Investor engagement

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 this growing demand. The better methods investment managers use, whether it be hybrid, robo or traditional, should all strive to offer a 360 investor experience. This ultimately leads to a more powerful investor engagement.

Recent trends show that investors are searching for higher returns or better diversification via alternative investments, such as 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 solution to offer value-added services in the domain of financial planning.

Either way, strategists converge in identifying that a goal-based approach to advice is better than a quest for alpha. Goal based investing (GBI) is a sophisticated technique that combines both an engaging investor experience with a 360 degree view of their investments. Goal based investing involves a wealth manager or firm’s clients measuring their progress towards the specific life goals, rather than focusing on generating the highest possible portfolio return or beating the market. 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 360 investor experience? They are:

  • – The ability to be hybrid-digital
  • – A 360 view of one’s assets
  • – Accurate and real-time view
  • – Personalization
  • – 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?