2020: The year your clients started caring about digital wealth management

Digital wealth management technology is nothing new, but in the most turbulent financial landscape for almost a century, it’s vital for building and maintaining trust. 

2020 is the year customers have taken stock and thought about both their financial plan, as well as how they want to interact with their financial companies. 

The new normal presents fresh challenges and opportunities – at Apadmi, we decided to dig a little deeper into what that means for the financial industry and our clients within it.

The lay of the land

Past performance is no guarantee of future results.

It’s an old adage, but it’s stood the test of time for good reason. 

Brexit. The US election. COVID. Like waves against a cliff face, these unique events have eroded confidence in traditionally safe investments, leaving many risk-averse. 

On the other hand, due to the boom in digital and remote working during lockdown, customers have had time to consider their financial future. People are investing for the first time with little experience in the market. 

According to investment service Vanguard, over £9bn worth of typically low-cost tracker funds have been purchased at the same price as much more expensive active funds, a common mistake among first-time investors. 

There’s a large market of nervous, inexperienced investors who need support to regain trust and find experienced guidance. 

A digital wealth manager in your pocket

As experts in mobile app technology, we see huge opportunities within this market. More than ever, customers need the ability to check their portfolio, ensure their investments are performing positively and contact a wealth manager if they aren’t. 

We envision the next leap forward in digital wealth management to be one where customers will be able to view their options or amend their current portfolio digitally, with the speed and security of an online banking app. 

Then, if the customer has queries about their assets, we see them being able to access customer service in the way they prefer – whether that’s using a digital chatbot written by a wealth manager with years of experience, or a more traditional phone call. 

We’ve seen several digital products coming to market with some of this functionality (Avaloq, Trading 212, and My Wealth to name a few), but there’s something many are overlooking: user interface. 

Welcoming wealth management

The future is millennial. According to Working Media Group, 92% of millennials prefer the option to manage their money digitally, meaning traditional wealth management appears to have an expiration date. 

Millennials are looking for mobile-first digital experiences, offering them freedom and functionality in equal measure. 

Currently, the most successful banking apps are those with a slick digital presentation that keeps the specifics of banking as simple and streamlined as possible. Some great examples are:

  • Revolut – Defined as a ‘global finance super-app’ Revolut has been running for around 5 years now and has seen success in the UK, only recently expanding into American markets. The platform allows users to handle transactions across multiple currencies and cryptocurrencies. 
  • Monzo – An industry leader in mobile banking, Monzo is set to hit 5 million users in 2021 and has developed a reputation for taking clients away from traditional banks. We think Monzo has a lot of potential as it has displayed a focus on user experience and marketing underpinned by award-winning innovation. 
  • Starling Bank – The Which? recommended provider for mobile banking, Starling Bank has styled itself as a happy medium between traditional banking and new mobile startups. This is a great position to be in as mobile banking is starting to gain traction in the wider, more-risk averse consumer base. 

Apadmi believes that the next world leader in wealth management will follow in these footsteps, creating a digital experience that allows new investors to learn quickly while letting those experienced in wealth management perform, review and execute changes faster than ever before. 

We’ve been keeping an eye on the world of wealth management for a while, and there are a few more things we’d love to share with you. If you want to learn more you can visit our finance and service pages or contact us