Over the last few days, we decided to ask our readers what they thought was the key element enhancing client-advisor relationship. The most popular answer was holistic goal-based advice: an advisory approach that fully addresses current clients’ needs and expectations, knowing their individual circumstances and helping them achieve their personal and financial goals.

The second response we received is referred to sentiment analysis, connected to the previous concept, but also representing a bold look towards the future. AI-based sentiment analysis is generally used to investigate clients’ opinion and improve customer experiences, identifying the areas where the scope of personalisation is feasible and needed.

In particular, sentiment analysis leverages Artificial Intelligence (AI), Natural Language Processing (NLP) and Machine Learning (ML) algorithms to determine whether a segment of open-ended natural language text is positive, negative, or neutral towards the topic being discussed.

In order to listen to the voice of the clients and interpret their behaviour to personalise their experience, sentiment analysis is henceforth necessary. Known as hyper-personalisation, this process doesn’t just personalise basic parts of the customer experience but the customer journey is reimagined leveraging data from every interaction, to create a holistic view of their needs.

Understanding somebody’s emotion and adapting your interaction with that client based on these emotional cues, is not easy to realise and certainly not easy in a digital and scalable way. However, understanding the client will become a must-have and AI & ML can help banks to deliver this empathic digital experience.

Behavioural Finance to better advise clients

In addition to the classical one-dimensional segmentation, and to get a better understanding of the client, banks should make better use of all the data they receive from different channels. This will lead to a first step in personalisation.

To reach the level of hyper-personalisation, clients provide additional personal data in return for value propositions and benefits. These personal data bring the bank in the position to evaluate the entire holistic picture of the client. And that results in higher valued proposals, tailored to the goals of the individuals, that are only comfortable to invest large amounts of their capital if a personal touch is added.

Behavioural Finance is an additional way to better understand the client, that’s why it may be worthwhile to invest in a Risk Profiling solution in order to better understand their situation and provide a more personalised investment proposal. It takes into consideration factors as risk tolerance, liquidity needs, ability to bear losses and financial goals. Based on principles of gamification and situational evaluation, we have seen that clients want to share more precise and complete information with the bank. This results in a more holistic view and is another step towards hyper-personalisation.

In that manner, shifting the focus to holistic client understanding, combined with hyper-personalisation techniques, it is possible to provide them with tailored solutions that really meet their individual preferences.

Therefore, clients and their families will feel well understood, developing full confidence in their advisor and choosing to remain loyal, for many years.