Beyond Robo: What Should The Next Generation Wealth Customer Journey Look Like?

January 25, 2017

Reimagining The Next Generation Wealth Management Customer Journey

‘Robo’ has stolen the headlines in wealth management. Debate on the digital disruption of wealth is dominated by different approaches to this automated allocation of assets and whether to build, buy or partner with robo-platforms.

The risk is that we myopically focus on only one part of the customer journey. And in focusing on tech, have we lost sight of the customer?

Any successful innovation agenda must start and end with the customer. Companies should ask ‘what are the moments that matter most in their journeys with us?’ and ‘what do they want from these moments: low cost, speed, transparency or an added layer of value-add?’

These questions drove our research study, ‘Next Generation Customer Journey In Wealth Management: High Tech or High Touch?’ We took our assumptions and tested them with high net worth clients across different age cohorts, levels of wealth and geography.

But now we’ve gone a step further. We’ve built a picture of what an idealized ‘next generation’ wealth management customer journey might look like. In doing this, we’ve triangulated our findings against many of the other research studies in the market. We’ve then validated this with interviews and round-tables with many of the challengers and incumbents reshaping the wealth landscape.

We’ve explicitly focused on the ‘next generations.’ While Millennials and Generation X clients may not be the heartland for all of today’s wealth managers, by 2020 these cohorts will control $30 trillion — half of all global investible assets — as a result they are too important to ignore. They are also the bellwether for behaviors that other age groups soon adopt. According to Betterment’s CEO, Jon Stein:

Most of our business comes from non-millennials. In fact, 30% of it comes from customers that are 50+.

In doing this, we’ve striven to answer some of the journey challenges including:

  • Awareness: How do you hook Millennials when only 9% of them rate traditional brand marketing as effective?
  • Conversion: What steps can you take to speed up on boarding when 65% of Millennials open an investment account within one week of having thought of doing so, compared to 17% of Boomers.
  • Advocacy: How can you transform your referral network to also be your professional recommendation, when recommendations are 4x as effective as advertising when selecting a wealth manager?

To learn more, download ‘Reimagining The Next Generation Wealth Management Customer Journey’.