The landscape of banking and investments in the UK is undergoing a monumental shift, driven by the wave of digital innovation and new regulations. In a groundbreaking study from everyoneINVESTED, 5,021 UK banking clients were profiled digitally in just 11 days, demonstrating the efficiency and potential of digital solutions in the banking sector.
Impressively, 98% of participants, many of whom were first-time investors, saw themselves reflected in the results. This achievement underscores the scalability and effectiveness of digital strategies in understanding and catering to the needs of banking clients.
The study also delved into aspects related to the Financial Conduct Authority’s (FCA) Consumer Duty, ensuring that the methodology was aligned with the current and forthcoming regulatory landscape.
The Two Pillars of Digital Profiling
The methodology employed in the study is designed to actively engage users. Through an interactive screen flow, users are guided through a series of personalized choices, not just profiling them but building a comprehensive dataset for detailed customer analysis, clustering, and personalization. Within a mere two minutes, the system captures a snapshot of a client’s financial motivations, meeting regulatory requirements and setting a new standard for suitability assessment.
Understanding Investor Psyche
An intriguing facet of the research is the behavioural tendencies it uncovered, such as the balance between gains and losses, emotionality, and susceptibility to framing. Financial institutions are eager to incorporate these behavioural insights into their investor profiling classifications, a move that regulators encourage. The challenge has been finding a valid measurement to enhance their processes. The method used in this survey successfully bridges this gap, providing an effective approach that integrates seamlessly with existing workflows. This claim is supported by large-scale user panels across various European countries and the UK. everyoneINVESTED’s proactive engagement with regulatory bodies and initiatives like the UK survey underscore its commitment to establishing new benchmarks in investor profiling.
Insights into Consumer Duty and Beyond
The survey sheds light on three compelling narratives, set to be the focus of upcoming blog posts. These include Consumer Duty Interest and Drivers, Investor Preferences Patterns, and Bank Positioning in the Market. These insights offer banks nuanced understanding to tailor their services effectively and provide a competitive benchmark in the digital landscape.
A Strategic Business Opportunity
Financial institutions are at a crossroads: either to follow the regulatory status quo or to spearhead the digital revolution. Digital transformation is not just a regulatory response but a strategic business opportunity. Banks adopting a digital-first approach can streamline their processes and enrich their value proposition to clients. The findings signify a pivotal moment for banks to redefine their roles in the digital age.
eveyoneINVESTED is hosting two webinars to unveil the results of this landmark study with over 5,000 UK banking clients.
Session 1: “Future-proof risk-profiling: Empowering investors and advisors” hosted by everyoneINVESTED. Gain insights on how 5,000 UK banking clients value future-proof profiling in their risk discovery journey and how this empowers advisors to drive positive outcomes.
Session 2: “Goals-based planning: Pushing client-centricity beyond compliance” hosted by ORTEC Finance. Discover how future-proof suitability based on high-quality data links client preferences to the initial allocation and to the ongoing management of portfolios.
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