The more cutting-edge a wealth management firm’s technology, the higher its client satisfaction during the pandemic, according to a new study by the Money Management Institute (MMI) and Aon, a London-based financial services firm.

The survey, conducted in January and February, found that overall client satisfaction was strongly linked to a wealth management firm’s digital capabilities during the Covid-19 pandemic. The survey also found a slight drop sincec last year in overall client satisfaction with financial advisors—from 69% to 68%. 

A majority of respondents (84%) who viewed their wealth manager as a leader in the use of digital technology said they were satisfied; 70% who viewed their firm as comparable to other firms said they were satisfied; and just 38% of those who saw their firm as lagging behind others said they were satisfied.

For many clients, a digital tool kit represented an important means of communicating with their advisor about their investment savings during a worldwide health hazard that limited in-person meetings. About half of all respondents (51%) said they wanted their advisor to be able to answer their questions about their account, while 34% said they wanted digital interaction for the purpose of developing or refreshing their financial plan. 

When it came to planning and performance, MMI and Aon found that advisors underestimated the importance of in-person interactions to their clients. Advisor perception of client preference for in-person planning was 37% compared to clients’ actual preference at 43%. When it comes to discussions about investment performance, advisor perception stood at just 30% compared to actual client preference of 36%.

Respondents said they considered an advisor’s most important digital tools to be performance reporting/tracking toward financial goals; tools that enable easy communication with their advisor; and financial planning tools that forecast retirement income.

According to Craig Pfeiffer, president and CEO of MMI, digital communications is a two-way street between advisors and their clients.

“One of the clear messages we see from this research is that it’s critically important to continue to invest in digital infrastructure for both clients and advisors,’ Pfeiffer said. “But, at the same time, the advisor remains the straw that stirs the drink, and human touch is still paramount in the financial planning process.”

Now in its second year, “Expectations and Experiences” is a four-part series based on a proprietary research program sponsored by MMI in association with Aon. The latest survey was based on responses from 1,500 investors and 1,405 financial advisors across the U.S.