Attendees of Nicsa's 2024 Strategic Leadership Forum explored the evolution of customization in asset and wealth management in a live session titled The Quest for Hyperpersonalization.
The discussion highlighted the shift from basic alignment of client needs with solutions to more sophisticated personalized models enabled by technology. The panel was moderated by Laton Spahr of SS&C and included perspectives from Steve Harris, Edward Jones; Megan Miller, Allspring Global Investments; and Mark Zeitoun, Columbia Threadneedle.
Panelists emphasized the paramount importance of understanding clients' individual needs and preferences, while integrating various aspects such as investment strategies, tax management, and geographic considerations.
The discussion underscored the pivotal role of advisors in deciphering client preferences and collaborating closely with asset managers to deliver bespoke solutions. It explored the symbiotic relationship between asset and wealth managers, extending from product development to ensuring a seamless client experience.
Central to the concept of hyperpersonalization is delving deeper into client preferences across households, rather than merely focusing on flagship accounts. Panelists emphasized the significance of understanding what personalization truly means to each client, whether it entails tax management, environmental/social/governance (ESG) considerations, or other bespoke factors. They noted that while model-based approaches are gaining traction, clients often veer away from them at the first sign of local or macroeconomic volatility. In contrast, an account tailored specifically to individual preferences fosters credibility and enhances client commitment, particularly when navigating shifting market environments.
Looking ahead, the discussion pointed to future skill sets that client-facing advisors will need to deliver. This entails a shift from traditional inquiries about account performance to more profound questions concerning the client's aspirations and the impact of financial decisions on their lives and loved ones. The question is changing from "How was your account this past year and are you happy?" to "What does money mean to you? What difference is it going to make in the lives of those you care about and how do these tradeoffs we're making today make that possible?”
Ultimately, the session emphasized the critical importance of aligning asset and wealth management strategies with the distinct goals and preferences of each individual client, paving the way for a more personalized and fulfilling client experience.
Personal views and observations of individuals contained herein are as of the date of the live event or written material and do not necessarily reflect the views of Nicsa or its member organizations. May contain forward-looking statements subject to various uncertainties. Nothing herein is intended to be or should be construed as legal advice. The information contained herein is for informational purposes only and does not constitute a recommendation of best practices..
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