Wealth managers are taking the more than 6 billion text messages sent globally every day as a sign that the vast majority of clients are willing to communicate with businesses via text.
Redtail Technology Inc., a client relationship management provider for financial advisers, announced upgrades to its texting platform and opened up the tech to all financial advisers, not just those using its proprietary CRM platform.
The latest version, called Redtail Speak, is a compliant, real-time communication platform for advisers with additional features like the ability to set up message templates and the ability to schedule messages for a future send date, according to a company release.
“We believe most advisers understand the importance of attempting to meet their clients where they live in terms of communication,” Redtail CEO Brian McLaughlin said in an email. “Advisers recognize this is true in their own lives, and they understand their clients rely on texting for a huge percentage of their daily communication, as well.”
Launched in 2017, the tech records every message or document sent through the application, which is then searchable and automatically archived so it can be shared with compliance teams.
Redtail charges for the product on a tiered subscription model, with the cheapest level costing $20 a month for the service plus 10 cents per text message sent. The most expensive option charges $50 a month and includes 1,000 text messages, according to the company.
Clients are increasingly connected to mobile devices, via cellphones and smartphones, and wealth management tech providers are betting advisers will want to reach clients using texts.
According to a study by the Pew Research Center, the vast majority of Americans (97%) now own a cellular phone of some kind, while the share of Americans who own a smartphone with internet connectivity is now 85%, up from just 35% when the survey was first conducted in 2011.
Text messages may also be more efficient. Ninety-eight percent of text messages are opened compared to just 20% of emails, according to data provided by the company. And on average, texts are responded to in under 90 seconds, while it takes someone 90 minutes to respond to an email.
“Most advisers understand that communication with their clients is a key component of the client experience,” said McLaughlin. “They also understand that using the channels to communicate that their clients prefer is one important aspect of making that experience a positive one.”
Redtail is just one of a handful of wealthtech firms looking to expand adviser-client communications into text messaging and providing the tech to make it possible. In August, marketing tech platform Snappy Kraken launched Convos, a desktop app designed to allow advisers to exchange compliant text messages with their clients.
According to data from Snappy Kraken, text messages have an open rate that's six times higher that of emails.
The new tools are another step toward making texting as mainstream as more traditional forms of communications, like email and phone calls, McLaughlin said.
“More so than ever before, people now expect seamless experiences with almost immediate response times in every aspect of their lives — including financial advisory services,” he said.
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