By Targeting Rich Clients, Wells Fargo Hopes To Catch Up With Faster-Growing Rivals

A new platform will be launched by Wells Fargo to boost digital engagement with its 2.6 million wealth management clients, Trade Algo has learned.

‍

LifeSync is a service that allows users to create and track progress on financial goals, ingest content linked to their plans, and contact their advisors directly, according to Michael Liersch, head of advice and planning at the bank's wealth division. According to him, the update will be released through an update to the mobile app in late March.

‍

“Those are the things that will really enhance the client-advisor relationship, and they're not available on the mobile app right now," Liersch said. “Clients and advisors can collaborate around goals and connect what clients want to accomplish with what our advisors are doing with this platform enhancement.”

‍

As banks compete to provide their customers with personalized experiences on their digital channels, Wells Fargo should be able to take advantage of this tool to boost customer satisfaction and loyalty. During his efforts to overhaul the bank and appease regulators, Charlie Scharf, the company's CEO, has highlighted wealth management as one of the company's growth areas, along with credit cards and investment banking.

‍

With $1.9 trillion in client assets and 12,027 financial advisors, Wells Fargo dominates American wealth management.

‍

Nonetheless, since the end of 2019, when its client assets also stood at $1.9 trillion, the amount of assets of its clients has not grown. As a result of Scharf's efforts to streamline the company, Wells Fargo has sold its asset management business and dropped international wealth clients in 2021.

‍

“There is no doubt that the trajectory of the asset figure is mainly a consequence of the volatility seen over the past few years,” according to a spokesperson for the bank.

‍

During that time period, its competitors - sometimes known as wirehouses - grew by leaps and bounds, thanks in large part to acquisitions, organic growth, and new technology. The client assets of Morgan Stanley increased from $2.7 trillion to $4.2 trillion. Bank of America's wealth division saw balances rise from $3 trillion to $3.4 trillion.

‍

Wells Fargo hopes that its new offering will turn the tide. Liersch said the bank may eventually offer a financial planning tool to its broader customer base. It follows the launch of a digital planning tool by Bank of America in 2019.

‍

“It was important for us to solve for that more complex experience first, and then develop the client-directed capability, which is certainly on our list,” Liersch said.

‍