Envestnet, a financial technology firm, has released a research paper that explores the concept of personalization at scale, its benefits, and opportunities to personalize solutions for clients. With the $84.4 trillion Great Wealth Transfer underway, Envestnet encourages firms to consider solutions that facilitate hyper-personalized and holistic financial experiences to meet shifting client expectations in the wealth management industry. Personalization is what powers the Intelligent Financial Life. To achieve personalization, Envestnet’s Unified Managed Accounts (UMAs) provide the foundation for advisory or wealth management firms to personalize client portfolios. Envestnet’s tax management capabilities, direct indexing solutions, and private wealth consulting service offer advisors three immediate ways to personalize solutions for clients.
– Envestnet’s report, “The Advisor’s Playbook for Leading Your Clients Forward,” conducted in 2020, found that 70% of wealth management clients view highly personalized service as a factor in deciding whether to stay with their current advisor or switch to another firm.
– A report from McKinsey found that 80% of consumers say that personalization is important to them.
– In a 2020 survey from Broadridge Financial Solutions, respondents preferred information that is individualized to them in communications from their advisor.
Personalization is an essential component for success in the wealth management industry. Personalized service is crucial for retaining clients, attracting new ones, and meeting shifting client expectations. The use of technology, intelligence, and solutions empowers clients to make more informed decisions about their finances, manage their wealth more effectively, and ultimately achieve their financial goals.
In conclusion, Envestnet’s research paper on personalization at scale provides asset managers and advisors with insights on how to think bigger, act smarter, and embrace innovation in the rapidly evolving landscape of the Great Wealth Transfer. The paper offers ways to personalize client portfolios, and examples of hyper-personalized solutions, such as personalized direct indexing and tax overlay features, that can enable the Intelligent Financial Life. Personalization is not just a trend but a necessity for the wealth management industry’s continued success.