Our experts in Brand and Financial Services Markus Kramer and Jean-François Hirschel have released a timely update to their influential article on branding in asset and wealth management.
First published five years ago, their insights on brand building have only grown more relevant as the industry faces unprecedented change. From AI's expanding role to mounting regulatory pressures and evolving ESG demands, asset managers need a stabilizing force – and that force, the authors argue, is brand.
The Brand Paradox in Financial Services
While the industry excels at quantitative analysis and product innovation, it often overlooks a fundamental truth about human decision-making: emotions drive decisions, even in financial services.
As neurobiological research consistently shows, while we use facts and figures to justify our choices, it's emotion that ultimately triggers the decision to buy. This creates a significant opportunity for forward-thinking firms. In a European market alone where approximately 4,500 managers compete for the same clients with nearly 70,000 different funds, differentiation has never been more critical.
Why Brand Matters More Than Ever
A well-defined brand delivers multiple strategic advantages in today's market:
- Differentiation in a Crowded Market: Your brand serves as a beacon in an oversaturated marketplace. It's not just about standing out – it's about standing for something meaningful that resonates with your target audience.
- Trust Building in an Era of Scrutiny: In an industry where trust is paramount, your brand becomes your shield. This is particularly crucial as firms navigate ESG commitments and face increased scrutiny from clients, media, and employees. A strong brand helps maintain client loyalty during inevitable periods of underperformance.
- Pricing Power When Margins Are Under Pressure: As the industry grapples with squeezed margins from rising operational costs and intense fee competition, brand strength becomes a critical advantage. Look at brands like Apple or BMW – they consistently command premium pricing through distinctive positioning and flawless brand activation.
- Talent Attraction and Retention: Today's professionals seek more than compensation; they want purpose and meaning. Your brand identity and culture can be the deciding factor in whether top talent chooses your firm over competitors.
- The Inside-Out Approach to Brand Building: The most powerful brands in asset management aren't created – they're uncovered. Your organization's unique identity is the culmination of countless decisions, actions, and experiences woven together over time. The key is articulating this authentically and consistently.
However, research shows that only about half of asset managers clearly articulate their purpose – their reason for being. Even fewer do it well, with the average quality score being just 2.4 out of 5 according to the latest Responsible Investment Brand Index.
The Path Forward
Building a powerful brand requires:
- Absolute authenticity – your external brand must mirror your internal reality
- Perfect alignment throughout the organization
- Clear, jargon-free communication that connects emotionally
- Efficient execution that respects stakeholders' time while ensuring broad participation
The Stakes Are High
In today's transparent world, there's nowhere to hide – and no reason to. Your brand's power flows from absolute integrity. What you project to the world must mirror who you truly are at your core.
Ready to learn more about building a powerful brand in asset management?
Download our comprehensive white paper to discover:
- Methodologies for uncovering your authentic brand
- Case studies of successful brand transformations
- Practical strategies for brand activation
- Key metrics for measuring brand impact
Contact us to discuss how we can help you unlock your brand's full potential and create lasting competitive advantage in today's dynamic market.
