Personalization Isn’t a Perk—It’s the Path to Survival in Financial Services
Trust is what we sell in financial services—it’s everything. When people entrust their money to an advisor or institution, they’re handing over more than just assets. They’re handing over their future. Their goals. Their peace of mind. And yet, too often, they’re met with the same generic experience: categorized by rigid risk models, funneled into pre-set financial products, and asked the same questions over and over.
The result? Clients feel more like numbers on a spreadsheet than individuals with unique financial stories.
Colleen Wilson, a brilliant fintech product leader with deep expertise in wealth management, payments, and lending, believes that true personalization in financial services means going beyond credit scores and KYC checklists. In our recent conversation on *Knowing Me, Knowing You*, we explore how technology, data, and a deeper understanding of human behavior evolves financial institutions from transactional to relationship driven.
The Industry has a Personalization Problem
For decades, financial institutions have relied on a narrow set of historical, transactional data points—credit scores, income, and risk tolerance—to understand clients. These metrics are for the institutions, helping them decide whether to provide services, how much, for how long, at what price. While useful in that regard, they offer no insight into what really drives personal financial decision-making.
Wilson argues that financial services companies need a mindset shift: from viewing clients as risk profiles to seeing them as individuals with evolving needs, values, and aspirations.
Take retirement planning. A 45-year-old client eyeing retirement in Manhattan has vastly different financial expectations than someone planning to settle in Missouri. Same age. Same retirement goal. But the costs, lifestyle expectations, and financial strategies needed? Completely different. And yet, most financial advisors wouldn’t even capture that nuance in their systems.
That’s the gap. And closing it means rethinking how financial institutions collect, structure, and act on data.
Breaking Down Data Silos to Build Stronger Relationships
One of the biggest roadblocks to personalization? Data fragmentation.
Financial institutions sit on a goldmine of information—but it’s often trapped in disconnected systems. Advisors and bankers develop rich, qualitative insights from years of conversations with clients, yet that knowledge rarely makes it into structured, actionable data.
Instead, many firms still rely on outdated CRM notes and manual data entry, making it nearly impossible to anticipate client needs. There has been a rise in AI note takers to help derive this type of data, but if it’s not there…it’s not there. If the onboarding discovery and rediscovery processes are not standardized, the output from AI won’t help as much as you might want to believe. Wilson points out that if institutions leverage a universal financial dataset—one that captures not just financial metrics but personal values, life goals, and behavioral insights—advisors could shift from reacting to client needs to proactively guiding them.
Imagine an advisor reaching out not only because a portfolio hit a volatility threshold, but because they knew their client was approaching a major life transition—like having a child, starting a business, or preparing for retirement in a high-cost city. That’s the level of personalization financial services should strive for.
Trust Is Built in the Moments That Matter
At its core, trust in financial services comes down to one thing: Do clients feel truly understood?
Wilson emphasizes that proactive, meaningful engagement is what separates trusted advisors from those who are just selling products. The best financial professionals aren’t just responsive—they anticipate. They reach out before a client even realizes they need help. They make financial planning feel like a partnership, not a process.
On the flip side, trust erodes when clients feel ignored or misunderstood. And unfortunately, the way the industry has so far been structured—often prioritizing compliance and risk mitigation over customer experience—makes it easy for that to happen.
That’s not to say compliance isn’t necessary, quite the contrary! Regulations from entities like the CFPB play a critical role in protecting consumers. But layering bureaucracy on top of outdated client engagement models? That’s a recipe for frustration. The future of financial services depends on striking a balance: ensuring regulatory rigor without sacrificing personalization and human connection.
Empowering Clients Through Data Ownership
One of the most promising solutions to financial services’ personalization gap? Giving clients control over their own financial data - the “soft” side including goals, emotions, and attitudes as well as the transactions and balances.
Imagine if individuals could share a comprehensive, structured dataset with their financial advisors—on their own terms. No more redundant onboarding questions. No more frustrating gaps in knowledge. Just seamless, data-driven conversations that focus on what truly matters.
But data alone isn’t enough. Wilson highlights that financial professionals must take on the role of guides—helping clients navigate complexity rather than dictating decisions. Financial freedom isn’t just about having wealth; it’s about having the confidence to make informed choices. That confidence grows when people feel heard, respected, and empowered.
The Future of Financial Services: Inclusive, Transparent, and Personal
The financial industry is at a turning point. More women, underrepresented groups, and new generations are gaining influence—and they expect more from financial institutions. They want transparency. They want advisors who see them as more than just a portfolio. They want financial services that actually reflect their unique needs and life experiences.
Wilson sees technology as a powerful equalizer. Used correctly, it can break down barriers to financial access, making personalized, high-quality financial guidance available to more people. But that future won’t be built by firms clinging to outdated models. It will be shaped by those who prioritize relationships over transactions, insight over assumptions, and trust over tradition.
Because at the end of the day, financial success isn’t just about the numbers. It’s about knowing yourself—your goals, your values, and what truly matters. And the institutions that help clients discover that? They’re the ones that will thrive in the years ahead.
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