Wealth management firms that get the digital experience right are positioning themselves for long-term success, and they are finding that high use by self-directed accounts are paving the way.
According to the J.D. Power 2023 U.S. Wealth Management Digital Experience Study, released today, more full-service and self-directed wealth management clients than ever are logging into wealth websites and apps, and the more often they do that, the higher their satisfaction.
The overall average satisfaction score for U.S. full-service wealth management mobile apps is 776 (on a 1,000-point scale), which is 11 points higher than the average score for full-service wealth management websites (765). Among self-directed wealth management apps, overall satisfaction is 738, while website satisfaction is 34 points lower (704).
“The self-directed account has increasingly become the gateway through which firms build the foundation of more lucrative investor relationships.”
J.D. Power’s Craig Martin
“The wealth management industry has transformed during the past few years with the rise of no-fee trading and advances in technology, democratizing access to tools and sophisticated investment advice,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at J.D. Power. “The digital experience is a crucial component of an effective client acquisition and retention strategy. The self-directed account has increasingly become the gateway through which firms build the foundation of more lucrative investor relationships. Firms that get the digital formula right are positioning themselves for long-term success.”
The J.D. Power research found younger customers in particular are leaning into digital advice. Clients in Gen Y and Gen Z show a significant preference for digital as their primary communication channel for advice (56%), planning (59%) and service (74%), while Gen X and Boomer clients still prefer human interaction for advice and planning.
Among both full-service and self-directed investors, overall satisfaction increases significantly the more often clients interact with wealth management websites and apps. The overall satisfaction score among full-service investors who use their wealth management firm’s app on a daily basis is 798, which is 97 points higher than among those who never use the app and 53 points higher than among those who only use the app once a year.
Study rankings
J.P. Morgan Wealth Management ranks highest in overall customer satisfaction with the self-directed wealth management digital experience, with a score of 754. T. Rowe Price (736) ranks second and Robinhood (730) third. The segment average was 718.
In overall customer satisfaction with the full-service wealth management digital experience, Citi ranks highest with a score of 798. J.P. Morgan Private Client Advisors (789) ranks second and Fidelity (783) ranks third. The segment average was 770.
J.D. Power notes that large banks perform particularly well among both full-service and self-service wealth management providers, and said this performance is likely due to the robust digital capabilities they’ve developed in their respective retail banking operations.
The U.S. Wealth Management Digital Experience Study 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. This year’s study is based on responses from 6,217 full-service and self-directed investors and was fielded from June through August 2023.
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