A recent webinar co-hosted by Deloitte and everyoneINVESTED brought together industry experts to discuss the changing landscape of wealth management.
The focus was on how technology and behavioral finance are key to empowering retail investors, marking a significant shift towards more inclusive investment strategies.
The investment management sector is at a pivotal juncture, according to Arno de Groote, a partner at Deloitte. He highlighted the importance of innovation in enhancing customer experiences. The goal is to not only achieve outstanding performance but also to offer timely, tailored interactions that meet the evolving expectations of investors.
Anshuman Choudhary, a technology partner at Deloitte, tackled the challenge of converting savers into investors during the webinar. He stressed that technology is crucial in influencing investor behavior, particularly against a backdrop of inflation, non-zero interest rates, and a regulatory emphasis on the costs of investment. This combination of factors is prompting a shift from saving to investing.
Jurgen Vandenbroucke, managing director at everyoneINVESTED, spoke on leveraging decision science and technology to encourage investment among bank clients who are new to the market. Strategies include expanding access via digital banking apps, ensuring investor safety, and promoting investment as a habit through innovative practices like micro-investing.
Emerging tools such as risk appetite discovery and micro-investing platforms are proving to be pivotal in redefining the investment experience. These tools are designed to be accessible and in line with individual risk preferences, as demonstrated by Anshuman. Vandenbroucke showcased how micro-investing solutions, which simplify investing by rounding up transactions, have effectively increased investor engagement among younger demographics, fostering financial literacy and investment habits.
The webinar concluded on a hopeful note, emphasizing the unique opportunity to positively impact the European economy and individual financial well-being through the integration of behavioral finance and digital innovation. With the industry awaiting further developments on the EU Retail Investment Strategy, the consensus was clear: the time to embark on this innovation journey is now.
Empowering retail investors is a collective effort, necessitating the use of digital tools and insights from behavioral finance. This approach can lead the investment management industry towards a more inclusive, informed, and resilient financial future.
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