From mass customization and customer-centricity to client best interest and targeted reforms, it’s all about the client experience in wealth management today. Naturally, gaining a better understanding of clients’ current circumstances, financial goals and risk tolerance is becoming a top priority for dealers and advisors.
Understand and Anticipate Clients’ Needs by Tracking Their Financial Goals
One of the most effective ways to gather insights about your clients, define expectations and plan ahead is through a goal-based investing strategy supported by goal tracking tools. Such an approach creates a strong foundation from which to provide a personalized, engaging client experience and just-in-time (JIT) solutions. It also fosters ongoing communication and allows advisors to grow with their clients as they meet their financial goals and plan for their next major milestone.
Automate Tracking of Financial Goals with Technology
To track financial goals effectively and efficiently, an automated goal tracking system should be utilized. Though clients’ financial goals are specific and unique to them, there are over-arching commonalities, such as saving for a down-payment for a home or planning for retirement, that can be anticipated. The ideal system will feature pre-determined goals as a starting point and customization options to allow clients to input goals that are unique to them. It should also provide real-time progress tracking, predictions and analytics.
Goal Tracking Technology Compiles Valuable Data for Machine Learning Algorithms
A machine-learning (ML) algorithm, which performs by interpreting large amounts of data and automatically improving its performance based on the probabilities extracted from the data, is the new frontier in wealth management technology.
Wealth management firms that utilize smart goal tracking systems are passively amassing valuable insights about their clients’ needs and behaviours, which can then be applied to machine-learning algorithms to better predict clients’ long-term goals.
In other words, by using a system that collects and archives clients’ goals over an extended period of time, the valuable data being captured can prepare your firm to utilize machine-learning algorithms in the future and further enhance the client experience.