Michael Diefenthäler, director of product management at Interactive Data Managed Solutions, explains why wealth managers require new client management strategies in the age of social media.
When it comes to interacting with clients, the wealth management industry may be behind the technology curve and risk losing the upcoming generation of clients by lacking an integrated multi-channel approach - that is the verdict of Michael Diefenthäler of Interactive Data.
Scarcely a week goes by without another consultancy bewailing the wealth management industry’s under-investment in new communication methods like mobile apps or social media. In response firms have been noticeably ramping up their efforts to keep pace with sectors like FMCG in their provision, with even the most formerly recalcitrant and “old school” of institutions making their first forays into new communication channels.
And about time, most would say. Unfortunately, it might be the case that the world’s wealth managers are actually looking at things from the wrong perspective, according to Diefenthäle.
“Pulling” client engagement
The adoption of mobile internet use and social networking sites, combined with the changing behavioral trends of the upcoming generation of consumers have transformed the way people interact globally. This, in turn, has had a huge impact on the evolution of the industry’s ability to communicate effectively with its clients.
However, Diefenthäler explains that what we currently have are firms launching Facebook pages and Twitter accounts and trying to usher clients into using them. He argues that what they should be doing instead is integrating themselves into the channels clients are already using. In short, firms should be following their clients behavioral trends with a view to “pull rather than push” clients to engage.