#CX / How banks can tailor retail advice to their customers

[Extracts from the article] … There is a tendency to believe retail financial planning advice must be feature-rich to be meaningful and achieve scale. In reality, the banks that are leaders on retail advice become successful before they finish rolling out all the features… Instead, they take a sequential and organized approach to rolling out their offer.

Most tier 1 banks already have a good range of table stakes features, like financial literacy articles, product selection tools, and expense management apps. However, leading banks that offer personal financial planning advice are more likely to prioritize the delivery of enabling features over the creation of innovative features…

Segmentation by behavior
Banks with successful retail advice strategies achieve great adoption rates when segmenting the market by behavior. … Segmentation by behavior has helped banks focus on those clients willing to receive financial advice using a hybrid model of self-serve and assisted advisory.

Journeys are not linear
Initially, banks thought they would manage and control the way retail clients consumed advice but soon realized that the needs, behaviors, and financial literacy across clients are highly diverse. A retail client’s journey is not a linear one; it is complex and unpredictable… The main takeaway from leader banks is to be prepared for all types of client journeys. One way to achieve this is through an advice center that resembles a restaurant menu − presenting a selection of recommended offerings. Clients can select what suits them best or even tailor a solution from scratch.

Technical building blocks
Retail advice does not require complex architecture. You can unlock most of the retail advice value through a cohesive front-end, robust data integration, emphasizing extracting relevant data from different advice apps or features into a centralized repository. This information will help improve the financial planning advice tools currently available and provide information for future long-term planning platforms…