MiFID II and IDD and their effect on customer experience

The customer experience of private consumers in wealth advisory has gotten more regulated and complicated over the last decades. EU directives, such as MiFID II and IDD, have impacted lengths of meetings and the number of documents generated when visiting an investment professional. This could especially cause irritation and stress for new clients who do not have long-term experience in investment and wealth management matters.

By interviewing 20 investment professionals and 22 private consumers from eight different Finnish financial companies, this research as conducted to research how MiFID II and IDD impacts the private consumer experience. An online questionnaire was sent out to all respective financial companies to support the interview findings, which gathered 224 observations in total.

The study found that Finnish companies offer high-level financial wealth management services, and their general customer satisfaction is high. Our sample was mainly from experienced investors, who had experience and were used to long due diligence processes, and why the legislation has developed to a stricter way. Some results from new clients were found, where development is needed.