The wealth management sector is at a pivotal juncture, facing challenges from fluctuating interest rates, market volatility, and evolving geopolitical scenarios. Add to this the emergence of tech disruptors and new investment avenues, and the industry’s core is being redefined. Regulatory changes further complicate the landscape, demanding adept navigation.

The imperative for personalisation
As the wealth management landscape undergoes a seismic shift, Traditional models – once considered infallible – are now being questioned. The clientele is diversifying, and a one-size-fits-all approach is rapidly becoming obsolete. Amidst these challenges, the concept of hyper-personalisation emerges as a game-changer.

Hyper-personalisation goes beyond mere customisation. It is about understanding individual client triggers, motivations, and expectations. It is about resonating with their unique goals and aspirations. In a fiercely competitive market, this level of personalisation is not just a luxury—it is a necessity. However, there are considerable challenges in implementing personalisation programs efficiently and effectively. The major challenge is the multitudes of permutations combinations for the “product-customer segment – persona – journey stage” that need to be considered for building up the personalisation possibilities, thereby making it almost impossible to drive this at scale efficiently (optimal cost) and effectively (maximal outcomes). 

A framework for the future
To solve this very challenge, we are introducing a systematic framework built on four foundational pillars:

• Potential (ROI Quantification): it is not just about identifying personalisation but quantifying their impact. This aspect of the framework ensures that tangible ROI metrics back every personalisation initiative and thereby help justify the implementation budget and achieve cross-functional alignment.
• Personal specificity: True personalisation dives deep into individual client psychographics. By creating detailed personas, not just based on their segment and/or demographic attributes but rather on their behavioural attributes, the framework ensures that personalisation strategies are laser-focused and relevant.
• Product/client-segment context: our framework also ensures that the personalisations are highly contextual to specific products and client segments, ensuring they resonate with the target audience.
• Prioritisation: our framework introduces a systematic approach to prioritise personas, stages, and personalisations, ensuring efficient implementation and maximum impact.

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

• Pre-work: analysing client data to understand investment behaviours, preferences, and the current journey.
• Persona identification: segmenting clients into distinct personas based on shared preferences, goals, and behaviours.
• Persona prioritisation: applying the “pointedness-presence-potential” fundamental principle to prioritise personas based on volume, identifiability, and financial impact.
• Current state journey mapping: identifying client journey pain points and areas ripe for personalisation enhancement.
• Stage prioritisation: using the “success-emotion-effort” fundamental principle to prioritise crucial stages in the client journey.
• Personalisation possibilities: listing tailored interventions to enhance client experiences at specific touchpoints.
• Future state journey mapping: envisioning an optimised client journey post-personalisation interventions.
• ROI quantification: ensuring personalisation 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-personalisation.

Illustrating impact
In the whitepaper/report, where we have elaborated the framework at length, we have illustrated a case to show how a wealth management firm could achieve tangible quantified outcomes using our framework. 

The case talks about a wealth management firm that observed a specific set of clients within their clientele, demonstrating a solid affinity for their digital asset product. Interestingly, those clients had yet to engage with any prior communications their marketing team sent regarding that product. Upon further analysis, it was found that most clients fell under a standard persona – “steady state, growth-seeking – female.” The firm had 26,453 other clients mapped to the same persona within their clientele.

Given this context, the firm saw a critical need for a structured intervention to map and further personalise the journey of these clients. The goal was to improve open, click, and conversion rates, leading to a potential increase in Assets Under Management (AUM) from digital asset investments. Our framework led to the implementation of specific personalisations, resulting in a 1% point change in open rate, 0.4% point change in click rate, and a 1% point change in consultation/conversion ratio. This led to a 44.4% increase in the AUM ($1.13 million) within ten months of implementation.

This case illustration underscores the transformative potential of the personalisation framework. The future of wealth management is undeniably intertwined with personalisation. As firms navigate the challenges of a rapidly evolving landscape, our framework offers a beacon of hope. By embracing hyper-personalisation and leveraging systematic approaches, wealth management firms can redefine client experiences, setting themselves apart in a crowded market.

This article has been co-authored by Ashutosh Karandikar and P Venkatesh as part of Maveric’s thought leadership series – EDGE (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

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