Why customisation is the differentiator wealth firms need to take seriously

Personalised products have always been a boon for a service provider, but it is now becoming a “powerful brand differentiator in the digital economy”, according to WealthTech company Kidbrooke.

Tech giants like Amazon, Netflix and Spotify have helped shaped what people expect of an online service. While their streamlined interfaces give consumers a desire for simplicity with online interactions, their personalisation capabilities, such as recommended products, movies or playlists, are just important. Kidbrooke’s latest blog claims these customised product offerings build consumer loyalty and mould customer expectations.

As wealth managers move online, Kidbrooke believes they will meet similar demands from customers for fast, user-friendly and individually tailored services.

One in three millennials are open to change financial services providers within 90 days, if they find another that offers a more customisable and adaptive solution, according to a study from PwC.

With customers happy to move provider for customisation, Kidbrooke offers its OutRank solution to help financial institutions adapt. The solution is a financial simulation engine which enables financial institutions to provide end customers with seamless financial decision support tailored to the personal financial situations of their customers at balance sheet level.

The tool also lets banks, insurers and wealth managers build digital offerings faster and affordably, whilst maintaining their brand identity.

OutRank has three core components: Economic Scenario Generator (ESG), Balance Sheet Predictor (BSP) and Financial Decision Maker (FDM).

Its ESG solution enables financial institutions to model probable future conditions of the global economy and capital markets to inform various portfolio and risk management decisions. A firm can consider and calibrate bespoke financial risk factors depending on the availability of historic or customer-specific data, it said.

This allows for granular mapping of the investment product universe and ensure customers can match their financial goals to the offerings.

Its BSP solution is responsible for constructing future cashflow trajectories on the balance sheet level, it said. The tool projects all balance sheet items based in the underlying risk factors generated by the ESG. The BSP solution also has customisable parts for tax regimes, fee structures and other rules.

Finally, FDM compares projections or forecasts of the net asset value of the balance sheet described in the request to facilitate end customers’ financial decision-making. The feature supports goal functions that help customer pick the strategy they want to use to meet their financial goals.

Kidbrooke continued to state its OutRank solution will help companies maintain compliance with regulations such as MiFID II. The platform can automate various processes and ensure advice always meets customers’ needs.

The platform also enables financial institutions to achieve shorter time-to-market for new decision-making tools, and will help them meet business goals by boosting customer loyalty, which improves revnue, it said.

Read the full post here.

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