Germany, France and the UK to make their own financial decisions.
On average, over 70 percent of those surveyed state that they manage their own investments. While the use of a financial advisor varies by market, with nearly one-third of UK investors saying they work with one, these specialists assist investors with choosing among investment options. Most decisions are not being delegated.
Web banking is popular with investors. Are mobile and other advanced digital capabilities also in demand?
In France and Germany nearly half of those surveyed consider a state-of-the-art mobile banking app essential.
On average, one-third of respondents in the three markets regard conversational banking, or the ability to use social messaging apps to communicate with their wealth manager over, say, WhatsApp or WeChat, as one of the three most exciting capabilities to have in digital banking.
We expect these numbers to climb as investors familiarize themselves with these services and see their advantages.
Digital disruption and innovation are here to stay. How can financial firms adapt best to them?
Banks and wealth managers need to find a balance between what technology and what talented staff offer their clients. We consider this the key to ensuring long-term success.
Robo-advisory and artificial intelligence (AI) more broadly can improve customer service, automate repetitive tasks and even provide personalized investment advice. A clear majority of investors do not want an exclusively «robotic» service, though.
They appreciate the human component, especially in advice. Finding this sweet spot between human interaction and digitally based support for clients is the challenge banks face.
Is this where so-called conversational banking comes in?
The advantage of mobile banking is that clients can serve themselves whenever and wherever they choose. Conversational banking adds social messaging apps and their text, voice and rich formats to handle client requests in a conversational setting.
From AI-powered chatbots that jump in and answer common questions to tailored content distributed to clients, it can reduce costs while personalizing interactions. In the case of wealth management, a hybrid solution of AI-supported client engagement by the advisor is likely to become the premium standard.
The benefits are obvious: greater operational efficiency and a faster, richer client experience.
Does that mean in-person meetings are a thing of the past?
Hardly. We see most wealth managers developing a hybrid model that mixes automation and digital availability with classic advisory. Digital natives are less keen on meeting in person than previous generations, and not merely due to Covid restrictions.
As they age and accrue more wealth they are likely to cling to the messaging services they are comfortable with. A solution like the Avaloq Engage app promotes easy, secure, compliant interaction between wealth managers and clients, whose requests can be filled on these channels without moving to other media.
Its AI-based analytic tools and semantic language processing can help advisors respond efficiently to questions and increase client satisfaction.
What other advantages does the Avaloq Engage app offer?
It opens up new forms of client service models as a mobile workstation for wealth managers. Avaloq Engage assists with client management via contact lists and document sharing.
It integrates a virtual assistant that recommends actions. It personalizes content. As such, it can help wealth managers tap into new client segments. Services once reserved for high net worth clients can be offered to those in affluent segments to democratize wealth management, offering additional growth potential.
