First Impressions: The Impact of Financial Analytics on Pre-Onboarding Experiences
  • December
  • 2023

First Impressions: The Impact of Financial Analytics on Pre-Onboarding Experiences

Transforming Pre-Onboarding with Financial Analytics: A Paradigm Shift

The financial industry is witnessing a paradigm shift, and there are many trends contributing to it. We often explore the changes brought by recognising the sustainability concerns, the growing consensus about building hybrid, multi-channel journeys and the growing importance of improving data management and processing to harness all the benefits of advanced financial analytics and artificial intelligence. Today, the first touchpoint of wealth managers with their customers occurs in the digital realm – even if they are eventually planning to contact the advisor in person. The customers visit the companies’ websites to find out more about the products and services that are offered.

First impressions last well beyond the moment, so this is a crucial stage of your relationship. The latest advancements in financial analytics prove that there is a lot more to do in pre-onboarding than ever before – allowing the customer to use the calculations interactively to understand how exactly your firm might help them with their situation and whether your products are exactly what they need to reach their financial goals. This transformation is revolutionising the initial interactions between financial institutions and potential clients, fostering a new era of informed, personalised, and compelling customer experiences.

The Financial Innovation Essence: Personalisation at Scale 

The essence of modern financial innovation lies in personalisation, a key theme highlighted in the recent PIMFA report. The report supports the idea that increased personalisation in communications from financial services firms could lead to better engagement and decision-making by consumers. Current generic information and guidance are seen as insufficient in directing consumers towards actionable steps. The hypothesis that increased personalisation could improve engagement was tested by offering different levels of personalisation in communications to survey participants. Results showed that all groups, from advised investors to non-investors, valued some level of personalisation. 

In an era where consumer expectations are at an all-time high, financial institutions are leveraging analytics to craft tailored communication strategies. This approach is particularly crucial for individuals who are often overwhelmed by the complexities of the investment world. Advanced financial analytics enable firms to dissect and present financial concepts in an accessible manner, resonating with individual needs and preferences. This level of personalisation cultivates trust and piques interest, vital in kickstarting relationships in the pre-purchase phase.

Skandia’s Best Practice: A Pre-Onboarding Case Study 

Skandia's collaboration with Kidbrooke® exemplifies the transformative impact of financial analytics on pre-purchase engagement. One of Skandia’s first use cases centred around integrating Kidbrooke’s financial simulation engine into the pre-purchase teaser for the retirement planning journey. At this step, it was important to balance engagement, simplicity, and the level of detail. The insurer achieved this by introducing multiple stages within their onboarding journey. Initially, a potential customer can gauge a rough estimate of the value Skandia can provide to them, gradually receiving more tailored forecasts as they navigate the journey ending with personalised regulated advice.

Another important feature for hybrid players like Skandia is consistency, particularly in regards to financial analytics. Wealth managers should establish that the calculations powering their services create a seamless experience where numbers make sense from one step to another, across all channels – physical or digital. It was one of the most important criteria in Skandia’s choice of our simulation engine – we could support their vision of an omnichannel business. Otherwise, one could end up with a fragmented and confusing journey that could damage your brand.

The Symbiosis of Technology and Human Touch 

As mentioned earlier, in our experience, retail investors often start with digital channels, even if they plan to reach their advisor in person. At this stage, with the help of advanced financial analytics, it is paramount that the wealth manager shows that they can provide the client with an environment to formulate their objectives and intuitively explain various investment options. Our financial simulation engine provides goal-based planning elements at the teaser stage, guiding customers to understand how engagement with an investment firm would help them achieve their financial goals.

A successful engagement strategy in hybrid businesses hinges on the harmonious blend of financial analytics and human insight. While analytics provide clarity and precision in understanding complex financial choices, the human element in advisory services adds empathy and personal connection. This synergy is pivotal in ensuring that clients enjoy consistent insights delivered by all the channels of your evolving business. One of the increasingly popular strategies is to empower human advisors with the same analytical tools that run your automated pre-onboarding and monitoring channels. That way you can ensure that the experience representing your brand is seamless and logical.

Charting a New Course in Pre-Onboarding with Financial Analytics

A responsible and consistent teaser can help customers to align expectations for choosing your financial institution, while serving as an engaging way to start your relationship. Here you can leverage one of the main superpowers of gamified elements – you can empower the investors with every skill level to discover the opportunities offered by your institution, get unique insights about their behaviour, and use their feedback for developing your services further. As the financial landscape evolves, this blend of analytics-driven insights and personalised human interaction will continue to be a key differentiator, guiding more informed and confident consumer decisions in the financial market.

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