Do your investors have actionable activities to achieve their financial goals?
With the rapid evolution of customer needs and technological possibilities, it is becoming harder and harder for financial institutions to keep up with client expectations. Whether managers use a hybrid, robo- or traditional approach, the goal should be to offer a 360o investor experience and thereby enable more meaningful investor engagement.
Recent trends suggest that investors want better returns and greater diversification via alternative investments like real-estate or private markets. While some firms have chosen to directly service those alternative investments, others have opted to offer account or asset aggregation solutions to offer value-added services.
One thing both approaches agree on is that a goal-based approach to advice offers an alternative to seeking alpha returns. Goal-based investing (GBI) is a sophisticated technique that combines both an engaging investor experience with a 360o view of their investments. Goal-based investing, which requires a wealth managers to measure their client's progress against specific life goals, rather than focusing solely on generating the highest possible returns.
Investors, who are more and more likely to share their wallet across multiple investment firms, are commanding this. Such solutions are relying on technology since they require a combination of account aggregation, multi-asset class, and goal tracking capability.
So what are the ingredients of a 360o investor experience? They are:
- The ability to be hybrid-digital
- A 360o view of assets
- Accurate, real-time views
- Being rewarding and engaging
Independent investment firms say that performance reporting, financial planning, CRM and client-facing tools will represent an average of 62% of their technology investment.
What does your investor engagement look like?