The Greatest CX Opportunities for Financial Services in 2021

One of our favorite things about the 2020 Wealth Poll is that it didn’t just dissect the investor mindset. It took that understanding one step further by identifying the best opportunities for wealth management firms, banks, and other financial services businesses to improve their experience in 2021.

So without further ado, let’s dive into our findings!

About the 2020 Wealth Poll

The InMoment Wealth Poll is a multi-wave poll of affluent investors done every few years for the past fifteen years. From June 30, 2020 to July 2, 2020, we surveyed 1,212 investors with over $100,000 of privately held assets to understand how the unsettled market has affected them, how they feel about their client experience, and where opportunities may lie for investment firms to improve and expand business.

Here is a quick breakdown of the investors we surveyed:

  • 790 Mass Affluent Investors ($100,000 to less than $1,000,000 in investable
  • 400 High Net Worth Investors ($1,000,000 to less than $10,000,000 in investable assets)
  • 22 Ultra-High Net Worth Investors ($10,000,000 or more in investable assets)

Experience Improvement Opportunities in 2021

Perhaps one of the most important functions an experience program can serve is helping an organization to identify what they do well in the eyes of the customer—and where there’s room to improve. Only when brands pinpoint those areas can they remove friction and improve experiences (and even move on to increase customer retention, save costs, and more).

That’s the idea that inspired one of the most telling questions in the InMoment Wealth Poll, “Thinking About Your Primary Investment Firm, How Satisfied Are You with Each of the Following.” The answers we received for this question are sure to inform financial services organization’s experience strategies for the upcoming year. Let’s take a look!

It is important to note which firm types have advantages in specific areas. Mutual fund firms, for instance, are currently outperforming others when it comes to “Investment Performance” according to their clients. Additionally, full-service brokerage and insurance firms are showing particular strength when it comes to delivering for their clients, specifically when it comes to the relationships clients have with their financial advisors. Discount firms are also showing strength when it comes to their online services.

When it comes to the big picture, however, it is clear that elements like “Financial Stability” and “Reputation” are mere table stakes for investors. “Fees” are areas of dissatisfaction across the board—which is not surprising—but discount brokerages seem to have a particular advantage here in that investors seem more satisfied with their fees. 

Looking for More?

If these findings peaked your interest, our full length report, “How the Investor Mindset Has Evolved in the Last Decade (and Where It’s Headed)” is full of them! You can download it and see all of the insights our 2020 Wealth Poll here for free. Enjoy your read!

COVID-19’s Effect on the Investor Mindset (as Told by Our 2020 Wealth Poll)

There isn’t an organization in the world that has not been affected by COVID-19. But every organization and industry has been affected differently. The same can definitely be said for investment firms, who must also be concerned about the mindset of their investors;  without a keen understanding of the investor mindset, it’s hard for them to develop a strategy for 2021.

That’s why InMoment is releasing the results of its 2020 Wealth Poll, to give investment firms a glimpse into the minds of their clients—and how they’re feeling about the year to come. Today, we’ll take a closer look at what investors are saying specifically about the effects of COVID-19.

What is the 2020 Wealth Poll?

Before we dive into specific takeaways and data, let us give you a few more details about the 2020 Wealth Poll itself. For this study, we surveyed 1,212 investors with over $100,000 of privately held assets. This group included 790 Mass Affluent Investors

($100,000 to less than $1,000,000 in investable assets), 400 High Net Worth Investors ($1,000,000 to less than $10,000,000 in investable assets), and 22 Ultra-High Net Worth Investors ($10,000,000 or more in investable assets). 

Our goal was to understand how the unsettled market has affected affluent investors as well as how they feel about their client experience, and where opportunities may lie for investment firms to improve and expand business. In our survey, we asked a series of questions specifically about the Coronavirus and were able to unearth four key takeaways. Let’s dive in!

Four Takeaways on the Investor Mindset

  1. Investors Don’t Expect a Full Recovery Until Late 2021
  2. Investors Are Staying the Course
  3. Most Have Funds but Many Don’t Plan to Invest
  4. Investment Firms Learned the Lessons of 2010

Key Takeaway #1: Investors Don’t Expect a Full Recovery Until Late 2021

After a decade of success, COVID-19 has cast a shadow of uncertainty over the global economy—and affluent investors aren’t completely sure what to expect. In fact, an overwhelming majority (64%) said they expect the next twelve months to be volatile. 

Regardless of how investors feel, financial services firms and advisors must be prepared to guide investors through the ever-changing market over the next 12 months!

Key Takeaway #2: Investors Stay the Course

Despite investors’ uncertainty concerning the market, 85% of investors say their risk preference has not shifted because of the pandemic. In fact, our results for pre-pandemic risk preference were almost the same as our post-pandemic results.

Key Takeaway #3: Most Have Funds but Many Don’t Plan to Invest

For as many affluent investors who plan to stay flat in 2020, the same amount plan to invest more in their portfolio, despite the fact that 78% report that they have available funds.

From this same question, we also were able to arrive at the conclusion that affluent investors were more likely to invest if they are self-directed investors, believe their investment expertise is higher than average,  or do not work with a dedicated financial advisor.

Key Takeaway #4: Investment Firms Learned the Lessons of 2010

Remember 2010 and the burst of the housing bubble which wreaked havoc on the markets and the economy? In 2010, investors across the board were not happy with how firms responded to the financial crisis. Since that time, investment firms have made significant progress in delivering to their clients.

The proof? Investor satisfaction has held steady the highs achieved during the market’s long bull run even in the midst of the pandemic.  Financial planning, more proactive advice, and better online tools have made investors much happier with the response to the current crisis.

Want to see more data from our 2020 Wealth Poll? You can check out the infographic on the effects of COVID-19 here, or watch the full webinar with each and every insight we collected here

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