Why a blend of digital and human engagement is important when it comes to wealth management.

In the digital era, the finance industry has been subjected to major changes. Technology has disrupted the landscape. Payments are more convenient than ever. Clients have access to greater transparency surrounding products. Services have never been as personalised. Often at the touch of a button, or click, professional investors today have more choice and control over their money and how it is managed.

Yet, with the proliferation of technology within financial services, the human touch is critical. Last year, Accenture conducted a study within the UK that illustrated that 4500 people believed the financial services had become ‘dehumanised’.

Whilst convenience has been cited as a positive outcome of the digitalisation of services, human interaction remains to be imperative when it comes to relationships between IFA’s, wealth and fund managers and their clients. This is most important when it comes to giving advice and reassurance about where to place money and portfolio building.

Yet, digital does not have to mean impersonal. Millennials, cited by The Financial Times as the next generation for IFA managers, are particularly drawn to a blend to a human and digital experience when it comes to investing their money. Whilst clients demand more human interaction when it comes to managing their money, developments in technology will also see the role of financial advisors develop to endorse the role of a community manager. Here, financial advisors could manage social networks to strengthen personal relationships with clients and have the capacity to adapt to better understand their needs.

In a detailed report by Accenture, research showed high net worth investors are also digitally savvy. Like mass market millennial investors, 87% of HNWI’s use digital for financial planning and advice. In a study of 1200 people across Europe, 40% of HNWI’s considered themselves to be early adopters of technology, yet their preferred method of communication is face-face interaction.

In a study conducted by the Wealthiher network that focused on high net worth women, insight detailed that investors are time poor and would prefer a combination of digital communication and home visits when it comes to managing their wealth.

What is clear, whilst digital is making headways into wealth management industry, prioritising human engagement and interaction is important. At Linear, we prioritise nurturing a meaningful connection with our clients. Whilst all of clients have different demands, preferred methods of communication, investing styles and investment goals, we consistently seek to provide a bespoke experience tailored to the individual relationship.