From Investment News:
“Wealth management and the Internet today are like oil and water,” a new study from SEI Global Wealth Services noted. “Separately, they look compatible, but in reality there needs to be a powerful outside force to make them come together.”
Investor demand should be that outside force. The study considered the opinions of wealth managers at 50 firms and 200 individual investors and found dramatic differences in what kinds of communications they valued and considered most important.
…Ninety two percent of advisers, for example, believe that face-to face meetings are the most important form of communication with their clients. Just 4% said online communication was critical, and only a third said email communication was a priority.
Investors, on the other hand want to more of their financial planning virtually. Indeed, fully eighty two percent of those surveyed said they wanted access to their financial statements online, and half of them said they wanted their wealth management firms to upgrade their systems to enable more interactive communication with their advisers.
I’ve seen it firsthand, Wall Street hates technology. Most advisors are scared it will make them obsolete & firms generally hate that anything digital is permanent & searchable, the two things that make arbitration easier for clients.
Despite the incumbent Wall Street firm’s attitude, I think it’s worth it to have a intuitive, simple and robust set of online tools.
At my firm, we give our clients a private online vault to upload important documents for secure storage. In this vault we can also share notes with them or their CPA & attorney, provide meeting transcripts, and of course see performance reports and year end reports. Clients LOVE it, absolute transparency– nothing to hide, easy to use.
It’s coming people & the old way will be shaken off like a bad cold. I can’t wait.
Wealth management and the web ‘like oil and water’: Study – Investment News