Written by Yasmina Siadatan, Chief Revenue Officer at Dynamic Planner
Something you’ll be well aware of if you deal with clients on a regular basis is that people – regardless of their age – move with the times. And that’s particularly true when it comes to the digital revolution.
We often talk about under and over 45s, with those falling under the bar experiencing the world as digital natives and so adopting new technologies with ease. But smartphone ownership in the UK now stands at 94% of the population, according to Statista, including 80% of those 65 and over.
Great-grandparents in their 90s get to grips with Facetime so they can check in regularly with the youngest members of the family. Older people use wearable devices to keep track of health conditions such as diabetes and Parkinson’s. And close to two-thirds of those 65 and over are confident users of WhatsApp, according to a survey by BT in partnership with UK charity AbilityNet.
Now, new research carried out by FTRC on behalf of Dynamic Planner confirms technology habits in the advised population are evolving across the age spectrum. Firms are already clear that they need to embrace technology if they are to attract younger clients. But the study adds to the evidence that this will increasingly be a differentiator for older clients, too.
Personal interaction remains highly valued, particularly in older age brackets, with more than 60% of those in both the Gen X and Boomer cohorts preferring to receive investment advice from a human. Unsurprisingly, younger client cohorts are the most likely to favour a digital approach, with 30% of Gen Z and 21% of millennials saying they wanted to receive advice as part of a digital service.
Across the board, though, it’s clear digital engagement is fast becoming an expected part of the adviser-client relationship. Alongside in-person meetings, 62% would like to track their pensions and investments and access personalised content on a mobile phone app – including 35% of those aged 55 plus. These stats are only likely to move upwards as the technology becomes more widely available.
Accelerated by the Covid-19 pandemic, acceptance of tech as part of the advice process has grown among advisers as well as their clients. FTRC interviewed advice firms in 2023 and 2024 and found that ‘advisers want to be able to give clients the best service they can, supported by technology that delivers operational excellence’. Over 90% thought having the means to remain in contact with clients throughout the advice cycle was a positive.
However, firms highlighted some obstacles, including ageing tech stacks and systems that don’t communicate with each other. Historically, some firms have tried to engage clients through web portals, but have found uptake to be limited and use to be piecemeal. Data quality issues have meant firms have not been able to make use of all the capabilities of their client-facing tech.
How do you get this right for your clients?
Join up your tech. Technology that is integrated as seamlessly as possible allows you to collect and reuse data you can count on. You can feel confident that the information you provide to your clients is accurate, and you can use your data to anticipate future client needs.
Think about who you serve and how. Your technology should empower you to support all of your client types. Effective client segmentation – which might capture age, wealth, risk profile, objectives or a range of other factors – can help you put client needs at the heart of your digital offering.
Give clients a reason to return. Putting the client’s plan in the palm of their hand makes it easy for them to engage. However, clients still won’t come back to your app if there’s nothing there for them, or if the experience of tracking down information or adding data is painful. The FTRC research identified five clear priorities for advice customers from client-facing tech: being able to see the value of savings and investments, being able to see historical performance, tracking progress towards goals, being able to update the information the adviser holds, and being able to connect with banks to see all of their financial information in one place.
Providing regular, tailored content based on your client segmentation can also help to drive engagement. Finally, to support uptake and encourage return visits, the user experience should be simple, consistent and beautiful.
The importance of engaging clients of all ages digitally as well as face to face is clear – and will only grow as younger cohorts accumulate wealth and seek help to plan for the future. Firms that recognise this now are doing a great job of centring client needs and preparing their businesses for that future.
