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Wealth management: 3 strategies to personalise the client experience

Charles Smith
Charles Smith
Head of Digital Solutions for Wealth, Refinitiv

As the digital revolution continues to bring sweeping change to the wealth management arena, a new Refinitiv white paper looks at some key strategies wealth managers can employ to create truly personalised client experiences and, in so doing, engender loyalty and grow critical revenue streams. 

  1. In the wealth management industry, digitalisation has left many firms scrambling to develop innovative strategies to personalise the client experience.
  2. A recent white paper by Refinitiv discusses key strategies and techniques that can help wealth firms personalise the client experience.
  3. Segmentation and the use of personas, digital marketing and digital collaboration can all lead to improved client engagement and digital experiences for clients.

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The rapid and ongoing digitalisation of the wealth arena has left many firms scrambling to develop innovative strategies to personalise the client experience.

The advent of COVID-19 served to intensify and accelerate our industry’s digital transformation, ensuring that the old-school approach of in-person advisors delivering personal attention to individual clients continued its demise.

Many firms found themselves switching to digital forms of engagement almost overnight, and further discovered that their efforts left investors underwhelmed. Recent Refinitiv research shows that just 37 percent of investors gave their wealth providers top scores for their digital experiences.

37 percent of investors gave their wealth providers top scores for their digital experiences. Wealth management: Personalising the client experience

It is therefore imperative that wealth managers find improved ways to deliver more personalised, differentiated and seamless online experiences. With this in mind, Refinitiv has identified three key strategies for wealth managers to consider:

Segmented wealth experiences: the power of the persona

To deliver personalised experiences to clients, wealth managers first need to fully understand their clients’ behaviour and preferences.

Many wealth firms have already made significant strides in this regard by tracking, for example, data usage, log-in frequency, app downloads and trading activity, to name but a few. This information can be analysed and interpreted in order to develop user personas.

Personas are archetypal users whose goals, preferences and characteristics represent the needs of a larger group of users. Wealth management: Personalising the client experience

Once a persona has been clearly defined, firms can develop strategies to target them, for example, underserviced segments, including:

  • Female investors – our report reveals that women are adding $5 trillion annually to the global wealth pool and are more likely to engage with providers that focus on understanding their goals.
  • Millennials and Gen Z – both segments are typically tech-savvy digital natives with high expectations relating to digital engagement. Moreover, Refinitiv research reveals that millennials are nearly twice as likely as other generations to invest in sustainable financial products.

Those wealth managers that are able to develop accurate personas and then deliver a personalised experience for each persona are likely to reap significant rewards.

Embracing digital marketing in wealth management

In the face of digital transformation, traditional strategies for marketing products and services to both existing and potential wealth clients are becoming all but obsolete.

Wealth managers now find themselves looking to social media platforms in their efforts to attract the attention of the two fastest growing segments in wealth management – millennials and Gen Z.

Ongoing and significant inter-generational wealth transfer has favoured these segments enormously and, in order to attract these investors, firms need to embrace personalised digital marketing tools and target prospects with relevant, tailored content through social media channels.

Digital collaboration across channels

Key to future success will be an ability to successfully engage via digital channels. This includes developing an understanding of how to offer a personal experience within the digital experience – for example, by providing the option of talking to an advisor online.

Research suggests that such an approach is desirable, with 24 percent of advisory clients saying that they consider the online scheduling of meetings with an advisor to be a key enhancement to their platform experience.

43 percent of investors say they use mobile applications to access their investments

Moreover, 43 percent of investors say they use mobile applications to access their investments, which means that a seamless experience across digital channels is non-negotiable.

Meeting client expectations in wealth management

The digital expectations of clients continue to be defined by their online experiences across all areas of life – from retail to entertainment – and these expectations are now evident within the wealth space.

Forward-thinking firms have a clear opportunity to develop and enhance their digital offerings in order to cement client relationships and engender loyalty.

By leveraging the trusted data and advanced digital tools that are already available, and then taking steps to fully understand client needs, wants and values, wealth managers can deliver truly personalised and relevant experiences, meet client expectations and continue to evolve in line with the ongoing transformation of our industry.

Image promoting Refinitiv's new white paper: The power of personalisation in wealth management. Download Now.