The Future of Wealth Management is Hyper-personalised
15 September 2021 – Focusing on the Wealth Management sector, a survey report from Objectway – a leading provider of Digital Wealth & Asset Management software – came up with some interesting findings on the applications of hyper-personalised services and on how firms are leveraging them to increase the customer base and ensure their future growth.
Hyper-personalisation is at its maximum hype nowadays. Apart from the easy pun, the art of personalising products and services to meet clients’ needs is not new. Brands regularly ask themselves how to engage with clients to maximum effect and deliver the best customer experience possible, simultaneously boosting client satisfaction, improving brand loyalty and increasing sales. However, driving customer engagement has never been more complex than today.
Focusing on the Wealth Management sector, a survey report from Objectway – a leading provider of Digital Wealth & Asset Management software – came up with some interesting findings on the applications of hyper-personalised services and on how firms are leveraging them to increase the customer base and ensure their future growth.
In their survey report “Are You Developing A Hyper-personalised Strategy?”, Objectway asked domestic and overseas Wealth & Investment Managers which definition of hyper-personalisation fitted best for them.
Respondents have equally opted for the definitions of hyper-personalisation as the provision of a customised investment solution (29%), a personalised digital wealth experience (25%), and – interestingly – a dynamic educational or promotional content based on customer analytics (29%). Investors’ education is thus a key component of responsible and sustainable investments in the long-term.
More than half of the surveyed wealth managers have developed or are working on a hyper-personalisation strategy, showing it being among the top priorities of the digital agenda, especially in this period, where it could represent the future of customer engagement post-Covid.
Throughout the client investment journey, 4 out of 10 respondents are focused on implementing a hyperpersonalised service in portfolio construction and product recommentations, where artificial intelligence, data analytics and machine learning are applied to create personalised proposals, which is the most important achievement, according to one third of the surveyed panel.
Bespoke financial planning (18%) and risk profiling (18%), and reporting (16%) are equally placed, underlining that leveraging advanced technology to analyse client behaviour enables one to provide well-rounded, tailored advice on investment decisions.
Coherently, the vast majority (83%) argues that the use of hyper-personalisation is essentially aimed at elevating customer experience and, consequently, to gain a competitive advantage among Wealth & Investment Management firms.
To personalise client experience, behavioural sciences and sentiment analysis seem necessary, since most of the respondents (67%) would like to leverage these techniques, but only 25% of them can rely on these methods, while 42% are still working on it or just talking about it at the moment.
Financial advice and reporting are usually data-driven, but the information used to this purpose is generally very limited. Best practice would require all available data, including extra corporate and unstructured items, subjecting it to the most advanced data science.
So, there is a long way to go before AI-driven technology will be at the centre of hyper-personalisation in Wealth Management.
Big techs have led the way of hyper-personalisation. And HNWIs have taken notice
Brands like Amazon, Spotify and Netflix, to name a few, have all focused on hyper personalisation for many years when offering their services to the market. Think about the “pre-client” experience they offer, even when you’re (still) not a customer of services like Amazon Prime or Spotify Premium.
You can already try and enjoy these services, and then subscribe for the paid offering. This could also apply to the financial services business.
It’s time to rethink the ‘must-do’ onboarding process and turn it into a commercial opportunity. To achieve this goal, artificial intelligence, machine learning and analytics are not enough: it’s advisable to create an effective data management program and a data-driven culture. If the ultimate objective is to build longlasting personalised relationships with investors, together with customer loyalty towards your brand, we can assume the more personalised a service or an experience is, the stronger the client relationships become. And the stronger client relationships
become, the more organisations will be able to compete in today’s increasingly crowded environment.
Alberto Cuccu, CEO, Objectway Ltd.
The full survey report from Objectway can be downloaded here