Embracing technology now to secure future clients

The next Generation of clients demand a tech-enabled experience. Now’s the time to get on board.

Technology is integrated into every aspect of our lives, finances included. Especially as the proportion of our clients shifts from the greatest Generation and baby boomers to Gen X and millennials, advanced technology will be an expectation. Offering increased efficiency and connectivity, mobile wealth management capabilities will be a determining factor in who wins the next wave of clients.

While baby boomers still hold the lion’s share of the wealth in the U.S., Gen X and millennials are gaining ground. According to Federal Reserve data, the share of Gen X’s assets has increased from 16% to 28% in the last 10 years. And the trend will continue.

You might remember a time in recent history when you had to nudge clients to sign forms digitally or text you through compliant channels, but adoption is changing fast as the younger generations (who are digital natives) come on scene. As the great wealth transfer picks up speed, advanced technology and mobile capabilities will be at the top of their list when choosing a firm and advisor.

Always on – and compliant

Clients don’t just think of their advisors as someone they can call at the office between the hours of 9 and 5. You are an integral part of their lives and often looked upon to help make important decisions as and when needed. Mobile technology enables clients to have access to what they need 24 hours a day and seven days a week. It’s an extension of your services as an advisor.

Think of the benefit of being able to pull up a client’s profile at a moment’s notice in a social situation and securely sending them a report that answers the questions they’ve been pondering. Beyond convenience, an experience like this strengthens the client-advisor relationship.

Leveraging the tools at your fingertips will make your life easier as well. Consider the fact that you can use mobile to document conversion in the CRM system to ensure compliance and security. You can dictate notes in CRM to ensure everything from the conversation is captured, even when you’re short on time.

High-net worth clients

According to a recent survey we conducted, the younger generations aren’t the only ones adopting finance technology. High-net-worth clients with $5 million or more in assets are the most frequent users of our client mobile portal, with about 86% of those clients using it. You certainly don’t want to be left behind by this group, especially because the number of global millionaires is expected to grow 40% by 2026.

Significant wealth can be complex, so these clients are looking for tools to simplify the management of their money. As their advisor, you can make it easier for them to grow their assets and preserve their net worth by leveraging the advanced technology available. It’s this type of easy, on-demand experience that helps to secure wealthy clients.

A streamlined approach may allow you to capture more of your high-net-worth clients’ wealth. If they can easily upload estate planning documents, for example, it might prompt an account transfer. Or maybe you can add value by quickly adding beneficiaries. Whatever the action, it could be a catalyst to deepen your relationship with the client.

Setting up the future for success

Opposite of the trend in client demographics, the average age of advisors is getting older. According to Cerulli, within the next decade, 37% of advisors, collectively controlling 40% of total industry assets, are expected to retire. It may seem like it shouldn’t matter, but even advisors who are aging and soon transitioning out of the profession should embrace technological advancements.

This sets the tone and precedent for the next generation of advisors coming into the practice. The infrastructure is already in place, and they can be trained on how to incorporate technology from the get-go. When the practice changes hands, having technology in place will help bridge the gap for clients as well. It’ll be second nature for both you and your clients.