The Real Wealth Management Disruptor: Hyper Personalisation

Not too long-ago banking clients enjoyed a close, face-to-face relationship with the managers handling their accounts. It was distinctly personal. The advent of technology, new digital banking and wealth management platforms have increasingly de-personalised the industry’s approach.  

This, in turn, has facilitated easier transacting, the ability to invest offshore with less hassle, highlighted diversification options and underlined the advantages of being able to draw on the deep insights available through data and analytics. 

And yet, what wealthy clients the world over are craving is a personal touch. This is particularly true in Africa, where high-net-worth clients require insights and service tailored to their country’s legislative requirements and the complex structures required to keep their assets safe, and the legacy of their families secure 

When Carrick Wealth walked away with the title Best Advisor Firm at the 2020 International Adviser Best Practice Advisor Awards in London and the accolade of Top Wealth Manager for Wealthy Executives at the 2020 Intellidex Awards, the issue of personalised service was singled out by founder and Group CEO Craig Featherby.  

“(Our) combination of offshore expertise and personalised, client-focused service makes us highly attractive as an advisory firm, especially for high-net-worth (HNW) clients,” Featherby said.  

But what exactly is personalisation, and how is it changing the face of wealth management? 

Segmentation and personalisation 

Personalisation goes hand-in-hand with a business process known as segmentation, which businesses use to identify different groups or segments within their client mix so solutions and communications can be tweaked and refined based on these similarities. This categorisation of clients enables businesses to make suggestions to 20-somethings in a different tone and with a different approach than it might use when engaging with those in the 40s or 60s, for example. 

But sometimes segmentation doesn’t go far enough. In these cases, hyper-personalisation might kick in.  

Hyper-personalisation is an entirely different animal, and one which leading wealth management firms around the world are increasingly adopting. CapGemini’s Wealth Management Top Trends 2021 report noted that 40% of HNW customers polled ranked personalised updates on new products and services, as well as educational market information, as being central to how they viewed their financial institution. Some 74% were also open to the power of big tech to further personalise the customer experience.  

Already technology is playing a hand in this regard, helping firms to identify those who require this level of service by means of behind-the-scenes algorithms and data analysis. And yet, the service and experience these HNW clients receive – and, indeed, demand – must still be highly customised, engaging and unique.  

How does hyper-personalisation work for me? 

While wealthy individuals may eschew the idea of having a computer or an algorithm advising them on intricate financial planning and wealth management, the value of data and analytics in the right hands is part of a successful hyper-personalisation journey.  

Armed with insights gathered courtesy of advanced analytics and artificial intelligence, experienced advisors are able to spot opportunities in a client’s portfolio well in advance, make proactive suggestions around products, and determine buying opportunities and investment approaches.  

Where the magic happens is when an astute advisor can apply the insights drawn from data to the specific goals and ambitions, circumstances and views of the client in question. Rather than bombarding a client with suggestions, the advice given is on point, has meaning and is based on a deep understanding of the financial and personal circumstances of the client.  

Hyper-personalisation is why smart wealth management firms around the world are not only investing in technology and analytics capabilities, but in their people too.  

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