Wealth managers are failing to keep pace with their clients’ preferred methods of communication, new research from Avaloq has revealed.
The research, conducted among over 3,000 investors and 300 wealth managers worldwide, found a significant gap between communication methods used by wealth managers and those preferred by clients, with most wealth managers relying on traditional methods despite growing investor demand for digital channels.
Nearly half (46%) of wealth managers rarely or never use their own online portals, compared to 26% who use them often and 5% who use them all the time. Similarly, 46% of wealth managers rarely or never use mobile apps. In contrast, 88% often or always use email to communicate, while 79% use phone calls and 68% rely on face-to-face meetings.
However, investor preferences are shifting, with online platforms (15%) now second only to email (26%), having increased in popularity from fifth place in 2023. Meanwhile, mobile banking apps are now clients’ third most popular communication method (13%), up from sixth place in 2023.
At the same time, face-to-face meetings, once the top choice as the most popular communication method among global investors in 2023, have dropped to fifth place (11%).
The picture is similar in the UK, with online portals now second only to email, having increased in popularity from fifth place in 2023. Meanwhile, face-to-face meetings and phone calls have fallen in popularity and now rank behind online portals among investors’ preferred method of communication.
Avaloq’s research also found that clear communication is the most important factor (80%) for global investors when it comes to trusting their wealth manager. Quick response times (67%) and access to multiple communication channels (59%) were also considered important. In the UK, demand for clear communication is even stronger, with 92% of investors emphasising its importance, followed by quick responses (64%) and having multiple channels for communicating (58%).
Suman Rao, UK managing director at Avaloq, said: “Our research reveals a gap between the communication methods employed by wealth managers and the evolving preferences of their clients. As our world continues to digitalize, client appetite for wealth managers who provide clear, concise communication through modern, digital channels will only increase.
“By embracing newer, digital forms of communication alongside longstanding methods such as emails and face-to-face meetings, wealth managers will be in prime position to better meet client expectations. That will ultimately allow them to retain a competitive edge in a rapidly changing industry.”
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