As the ultimate techie, I love mobile apps and believe they should be mandatory for all businesses. I can see my data anywhere and at any time. I get notifications of important or interesting events. It makes me feel like I am in control.
However, when it comes to Wealth Managers, do they truly add value? What is the best measure of their value-add – happier clients, more AUM, reduced internal admin, something else?
Mobile apps for Wealth Managers. What are the benefits (There is a twist in the tale)
The benefits of custom mobile app are well documented. My friends at moneyinfo have summarised some of them very well. Also, my friend Travis Robson added some other benefits in his comment to my previous article in this series.
Are these really benefits to the Wealth Manager themselves?
Strangely, NO!
Why?
Wealth Managers operate on personal relationships, understanding their client needs and fears. They have a busy time juggling clients, compliance requirements and also researching markets and world trends. They have a unique boutique type of service.
A mobile app is cold and disconnected. With a mobile app giving clients real-time or daily updates will cause some clients to panic about the smallest of price fluctuations and events. The real-time messaging in most apps mean wealth managers will have to respond immediately. More to do, more distractions, more overload and that means a bigger headache!
So, why is a mobile app important if there are no benefits?
The thing to consider is who really needs a mobile app. And there are a few types of people. The most important of which is: The INVESTOR CLIENT.
Quoting a Forbes article by April Rudin
“89% of ultra-high-net-worth individuals, Baby Boomers and Millennials all said they would have a strong preference for mobile app engagement”
That is a strong argument. But is it enough? I have a simple thought to answer this.
“Imagine a financial company, for example a unit trust, that was run by a CEO who only received reports about the status of the investments holdings once a month (or even less often) Would you invest in this fund?”
To me the investor client of a wealth manager is the CEO of his own investment fund.
In my next post, I will share my thoughts on the other benefactors of a mobile app for wealth managers. Stay tuned.
ALSO READ; Fred Mburu Takes the Helm as CEO of Fund Managers Association
Dean Casey is a solutions architect with over 25 years building trading and portfolio management systems that help wealth managers and brokers to automate and enhance their businesses.