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From one-fits-all to client-centric: how wealth managers are shifting to stay relevant

Kurt Vanhee

Managing Director CE & North America at Objectway


Audio Transcript

Hyper-personalisation in banking and wealth management is the approach that provides a unique user experience and high-quality service, each time a client interacts with his Bank or Advisor. Prior to this decade of digitalization, personalization was done based on client segmentation. Clients were categorized into different one-dimensional segments, based on generic static characteristics. This segmentation needs to be turned into a multi-dimensional model when it comes to client interaction.

It is not about what different features you offer to your clients, but it’s about providing the right feature to the right client at the right moment. Becoming client centric is crucial.

Let’s take the example of banking portals.. With the majority of Banks, there is still a trend that “one-fits-all”. Taking the technical split between IOS and Android out of the equation, Banks still have one version of their portal. But young people might need other information than retired people. The investment horizon and financial behavior changes dramatically when people get older or when their family status changes. And still, a lot of banks offer the same tools and products to young professional and seniors. Banks need to change their approach from one-fits-all to client-centric. This can be done using data analytics and behavioral science. It starts with analyzing the behavior, the needs and the wants of the existing clients to prepare tomorrow’s unique client interaction.

And the same goes for the client reporting. I have seen Banks taking their first step in personalizing their reporting packs. One did that based on the AUM of the client, where below a certain threshold, a light reporting pack was produced with only standard information. Once the client’s managed portfolio goes above that threshold or contains certain types of instruments, additional more sophisticated data and risk information was added.