What If… A Morning Routine for the Future HNWI

Topaz Editorial Team Topaz Editorial Team

The Need for Personalization

Hyper-personalization is at the heart of future wealth management. For wealth managers, it represents both a risk and an opportunity. The risk comes from Big Tech, with its well-developed personalization capabilities and the potential to make moves into the wealth management space. The opportunity lies in the potential offered by new technologies to revolutionize customer service.

Satisfaction among high-net-worth individuals (HNWIs) towards their wealth manager’s personalized services is low, with more than 60% reporting unsatisfactory experiences. On the other side of the coin, for 44% of HNWIs a positive experience with personalized services and content had a powerful, positive effect on their perception of the company [1]. It is an area with great potential for improvement, and that improvement will be enormously beneficial from a customer satisfaction perspective. The motivation should be clear.

60% of HNWIs are dissatisfied with their personalized experiences. 44% said a good personalization experience has a powerful, positive effect on their perception of the company.

The key to a good experience is anticipation. A product needs to know what the customer will need before they know it, and serve them that information. This type of predictive analytics is common in major digital consumer products, such as YouTube. While you use YouTube, the algorithm is busy learning about your behavior and habits and serves you timely, relevant content. That is the kind of model that the wealth manager needs to aspire to — and beyond — if they want to impress their clients.

At Topaz, we are intent on thinking aspirationally about the user experience. In this article, we imagine the future morning routine of Elizabeth, a Swiss-based business owner and entrepreneur, as she enjoys a morning coffee.

Elizabeth’s Morning

Elizabeth’s espresso machine rumbles. While it fills her cup, Elizabeth logs into Topaz. She’s served with news, firstly — five items most relevant to her. She’s especially interested in market news and news about her Angel investments, which are mainly in companies working in sustainability.

Solar energy prices reached new lows, thanks to a surge in capacity and unseasonable good weather. There’s something about a California start-up meeting its funding goals — she skips past that and Topaz registers her lack of interest and makes a minor adjustment to its content algorithm. A new AI product release by NVIDIA, a company in her portfolio, was well-received by the market; as a result, Topaz suggests additional investment opportunities in the AI space. Elizabeth hits “View Proposal” and bookmarks it for later.

Elizabeth puts her phone aside while she savors a moment with her coffee. She’d used the last of the beans gifted to her by a business partner — a rare, Supremo-grade, single source Colombian bean. She reopens Topaz and swipes to the next screen, which concerns her assets. It tracks her financial and non-financial assets and suggests adjustments and optimizations.

Topaz shows Elizabeth that her three-year savings goal of buying a new property in Central Zurich has fallen behind. A poor year at her company impacted on the dividend paid to her. The app suggests authorizing a lump or monthly payment to account for the shortfall, or to increase the timeframe by a year. She is keen to get things moving so authorizes the monthly payment.

She swipes to the next screen. An artwork, by an artist of whom she has several works, sold for a sum far in excess of its price estimate at Sotheby’s. Suggesting a bubble in the value of the artist’s works, Topaz indicates now could be an opportunity to realize the value held in the pieces Elizabeth owns. She decides to hold off for now, believing their value could increase further. Besides, they look good on her bedroom wall.

Elizabeth finishes the last mouthful of coffee and flicks to the final Topaz update. It reminds of a birthday coming up: the founder of one of her Angel investments. Topaz suggests gifting some stock; she sends him shares in one of her green energy investments — 49 shares, the same as his age.

How personalization works

Insight streams are aggregated and passed through the lenses of client investment goals, behavior, interests, and preferences. After review by the investment manager, content is digitally delivered directly to the client. Engagement monitoring feeds data back into the client preference lenses, improving the level of personalization with time.

For more on the digital HNWI experience, read ‘Designing the Future of Wealth Management: It’s All About the Experience‘.

Image demonstrates personalization process. Insights, such as ideas and news, enter a tailoring and ranking funnel that filters based on the clients' personality. After a review by a manager, insights are delivered to devices. Client engagement is monitored and used to tweak the tailoring funnel.

Concluding thoughts

Nothing in Elizabeth’s morning is outside the realms of possibility. After all, advanced AI-enable personalization already exists in other industries. HNWI clients demand sophisticated personalization, and wealth managers need to provide it. They can, and they must. With Topaz Insights, we are at the start of the journey towards a hyper-personalized wealth management future.

[1] Capgemini World Wealth Report 2020