Assets under View (short AuV)

By Andreas von Hirschhausen
Follow: @AndreasvonH

Did you know that we reached the “Multi Banking Era”? We now have the technical capabilities to give a retail client the opportunity to not only aggregate current accounts, but also portfolio accounts, real estate, gold, alternative assets, and so forth.

If used right, this new multi-banking combined with aggregation offers great insights into your customer pipeline and conversion capabilities as a bank. It gives rise to a new Key Performance Indicator (KPI):

Assets under View (short AuV)

 Assets under view are the assets of a client that are not held by your bank, but that are added by clients to your multi-banking application.

Why Assets under View are so important

Currently, the banking world is looking at Assets under Management (AuM) to look at the success of a funds, bank, or robo advisor. The question is, how to you follow and manage your pipeline as a bank in a digital world: Click rates, time on website, registered users? All are important for the funnel, but they do not indicate the value of the client. Look at AuV and measure conversion from AuV to AuM and you get a good idea of your pipeline and insights into how to manage it.

Another reason to look at the total wealth of a client (aka AuV) is that you can provide more accurate advice as a bank. A client that has a total wealth of one million Euro can invest 50.000€ he has with you differently than a client for which the 50.000€ is everything he has.

What does the new KPI tell me?

Ten million Euro AuV from one thousand clients indicates a different target group as ten million Euro AuV by 10 clients. It can work as a reality check: Am I addressing the right clients?

Also, you get a very clear vision about your pipeline, for example:

  • 100 potential clients visit your website
  • 60 register for your free service
  • 50 trust you with their assets -> AuV
  • 30 sign up for your paid service

Before, you went from registered users straight to AuM, not knowing what happened in between. Now you have a new KPI, that can show what happens in between. You can steer clearer, where you have to put more effort in to convert. You can better focus on the client’s pain points and show the potential of your solution.

Where the market will go

We at Fincite believe, that comparison and aggregation is not a threat, but an opportunity, if you have the vision to use it properly. Build services that show your expertise, whether it is investment advice, portfolio management, or other services. Account Aggregation and Analysis let you analyze client portfolios at other banks and let your clients see the unique expertise and the edge you offer. At Fincite we empower you to build exactly those kind of digital asset & wealth management solutions that help you stay ahead in a digital world.

If you would like to learn more about WealthTech and FinTech please look at our video courses at FINTECHCircleInstitute.com