Wealth management firms in the UK are concerned about the security of client communications, with many still relying on unsecured channels, according to a report from Legado.

It found that 85 per cent of wealth and advice professionals were worried about the security of their client communications.

Despite this, many firms were still using unsecured means to conduct their client communications, such as standard email or personal messaging apps.

Less than one in four reported using encrypted or policy-governed systems in their regular communications.

The report highlighted several areas of adviser communications that were repeatedly cited as needing attention: auditability, integration, security, and client experience.

While 93 per cent of advice professionals agreed that having an audit trail was critical, less than 30 per cent reported that their current systems enabled them to record and retrieve communications reliably.

Legado also warned that client expectations were evolving faster than practice, with clients under 40 in particular requesting channels such as WhatsApp or client portals, and older clients becoming increasingly confident with digital tools.

However, less than 20 per cent of wealth and advice professionals said they offered clients access to an integrated communications portal, and the majority still relied on email and PDF attachments for document sharing.

The survey found that 89 per cent of respondents said they would find value in having a single, integrated platform to manage client communications and records.

Legado noted that artificial intelligence (AI) adoption was gaining momentum, with 96 per cent of professionals either using or exploring AI-assisted communication tools.

However, AI usage was often isolated to individuals or tools and not integrated into firm-wide systems.

“This research validates what we hear every day – that the industry is no longer debating the need to modernise communication,” commented Legado CEO, Josif Grace.

“The question is how to do it in a way that works for clients, regulators, and advisers alike.

“Secure, integrated systems are no longer a luxury – they’re a requirement for firms that want to deliver consistently excellent service.”

---