The COVID-19 pandemic’s impact on the wealth management industry has been considerable. Plummeting markets and declining liquidity have exacerbated a decade-long trend of costs rising faster than revenues. Additionally, as lockdown restrictions came in, a key aspect of private banking – face-to-face consultations – were no longer possible, and at a time when customers were more in need than ever of the reassurance and up-to-the-minute, bespoke advice these provided.
Clients, and their advisors, were suddenly forced to rely on digital banking and communication channels, many of which fell short of the client-centric, multichannel, and seamless digital journeys offered by other consumer services.
These challenges – declining profits, an accelerated demand for remote engagement, and a sharper focus on client relationships – will force the industry to fast-track its digital transformation to reduce costs by automating processes and keep pace with evolving consumer behavior and changing demographics.
A survey on the future of private banking in Europe conducted by consulting firm McKinsey found that during the pandemic, private banking clients’ preferences regarding transaction and advice channels changed quickly: “71% of clients prefer multichannel interaction, and 25% express a desire for a fully digitally enabled private banking journey with remote human assistance when needed.”
Based on these findings – and that this demand is unlikely to change even after we reach a new normal – McKinsey advises private banks to rethink their client interactions to “deliver a remarkable client experience powered by technology,” and repair the “limitations of private banks’ omnichannel capabilities” that the pandemic exposed.
One factor complicating things for banks is that the information they exchange with their clients is highly sensitive and confidential, and subject to all kinds of regulation. Many of the communication channels they use are also so overutilized by other service providers, and even their own marketing divisions, that vital information is easily lost among the myriad of electronic messages their clients receive hourly.
Banks need a more secure and direct channel to their clients so that they can engage more meaningfully. No pain should be added to the process either; they have to provide the best protection and a superior user experience, both, without compromise.
Our technology offers a user-friendly strong customer authentication experience across multiple channels. It also provides a secure messaging platform on which to engage your customers. Contact us today.