Beyond gamification: How wealth managers can improve customer experience with analytics

Beyond gamification: How wealth managers can improve customer experience with analytics

The evolving landscape of the digital era offers significant opportunities for financial institutions, particularly in the wealth management sector. Using gamified elements to draw consumer attention and cultivate loyalty has become a common practice. WealthTech company Kidbrooke has outlined alternatives to gamification that can boost customer satisfaction and loyalty.

Wealth managers are increasingly incorporating such elements into their digital platforms, supplemented by informative videos and interactive components, to foster financial literacy.

A pivotal role of responsible user interface (UI) elements within financial institutions is to help consumers attain their savings goals. Notably, a study by Bayes Business School, University of London, underlines that well-executed gamification can promote the locking away of higher earnings into investments, advancing financial literacy and access to financial services, while also enhancing user experience.

However, alongside the benefits of gamification, which may democratise investment management and extend financial market access to retail investors, there are potential pitfalls. These include the propensity for users to trade excessively and take undue risks.

Alternatives to gamification

Developing compelling and responsible wealth journeys is a challenging task. It necessitates that financial institutions – ranging from banks and insurers to advisory firms and execution platforms – provide solutions to attract, retain, and educate investors. To begin, an engaging onboarding experience can be established. This should help clients to gain a deeper understanding of their financial situation, the available investment options, and the long-term impact of financial markets on their portfolios.

Evidence suggests that a retail investor typically engages with digital channels initially, even if they plan to meet with their advisor in person later. At this early stage, it’s crucial for wealth managers to demonstrate the provision of a conducive environment that helps clients set objectives and comprehend various investment options. Financial analytics tools like Kidbrooke’s OutRank can guide customers, demonstrating how engagement with your firm can help them reach their financial goals.

The initial customer engagement stage should strike a balance between engagement, simplicity, and detail. Skandia, a Kidbrooke customer, effectively achieves this by offering multiple stages within their onboarding journey. They start with analytics requiring minimal input, gradually seeking more detailed economic and risk preference information from the user. This allows potential customers to get a basic understanding of the value Skandia can offer, with increasingly personalised forecasts as they continue through the journey.

Many wealth management firms excel in providing initial guidance but falter in maintaining customer engagement post-purchase. Consistent support to clients on an ongoing basis could significantly influence repeat business and strengthen the brand image. Wealth managers and execution platforms should help users manage their investments post-sign up. Personalised financial analytics could complement the firm’s offerings, allowing customers to set realistic financial targets, track progress, and reach their milestones.

Wealth managers can further encourage customers to become more financially literate by sending relevant and actionable notifications. These could suggest personalised strategies and alert clients if their investments have veered away from their desired risk levels. OutRank uses machine learning-driven clustering technology to enable financial institutions to offer better investment deals to customers based on their preferences.

Ultimately, consistency across all channels is key to successfully leveraging financial analytics technology. Wealth managers should ensure that the calculations behind their services create a seamless experience, preventing a fragmented journey that could harm your brand.

The paramount goal for managing wealth should be to help clients reach their financial goals and support them throughout their journey. Wealth managers can aid clients to navigate the complex financial world with confidence by using responsible engagement techniques. Ultimately, the chosen engagement strategies should align with the financial institution’s values and promote a conducive environment for long-term relationships.

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