Why is brand engagement so important for asset and wealth managers?

Brand engagement has become a hot topic for asset and wealth management firms, and I've recently experienced its importance firsthand. Several key factors contribute to this trend:

• Increasing competition in the financial services industry
• Growing importance of digital presence and online reputation
• Shifting client expectations towards more personalised and engaging experiences
• Need for differentiation in a crowded market
• Rising importance of trust and transparency in financial relationships

These factors have made effective brand engagement an important strategy for wealth managers looking to attract and retain clients. The Interbrand - Best Global Brands 2024?features J. P. Morgan, Goldman Sachs, and Morgan Stanley, leaving everyone else in the industry?out in the cold.

This article explores the importance of brand engagement and why it's worth discussing. There are many reasons to dive deep into this topic, from sharing expertise to establishing thought leadership. As the founder of Invessed, a Wealth Engagement Platform designed to enhance brand engagement for asset and wealth managers, I aim to provide valuable insights that can benefit professionals in our industry.

1. Trust and Credibility

In an industry where trust is key, good brand engagement builds credibility. Clients are more likely to trust managers with a good reputation and strong brand presence.

2. Standing Out from Competitors

Many firms offer similar services. Effective brand engagement helps asset and wealth managers stand out in a crowded market.

55% of investors say that a wealth manager's brand reputation is a key factor in their decision-making process. Accenture Wealth Management Consumer Report

3. Keeping Clients Loyal

Engaged clients are more likely to stay. Regular, meaningful interactions through brand engagement can strengthen relationships and keep clients from leaving.

72% of investors say that regular, proactive communication from their wealth manager increases their trust and loyalty to the brand. Accenture Wealth Management Consumer Report

4. Attracting New Clients

A strong, engaging brand can attract new clients. Today, potential clients often research firms online before making contact.

5. Sharing Company Values

Brand engagement helps firms share their unique values, expertise, and investment approach with current and potential clients.

6. Appealing to Younger Investors

As wealth moves to younger generations, brand engagement is crucial. It helps attract tech-savvy millennials and Gen Z investors who expect more digital experiences.

7. Becoming Industry Leaders

Regular brand engagement through content, webinars, and social media can position managers as experts in their field, boosting their reputation.

8. Handling Market Changes

Strong brand engagement helps managers communicate effectively with clients, providing reassurance during uncertain times.

9. Educating Clients

Brand engagement can help educate clients about complex financial topics, helping them make better investment decisions.

10. Embracing Digital Tools

Brand engagement through online channels helps managers stay relevant and accessible to clients.

67% of investors want their wealth manager to offer digital tools that help them better understand and manage their finances. Accenture Wealth Management Consumer Report

Brand engagement is not just about marketing. It builds trust, makes services stand out, keeps clients loyal, attracts new business, and adapts to changing markets. A well-executed brand engagement strategy can drive long-term success in an industry based on personal relationships and trust.

63% of investors would consider switching to a wealth management firm that offers more engaging and interactive digital experiences. Accenture Wealth Management Consumer Report

How Invessed improves brand engagement

Invessed is not HubSpot or a MarTech tool, but it does improve brand engagement through the following features:

• Interactive multi-layered client reporting enhances brand engagement by providing clients with transparent and detailed information about their investments. The interactive nature and drill-down capabilities allow clients to explore their portfolios in-depth, fostering trust and increasing engagement with the brand.
• Financial charting and interactive tables are visual tools that make financial data more accessible and understandable for clients. By offering interactive charts and sortable tables, clients can better grasp their financial situation, leading to increased engagement and appreciation of the brand's commitment to clarity.
• Document libraries and data rooms improve brand engagement by streamlining communication and document sharing. The controlled access and personalisation options demonstrate the brand's commitment to security and tailored service, while integration with messaging services enhances client-manager interactions.
• The risk profiling tools capture client risk appetite and enable personalised product recommendations, showing that the brand values individual client needs. This personalisation can lead to higher engagement, as clients feel their unique situations are being considered.
• Growth projections and client objectives mapping allow clients to visualise their financial future and track progress towards their goals. This forward-looking approach can increase client engagement by demonstrating the brand's commitment to long-term client success.
• Analytics and engagement tracking primarily benefit wealth managers; they indirectly improve brand engagement by allowing managers to understand client behaviour and preferences. This insight can be used to tailor services and communications, leading to more effective and engaging client interactions.

These features collectively enhance brand engagement by providing clients with transparent, personalised, and interactive experiences while equipping wealth managers with tools to better understand and serve their clients.

As the investors evolve, brand engagement has become an essential metric. Invessed provides powerful tools to meet this need, helping managers build stronger client relationships, improve their brand presence, and grow their business in a competitive market.

Adam Weston is a Founding Director at Invessed

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