The New Wealth Management Strategy: Location Intelligence

How firms can boost sales through location-based technologies

Fri Dec 15 08:32:00 EST 2017

Did you know that in the last 5 years, wealth management firms have invested $2.4 billion in acquiring new technology? I work with CIOs across verticals every day to help them transform the way they do business with technology. Among these CIOs, many represent the financial services industry, particularly the retail banking sector. Retail banks have widely applied location intelligence for site selection, and to offer more targeted marketing to prospective customers. But when it comes to their wealth management counterparts, these firms have been much slower in their adoption of location intelligence.

Wealth management firms are overlooking an opportunity to utilize location intelligence to the effectiveness of their investment decisions. Location intelligence can help wealth management firms to identify potential clients that best resemble their ideal customer profile, and improve the firm’s investment decisions.

First, we have to acknowledge that wealth management firms have a tremendous amount of data on their current clients. Their marketing departments can better utilize this information to create highly accurate customer profiles, which when combined with location-based demographic and lifestyle data, can precisely target their marketing efforts, rather than relying on word of mouth and/or more costly and generalized forms of advertising.

While it’s true that potential clients can vary greatly across the board, one thing remains true: they often live and play with like-minded people. As a result, the firm can also use the information they’ve already gathered from existing clients, and use it to facilitate the on-boarding process for new clients, and more accurately assess the new client’s potential risk profiles and tailor initial investment recommendations.

Second, a few leading institutions have been successfully utilizing location intelligence to increase the accuracy of their investment decisions. Through precise and timely analysis of satellite imagery, foot traffic and Internet of Things (IoT) sensor data, these firms can develop more accurate predictions on the health and well-being of a business or an industry (e.g. retail sales), better understand commodities markets, and ultimately better inform their buying and selling decisions.

In these situations, it becomes critical to accurately and efficiently process billions of records of data, while flexibly combining multiple types of data (e.g. financial transactions, commodity futures pricing, traffic counts), and infusing relevant data to better inform the ultimate analysis the firm is looking to conduct. Speed and accuracy are key, as quite a few of these firms generate value for their clients by acting on accurate intelligence before their competitors are able.

Wealth management firms can afford to learn a few lessons from the retail banks, who have been extremely successful using location intelligence technologies to grow their business and provide the right services to the right customers at the right time. Wealth management firms should be no different. Location intelligence enables every industry, including wealth management, to better understand, analyze and act upon the wealth of location-based data that surrounds us.

Often, I have found that it just takes a conversation to understand the possible. I recommend that you contact us so that we can discuss how location intelligence technology can help you.