The vital role of actionable content
Townsend Lansing, Arkera: retail investors are more informed and independent than ever before
Retail investor behaviour is changing.
This investor category no longer passively waits for advisors to call. They take action, hunting investment narratives and opportunities, using tools to compare prices for themselves, directing their own futures.
This shift is fuelled by the rise of wealthtech, which is empowering self directed investors (SDIs) and transforming investment management. SDIs glean advice from robo-advisors, invest via micro-investing platforms and digest news from cutting edge content providers. Brokerages, wealth managers, and advisors must adapt to this brave new world, or they risk losing clients.
Investors are more informed and independent than ever before. The rise of technology and the spread of financial education means that clients can access the same resources as advisors. On the whole, this is positive. Informed, knowledgeable clients respect trusted advisors. But it means that professionals have to be at the top of their game to retain clients over the long term.
One way that advisors can fight back in the battle to engage, service and monetise SDIs is through content. Whilst having access to the same raw data and news, SDIs don’t usually have the expertise and experience needed to distil themes and narratives from this wave of content. Crucially, they struggle to link content to action and this is where advisors can help by offering clients actionable content. A failure to do so will quickly make advisors irrelevant.
Top advisors of the future will provide links between topics gleaned from the mountain of available data and actual trade ideas. Information must be relevant, timely and personalised for clients. Clients demand actionable content, because they struggle to source it for themselves.
With ETFs now providing cost-efficient and flexible exposure to an almost unlimited number of assets and strategies, there’s never been a better time to help clients achieve their financial goals. SDIs have been empowered by technology, but advisors have been, too. If an advisor can harness technology and link news to actionable content to product, they will create trust, client action and, over the long term, business revenues.
Traditionally, actionable content has been almost impossible to find. “Needle” and “haystack” spring to mind, as the vast quantity of data and news made finding relevant, timely information time consuming and inaccurate. As a result, the process of unearthing actionable content was poorly executed. As the amount of content increased, the level of insight went down.
Vinit Sahni, Arkera: AI reveals the mindset and behaviour of clients
But this is changing. We live in a unique age, when the data we need to meet every single one our client’s needs is available at the touch of a button. The key for advisors is to work out how to frame solutions for clients, providing specific investment angles and stories that are personal, relevant and valuable. This creates deep and profitable relationships.
Artificial intelligence (AI) and machine learning (ML) are revolutionising this space and by harnessing these technologies we can provide a solution to the problem. AI platforms help advisors to build investment narratives for clients. Using AI to curate content and engineer the experience around clients, AI reveals the mindset and behaviour of clients. This leads to actionable insights for advisors that, in turn, leads to growth and long term relationships.
Retail investors are being empowered further every single day. This could be seen as a threat to the way that advisors traditionally do business. But it’s also a huge opportunity for advisors who are brave enough to embrace technology that can offer clients a level of service they’ve never been offered before. AI makes the possibility of actionable content a reality.
By Vinit Sahni, co-CEO and founder, and Townsend Lansing, CCO, Arkera
