Investor communication is rapidly changing as millennials begin to outnumber older generations of investors, demanding an overhaul in the way communications and file sharing is done throughout the financial industry.
In fact, by 2020, millennials will make up an estimated 50 per cent of the global workforce, and control between $19tn and $24tn on a global scale, according to Deloitte.
The financial industry is notoriously slow when it comes to digital transformation, but it cannot afford to fall behind.
Millennials are the technology generation, and the first generation to come of age with the internet, cell phones and computers as everyday commodities. They expect to have technology incorporated in every aspect of their lives, and will expect it as they become major players in financial investing.
Incorporating technology into investor communications not only makes for a better customer experience, it also helps financial firms stay compliant in today’s cyber-insecure world.
One of the major roadblocks for financial firms to adopting more advanced technologies is the fear of a data breach or unknowingly storing sensitive client data in a non-compliant way.
These five best practices are a great place to start for any firm looking to streamline investor communications, with the goal of improving overall client experiences:
1. Protect client data – Provide alternatives to email when sharing high-value information such as clients’ personally identifiable information (PII) and tax information.
2. Go digital – Focus on digital client engagement, provide real-time access to information and deliver investment information in clients’ preferred format.
3. Increase efficiencies – Create an effective, well-organised environment for managing client-related documents, both current information and historical data.
4. Be responsive – Respond quickly to requests from clients and financial advisers using a method other than mail, which can delay critical communications.
5. Tackle compliance – Strengthen policies and procedures related to safeguarding client data so that clients feel safer doing business.
To address these five key areas, consider implementing an online or cloud-based communication platform.
When evaluating options, look for technologies that offer features and benefits such as:
- An automated process for collecting performance data, processing that content and distributing information to investors.
- A single platform for clients to seamlessly access documents anytime, and from anywhere (desktop, mobile device, etc.)
- Full control over your brand, messaging and client experience.
- Lifetime security and control of documents, even after they’ve been downloaded.
- Dedicated project management and 24/7 end-user support, 365 days a year.
- An enterprise-level application with two-factor authentication for increased security.
Making an investment in improving and modernising the client experience is the defining factor that will make or break a firm in the highly competitive financial investment landscape.
Transparency and a commitment to customer satisfaction is swiftly becoming a top priority, and firms can no longer afford to rely on outdated, paper-based processes.
It’s time to go digital and embrace technologies that streamline communications, without sacrificing security and compliance.
Meghan McAlpine is director of strategy and product marketing for Intralinks
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