Capturing Investor Mindshare with Personalization

4 minute

As the wealth management landscape changes rapidly, financial institutions must take care to understand that they need to do more than attract clients–they need to win investor mindshare. Capgemini’s World Wealth Report 2022 found that more than half of millennial investors have changed primary wealth management firms in the past year, and that youthful investors in general are more likely to switch advisors frequently.

Winning and retaining investor mindshare can therefore be a crucial way of outpacing the competition. The more aware and attached an investor is to the products and services that they hold, the less likely they are to switch wealth management providers.

A Client-First Approach

Investor mindshare can be achieved by targeting a client-first approach. Creating a client-first approach means putting the needs and interests of clients at the forefront of all decision making and actions taken. This includes understanding each client's unique financial goals, risk tolerance, and investment horizon, and using this information to construct personalized investment strategies that are tailored to their specific needs.

Additionally, a client-first approach also means providing transparent, clear and regular communication and reporting to clients on their portfolio performance, as well as being responsive and proactive in addressing any concerns or questions they may have. It also means providing education and financial planning services to clients to help them make informed decisions about their investments.

Digital Transformation Can Help

However, creating a client-first approach is an ongoing and lengthy process. Continuous effort is needed to understand clients’ needs, wants and preferences, not to mention needing to adapt and make adjustments as necessary.

In order to take that burden away from advisors, leaving them free to build long-term and lasting relationships with clients, one of the best ways to do this is by investing in digital tools such as portfolio construction engines, optimizers, and more.

For example, with Privé’s AI-driven portfolio construction engine AI GO, financial institutions can create a client-first approach by providing personalized investment strategies, reducing risk, increasing returns, and providing a more objective, data-driven approach to portfolio construction.

Using genetic algorithms and machine learning techniques, AI GO can analyze vast amounts of financial data, including the preferences of investors. These preferences can range from specific themes, such as Gold, Healthcare, and Technology, but can also be used to evaluate ESG preferences, asset allocation, and more. It can also exclude undesirable themes that investors want to avoid in their portfolios.

In this way, financial institutions can provide their clients with personalized investment strategies that are tailored to their specific needs. This can help to increase client satisfaction and trust, which are key factors in building the long-term relationships necessary in curating investor mindshare.

As the new generation of investors become increasingly accustomed to services which bend over backwards to accommodate their needs and wants, such as Netflix home-screen recommendations, to Spotify’s industry-changing yearly data dump with ‘Wrapped’, wealth management also needs to adapt in order to stay relevant. Capturing the hearts and minds of investors with a personalized, client-first approach, is more important now than ever before.

Sales Contacts

Rutul Gandhi

Chief Revenue Officer, APAC

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