PIMFA
Focus on your client communication strategy to achieve continued AUM growth
Why is the conversational engagement client communication strategy suddenly so important in the wealth management sector?
In recent years, for most companies in the wealth sector, assets under management (AUM) grew thanks to a buoyant bull market. These conditions gave companies a false sense of confidence in their digital transformation initiatives, which in some cases barely stretched beyond video conferencing capabilities.
The digital cracks are showing
When these favourable conditions ended in 2022, the true extent of clients’ digital expectations became evident. To put it bluntly, the cracks are beginning to show in underdeveloped digital initiatives. Now, wealth managers and private banks must look more strategically at ways to drive revenue through AUM growth, with a greater focus on costs.
For every in-person meeting or long client lunch, there is a disproportionate amount of communication taking place remotely. More importantly, these interactions represent the frontline for true relationship building. This is where the value of conversational engagement lies.
The most pertinent, well-informed clients who trust their advisers will make assertive and quicker decisions, increasing the client’s lifetime value.
Unlocking conversational engagement
Clients want to interact with advisers in a series of moments that matter, rather than single, drawn-out interactions. Used correctly, technology offers a way to engage across channels in a succession of high-touch or low-touch interactions that may incorporate, but don’t exclusively feature, the simple video calls we associate with remote service. At the low end, asynchronous messaging allows for more frequent yet meaningful client-adviser interaction; while at the high end, next-level collaboration capabilities offer instant, involved issue- or opportunity-exploration.
These preferences play into the wealth management sector’s hands, allowing for lower operational costs while also increasing adviser efficiency. However, with regard to frequent, low-touch communication, many clients are turning to the channels they’re more comfortable with. They may choose SMS, WhatsApp, or some other social messaging tool to communicate with their adviser – all of which can open firms up to risk.
Mitigate risk with convenient, secure messaging
With messaging only set to become more pervasive, now is a good time to understand how it can be incorporated into your digital strategy to offer unparalleled convenience in a manner that is also secure and compliant.
In my role as Director of Marketing UK at Unblu, my frequent meetings with wealth management leaders has convinced me that messaging will grow in importance in the years to come. For firms and private banks, the onus is on them right now to develop a robust digital infrastructure that effectively balances convenience and compliance.
The favourable market conditions may have faded, but conversational engagement holds the key to continued accelerated AUM growth, unlocking long-term value for private banks or firms in the process.
Danny Baggs, Director of Marketing UK, Unblu
Unblu aids the role of an adviser to engage and collaborate with clients in ways that are convenient and efficient as well as secure and compliant.
