When it comes to managing personal wealth, research shows many Australians continue to fall into one of three key investor ‘personas’.

The personas are:

• The Delegator – knows the importance of managing their wealth, but is too time poor to do it themselves so has an advisor;
• The Validator – wants support and advice to help them manage their wealth, but doesn’t have an advisor;
• The Self-directed – understands the different investment strategies available to them, and doesn’t want an advisor.

A whitepaper released today by NAB’s innovation centre, NAB Labs – ‘Empowered Wealth: Exploring the Wealth Management Models of the Future’ – explores the ways in which Australians now build, manage and monitor their wealth, and how these will evolve in 2017 and beyond.

Chief Executive Officer of MLC and Executive General Manager of Wealth, NAB, Matthew Lawrance, says the differing needs of customers are changing the industry.

“Our customers want more targeted support and advice across banking and wealth management, and understanding these investor personas helps us to more effectively understand and engage with them,” Mr Lawrance said.

“We need to continue to invest to develop new and innovative solutions that give them the ability to engage us – whenever, however and through whatever means suits them, whether it be digital or face-to-face,” Mr Lawrance said.

“Over the coming years, Australians can expect to see substantial changes that will better support them through their personal wealth journeys. We already know Australians don’t think about their banking and wealth separately – they just think about their money. And so, just as our customers think holistically about their money, we’re thinking about their experience holistically.

“Changes in technology and demography also mean that digital and traditional advice models are no longer an ‘either or’ proposition. Rather, they must work together as customer needs grow and evolve.”

Mr Lawrance said it’s also important not to forget there are many Australians who do not engage with their wealth at all.

“We recognise that everyone has different needs and aspirations. We’re here to provide the help, guidance and advice at every stage of life,” Mr Lawrance said.

The NAB whitepaper also called out the importance of holistic wealth management solutions to the future of the industry – particularly for the ‘Delegators’ and ‘Validators’.

“The ‘Delegators’ and ‘Validators’ particularly want more support and advice, and so we need to invest to give customers the ability to engage in all stages of the wealth management lifecycle.”

“That includes a single offering that provides a multitude of investment vehicles so they can build their wealth; an aggregated view of their wealth position so they can monitor their wealth; and ongoing tools and insights to help them manage their wealth,” Mr Lawrance said.

The report also explored key global megatrends which are challenging the way the industry including fintech companies are meeting the needs of investors – including a demand for greater value and variety, transparency and enhanced accessibility.

To read Empowered Wealth, please click below:

NAB Labs Whitepaper September 2017_Empowered Wealth

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