Strong communication cuts through complexity and delivers greater value

It seems we’re endlessly being told that today’s wealth landscape is defined by a never-ending quagmire of shifting complexity. And I don’t dispute this claim – in fact, let us count the ways.

What’s contributing to complexity?

At the beginning of the year, I helped put together an outlook for the wealth industry, and it’s true that the once rock-solid status quo has changed in borderline innumerable ways. While far from exhaustive, we can group them into three loose categories.

1.   Demographic changes

Some of it, such as the great wealth transfer, was easily predictable – although the scale of the shift is still a force to be reckoned with. By 2060, Capgemini predicts that around $60 trillion will have moved to younger generations, along with other influential demographic shifts.

2.   Global and geopolitical trends

Other shifts towards complexity were less easy to foresee. The global pandemic and outbreak of geopolitical tensions in Eastern Europe have ongoing repercussions that we’ll feel for years to come.

3.   Technological advancements

Then we need to contend with the technological aspect. Just as we don’t notice the speed of the world’s rotation, it can be easy to forget the lightning pace with which everything is changing whilst immersed in our day-to-day lives. Yet it is changing. Fintech, cryptocurrencies, mass affluent markets, cybersecurity, digital service experiences – there aren’t enough fingers on two hands to count the distinct ways it affects us.

The role of communication

My point is not that complexity isn’t present in today’s wealth landscape. It’s that the conditions that are contributing to this complexity also help us to navigate it. In short, delivering value amidst complexity is a question of communication. Technology helps communication both directly and indirectly.

Indirect communication benefits

The indirect benefits are largely to do with boosting efficiency, freeing up advisors to spend more time on client interactions. Mobile financial applications have become essential for a reported 46% of investors according to Refinitiv’s Wealth Management Report – a statistic that rises to 72% when you only consider millennials. Likewise, technology helps streamline onboarding processes, helping with everything from prospecting to identity verification, KYC, AML and due diligence checks.

Direct communication benefits

With less time spent on unavoidable processes, advisors can focus on direct client communication through conversational engagement. This is where technology shines as a vehicle to navigate complexity.

Conversational engagement refers to an advisor’s ability to provide superior support during every interaction and on every touchpoint. Take Unblu’s Secure Messenger for example, which offers a WhatsApp-like experience without risking security or falling foul of regulatory compliance. Client conversations can take place over time in a natural manner, ensuring that any questions, doubts, or concerns can be fully addressed.

In their 2023 EY Global Wealth Management Research Report, EY cuts to the heart of the issue saying, ‘Personalised advice and engagement, especially at key milestones, is crucial to helping more clients fulfil their financial aspirations.’

Yes, the world has become more complex. But strong communication, driven by conversational engagement, can help navigate complexity and deliver greater value for your clients.

 

Danny Baggs is Director of Marketing UK at Unblu. Danny writes about the insights and trends set to define the wealth management industry.

Social media: linkedin.com/in/dannybaggs

Discover more insights into the current wealth management landscape by downloading Unblu’s 2023 Digital Wealth Management Outlook.