Morgan Stanley is partnering with communications platform Twilio to facilitate text messages from financial advisors to clients. The partnership is part of a broader strategy at the firm to digitize its communications with clients to increase engagement and broaden its base.
L2’s recent study of the digital performance of Financial Services firms finds that Morgan Stanley is not the only firm looking to overhaul outdated practices. Over 40% of Financial Services firms are allocating 25% or more of their IT budgets to digital transformation efforts, far more than the global average of 8%.
However, the transition to digital is still slow considering consumers’ eagerness to embrace it. As shown in the graph below, 51% of Millennials and 43% of Generation X are receptive to non-traditional banking services. Paired with the $19 billion of investment capital has poured into “FinTech” startups in the past year, this should create a sense of urgency among financial services institutions to improve their digital performance.
While Morgan Stanley places average in L2’s Financial Services Index, it provides a superior user experience to those searching for an advisor online. Users can find an advisor through several digital platforms, including FINRA broker check, email, and Linkedin. The partnership with Twilio suggests the company is investing in improving the digital experience for existing clients as well.