In the wealth management industry, scaling personalised advice while growing Assets under Management (AuM) has become more than a differentiator — it is now a strategic necessity.
Ortec Finance, a provider of technology and solutions for risk and return management, recently delved into how firms can scale advice and grow AuM though goals-based investment planning.
Firms that integrate scalable, goals-based planning into their advisory services are not only improving client experience but also delivering measurable growth. Some European banks have reported up to 15% increases in AuM after adopting this approach, underscoring how aligning advice with clients’ real objectives creates long-term value, it said.
Investors do not usually frame their financial lives around asset classes or benchmarks. Instead, they think in terms of retirement, education, lifestyle changes, or passing on wealth to the next generation. These aims are personal, multifaceted, and ever-changing. Scenario-based planning tools allow advisors to simulate multiple portfolios, compare trade-offs, and help clients prioritise without losing sight of broader objectives. This alignment with client goals strengthens relationships and ensures outcomes that feel relevant and impactful.
Traditional planning models have been largely product-centric, relying on static risk profiles and offering limited personalisation. As a result, client engagement often remains fragmented and AuM growth stagnates. By contrast, goals-based planning is scenario-driven, employs dynamic risk modelling, and supports multi-goal planning at scale, Ortec explained.
A crucial shift in this approach involves redefining risk. Rather than focusing narrowly on market volatility, goals-based investment planning assesses the feasibility of achieving life goals. Dynamic modelling provides a forward-looking perspective on how portfolios may perform under different market conditions. This helps advisors communicate with greater clarity, giving clients confidence in their strategies.
Most investors juggle multiple financial objectives at once, often three or four. Each comes with its own timeframe, priority level, and risk tolerance. A flexible, scenario-based approach lets advisors model several portfolios simultaneously and weigh the trade-offs. This structured flexibility ensures that advice reflects real-world complexity rather than theoretical models.
Transparency is another cornerstone of this method. When clients can see the likelihood of meeting their goals and understand the drivers behind those outcomes, they are more likely to stay committed during market turbulence. This confidence builds trust, which often translates into deeper relationships, consolidated assets, and long-term engagement.
Static financial models often neglect variables like inflation and income requirements, producing projections that may be too optimistic. Dynamic scenario planning factors in purchasing power, income sustainability, and broader economic conditions. For instance, when preparing retirement strategies, advisors can help clients balance return expectations with income stability and future living costs.
Ultimately, goals-based investment planning represents more than just a methodology. It is a mindset that places client aspirations at the centre of the advisory process, strengthens trust, supports regulatory demands, and drives AuM growth. By adopting this approach, advisors can deliver value that extends well beyond performance metrics.
For more, read the full story here.
Read the daily FinTech news
Copyright © 2025 FinTech Global
