What is Digital Wealth Management?

Digital wealth management is a set of digital tools which professional financial advisors use to create a more efficient client experience. It combines marketing, client relationship, communication, portfolio, goal setting and compliance. The technology helps in increasing engagement and promotes transparency.

Some of the advantages of digital wealth management is:

  • Self-service and automation: Clients who need basic knowledge about their account like to get all the details over phone or online. Robo-advisors and self-service client portals give clients more control and information over their investments.
  • Portfolio recommendations: Wealth managers can avail the digital technology to empower clients to set goals and see the performance in real time.
  • Performance reporting and compliance are simplified as reports can be produced nearly instantly by most digital wealth tools.

Providing digital management services permits advisors to handle all the tasks more efficiently and render users a wider suite of services. As more and more customers are expecting automated services from their wealth managers, using digital management is of serious importance now. This becomes especially true as the market continues to expand and in order to scale and have new services. It’s necessary to utilize a host of different digital wealth tools. It also assists wealth managers to attract millennials who prefer a more hands on and engaged approach through the digital medium.

A new mindset

Digital wealth management is about unification of all pieces of the wealth management sphere in a single place. With these tools, advisors can offer a host of new services, grow and scale revenue from existing clients.

Tips for wealth managers to redesign their digital platforms:

Wealth managers now use digital technology to offer better advisor client collaboration. But what helps in offering a better client experience? Having a platform that combines all the elements together becomes key. Clients want to have control, visibility into performance and communication with a personal touch. The use of a financial service CRM makes this all the easier as it keeps track of all the relationship and client meta data in a single platform.

Any platform must also connect with other technology providers via integrations or an API. No firm wants to manage a dozen different pieces of software but would prefer they are all integrated with each other. Several firms nowadays even offer a complete all-in-one wealth management system which is what many independent financial advisors are turning to. One thing is for certain, digital wealth management is a field that is mission critical and with continued innovation there will be opportunities for savvy advisory firms to quickly adopt and take advantage of the benefits of such tools.

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