A new article on
Forbes talks about how a recently conducted J.D. Power survey of wealth-management app use found just 35% of wealth apps offered chat functionality. Not only that, but only 41% offered secure messaging. The author questions how that can be when those are two of the key communication channels used widely by Gen-Xers and millennials.
The article goes on to discuss how investment products are becoming cheaper, and Robo-advice is gaining popularity. Reddit is becoming a huge platform for financial advice, with its main 'Personal Finance' community alone made up of over fourteen million members. Active digital communities like this could provide a ripe hunting ground for banks and other major institutions to harvest data concerning potential customers. Vered Zimmerman is managing director for FinText, which is a UK fintech that employs AI to look at online investor conversations:
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"The volume and quality of conversations in digital financial communities reveal a huge demand for financial advice. This makes online communities the most organic focus groups imaginable. Members are constantly seeking advice and debating options. They're vocal about their views. Their unmet needs are all visible right there."
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Social Listening for wealth managers
More social listening can lead to more tailored messages getting aimed at Gen-Xers and millennials. Wealth managers can also develop a better understanding of that generation's specific fears, gripes, and ambitions. As Zimmerman puts it:
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"Throughout 2019, the generational wealth gap struck a raw nerve within the 'Investing' community. In each of last year's quarters, at least one of the top five most active threads had to do with these concerns. When the Covid pandemic hit, this angst transformed to concerns over economic recovery and employment levels. Younger investors see it as an emerging asset class, almost akin to gold. We find they consider the overall lack of interest from institutional players a value opportunity. Wealth managers that can differentiate by offering insights on portfolio management that includes bitcoin, and gain an edge within a currently underserved niche."
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There is far more detail in the original article, so I suggest giving it a quick read via the link above!
