4 Workflows for a More Efficient Financial Planning Process
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Insights and best practices for successful financial planning engagement
• Joe Buhrmann • September 12, 2023
As tech companies crowd their territory, banks are exploring ways to understand customers on a deeper level and create personalized experiences at scale, including bank-fintech partnerships. New customer acquisition—especially among younger generations—remains a top priority for banks, according to BAI Research.1
Banks are looking to leverage their strategic advantage as the traditional entry point into the realm of financial services, as well as consumers’ long-held preference for simplicity, to win more wealth management customers. The majority of affluent investors (58 percent) are interested in consolidating all assets at a single institution, and nearly 28 percent of affluent households have a bank-related platform as their primary provider of financial services. 2,3
Where banks have struggled is in leveraging technology to provide the personalization modern customers have come to expect.
A few major players, however, provide insight into the path forward. They’re increasing their technology spending and launching bank-fintech partnerships. Through planning platforms and application program interfaces (APIs), these institutions gain the data needed to create personalized customer experiences at scale.
From cutting-edge mobile apps to slick client portals, they are developing tools to engage a wider spectrum of customers in a way that inspires loyalty. “All the leading banks are beginning to build what we call a bridge to investing,” Mark Schwanhausser of Javelin Strategy and Research told American Banker.4
In addition to personalization, another strategic priority for banks is to facilitate the journey from depository customer to bank advisory client. To serve both goals, organizations have turned to account aggregation tools.
“Having a seamless and effective aggregation system upon client onboarding becomes more critical for bank advisors, not only as an efficient way to onboard customers, but also as a landmark first interaction that can set the tone for the rest of the relationship,” Cerulli analysts said.3
Bank leaders know that many investors seek simplicity and convenience, so they’re prioritizing account aggregation capabilities that lend that “one-stop shop” feel for clients. When customers buy-in and link their assets, that provides additional insights for the advisor and opportunities to consolidate assets further.
Though banks are facing headwinds in the form of increasing competition and legacy business models, there is promise in technology partnerships and financial planning. A few forward-thinking banks are investing in planning technology, looking to win over the growing number of affluent customers who see the value in paying for financial advice. They’re positioning for a future where highly personalized experiences can create lifelong customers.
Sources:
DISCLAIMER: The eMoney Advisor Blog is meant as an educational and informative resource for financial professionals and individuals alike. It is not meant to be, and should not be taken as financial, legal, tax or other professional advice. Those seeking professional advice may do so by consulting with a professional advisor. eMoney Advisor will not be liable for any actions you may take based on the content of this blog.
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