Digital wealth management: Driving engagement through data-driven insights

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In an era of increased competition and shrinking fees, financial advisors need digital tools to survive. By leveraging technology and data-driven insights, advisors can sustain profitable growth. But achieving this vision requires a digital transformation, and the industry has been slow to adapt. A thoughtful technology and data strategy, user-friendly tools, early wins, and key stakeholder commitment are the main ingredients for success. Are you up to the challenge?

Digital or doomed?

The current financial advisor engagement model is unsustainable. Without digital enablement, advisors can’t scale their work to serve a larger customer base. There are only so many hours in the day and so many calls that can be made.

The financial services industry has been slow to embrace digital solutions, in part due to legacy technology constraints and, in some cases, usability issues that make the adoption rate low. But more wealth management firms are shifting resources toward digital enablement. They’re attracting tech-savvy talent to implement digital solutions on accessible, interconnected platforms to help acquire and service clients and to extend and retain client relationships.

Common challenges

Wealth management firms understand that they should leverage technology to engage more efficiently and effectively with clients and prospects, but many struggle with how. Some firms don’t know what client data they have, much less how to build a digital enablement solution. Others have tried to implement solutions and fallen short of their goals. Here are five common challenges we see:

  • Fragmented internal data
  • Lack of third-party data
  • Lack of automated marketing tools
  • Low adoption rate
  • Inadequate training of support staff

What steps can your firm take to get started?

Developing a sound digital enablement approach requires systematically working through a series of steps. First, identify the customer segment you wish to target. Then formulate your business objectives and determine your desired outcomes. With your objectives and desired outcomes clarified, identify who (for example, advisors and support staff) will be using the data-driven insights you’ll generate, and determine which channels will be used to reach the targeted segment. Finally, implement a pilot and refine and expand your approach based on the pilot results.

Moving toward digital enablement is challenging, especially in an industry that’s been slow to adopt digital solutions. There could be a clash of cultures as the manual practices of the past give way to digital approaches that empower advisors. But the status quo is not an option. Wealth management firms that embrace digital enablement are far more likely than less tech-savvy competitors to grow and thrive, even in the midst of disruption.

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How PwC can help

Our teams in asset and wealth management, banking and capital markets, and insurance are helping our clients tackle the biggest issues facing the financial services industry. With professionals across tax, assurance, and advisory practices, we can help you find ways to thrive even in a period of uncertainty. Whether you're preparing for regulatory changes, putting FinTech/InsurTech to work, or rethinking your human capital strategy, we work together with you to deliver value to your business.

For more information on how PwC can help, reach out to one of our leaders below or explore our digital services

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Michael Horvath

Principal, PwC US

Arjun Patel

Principal, PwC US

Arjun Saxena

Principal, Financial Services, Strategy&, PwC US

Evan Siegal

Principal, PwC US

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