Both full-service and self-directed wealth management clients expect tailored guidance to help them meet personal financial goals, but most digital channels from wealth management firms aren’t living up to expectations, according to a new study.
J.P. Morgan Wealth Management is an exception, topping both the overall satisfaction rankings for both full service and self-directed customers in J.D. Power’s 2024 U.S. Wealth Management Digital Experience Study. The study, released Nov. 21, evaluates customer satisfaction with the wealth management digital experience, inclusive of both apps and websites, based on four factors (visual appeal; navigation; speed; and information/content).
While the latest data show wealth management firms are delivering on the basics, wealth management clients are expecting something more in the form of advice and guidance. Unfortunately, the study found only a small percentage are delivering. The majority still have a long way to go to build more personalized digital experiences that are a point of differentiation.
“The majority of apps and websites for investors are delivering the basics of a foundational digital experience with the requisite design aesthetics and core capabilities to get by,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at J.D. Power. “Delivering at this level is the minimum threshold but the bar is being quickly raised.”
He added that failing to keep up will put firms at a major disadvantage in their efforts to drive organic growth. “Leading-edge firms are delivering truly valuable experiences that offer proactive, personalized guidance and tools that support the increased focus on establishing financial plans and the tools that help investors achieve their goals. While many firms have increased their focus on planning and related tools, they are struggling to deliver on the digital experiences that provide the higher-order values that clients are being told to expect.”
Study Rankings
J.P. Morgan Wealth Management ranks highest in overall customer satisfaction with the full-service wealth management digital experience, with a score of 843, up from its score in the 2023 rankings of 789. U.S. Bank (817) ranks second and Wells Fargo Advisors (805) ranks third. Fidelity (793), Citi (792) and Vanguard (785) were the other firms to top the segment average of 784, which is also up from last year’s segment average of 770.
J.P. Morgan Wealth Management also ranks highest in overall customer satisfaction with the self-directed wealth management digital experience for a second consecutive year, with a score of 783, an improvement over its 2023 leading score of 754. Stash (751) ranks second and Robinhood (749) ranks third. E*TRADE from Morgan Stanley (744), Fidelity (744), and Wells Fargo Advisors/Wells Trade (742) also bested the segment average score of 738, which is up from 718 last year.
Key Findings
Following are key findings of the 2024 study:
- Moving beyond basics of digital functionality: A majority of full-service apps (70%); full-service websites (75%); self-directed apps (73%); and self-directed websites (76%) are delivering basic foundational functionality by organizing information in a logical way to convey a clean, modern look and feel. When it comes to delivering truly valuable digital experiences, however, those numbers fall sharply. For example, just 18% of full-service apps and 14% of self-directed apps deliver a valuable user experience that includes proactive guidance, ability to set financial goals and help reaching financial goals.
- More do-it-yourself clients expect personalized guidance: Among self-directed clients, 44% say they “strongly agree” that they expect their wealth management firm’s websites and apps to help them meet their financial goals. That percentage is up from 40% a year ago. Among this group who expect these tools, 30% say they do not “strongly agree” that their firm is delivering on this expectation. Also noteworthy is that this percentage rises to nearly 80% among those who say they “somewhat agree” that they are expecting help.
- Overall satisfaction highest when digital experiences exceed basics: Overall satisfaction scores are substantially higher among both full-service and self-directed clients when websites and mobile apps meet key criteria for delivering beyond foundational levels. Average investor satisfaction is more than 100 points higher (on a 1,000-point scale) when clients indicate their experience achieves both foundational and findable experiences. Moving to the top of the hierarchy results in truly differentiated experiences, according to clients.
- Data security is crucial: Overall satisfaction scores are heavily influenced by clients’ perceptions of data security. Among full-service clients, customer satisfaction scores are 147 points lower when clients have concerns about their personal information being very secure. Among self-directed clients, scores are 145 points lower when they have concerns about their information being very secure.
While the latest data found a lot of similarities between different services and brands, researchers concluded taking their offerings to the next level may help some stand out.
“In a world in which firms are offering no-fee trades and many of the basics of the user experience are similar from one brand to the next, the digital experience hierarchy has increasingly become a critical means of differentiation,” said Jon Sundberg, senior director of digital solutions at J.D. Power. “The fastest path to delivering on growing customer expectations for digital is to deliver a truly personalized level of engagement that takes each client’s unique needs and goals into account.”
See the full study here.
SEE ALSO:
• Retirement Plans Still Lag in Digital Experience: J.D. Power
• Stifel, Commonwealth Keep Top Spots in J.D. Power Advisor Satisfaction Rankings
• Investor Satisfaction with Online Brokerage Firms Stagnant: J.D. Power
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
