Financial services firms are adding digital channels faster than they can align them with regulation, adviser workflows, and the clients who still prefer a letter, a call, or a branch visit.
Firms need a clearer read on channel choice, evidence of good outcomes, and how to avoid a sprawl of tools that clients and advisers cannot follow.
In episode 10, Helen Clark, founder of Mint Blue Consulting, explains why client communication strategy in financial services now depends as much on tech discipline and inclusion as on the latest platform release.
Since the pandemic, tools such as Zoom, Teams, and Slack have become routine in financial services.
That shift raised expectations and multiplied the number of channels advisers and clients are expected to use.
According to Deloitte, 71% of financial services firms are focusing on improving their digital customer experience.
Many adviser firms still feel buried under vendor choice rather than clearer on what each tool is for.
"Adviser firms are really overwhelmed with the choice. It's so easy to say we'll just take bits of tech in here and add tech in there, and they haven't really had the chance to fully consider the implications of doing that."
In rural areas, connectivity gaps add another barrier.
Ofcom reports that 8% of rural premises in the UK still cannot access decent broadband.
Consumer Duty and the Cost of Compliance
Regulatory requirements such as the Consumer Duty push firms to show that clients are treated fairly and achieve positive outcomes through the communications they receive.
Digital innovation can help firms explain products more clearly and reach clients faster, but it also adds integration, data, and security work.
"Consumer Duty is trying to take us back to the basics in a lot of ways. But digital technologies can make that both easier and more challenging at the same time."
Firms also need to integrate new tools without weakening GDPR controls or the security standards applied to client communications.
Mapping the Tech Stack Before Adding More
The appeal of new technology often leads firms to adopt multiple systems quickly, creating messy and inefficient stacks.
A 2022 Accenture study found that 67% of banks still rely on legacy systems for core banking functions, which makes integration harder.
Where Legacy Systems Still Dominate
67% of banks still depend on legacy systems for core banking functions, which slows integration when new client-facing tools are added.
A clear technology strategy starts with mapping what is already in place before another platform joins the stack.
"Every firm needs to have their own tech strategy. It's very easy to take on different pieces of technology... It's about making sure that whatever you take on, you're actually actively piloting."
Fewer client-facing platforms usually means less confusion for the recipient and less duplication for the firm running them.
Pilot before you scale: every new channel should prove client value before it becomes the default route.
That discipline becomes harder to maintain when firms serve clients with very different levels of digital confidence.
Client and Adviser Diversity Is Not a Single Cohort
Assumptions about age and digital skill often mislead communication planning.
Digital adoption is growing, but many consumers still use branches, post, or phone for part of their financial life.
A 2023 J.D. Power study found that 78% of U.S. retail banking customers use their bank's mobile app or website, while 69% still visited a branch in the previous year.
"It's actually a bit of a fallacy that all older people can't use tech and all younger people are whizzing around on laptops."
UK data points in a similar direction for older adults who do use smartphones.
According to Statista, smartphone ownership among adults aged 55-64 in the UK reached 84% in 2023.
Smartphone Use Among Older UK Adults
84% of UK adults aged 55-64 owned a smartphone in 2023, according to Statista, so channel choice matters more than age labels alone.
Firms that segment by behaviour and preference, not stereotype, can keep communications inclusive without defaulting to paper for everyone.
"When adviser firms add another client-facing channel every time a new tool looks useful, the harder question is whether clients can follow the journey and whether the firm can evidence good outcomes when Consumer Duty asks."
Carole Howard, Head of Networks, Beyond Encryption (Mailock)
AI-assisted notes, automated coding, and new API connections are already changing what those channels can do.
AI, Generational Change, and Measured Adoption
Artificial Intelligence (AI) and API connectors are already changing how meeting notes, coding, and client records are handled.
Firms still need to implement those tools with regulatory requirements and client preferences in view.
"We're already seeing meeting notes replacing the old telephone coding methods... With that kind of innovation going on, that's just going to accelerate."
Gartner predicts that by 2025, 80% of financial services firms will either go out of business or be rendered irrelevant by new competition, changing customer behaviour, and advancements in technology.
That pressure makes disciplined change management more important than reactive tool buying.
Two Cohorts, Two Communication Expectations
Generation Z is entering the workplace and client base with mobile-first habits, while many retirees are now more comfortable with technology than a decade ago.
"You've got a cohort of retirees for whom technology will be the norm... At the same time, you've got Gen Z dominating the workplace, so they'll be bringing their own technology approach."
Where sensitive documents still travel by everyday email, firms also need to think about how access is controlled and evidenced across the channels clients actually use.
That is one reason secure email for financial services remains relevant when firms want to keep email as the delivery route while adding stronger protection and tracking.
Checks Before Adding Another Client Channel
Map existing systems and identify overlap before signing a new contract.
Run a pilot with a defined client group and measure adoption beyond go-live dates.
Confirm inclusion for clients who cannot or will not use digital routes.
Record evidence that supports Consumer Duty outcomes and GDPR controls.
Those checks reduce the risk that a new channel looks innovative internally but creates friction for clients on the outside.
Simplicity Beats Sprawl
Financial services firms do not need every communication tool on the market.
They need a strategy that matches client preference, adviser workflow, compliance evidence, and the systems already in place.
Choosing The Right Customer Channel?
Read our research on portals, logins, email, and post before deciding how customers should receive important documents.
Understanding those constraints first makes it easier to adopt technology that clients will actually use.
FAQs
Why Are Adviser Firms Overwhelmed by Communication Technology?
Vendor choice has outpaced strategy. Many firms add tools for one workflow without mapping how clients and advisers move between channels, which creates duplication and confusion.
Does Consumer Duty Require Digital-Only Client Communications?
No. The FCA expects firms to deliver good outcomes and fair treatment. Digital tools can help evidence that, but firms still need routes that work for clients who prefer non-digital contact.
How Should Firms Test New Communication Tools?
Start with a mapped view of existing systems, run a pilot with a defined client group, and measure adoption and outcomes before rolling a tool out firm-wide.
What Does the Digital Divide Mean for Financial Services?
Some clients lack internet access, reliable broadband, or trust in digital banking. Firms need inclusive options and clear alternatives when a digital route is not viable.
Sam Kendall works on digital marketing at Beyond Encryption, helping build B2B marketing activity around research, first principles, and sustainable growth. He writes about marketing effectiveness, positioning, customer communications, and digital culture, with longer-form work published at ATNL.
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Sam Kendall
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