Emerging Financial Services Trends

Our knowledge of financial services and customer engagement is transforming. With the growing need for personalized wealth management and online services, consumers are demanding more from the industry. By catering to these evolving needs, your business has the ability to drive greater consumer satisfaction, loyalty, and overall profitability. Adopting the following four emerging financial services trends will equip you with the necessary tools to remain effective in the industry:

Holistic Wealth Management

Holistic wealth management, as a comprehensive form of financial planning which would cover all of one’s assets, liabilities, and financial goals, will emerge as a new kind of digitized business model. According to the 2018 Wealth Management Outlook conducted by Ernst & Young, holistic wealth managers are expected to gain a market share of 30% by 2025.

With the rise of digital wealth innovation, high net worth individuals expect to receive support that’s more advisory than product-driven. Not only do clients desire financial asset allocation, but they want their assets, liabilities, and life plans viewed and managed. This is to help deliver a better approach to after-tax wealth preservation and performance.

Additionally, with the presence of low-interest-rate environments and high volatility since the 2008 financial crisis, clients’ shares, bonds, and money market investments are giving way to alternative investments.

 

Influence of Big Data on Financial Services

The presence of big data in financial services can bring disruptive change to the industry. Although the financial sector may not require production or logistic processes like the industrial or manufacturing sectors, the daily operations of banks are fueled by a high volume of real-time transactions.

The potential of big data in this sector can bring about change in two areas: precision marketing and risk management. In precision marketing, big data would alter the information structure, allowing financial institutions to collect and analyze customer and prospect data. This would enable institutions to generate individualized and tailored services for their clients. Your institution can accomplish this by generating new revenue streams through data-driven offers. Risk management, where big data’s used to rework traditional risk management models, promotes accurate risk estimation at a low cost. By becoming more efficient and providing strengthened security for clients, financial services can continue to serve clients, instead of becoming obsolete in the face of emerging FinTech companies.

Introducing and leveraging big data in these areas will help institutions increase their operational efficiency and business performance. 

Use of RoboAdvisors for a Higher Volume of Clients

Robo-advisors were initially used to serve beginner investors and individuals with a lack of investment experience. Now, financial institutions are developing ways to have robo-advisors manage all aspects of a client’s financial life.

Instead of providing simple portfolio allocation, institutions are beginning to use robo-advisors to expand their focus to provide advice on insurance, employer plans, and debt and asset management. The use of robo-advisors costs less and has a lower account minimum than traditional financial advisors. So, clients may be more inclined to use these online services.  Leveraging these platforms to make them more holistic will allow the financial services industry to develop a strong online presence more seamlessly. 

 

Omnichannel Marketing

With the diminishment of physical interaction with clients, financial institutions are beginning to look toward different channels to engage clients.

Over the past five years, the financial services industry has adopted the use of online-only banking systems. By adopting an omnichannel financial services marketing strategy, clients can now apply for credit cards and check their balance through apps, SMS, and through other digital means. By having a financial institution’s brand exist in multiple places, they are increasing the degree of impact they have on larger groups of people. They are able to meet the evolving needs of existing and potential clients, by allowing them to access personal, financial information more efficiently if they so choose. Leveraging these channels allow financial institutions to create personalized experiences that have a greater likelihood of creating loyalty among clients. 

Learn more about client engagement

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Financial Services Marketing: 5 Untapped Ways to Find Wealthy Clients

The marketing of financial services today leverages technology and data to find wealthy clients. Many wealth managers and marketing teams fall into the trap of using the same old techniques for financial services marketing.

Personal networking, social media, sponsoring events and other methods to meet wealthy prospects are all useful techniques. However, you may end up spending your valuable time pursuing leads that are not qualified.

By using automated data analysis and prospect modeling, you can quickly screen and qualify prospects. Better yet, you can reduce sales cycle time and find new clients that are very much like your best ones.

Marketing Financial Services to Wealthy Clients

Here are 5 strategies to find wealthy clients that most wealth management firms overlook. When you tap into these methods for marketing financial services, you can shorten your sales cycle dramatically.

1. On-the-Fly Wealth Screening from Your Phone

You meet people everywhere: professional events, networking breakfasts, the gym, maybe even at your niece’s soccer tournament.

Wouldn’t it be nice if you could enter your new found acquaintance’s name into your phone and instantly learn whether they could be a good prospect for you?

You can.

WealthEngine’s instant wealth search feature lets you scan over 250 million U.S. contacts and see their wealth profiles. You will learn details on their interests, donation history, real estate and other luxury property holdings and many other data points. The data is gathered from numerous publicly available databases and compiled into an easily accessible system. This information can completely change the game in your company’s financial services marketing efforts.

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Example of what wealth screening could look like on your phone

It also provides a Propensity-to-Give Score, known as P2G, which is a statistically calculated score of their likelihood and capability to donate. This can sometimes indicate their willingness to put their money in certain investments. WealthEngine is also calculating a Propensity-to-Spend, or P2S, score to indicate the likelihood of purchasing luxury goods. You can then use these  personalized marketing insights to guide your dialog appropriately.

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Example of what a propensity score would look like on your phone

2. Batch Prospect Research Before You Attend an Event

Let’s say your company sponsored an event, maybe a golf tournament, an art expo or a dinner for charity. You’re going to attend to meet new people. You want to focus on the ones who have the highest potential to do business with you.

Traditionally, you would mingle and look for introductions from those you know. You would spend time talking to many people to determine whether they are a qualified prospect.

There is a much better – and significantly more efficient – way to do prospect research. More importantly, this form of financial services marketing will help you find who you should talk to at these events.

Wealth screening can pinpoint exactly who you should look for so you spend your precious time effectively.

Prior to the event, ask the host for a list of people who have RSVP’d. Then, upload the list into WealthEngine as a batch to do a wealth screen on everyone before you attend.

Within minutes, you will get back a list of the most wealthy attendees who will be at the event.

These are the people you should spend the most time with.

This method of marketing financial services allows you to do prospect research quickly. It will save you hours of wasted time pursuing unqualified leads.

You can also connect WealthEngine’s data directly to your customer relationship management (CRM) tool, such as SalesForce. When you use APIs in the financial services marketing, you can discover wealth insights on everyone as you add them to your CRM. There’s no need to login to WealthEngine or change your workflow.

3. Create a Model of Your Best Wealth Management Clients

Your financial institution’s research department produces financial models all the time. Use the same concept of modeling to create a detailed profile of your best wealth management clients.

This model identifies the characteristics of your top clients. You will learn your prospects’ demographics, assets, real estate and luxury property ownership like boats and planes, luxury goods spending habits, favorite charities, and interests.

This level of detail in financial services marketing is significantly more useful than simply knowing someone’s name and address. In fact, the more data you provide, the more information our data scientists can model.

Many of our clients learn that they are spending their time pursuing prospects who have a very low likelihood of turning into wealth management clients. Financial services marketing becomes a lot easier when you use machine learning to get deeper clarity on who your best prospects really are.

4. Finding New Prospects Who Match Your Model

Once you have a well-defined model of your ideal client, you can use it to find others who have similar characteristics. There are several ways to do this efficiently.

API Connected to SalesForce

If your wealth management firm uses SalesForce, you can use WealthEngine’s SalesForce Connector to instantly get a score of every new prospect you add. This way, you don’t have to change anything in your workflow to accelerate the marketing of financial services.

Just add names to SalesForce and we’ll instantly send you a match rate based on the model of your best clients. You’ll known right away whether this prospect is someone you want to spend your valuable time on.

Match Your Model to 250 Million Records

WealthEngine can also run your model against our massive database to find people you don’t know but who match your ideal client profile. This is one of fastest ways to leverage financial services marketing to find wealthy clients who could become some of your best clients.

You can then reach out, invite them to breakfast or a game of golf, knowing that they fit the profile you want to pursue.

5. Identify Money In Motion

Creating a model and prospecting for clients based on that model will identify people to pursue. Next, you’ll want to monitor their money in motion.

Money in motion refers to knowing when an individual you are tracking has financial event. Real estate purchases and public company stock sales are examples of publicly available data, all of which WealthEngine tracks.

When you know that a prospect has a liquidity event, you know they are likely going to do something with that money. WealthEngine’s tools can email you a report as soon as someone on your watch list sells public company stock.

These wealth indicators give you more clarity on what’s happening in the lives of your prospects, giving you the ability to hyper personalize your marketing.

Financial Services Marketing Using WealthEngine

WealthEngine can help you create very detailed segmentation and analyses to focus on the exact audience you want to reach.

Schedule a Demo →

Request a demo and one of financial services team members will get back to you quickly. You’ll see how to win new wealth management clients faster and spend less time on the marketing of financial services.

How 1st Global Helps Their Clients With Prospect Intelligence

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For Certified Public Accountants who want to expand their financial services portfolios to include wealth management, 1st Global provides the tools and resources needed to make it happen.

Prospect Intelligence and Audience Development for Financial Advisors

1st Global uses FindWealth 8 and Batch Express to create targeted prospecting lists for their affiliated firms and to customize research results to support their client strategies. With WealthEngine, they’re able to help their firms leverage wealth indicators in order to strengthen their relationships with existing clients and introduce themselves to new ones.

While the neighborhood one lives in is usually a pretty good indicator of wealth, it’s not the only one. Using zip codes alone can make it hard for financial services firms to identify the “millionaire next door”. WE gives 1st Global the ability to uncover latent prospects, giving their affiliated firms a competitive edge.

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