Audio Transcript

Achieving “Hyper personalization” in the wealth management business is typically a challenge between:

• how much time do you want to spend with your client
• making sure the investment process is compliant will all regulatory requirements
• and how automated the process should be

If there is one business line in the wealth management industry where personalization has recently becomes extremely relevant, it is the advisory wealth management business. Here, it used to be common practice to simply establish the risk profile of the client and to provide an investment proposal based on that risk profile only. Today, however, it is imperative to go the extra mile in the ‘personalization’ of the advice, and make sure to capture all the client’s needs and preferences, like:

• What is the objective that the client wants to achieve with his investment?
• What is the time horizon of it?
• But also, what is the client’s risk tolerance?
• And, in conclusion, what is the client’s attitude towards ESG products?

The challenge is then to provide the client with a personalized advice that fits all these criteria, that is compliant with all regulations and to make sure that the overall process is as much automated as possible.
On top of that, providing personalized advice is not just a point-operation anymore that you only execute when the client asks for it, but it should be a continuous theme in your relationship with your clients. Advisory wealth management firms need to monitor their advisory portfolios on an ongoing basis as well as regularly inform their clients about the situation of their investments and if they still comply with all the client’s requirements. But at the same time, this ongoing monitoring also provides opportunities for wealth management firms to remain engaged with their clients and give them a ‘warm’ and ‘personalized’ feeling about the wealth management company they have chosen in the first place.