Digital transformation in wealth management industry will always blend with human relationships, intelligence

Today, the BFSI sector is actively embracing digital transformation in core operations and support functions to meet the changing demands of the customers. Since the outbreak of COVID, the customers have shown a great willingness to engage and conduct transactions through digital channels, prompting the industry to adopt various digital platforms.

This shift has resulted in improved customer engagement and exceptional experiences. Even the wealth management sector, a specialised segment within the financial services industry that traditionally requires significant human intervention, has rapidly embraced digitalisation in line with this trend.

Pure blood wealth management services are becoming increasingly popular, as Indians are accumulating wealth at an earlier stage in their lives. The need for professional wealth management and creation is being recognised even in smaller towns and cities across the country. Banks and other financial institutions are doing a commendable job of adding customers into the wealth funnel.

With people realising the need for wealth management and the widespread adoption of digital platforms, wealth management firms have enhanced their marketing strategies, by combining human intelligence with advanced technological solutions. This enables them to efficiently connect with diverse customer segments, ranging from the mass affluent to ultra-high net worth individuals, and provide personalised wealth management solutions.

When it comes to managing large sums of money, trust plays a crucial role. People either trust your brand or they don’t. There is no middle ground when it comes to trust. Marketing for wealth management heavily focusses on the customer, employing a strategic and digital approach aimed at building a strong and trustworthy brand.

Brands must strike a delicate balance between building and establishing trust with potential clients, while communicating the unique value proposition of their wealth management businesses. Moreover, as companies innovate in the interest of the customer, the investment landscape becomes increasingly complex.

Complexity often brings many regulations. Therefore, it becomes imperative for the marketing team to educate clients about investment options and provide them with the necessary resources to make informed financial decisions.

The other scenario that builds in the evolving backdrop described above, is that clients will have different financial goals and needs. Only when a brand delivers on these goals and needs, will it be able to build trust through action.

This is where wealth management firms should blend technology platforms with human relationships and intelligence to customise marketing campaigns. They need to ensure that their advisory is personalised and in the best interest of the client.

For instance, a millennial client is advised a long-term investment in emerging and promising opportunities, while a retiree is provided with suitable investment options considering the investing horizon. Personalisation fosters trust and understanding that are crucial for building long-term relationships.

The other obvious interventions that a marketing team does to extend brand lift and trust, is to engage with potential client through social media and drive brand favourability, provide valuable content, build thought leadership pieces, and insightful data to attract and convert new clients, while positioning themselves as trusted advisors.

Establishing a unique brand in the wealth management industry can provide a significant advantage for dedicated players in India. Marketing professionals hold a pivotal and enabling position, adept at swiftly formulating strategies that closely align with business goals, as stakeholders have a strong desire to witness tangible results.

By building a solid brand and doing what is right, wealth management firms can experience easier customer acquisition, foster customer loyalty and provide better servicing.

(Our guest author Sujay Rachh is chief marketing officer, Nuvama Group.)