By Bobby Bok, Head of Sales APAC
By enhancing client engagement through hyper-personalisation with only relevant and responsive solutions, investors are likely to be retained when their unique needs and preferences are adequately addressed in a frictionless manner.
Consider the scale and speed of the present digital ecosystem: Every minute, users are bombarded with highly visual and relevant content from multiple sources, each with a different proposition and all competing for their attention. The financial services industry has not been left uninfluenced by this as users with shorter attention spans begin to expect more. With personas of investors being so diverse, financial institutions have found it difficult to cater to their different needs and wants. Within this challenge, however, lies an opportunity. Hyper-personalisation, the ability to craft personalised experiences that resonate deeply with investors and their financial goals. This concept has transcended beyond merely being a buzzword; it has become a critical differentiator for companies aiming to fulfil the nuanced needs of investors at scale and a necessary component for future proofing the business.
Traditionally, companies personalise investment recommendations based on general client profiles. Hyper-personalisation takes this a step further by leveraging real-time data and artificial intelligence to create the sort of investment experience that was not possible in the past without the guidance of a human advisor. The proposed strategies align closely with the individual’s specific preferences and circumstances by taking into account a spectrum of variables. Depending on the sophistication of the algorithm, this can include behaviourial insights, life events, emotional responses to market fluctuations and more. Investment solutions would therefore be proactively customised, adapting to shifts in the market and changes in the investor’s life.
Hyper-personalisation also consumes and digests large amounts of data to provide actionable insights. By tapping into the capabilities of artificial intelligence, patterns and trends can be identified expediently with real-time adjustments made to portfolios in response to market conditions to further mitigate risk and enhance returns, leading to optimal investment outcomes. Utilising data in this manner can also provide investors with a greater understanding of the broader market landscape, leading to better investment decisions.
How is this a game changer for financial institutions? Most companies are competing for the same pool of investors as their competition. By enhancing client engagement through hyper-personalisation with only relevant and responsive solutions, investors are likely to be retained when their unique needs and preferences have been adequately addressed in a frictionless manner. This translates into higher levels of satisfaction and loyalty, overall reducing the churn rate of investors. With how competitive the investment landscape has become, offering a level of service beyond that of traditional methods can materialize into a competitive edge for financial institutions.