Wealth managers are lagging behind their clients when it comes to communication preferences, with many failing to embrace digital channels, according to new research by Avaloq, a global innovator in digital banking and wealth management technology.

The study, which surveyed over 3,000 investors and 300 wealth managers worldwide, highlights a widening gap between the communication methods used by professionals in the industry and those preferred by their clients. While clients are increasingly turning to online portals and mobile apps, many wealth managers still rely on phone calls, face-to-face meetings, and emails.

According to Avaloq, nearly half of asset managers (46%) rarely or never use their own web portals, while a similar number (46%) use mobile apps sparingly. Contrary to this, email remains the most popular communication tool, with 88% of wealth managers using it on a regular basis, followed by phone calls (79%), and in-person meetings (68%).

Meanwhile, investor tastes are evolving to digital. Online platforms are now the second most popular mode of communication (15%), up from fifth place in 2023, and mobile apps have also witnessed a considerable increase in popularity. Face-to-face meetings, which were the most popular choice among clients last year, have now fallen to fifth place.

Moreover, a similar trend is visible in the UK, where online portals have become the second most preferred communication channel for investors (18%), surpassing phone conversations and in-person meetings. However, 46% of UK wealth managers still employ them little or never, indicating a substantial mismatch between customer demand and industry practice.

This divergence could have major consequences for wealth managers, as the study underlines the significance of communication in establishing trust. Clear communication was rated as the most crucial factor by 80% of investors worldwide, increasing to 92% in the UK. Quick response times (67%) and access to different communication channels (59%) were also regarded as critical.

Suman Rao, UK Managing Director at Avaloq stated: “Our research reveals a gap between the communication methods employed by wealth managers and the evolving preferences of their clients. As our world continues to digitalise, client appetite for wealth managers who provide clear, concise communication through modern, digital channels will only increase.

“By embracing newer, digital forms of communication alongside longstanding methods such as emails and face-to-face meetings, wealth managers will be in prime position to better meet client expectations. That will ultimately allow them to retain a competitive edge in a rapidly changing industry.”

As digital transformation continues to reshape the financial sector, wealth managers who fail to modernise their communication strategies risk being left behind.

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