Goal-based investing is a trend for wealth management companies to look out for

Consumer expectations are changing and they want to get a better control of their finances and their futures.

At the beginning of the year, TietoEVRY head of insurance and wealth solutions Sameer Datye outlined the ten biggest trends in wealth management in 2021. One of these was goal-based investing.

The appeal of goal-based planning is that it asks consumers what their goals are and provides them with the best instruments and strategies so they can achieve these aspirations, Dayte said in a new post.

He said, “With goal-based planning, the planning happens backward from an expected end-result. The outcome is the focus and not the method or the tools. Goals can be myriad – ranging from wanting to have a summer cottage by 2030, achieving retirement by the age of 45, creating a sustainable pension payout etc. A goal-based planning approach enables tailored fitment. The customer’s aspiration and not cashflow is now at the centre of the universe.”

However, there is still room for growth. If goal-based investing an financial planning is to have an impact, it will need to scale and spread at a much larger rate and offer truly holistic capabilities, the article said.

TietoEVRY has been supporting this development through its WealthMapper platform. It offers a digital toolkit, powered by the latest developments in technology and distribution, to accelerate innovation and time-to-market. This enables financial institutions to create more meaningful conversations with customers and supply them with self-services tools.

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