Customer Analytics in Wealth Management

by Bill Fearnley, Jr, December 12, 2013
Industry Trends
North America

Abstract

Increasing competition and regulation are putting pressure on financial services firms’ revenue growth. To uncover opportunities, many wealth managers are increasing their investment in customer analytics to glean insights from detailed information about customer accounts, demographics, and transactions.

In the report Customer Analytics and Wealth Management, Celent discusses the major types of customer analytics and the advantages of aggregating data to provide a 360-degree customer view. Firms are looking to improve their customer analytics in order to:

1)     Grow share of their wallet with existing customers.

2)     Improve customer service and reduce customer churn.

3)     Increase effectiveness of customer acquisition strategies and tactics.

“The ability to process larger, more detailed data sets can enable analysts to observe commonalities that will improve predictive and prescriptive analysis,” says Bill Fearnley, Jr., Senior Analyst with Celent’s Securities & Investments Group and author of the report. “User-created content such as social media interactions and web information, when combined with the firm’s existing data, can provide a broader picture of the customer.”

This report analyzes the customer analytics process and examines the goals of customer analytics, including customer segmentation, cross-sell and up-sell, channel management, and customer service and support.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

2

 

The Customer Analytics Process

2

The Major Types of Customer Analytics

5

 

Data Aggregation and Building a 360-Degree Customer View

9

Goals of Customer Analytics in Wealth Management

10

 

Customer Segmentation

11

 

Cross-Sell and Up-Sell

13

 

Channel Management

15

 

Customer Service and Support

17

Brief Technology Overview

19

Looking Forward

22

Leveraging Celent’s Expertise

23

 

Support for Financial Institutions

23

 

Support for Vendors

23

Related Celent Research

24

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