Getting engagement “right” in wealth management through interactive, personalized reporting

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Not only are the demographics changing, they are also prone to making changes to how their wealth is managed as nearly 30% of HNW clients’ offspring abandon their parents’ investment firm after receiving inheritance.

By 2030, predictive data is showing that more than $15 trillion of global wealth will be transferred to heirs by individuals with a net worth of $5 million or more. This hand off will spur a significant change in the demographics of the high net worth individual (HNWI) client pool for wealth managers.  Not only are the demographics changing, they are also prone to making changes to how their wealth is managed as nearly 30% of HNW clients’ offspring abandon their parents’ investment firm after receiving inheritance.

Add the current health crisis and unprecedented market volatility to this generational changing of the guard and it becomes critical for firms to get it right on many fronts. I see clients clamoring for quick, easily digestible investment information and advice. What’s a wealth manager to do?

Shore up vulnerabilities by personalizing client information and modernizing client reporting

In today’s 24/7, information-now universe, data is everyone’s lifeline. However, when we conducted HNW client interviews as part of the World Wealth Report 2020, we learned that wealth firms were slow to offer personalized information and services. And, it’s hurting client experience (CX). Generic one-size-fits-all client reports no longer pass muster. More than 60% of HNWIs said that the lack of personalized information stifled their overall CX with their firm.

What’s more, data-savvy Big Techs are winning the hearts of HNW clients at critical touchpoints. BigTechs know that wealth clients – particularly next-gen HNWIs – consume information in different ways and want to access it via the channels and formats they consider personally relevant.

HNWIs are impressed by BigTechs’ WOW-factor services, Jan–Feb 2020 (global)

Sources: Capgemini Financial Services Analysis, 2020; Capgemini Global HNW Insights Survey 2020.

With more than 74% of HNWIs willing to consider investment advice from BigTechs, I encourage wealth management firms to adopt innovative and interactive client reporting methods to close the personalization gap.

Client reporting 2.0

Technologies such as artificial intelligence (AI) and data storytelling are enabling wealth management firms to redefine client reporting. The following examples from industry trendsetters will give you an idea of what I mean.

Holistic Storytelling – Firms are using account augmentation and data storytelling solutions that combine a client’s total financial relationships into a single view so they can visualize the path to achieving their goals. Credit Suisse and FinTech Canopy partnered to offer the bank’s customers an aggregated view of their portfolios and help relationship managers develop personalized investment advice.

Interactive Reporting – Looking beyond eStatements, interactive digital reports allow clients to slice and dice complex portfolios across multiple devices through a digital platform. BNP Paribas Securities Services provides its clients interactive reporting with drill-down capabilities through its data visualization tool DNA. Clients can access reports that cover portfolio performance, performance attribution analysis, etc., via the format, frequency, and device they require.

Gamification and Visualization – A gamified simulation is an ideal tool for customer engagement. It helps clients to visualize various what-if scenarios through animation to understand the long-term impact of their investment strategies. HSBC’s Wealth Portfolio Plus provides a range of innovative portfolio, risk, and scenario analytics tools to aid client decision making and progress tracking.

Despite significant steps, wealth management firms still have ground to cover in terms of regularly delivering “WOW” CX that stacks up to what clients have come to expect from other industries, such as:

  • IKEA’s Place app which allows furniture shoppers to virtually arrange furnishings in their homes and view the layout through their smartphone camera. IKEA’s secret weapon? A vast database of 3D models of almost every single item the company sells. App features include visual search that lets users scan real-world items using their smartphone camera to view a list of similar products from the IKEA catalog.
  • The Disney Genie app makes trip-planning more manageable through customized itineraries geared to travelers’ interests. It sends real-time tips and updates, including recommendations for experiences it thinks the customer will love, by creating an optimal day at Disney.
  • The Mercedes Me app uses augmented reality (AR) to give Mercedes-Benz drivers everything from vehicle management and remote access to meaningful assistance and support – all in one place. Features and vehicle data are quickly available without a manual.

Traditionally, streamline and automate were priorities for wealth management firms seeking to transform client reporting and statement processing. However, as customers’ needs and work styles shift, the financial services paradigm is changing rapidly. I’m increasingly seeing wealth firms turn to creative digitization and virtual interaction to delight clients while distinguishing themselves within a challenging business climate.

Is your firm future-ready? I encourage you to reach out to me on social media to talk about your firm and how innovative CX can help you get client engagement right.

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