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Reimagining Financial Advice

Cognizant Personal Portfolio 10,000 9.000 8.000 7.000 6,000 5,000 4,000 3.000 2,000 - 1,000 Jan Feb Mar Apr i How &where Retirement Planning digital Apr 7% can advance wealth managemen Advanced forms of artificial intelligence and predictive data analytics are needed to enable wealth management firms to improve their understanding of customers as individuals and facilitate more meaningful client communication, service and experiences, according to our recent study. We recently surveyed 351 financial advisors across the U.S. to understand their perceptions and priorities in the increasingly digital wealth management business. The majority (84%) of respondents were aged 25 to 45, and early adopters or fast followers of all things digital. These relatively young advisors made clear that using traditional 8= client data sources is insufficient for delivering meaningful and actionable investment advice. In fact, our research findings reveal a problem looking for a solution: The need to build a new digitally-powered capability to fully understand the customer on the strength of analytics-driven insights. Once in place, this capability can enhance client communication, service and experiences. The need to be fact-driven. of respondents view access to customer data and the ability 81% to make meaning from their digital footprints as the key to business success. THE "FUTURE OF ADVICE" WILL BE DRIVEN BY DEEP ANALYTICS AND AI-DRIVEN CLIENT INSIGHTS 3% 1% 6% 1% 4% 6% 14% 16% 11% 33% 35% 43% 38% 44% 43% Access to a customer's data and making meaning from their digital footprints is the key to success in the digital world. Marketing is increasingly becoming digital, requiring a technology interface. Customer experience is largely shaped by technology. Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Response base: 351 financial advisors, multiple responses allowed. Percents shown do not sum to 100% due to rounding error. Source: Cognizant The push to personalize. of respondents 80% believe that increased availability and integration of client data will facilitate more curated advisory services. IN THE FAST-CHANGING WEALTH MANAGEMENT LANDSCAPE, THE FOLLOWING TRENDS ARE TOP-OF-MIND 11% 2% 7% 2% 7% 3% 5% 5 28% 30% 10% 32% 20% 18% 38% 17% 42% 42% 41% 40% Increased automation Automated advice Increased transparency Increased availability of traditional advisory technologies will serve to accelerate the shift of and integration of client data will enable wealth into investment functions and tasks will performance will drive managers to offer more personalized advisory reduce the need for customer assets to index individual investors to products and further exacerbate pressure on pricing. investment advisors. better compare products and services. services. Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Response base: 351 financial advisors, multiple responses allowed. Source: Cognizant The art of being human-centric. of respondents believe that better segmentation can be 72% achieved by combining behavioral data that reflects client needs, wants and desires with traditional financial data. 13E20870000010408 2862010104130 25 00074 T0042184098010A BAR10021204 v0799665E 75935810 78110 C4W WloO167C252035 101A1011945830A302 VBC80081 OT 299014A 2009 OB41 IB24980 502 CLIENT ACQUISITION PRIORITIES: HOW WILL DIGITAL AND ENHANCED ANALYTICS DRIVE CLIENT ACQUISITION? Enhance the quality and speed of delivering client proposals. 41% 39% Better identify and engage with "next-gen" prospects. 33% 42% Mine prospect and new client data, both traditional and behavioral, for better segmentation. 29% 43% Strongly agree Agree Response base: 295 of 351 financial advisors. Source: Cognizant The need to be relevant, timely and actionable to improve client service, communication & experience is critical. 77% of respondents agree that this is possible only when transactional and interactional data sources are combined. SA o', o BEING DIGITALLY CONNECTED: HOW CANDIGITAL BEST DRIVE CLIENT EXPERIENCE AROUND INFORMATION MANAGEMENT AND COMMUNICATIONS? Improve the timeliness and personalization of client 38% 43% communications and service alerts. Drive more relevant and actionable customer insights from all sources of client data. 36% 41% Explore opportunities to use social media as a communications and 33% 40% service delivery channel. Strongly agree Agree Response base: 295 of 351 financial advisors. Source: Cognizant To learn more, read our white paper: "Wealth Management: How Digital & Learning Algorithms Advance Holistic Advice" Visit the Banking & Financial Services section of our website or contact us at © Copyright 2018, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. TL Codex 3968

Reimagining Financial Advice

shared by cognizant on Oct 24
Wealth management advisors believe it’s time to chart an AI-informed course to relevant, personalized advisory services, according to our recent research.






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