Digital-first. You hear it everywhere in financial services today. But what does it mean for wealth management enterprises in 2025? And what can you do to respond to the challenges of digital transformation?
In advisory firms, banks, and credit unions, the advisor has been the backbone of success for wealth management programs over the past several decades. And will continue providing much-needed service in the future as they deliver financial advice to high-net-worth and ultra-high-net-worth clients.
However, wealth management organizations need to do more to support advisors in a rapidly evolving world where digital technology touches every aspect of our lives. Pre-integrated digital wealth management platforms that can support clients through the entire investor lifecycle will position advisors for success in the digital world. With the right fin-tech partnerships, implementing platforms that leverage the power of cloud-native technologies and AI is neither expensive nor a drain on in-house resources.
Here are three key strategies wealth management leaders need to act now to protect their organizations from emerging threats in the form of new technology and changing client expectations.
Embrace the Evolving Role of Digital Investing Technology
Efficiency and enhanced user experience are reshaping investors’ confidence that a digital platform can account for at least part of their investment strategy. The rapid growth of mobile applications has helped to accelerate this trend as today’s investors are comfortable doing almost everything on their phones. Many financial institutions have already embraced mobile support for banking and other services. Adding digital and mobile investing makes meeting your investors where they are easy and economical.
Take Advantage of Your Demographic Reality
Tomorrow’s mass-affluent and high-net-worth investors are already a part of your organization. In banks and credit unions, they represent the thousands of depositors and members whose current wealth is designated as small account that does not meet the minimum investment qualifications of the in-branch advisor. In wealth management firms, they’re the children of your clients. Without a digital solutions, many of these digital-first or early-stage investors are forced to take their funds and invest in the growing number of easy-to-access online investment platforms. And, as digital transformation accelerates with customers looking for unified financial services, you may never get them back. Providing next-gen investors an entry point to grow their wealth through a platform that offers hybrid digital advice with advisor involvement as needed, allows firms and institutions to nurture the next generation of wealth.
Focus on Education and Implementation
Investor education has become a core part of wealth management programs. This goes well beyond investing and can reach into saving, planning, healthcare, and beyond. The value of educating clients on the importance of investing for their future is clear. However, on its own, the education platform is an incomplete solution. Matched with a digital investing platform, investor education becomes actionable and relevant. This allows investors to understand what they need to do to protect their economic future.
Evolving digital wealth solutions help develop new revenue streams, retain customers, and recruit new customers and investors. Financial advisors are the biggest beneficiaries of the digital platform. By solving for smaller accounts, a digital mobile platform allows advisors to focus on their most profitable relationships, building a pipeline of future clients for the advisor, financial institution, and wealth management firm.
