How to build a better investor experience – new YouGov data
The payment innovations that wealthtech users want
2020 has seen for online trading, investing and wealth management services. But new research from YouGov suggests that there are still significant parts of the online experience that are falling short of investor expectations.
TrueLayer partnered with YouGov to survey more than 1800 current users of online wealth management services and 1400 consumers who are considering investing, across the UK, Germany, France, Spain, Italy and the Nordics (Sweden, Finland and Norway). The survey focused on attitudes to onboarding and payments.
1. Instant withdrawals build trust – and deposits
Payments influence customer satisfaction. But perhaps most interesting of all, the ability to make instant withdrawals drives higher deposits. Almost two thirds (64%) of current and prospective investors are more likely to trust a provider that offers instant payments. While almost half of current investors (46%) said they were likely to switch providers for instant withdrawals. What’s more, 37% of current investors would also consider depositing more money if they could withdraw instantly.
2. Slow deposits cost customers money and damage your brand
A quarter of current investors said they had missed out on investment opportunities because funds didn’t appear in their accounts quickly enough, causing them to miss trading cycles. This rises to 29% in Italy and 38% in France.
3. Investors are comfortable with instant bank transfer
Despite being a newer payment option that isn’t yet universally available, our research shows that – thanks to compelling simplicity and the trust we already have in our banks – across the continent, consumers are universally comfortable with instant bank transfers, enabled by open banking. 83% of all investors across Europe feel comfortable using instant bank transfers for transactions to their financial services accounts.
4. Onboarding must be fast and trusted
Onboarding is the most precarious part of the customer relationship, where a service provider has not built up brand equity, but is asking the most in terms of data and effort from their prospective new customer. Our research shows that during onboarding, the criticality of speed, simplicity and trust are amplified with 61% of investors saying they would not tolerate a signup process lasting more than 10 minutes. Over half of our respondents (56%) are likely to quit a signup process if they are directed outside the app to make their initial deposit, suggesting white-labelling any external payment providers is key.
5. Instant bank verification builds trust
When it comes to onboarding, there is one external provider that a consumer is highly likely to trust: their own bank. Just as customers are suspicious of untrusted third party payment sites, our survey suggests that they are equally positive about platforms that can verify customer credentials directly with their bank. Our research found 70% of respondents would trust a platform that verifies their account directly with their bank.
The wealth management industry has been disrupted by technology in the same way as every other sector. As new customers turn to online trading and investing, providers will likely have to fight harder for loyalty, particularly for digital natives who have higher expectations of a frictionless user experience and no qualms about moving to a better provider.
Thanks to open banking, payments now present an opportunity for wealthtech providers to differentiate and drive customer loyalty.