Asset and wealth managers have had a transformative couple of years. Industry observers are seeing numerous trends emerging that will further shape firms. Some of these are ongoing and well documented; others result from hard-to-predict macro-economic factors.
In either case, a sophisticated program of content marketing can help manage change by reassuring clients and investors, educating and inspiring them.
Downward pressure to lower costs
When clients are shopping around for better rates, and rates are expected to correlate with market performance, margins naturally come under pressure. The response is often to find ways to cut operating costs. But differentiation is also key here, primarily in the quality and relevance of advice, and in the value proposition overall.
Content can support this. A combination of blogs, video content and social, even podcasts, can make clients feel like they’re in good hands, that they have a special advantage. Content can reinforce the human face of the firm, spotlight the personalities involved and help create personal connections that are harder to break than pure investor/firm relationships.
Calls for greater transparency
In turbulent times, many investors become anxious about how secure their investments are. They want greater transparency into where their money is being invested, how it’s performing and what the risks are. Asset managers are responding with automated reporting, data analytics tools and data visualisations.
In times of high anxiety, content marketing plays a critical role. Use it to specifically address pain points causing anxiety, to give an extra layer of reassurance, beyond the data.
Even more diversification, requiring more education
Investors are looking to rebalance their portfolios with more investments in private markets. While these carry higher risks, they can also deliver higher returns with longer investment horizons.
Investors need to understand these asset classes and products better. This is another opportunity for differentiation – being a reliable provider of quality information on these asset classes. And with the mass affluent a growing segment, there’s more demand for content that speaks to them in plain language, rather than jargon.
Younger investors expecting different things
With many trillions of dollars expected to be transferred to heirs globally over coming decades, we’ll see serious multi-generational wealth transfer benefiting Generations Y and Z. These younger investors will switch wealth managers if their high expectations for tech tools and personalised client experience aren’t met.
Next-gen investors also want information distributed on the platforms they already use and presented in formats they prefer. When creating content marketing strategies, firms should re-consider the traditional ‘expert-in-a-suit-talking’ videos and remember that future generations have grown up with TikTok.
The ESG imperative
Younger investors are helping push up the demand for environmental, social and governance investing (as are women – see below). The US is on track to have one-third of all investments in ESG within the next couple of years. See our recent blog for more information on creating ESG content that investors want.
Inclusivity on everyone’s radar
Today, women represent a much greater share of high-net-worth individuals globally, as HNW husbands and baby boomer parents die out, as cultural attitudes to women participating in society change, and more women head up businesses. Finally the AWN sector is seeing the potential for revenue growth and looking at how they can attract and retain women as clients.
Women’s goals often differ from men’s, and women aren’t a homogenous segment – there’s no one-size-fits-all solution. To reach the many microsegments of women, we need digital platforms that offer relevant content and personalised CX.
Content must address women’s need for connection, and target life stages and goals intelligently. Information must be delivered in an empathetic way, focusing on pain points, to help earn trust. If a firm doesn’t have the knowledge and diversity inhouse, consider a third-party content provider.
“ Today, women represent a much greater share of high-net-worth individuals globally, as HNW husbands and baby boomer parents die out, as cultural attitudes to women participating in society change, and more women head up businesses.”
Telling the mergers & acquisitions story
One continuing trend is M&A – firms looking to gain competitive advantage by scaling products, services and systems and re-orienting business models.
Targeted storytelling can help support a business and its salespeople if they’re looking to sell. Content marketing can also support your ‘Announcement Day’ to help shape how investors and employees respond over the weeks and months that follow the initial comms campaign. Content marketing can help you round out that story ongoing and continue to give certainty.
Digital assets not going away
Clients are still interested in the potential of cryptocurrencies and indirect crypto to help diversify their portfolios. In fact, the global cryptocurrency asset management market is expected to reach $9.36 billion by 2030 according to market research.
However, falls in prices have undermined trust in this asset class. Firms can use content marketing to educate their clients about the intricacies and risks of these digital assets and ecosystems, will full transparency, to help restore confidence.