The promise of hyper-personalization in wealth management is undeniable. As we’ve explored in our previous blogs (⁠Blog 1 ⁠, Blog 2 ⁠, Blog 3 ⁠, Blog 4), a structured framework can guide firms in their quest for personalization excellence. But how does this framework translate into real-world results? Let’s delve into a case study that showcases the tangible impact of our hyper-personalization framework.

Context Setting

For our illustrative case study we chose a company facing a unique challenge. They observed a specific set of clients within their HNI segment demonstrating a strong affinity to their digital asset product. Interestingly, these clients hadn’t engaged with prior digital communications about this product. A deeper dive revealed a common persona: the “Steady State Growth Seeking – Female.” This persona, characterized by tech-savviness, a long-term investment perspective, and high trust in advisors, presented a significant opportunity.

Personalization Possibilities

With the persona validated, the next step was mapping the existing client journey. This journey, spanning awareness to decision-making, was riddled with pain points and missed opportunities. The challenge was to tailor this journey, addressing pain points and optimizing touchpoints.

The personalization possibilities were vast. From tailored communications that resonate with the persona’s tech-savviness to personalized investment strategies aligned with their long-term goals, the opportunities to enhance the client experience were evident.

Quantified Business Outcomes

The true measure of any strategy lies in its outcomes. By implementing the personalizations, the wealth management firm could significantly improve key metrics, from open rates to conversion ratios. This, in turn, had a direct impact on the Average Assets Under Management (AUM) per annum.

By focusing on the “Steady State Growth Seeking – Female” persona, the firm could drive a personalization-driven 1% point change in open rate, 0.4% point change in click rate, and 1% point change in consultation/conversion ratio. This translated to a staggering $2.92 million increase in AUM per annum.

Cautionary Insights

While the case study underscores the power of personalization, it’s crucial to understand the broader context. Personalization is not a one-size-fits-all solution. It demands a deep understanding of client personas, a commitment to continuous learning, and the agility to adapt to evolving client needs.

Our framework’s real-world impact underscores its potential. As the wealth management industry evolves, firms equipped with a structured approach to hyper-personalization will undoubtedly lead the way. Stay with us as we wrap up our series in our concluding blog, discussing the future prospects of hyper-personalization in wealth management.

Co-authored by Ashutosh Karandikar, and Venkatesh Padmanabhachari

Maveric’s thought leadership series – E.D.G.E (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

These features – reports, whitepapers, podcasts, flyers, blogs, and infographics – are for Banking leaders and Technology evangelists to apply profound trends, the latest opinions, and transformational analyses to boost the performance of their organizations.

A Structured Approach to Personalization

The wealth management industry stands on the cusp of a personalization revolution. As we’ve highlighted in our previous blogs  (⁠Blog 1 ⁠Blog 2 ⁠, Blog 3), the demand for tailored client experiences is soaring, and the challenges are intricate. Our groundbreaking framework, tailored for the wealth management industry, promises a coherent method to navigate these challenges. But what lies at the core of this framework? Let’s delve deeper into its methodology.

A Step-by-Step Approach

Our framework is not just a theoretical construct; it’s a practical guide designed to navigate the intricacies of personalization in the wealth management sector. Here’s a step-by-step breakdown of its execution:

Pre-work: Analyzing existing client data to understand investment behaviors, preferences, and the current journey.

Persona Identification: Segmenting clients into distinct personas based on shared preferences, goals, and behaviors.

Persona Prioritization: Applying the “Pointedness-Presence-Potential” key principle to prioritize personas based on volume, identifiability, and financial impact.

Current State Journey Mapping: Identifying client journey pain points and areas ripe for personalization enhancement.

Stage Prioritization: Using the “Success-Emotion-Effort” key principle to prioritize crucial stages in the client journey.

Personalization Possibilities: Listing tailored interventions to enhance client experiences at specific touchpoints.

Future State Journey Mapping: Envisioning an optimized client journey post-personalization interventions.

ROI Quantification: Ensuring personalization strategies are both impactful and economically sound.

Integration with AI: Leveraging our framework as focus & priority input for real time data analytics for efficient and effective hyper-personalization.

The Road Ahead

Our framework offers a structured approach to hyper-personalization, guiding wealth management firms in their quest for personalization excellence. But the journey doesn’t end here. In our next blog, we’ll explore an illustrative case study, showcasing the framework in action and highlighting its potential benefits.

Co-authored by Ashutosh Karandikar, and Venkatesh Padmanabhachari

Maveric’s thought leadership series – E.D.G.E (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

These features – reports, whitepapers, podcasts, flyers, blogs, and infographics – are for Banking leaders and Technology evangelists to apply profound trends, the latest opinions, and transformational analyses to boost the performance of their organizations.

The Quest for Personalization Excellence

In the realm of wealth management, the demand for personalized client experiences has never been higher. As we’ve explored in our previous blogs (Blog1 and Blog2), the industry’s landscape is rapidly evolving, and the challenges of real-time hyper-personalization are manifold. From the intricacies of tracking countless “Product – customer segment – persona – journey stage – touchpoint” combinations to the vast technological infrastructure required, the road to effective personalization is complex. So, how can wealth management firms navigate this intricate maze and deliver unparalleled client experiences?

Enter the Structured Framework

To address the pressing challenges and harness the potential of hyper-personalization, we introduce a groundbreaking framework tailored specifically for the wealth management industry. This framework isn’t just another tool; it’s a comprehensive guide designed to steer firms towards personalization excellence.

Key Considerations

Before delving into the framework’s specifics, it’s crucial to understand the foundational considerations:

• Client-Centricity: At the heart of the framework is the client. Every element, every strategy is designed with the client’s needs, preferences, and journey in mind.
• Data-Driven Insights: The framework emphasizes the importance of harnessing data-driven insights to inform personalization strategies, ensuring relevance and timeliness.
• Scalability: As the wealth management industry grows, so do the personalization demands. The framework is designed to scale, accommodating evolving client needs and industry trends.

Framework Overview: Principles and Approach

The framework is built on four key principles:

• Potential (ROI Quantification): Ensuring that every personalization effort is aligned with quantifiable outcomes, particularly in terms of Assets Under Management (AUM).
• Persona Specificity: Recognizing the uniqueness of each client persona and tailoring experiences accordingly.
• Product/Client-Segment Context: Understanding the interplay between products and client segments to deliver tailored recommendations and advice.
• Prioritization: Given the vastness of data and personalization possibilities, the framework emphasizes the need for prioritization, ensuring that efforts are directed where they matter most.

The approach is systematic, guiding firms from persona identification to personalization implementation, ensuring both efficiency and effectiveness.

A Glimpse Ahead

In our upcoming blogs we’ll delve deeper into the methodology of this framework, offering insights into its intricacies and benefits. Stay with us as we unravel the potential of this revolutionary approach to hyper-personalization in wealth management.

Co-authored by Ashutosh Karandikar, and Venkatesh Padmanabhachari

Maveric’s thought leadership series – E.D.G.E (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

These features – reports, whitepapers, podcasts, flyers, blogs, and infographics – are for Banking leaders and Technology evangelists to apply profound trends, the latest opinions, and transformational analyses to boost the performance of their organizations.

The Promise and the Pitfalls

The term “hyper-personalization” has become a buzzword in the wealth management industry. As highlighted in our previous blog, the sector’s rapidly changing landscape necessitates a shift towards more tailored client experiences. But while hyper-personalization holds immense promise, its implementation is fraught with complexities.

The Real-Time Challenge

One of the most formidable challenges is the integration of real-time data. In an era where clients demand instant responses and tailored advice at their fingertips, wealth management firms face the intricacies of real-time data integration. A recent article underscores that hyper-personalization extends beyond standard investment portfolios. It mandates advice grounded in real-time goals, needs, and market fluctuations.

The Multifaceted Challenge of Personalization

The journey to effective personalization is intricate, given the myriad permutations and combinations that need consideration. For each “Product – customer segment – persona – journey stage – touchpoint” combination, there’s a unique set of data points to track and analyze. This vast matrix of data makes it challenging to ensure that personalization is both relevant and timely.

Moreover, the technological infrastructure required for real-time data tracking, aggregation, analysis, and action is vast, complex, and expensive. Building and maintaining such an infrastructure can be a significant drain on resources, both in terms of time and capital.

The Point Solutions Dilemma

In the face of these challenges, many firms resort to point solutions to address specific personalization needs. While these might offer temporary fixes, they often lack the comprehensive approach essential for holistic personalization, leading to fragmented client experiences and missed opportunities. As Deloitte emphasizes, wealth businesses are reshaping to meet elevated client expectations, and fragmented solutions won’t cut it.

The Imperative for a Structured Framework

Given the intricate challenges and the dual need for efficiency (in terms of cost) and effectiveness (in terms of quantified ROI outcomes), there’s a pressing demand for a structured framework. Such a framework can guide firms in prioritizing their personalization efforts, ensuring that implementations are both strategic and impactful.

Stay tuned as we introduce a groundbreaking framework in our next blog tailored for the wealth management industry. This framework promises a coherent method to personalize client experiences, ensuring both cost efficiency and quantifiable outcomes.

Co-authored by Ashutosh Karandikar, and Venkatesh Padmanabhachari

Maveric’s thought leadership series – E.D.G.E (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

These features – reports, whitepapers, podcasts, flyers, blogs, and infographics – are for Banking leaders and Technology evangelists to apply profound trends, the latest opinions, and transformational analyses to boost the performance of their organizations.

The Current Landscape of Wealth Management: A Call for Change

The wealth management industry is at a pivotal juncture. With the political, social, and economic landscapes undergoing significant transformations, the sector faces challenges that demand innovative solutions. Recent data suggests that the Financial Advisory domain is expected to dominate the market with a projected volume of US$57.03tn in 2023. Moreover, Assets under Management (AUM) are anticipated to grow at a CAGR of 9.23% from 2023-2027, culminating in a market volume of US$83.19tn by 2027.

Such growth, while promising, brings with it the challenges of meeting diverse and evolving client expectations. The 72% year-on-year increase in new business net fund flows, despite a challenging market backdrop, underscores the pressing need for innovation and adaptation.

The Need for Hyper-Personalization

In this dynamic environment, hyper-personalization emerges as the beacon of hope. It’s not just a buzzword; it’s the future. With clients seeking more tailored experiences, wealth management firms must leverage data-driven insights to offer personalized advice, product recommendations, and service offerings. But why is hyper-personalization so crucial?

• Differentiation in a Crowded Market: With numerous firms offering similar services, hyper-personalization can be the differentiator that sets a firm apart.
• Enhanced Client Loyalty: Personalized experiences lead to higher client satisfaction, fostering loyalty and long-term relationships.
• Increased Revenue Opportunities: By understanding clients’ needs and preferences, firms can identify cross-selling and up-selling opportunities more effectively.

However, achieving true hyper-personalization is easier said than done. The challenges are manifold, from integrating real-time data to ensuring consistent experiences across touchpoints. This is where a structured framework tailored for the wealth management industry becomes indispensable.

A Glimpse into the Future

In our upcoming blogs, we’ll delve deeper into the challenges of implementing real-time hyper-personalization and introduce a groundbreaking framework that promises not only effective personalization but also quantifiable outcomes in terms of Assets Under Management (AUM).

Stay tuned for our next blog, where we’ll discuss the pitfalls of point solutions and the pressing need for an industry-specific structured framework.

Co-authored by Ashutosh Karandikar, and Venkatesh Padmanabhachari

Maveric’s thought leadership series – E.D.G.E (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

These features – reports, whitepapers, podcasts, flyers, blogs, and infographics – are for Banking leaders and Technology evangelists to apply profound trends, the latest opinions, and transformational analyses to boost the performance of their organizations.