Empowering digital wealth clients with impact criteria

Impact investing is a hot topic; as investors have become more aware of the wider impact of their investment in companies, there has been increasing demand to tailor their investments to align with their values. ESG and impact criteria can help investors understand which companies and assets are best suited to them.

Capturing impact investing preferences

The demand for investment strategies that incorporate ESG and impact criteria is growing very rapidly. Research from the Financial Times showed that last year, over 400 new ESG funds were launched. In the first half of 2020, more than $100bn of new money was allocated to the industry and AUM of funds that incorporated ESG impact criteria rose from $12 trillion in 2012 to more than $40 trillion in 2020.

The CREALOGIX report looked at a number of digital user experience scenarios for an investment app, based on the functionality of CREALOGIX Invest, suggesting ways financial institutions can address clients’ interests and concerns about impact and ESG criteria. CREALOGIX proposed several key areas that digital investment apps and portals can provide attractive, easily understood interfaces for capturing customer preferences and improving personalisation and suitability of investment information or guidance.

This is a rapidly accelerating customer demand theme in wealth and investment management worldwide and something financial institutions cannot afford to ignore.

Digital solutions can help to join the dots between suitability and sustainability?

Implementing a digital solution that captures clients’ ESG priorities and concerns doesn’t just tick a box when it comes to one of the major investment trends of recent years, it can support growth through attracting new clients and increase engagement with existing clients. Increasing the agency of clients by providing them with choice when it comes to ESG impact criteria is a positive way to increase engagement with both their investments and your digital solution.

Read the full article: “Empowering Digital Wealth Clients with Impact Criteria”