Data analytics strengthens interactions between wealth firms, advisors, and investors

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Wealth management firms striving to serve customers better may be ready to adopt technology tools proven effective by successful big brands such as Netflix

As unexpected competition and emerging technologies disrupt the industry, wealth management firms are preparing for a new normal by evaluating their business models and fee structures – exploring innovative revenue streams and looking at ways to add value for clients.

Most firms both within and outside the industry already realize the potential that can be unleashed through investing in emerging technologies and have become experts at improving the customer experience (CX). Across parallel industries, media-services provider Netflix serves a good example of this, as the company has been leveraging data analytics for years to offer its subscribers top-notch CX through targeted promotions and entertainment recommendations.

And now, wealth management firms striving to serve customers better may be ready to adopt technology tools proven effective by successful big brands such as Netflix. With the current need to serve their customers better, it is important to understand and empower their financial advisors who form a critical interface with end-clients. Utilizing analytics offers a path to more meaningful advisor, sales, and management insights that can be used to optimize the strengths of financial advisors. Better client-wealth manager relationships may ultimately help advisors to improve their efficiency, enhance sales, and grow existing assets under management.

As Capgemini’s World Wealth Report 2018 has revealed, High-Net Worth Individual (HNWI) satisfaction still lags the industry benchmark but can be improved. In 2018, only 55.5% of HNWIs interviewed said they connected very well at a personal level with their wealth managers, which leaves room to bolster customer satisfaction. Adding incentive for improvement, more than half of HNWIs expressed interest in wealth management services offered by BigTech firms, which could translate to an estimated ~$12 trillion in potential asset flows.

With an eye on customer satisfaction, Capgemini’s Augmented Advisor Intelligence (AAI) solution leverages data and artificial intelligence to offer wealth and asset management firms a competitive edge through intelligent, actionable insight into their financial advisors’ behaviors.

The solution assesses advisors within the context of wealth firm and investor perspectives to provide predictive, prescriptive, and proactive actionable insights across a variety of interactions – from prospecting all the way through the advisory lifecycle.

While financial advisors are a critical wealth firm asset, little has been done to understand their personalities, behavior, preferences, and values. Now, the AAI solution categorizes advisors into psychographic and value-based segments by running analytics to gain powerful insights.

The AAI solution supplements a wealth firm’s insight into each advisor’s potential for contribution with a more in-depth look at external demographic, sales, portfolio, and behavioral data. A digital profile of each advisor is created to better understand success potential, propensities, and areas for improvement.

Augmented Advisor Intelligence (AAI) components


AAI offers wealth firms a competitive edge

  • Better advisor productivity: Potential and productivity are enhanced by strengthening outreach and engagement
  • Enhanced experience: Advisor and investor experiences are personalized via personality/compatibility scores and propensity model-based interactions
  • Boost growth: More targeted campaigning, prospecting, product/pricing strategy, service, and communication via best practice recommendations
  • A path to innovation: Provides the ability to leverage sector-specific and sector-agnostic third-party data providers and engage with a diverse partner ecosystem to develop new products and services
  • Cost-effective deployment: Cloud-based solution which can be deployed on-premise and easily tailored and adapted for other platforms, which ensures the maximum ROI and compatibility with existing firm technology investments.

More and more wealth and asset management firms are investing in innovative technologies such as machine learning as they prepare for an increasingly competitive industry in which BigTech firms and other newcomers may soon play a more significant role.

When it comes to providing a superior advisory experience, in addition to higher customer satisfaction and loyalty – insights and analytics will be critical to current and future effectiveness. We are at the beginning of a wave of innovations, which means those wealth management firms that invest in digitization and respond with actionable insights will be able to stand their ground in the evolving marketplace.

To learn more about the future of banking, reach out to me via social media.

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