Wealth manager spending on technology to improve understanding of clients’ behavioural needs when investing is set to grow strongly over the next five years, new European research* from behavioural finance experts Oxford Risk shows (please see the attached press release).
Its study with wealth managers across Europe who collectively manage assets of around €327 billion, found 77% predict increased investment in financial personality technology with around 13% forecasting a substantial increase in spending by companies.
Astoundingly, almost half of wealth managers surveyed (49%) still claim to rely mainly on their own intuition to assess their clients’ psychology. And more than half (57%) felt like they had a very good understanding of their clients’ financial personality when it comes to investments.
Oxford Risk’s research with wealth managers in the UK, France, Italy, Spain, and Ireland found strong support for the increased use of technology to develop better client financial personality understanding.
Around 80% of those questioned said improved technology to better understand clients’ financial personality is a way to gain a competitive advantage and win more business.
Up to four out of five (79%) say improvements in technology mean advisers have an opportunity to enhance how they assess clients’ behavioural needs and deliver a better service.
Oxford Risk is urging wealth managers to make better use of available technology to provide improved services to clients based on understanding their needs through detailed financial personality assessments and behavioural science.