Survey: Younger investors drawn to wealth management apps

Mobile apps and websites have become the first resources that investors consult to review their investments, make transactions and conduct research, with apps particularly popular among younger generations, according to a new survey by J.D. Power. The research firm polled nearly 6,400 investors about their digital experiences with wealth management. The overall average satisfaction score for U.S. wealth management mobile apps was 731 on a 1,000-point scale, which was 50 points higher than the average score for wealth management websites. The gap was driven largely by a significant preference for apps among younger investors.

Customer satisfaction with mobile wealth management apps was highest among members of Generation Y, with an average score of 760. Members of Generation Z followed with an average score of 720. Members of Generation X, boomers and pre-boomers—all of whom were more likely to use their wealth management firm’s website—had lower satisfaction with apps.

“Wealth management firms that want to attract and retain younger investors need to focus on continuing to improve their apps,” said Michael Foy, senior director of wealth intelligence at J.D. Power. “The mobile app really is becoming the center of the modern wealth management client user experience, and that’s true not just for do-it-yourself investors but also for those who work with a financial adviser.”