Young Investors Much Prefer Apps Over Websites: J.D. Power

Wealth management app

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Mobile apps and websites have increasingly become the first resources that investors consult to review their investments, make transactions and conduct research, but a new study from J.D. Power reveals apps are what younger investors really crave these days.

Graphic courtesy J.D. Power

According to the recently released J.D. Power 2022 U.S. Wealth Management Digital Experience Study, the trend is particularly pronounced among younger investors, who have significantly higher overall satisfaction and stronger brand advocacy when they engage frequently with their firm’s wealth management app.

“Wealth management firms that want to attract and retain younger investors need to focus on continuing to improve their apps,” said Michael Foy, senior director of wealth intelligence at J.D. Power. “The mobile app really is becoming the center of the modern wealth management client user experience, and that’s true not just for do-it-yourself investors but also for those who work with a financial advisor. App users are engaging much more frequently with their brand and, when they have a positive experience, are also much more likely to recommend that brand.”

The new research illustrates how apps significantly outperform websites. The overall average satisfaction score for U.S. wealth management mobile apps is 731 (on a 1,000-point scale), which is 50 points higher than the average score for wealth management websites (681). J.D. Power attributes the gap to the significant preference for apps among younger investors.

More key findings about apps from the 2022 study:

“Digital has become a key component of the overall wealth management customer experience,” said Amit Aggarwal, senior director of digital solutions at J.D. Power. “Firms that are delivering the best overall digital experience are recognizing that their apps and websites are an extension of the client relationship and can be leveraged to improve relationships with advisors, drive brand loyalty and differentiate from the competition.”

The U.S. Wealth Management Digital Experience Study, previously known as the U.S. Wealth Management Mobile App Satisfaction Study, was redesigned in 2022. The 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 6,375 full-service and self-directed investors and was fielded from June through August 2022.

Study rankings

J.P. Morgan Wealth Management ranks highest in overall customer satisfaction with the wealth management digital experience, with a score of 728. Charles Schwab (726) ranks second and Edward Jones (710) third. Wells Fargo (707) and Ameriprise (703) round out the top five as the only other companies topping the industry average of 701.

For more information about the U.S. Wealth Management Digital Experience Study, visit https://www.jdpower.com/business/financial-services/wealth-management-digital-experience-satisfaction-study.

SEE ALSO:

• Participants Not Satisfied with Retirement Plan Digital Experience: J.D. Power

• Largest Asset Managers Dominate in Advisor Digital Experience

• Wilmington Trust Will Launch BoardingPass CIT App

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