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Is Hyper-Personalisation the Future of Wealth Management?

  • 1.  Is Hyper-Personalisation the Future of Wealth Management?

    Posted 25-11-2024 11:18

    Good morning Community!

    Thank you for everyone who joined the platform so far. It was great to see you during our onboarding chats. Do use this platform to share interesting findings and things that you think impact the investment/finance space from the innovation and technology perspectives.

    I came across this interesting article about hyper-personalisation of products. 

    Breif of the article:

    The article explores how hyper-personalisation is transforming the wealth management industry by leveraging technologies such as artificial intelligence (AI), data analytics, and automation. These tools enable wealth managers to deliver highly tailored services, improve client retention, and meet specific client needs, such as preferences for ESG investing or risk profiles. Read the full article here

    Key Points:

    1. Rising Competition: A significant portion of clients is considering switching wealth managers, pushing the industry toward innovation to retain and attract clients.

    2. Benefits of Hyper-Personalisation:

      • Streamlined portfolio management tailored to individual goals and preferences.
      • Enhanced client trust and retention through bespoke investment options.
      • Improved intergenerational wealth planning and client engagement.
    3. Technology Adoption:

      • Platforms like Addepar integrate diverse data sources to provide clients with holistic and actionable insights.
      • Regions with advanced infrastructure (e.g., separately managed accounts) are better prepared for this shift than those reliant on mutual funds.
    4. Challenges:

      • Legacy systems from mergers and acquisitions hinder full adoption of hyper-personalisation.
      • Concerns over data privacy and regulatory complexities, particularly for high-net-worth clients with international assets.
      • Risk of creating solutions that fail to meet client expectations or add value.
    5. Future Considerations:

      • Wealth managers must invest in better data analytics and integration to cross-sell and upsell effectively.
      • It is crucial to align innovations with client needs and anticipate future demands

        This particular example is about personalising wealth management, but do you see it happening in the investment space in general? Are the products and serviced super-personalised with the help of AI and different technologies?


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    Aya Pariy
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