The investment management industry is deemed to be drastically underprepared to serve the digital needs of next generation investors in both the US and UK.

The State of Digital Investment Management: Adoption and Usage in 2018, a report from InvestCloud.Inc., interviewed 47  investment managers and 1,019 investors.

The study found that 68% of wealth managers are aware that they need to improve their digital technology in order to survive.

Just under half of the investors interviewed are currently using mobile apps to manage their investments. This number is set to increase even though a large proportion of wealth managers are behind on their mobile offerings.

Furthermore, 48% of investors see digital propositions as one of the determining factors in selecting a wealth manager.

John Wise, co-founder and CEO of InvestCloud said: “The investment management industry is facing a digital crisis. Engagement both online and via mobile is now mission-critical for firms hoping to win the battle for the next generation of investors. Those firms who successfully manage this digital transition will gain access to a lucrative, multi-trillion-dollar market as wealth transfers to younger generations.

“The loyalty that once bound investors and their managers is now under threat from investors’ growing affinity with technology. Mobile apps and digital platforms are no longer a ‘nice to have.’ They are a necessity for growing assets under management, retaining current clients and attracting new investors.”