How Personalized Content Helps Asset and Wealth Management

Feb 13, 2017 | Personalized Marketing

The asset management sector is facing disruption and risk from multiple directions. They include the digital transformation of the customer experience (CX), the changing behaviour of investors in younger demographics, the rise of ‘robo-advisor’ software for customized services, and deep-pocketed fintech startups who challenge the status quo.

A way to face these changes is to address the importance of personalized content for asset and wealth management. A personalized experience for clients overcomes the “one size fits all” mentality that no longer suits the marketplace and is becoming a key industry trend.

How Personalized Content Helps Asset and Wealth Management

Gartner’s ongoing research into the role of marketing in customer experience found that back in 2010 36% of companies expected to compete mostly on the basis of CX in the years to come; however, by 2014 that figure surged to 89%.

Engagement And Context

A fully customized experience leads to more memorable user interactions. The financial sector has been slow to adopt personalization. However, customers are now often getting such experiences elsewhere – in banking, commerce and more – so now is the ideal time for asset and wealth management to embrace it too.

“Investment providers are not fully prepared to meet the rising expectations of investors,” reported Roubini Thoughtlab’s Wealth and Asset Management 2021. It found that 68% of investors are pressing for “more customized solutions.”

Changing The Client Experience

The use of artificial intelligence in various financial services can mean attractive lower fees and higher returns for clients.

“Technology has the ability to shape the client experience,” explained David Donovan of Sapient Global Markets. “With more palatable advisory fees and other cost-effective services across commoditized asset classes, technology can increase the global reach of wealth management firms as wealth is redistributed across global and emerging markets.”

Understanding The Customer Journey

It’s important for your digital strategy to be customer-led. To improve CX you must observe customers’ journeys as they interact with your business, and understand where changes need to be made. A likely development is that digital tools will increasingly combine with human advisors, with software providing customized guidance and context at various touchpoints. This helps keep the customer experience consistent regardless of the channel.

Understanding the customer journey

For example, European wealth management firm Union Investment GmbH began using advanced analytics and identified 300-1,000 characteristics that influenced individuals’ decisions to buy mutual funds. According to IBM, this meant that the firm’s personalized advice to clients resulted in “stepping up conversions for its direct sales agents while cutting down on overall churn.”

With customer behaviour spread over more and more channels (digital or otherwise), an integrated approach is vital in encouraging customer loyalty.

For financial services, having a clear understanding of customer journeys across channels was very important for 77% of respondents in an eConsultancy report into the digital transformation of the sector. In addition, making the CX as personalized and relevant as possible was the top priority for organizations.

New Revenue Streams

Content personalization for financial wealth management has benefits, including:

  • Opening new revenue streams, such as emerging international markets and younger investors.
  • Automating the up-selling process
  • Targeting individuals’ interests with relevant content

Use-cases for this include placing content from commercial partners or third parties onto your website, or targeting users’ smartphones with suitable text or video information.

Personalized content can succeed for the asset and wealth management sector, helping to meet customer demands in a more responsive and unique way. Knexus helps financial institutions to provide personal, unified and memorable customer journeys to maintain a competitive edge.

As part of a personalized marketing solution, Knexus’ platform will find the most suitable content from existing wealth and asset management marketing collateral and deliver it to any digital touch-point in real time.

Case Study

Investment Management Firm Smoothed the Path to Investment Decisions with AI Optimized Content

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