Shift our focus
Conventional tactics do not succeed in pushing wealthy savers into investments. We need a new approach to address the never-investor, certainly in a digital context lacking human assistance. Instead of pushing investment products via classic, generic marketing campaigns that only convince the usual suspects; financial institutions should launch hyper-personalized campaigns that revolutionize the onboarding process yet respect all regulatory obligations.
We do not want to design yet another commercial campaign but build a true conversion engine. How?
We have to place ourselves in their particular mindset. A mindset financial institutions helped create and forge over the years. We successfully educated our clients to build a buffer of n-times their monthly income. Everybody knows they should save for later. And most even agree they don’t do enough. Take some clients who started saving ten years ago. They will continue saving as long as they don’t reach their minimum threshold.
Once they reach their goal, they go on saving because that is what they have been told to do by everybody: their family, their friends, and their bank.
And then suddenly, when they have accumulated lots of cash above that threshold, financial institutions find them on their radar screens. Banks eagerly target them whether they are ready to “invest” now, and invariably get the same answer:
– Too much uncertainty, I never invested before. I don’t know what to expect.
– Inflation? I don’t feel it, I don’t see it, I just love monetary illusion!
– Oh yes, sure, investing has yielded more than saving in the past. But what about the future? You never know. I’ll keep on saving.
The focus needs to shift completely. Let’s not target the “excess cash.” Let’s not be too greedy for once but rather target the “cash the clients never used in a long time.”