About half of clients see high value in technology as a core component of their wealth management experience. As more firms embrace an undeniably digital future, how will your firm stand out amongst the rest?
As your firm plans your digital strategy for the upcoming year, philanthropic planning provides an essential opportunity for growth.
It’s time to upgrade your tech.
While technology has become increasingly important to the client experience in recent years, 2020 marked a pivotal time as the pandemic accelerated the critical assessment of how to adopt digital business development and operations strategies.
Studies show stronger customer experience and digital capabilities have tangible impacts on the profitability of firms. Digital transformation can result in a 20-30% increase in customer satisfaction and economic gains of 20-50%, according to McKinsey & Company. Another study found that digitally mature companies are 23% more profitable than their less mature peers.
Technology marks a new model for client interaction and efficiency of administration and advisory firms are taking note. In 2020, firms ranked acquiring new clients through digital channels as the fifth most important strategic initiative, up from 10th place in 2020.
Schwab also found significant gains in productivity amongst RIAs that more readily adopted tech, as annual hours per client on operations and administration decreased 6% year-over-year. With greater operational efficiency comes more time to spend fostering client relationships.
Across the industry, those that are tech-averse will inevitably fall behind those that adopt innovation.
A more philanthropic future.
As your firm plans your digital strategy for the upcoming year, centering on philanthropic planning provides an essential opportunity for growth.
Advisories whose services include charitable planning have six times the median assets than those who do not, per Fidelity Charitable.
Those who offer charitable planning had 81% share of client wallet, compared to 76% share of wallet for those who did not, the same study found. Advisors that proactively initiate charitable conversations strengthen existing client relationships and attract altruistic new clients, which yields tangible returns on assets under management.
Philanthropy is a deeply personal aspect of clients’ wealth goals that their advisors should proactively support. Digitizing charitable services enhances the advisory’s ability to offer a customized approach to an increasingly popular component of financial services.
Addressing the tech divide.
By introducing tech-enabled charitable planning, wealth management advisories will capture the growth of both digital and philanthropic trends. The diversification of products ensures that clients' comprehensive needs are fulfilled in-house, under truly holistic model of planning.
Fidelity found that while 69% of advisory firms offer philanthropic planning, only 20% actively use it. This gap marks a significant opportunity, as a fraction of firms have adopted technology to modernize and automate philanthropic administrative processes.
Historically, the administration of philanthropic planning services is burdensome, antiquated, and costly. Technology changes that.
When firms automate administration of charitable vehicles, they incur fewer costs and their advisors spend less time on administrative duties. Instead, they can more efficiently and effectively serve the comprehensive needs of each unique client. The connection between advisors and clients as they navigate holistic wealth management is strengthened, not hindered, by technology.
Firms that are not proactively adopting digital solutions are solving yesterday’s problems. Providers like Amicus.io ensure a seamless transition to a digital, philanthropic future.