Hyper-Personalization in Wealth Management

Headshot of Brian Bichler

Brian Bichler, Co-Head of the Financial Institution Channel

February 26, 2023

A new era of tailored financial advice


In recent years, the financial services industry has seen a shift towards hyper-personalization in wealth management. And we have built Unio and Clear1 with personalization in mind. The success we have seen in their adoption, as well as feedback on the value they bring you and your clients, has affirmed our overall strategy.

Hyper-personalization succeeds when insights beyond traditional financial planning, which are typically generic assumptions and projections based on age, income and other demographic factors, are presented consistently to the client through digital mediums such as a client portal, compliant texting updates and other digital mediums.

Hyper-personalization encapsulates the client’s values, communicating in terms they easily understand, and helps you learn how they wish to connect for future insights. It leverages sophisticated algorithms, artificial intelligence and machine learning to analyze vast amounts of data that serves up insights and a corresponding action for you, as their financial professional, to take. You can distribute to all or only some of your clients in a manner that is optimized for your practice to make it simple to initiate.

Hyper-personalization can lead to better outcomes and retention rates, increased client satisfaction and improved profitability through better engagement.

Key elements of hyper-personalization

In wealth management, there are several key elements of hyper-personalization:

Comprehensive data collection: To provide truly personalized advice, financial professionals need access to a wide range of data on each client’s financial situation and goals, including information on income, expenses, assets, liabilities, investment history, risk tolerance and other factors. Clients will be asked to provide this information through Clear1, questionnaires, texting and other digital mediums.

Data analytics and machine learning: Once the data is collected, you can use advanced analytics and machine learning algorithms to analyze it and create campaigns to take quick action with clients. These algorithms can take into account a wide range of factors, including market conditions, historical performance and client preferences.

Personalized investment strategies: Hyper-personalization in wealth management also involves customizing investment strategies that are tailored to each client’s specific financial goals and risk tolerance. Wealth managers can use advanced portfolio optimization techniques to create investment portfolios that meet each client’s unique needs and preferences.

Communication and collaboration: To ensure that the hyper-personalization campaign is effective, ongoing tracking of the engagement between you, the systems and the client is critical to improve the algorithm and provide additional insights. Our goal is to make it easy for you to engage in campaigns, track their progress and communicate findings as you move forward. Engagement must be frequent, as clients expect more connection with you than ever before. That’s why it’s important to augment traditional face-to-face and email solutions with views of Clear1, marketing materials, texting and other solutions.

Address client expectations now and in the future

Hyper-personalization is still a relatively new concept. Most firms will have challenges to its implementation because they have not invested in platforms such as Unio and Clear1, barring them from competing effectively in this new arena of a blended experience that financial professionals and their technology provide to clients.

Sophisticated data analytics, AI and machine learning capabilities are not introduced overnight but instead require commitment, investment and a talented team, as well as an engaged financial professional population, to succeed.

In the future, hyper-personalization in wealth management will be a leading component of a successful practice. Both the current and the next generation of clients we serve have become more accustomed to personalized experiences in other areas of their lives, such as retail and entertainment. They now expect similar levels of customization and personalization from their financial services providers. Delivering these capabilities in solutions such as Unio and Clear1 is essential and will allow you to optimize efficiency for your practice.