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DIGITALENGAGEMENT & COLLABORATIONIN WEALTH AND INVESTMENT MANAGEMENT
THE HYPE, THE REALITYAND THE FUTURE
Copyright © Objectway 2016. All rights reserved.
www.objectway.com
2
TABLE OF CONTENTS
Preface .......................................................................................................................................................3
Executive Summary ..............................................................................................................................4
Focus on one of the Denmark’s leading Financial Services Group ..........................5
Introduction .............................................................................................................................................6
Focus on Lemanik SA ................................................................................................................7
About the Survey ..................................................................................................................................8
Focus on BNP Paribas Fortis Private Banking .................................................................9
General Characteristics of Opinion Leaders ..............................................................................10
Digital Engagement and Collaboration .......................................................................................14
Digital Strategy ...........................................................................................................................14
Online Investment Management ..........................................................................................21
Case Study: CheBanca! ............................................................................................................24
Customer Experience ...............................................................................................................27
Case Study: Targobank ............................................................................................................30
Analytics ........................................................................................................................................32
Case Study: Nedbank ...............................................................................................................34
Social Media & Virtual Communities ..................................................................................36
Conclusion and Takeaways ................................................................................................................38
Final Synopsis .........................................................................................................................................39
About the Authors ................................................................................................................................39
Follow up ..................................................................................................................................................40
Webinar...........................................................................................................................................40
On-Demand Briefing Sessions ...............................................................................................40
Contacts ....................................................................................................................................................40
3
PREFACEEfma and Objectway are delighted to present this
joint publication, based on a recent survey, “Digital
engagement and collaboration in wealth and
investment management: the hype, the reality and
the future”. The report explains and explores the
latest digital engagement and collaboration trends,
in terms of tackling challenges and leveraging
opportunities for the growth, management and
preservation of client wealth.
Two years ago, Objectway and Efma conducted a
joint survey: “Digitisation in practice: transforming
investment services for affluent clients”. This study
interviewed leading banks and wealth managers and
showed how firms were undertaking an integrated
digital strategy by examining five focal areas for
digitisation: customer centricity, channel interaction,
digital mobility, analytics and social media.
The results showed that wealth and investment
management services providers were recognising the
value of digitisation for improving customer centricity
and enhancing customer service. The clear trends
that emerged included an increasing use of analytics
and social media for learning more about clients,
new tools for simplifying access to investment data
and omnichannel integration for improving the
customer experience.
In this year’s study, we focused on observing how
the wealth and investment management sector has
capitalised on digital engagement and collaboration
in relation to our first survey’s findings. Consequently,
we continued to focus on customer experience,
analytics and social media. We also carried out a
more in-depth investigation into digital strategy
and online investment management.
The focus on these last two key themes aims to
improve our understanding of the current digital
engagement challenge.
Furthermore we also explored the future evolution
of the industry’s digital strategy to try to understand
if and how firms are now leveraging digitalisation to
grow their business, improve operational efficiency
and boost productivity.
We hope that you will find this detailed analysis both
enjoyable and informative.
LUIGI MARCIANO - CEO, Objectway
VINCENT BASTID - CEO, Efma
4
Technology and digitalisation are radically transforming the wealth management industry and are considerably challenging its value proposition. Wealth Managers should think of clients in terms of digital awareness and sophistication and should look into their need for personalised investment advice, supported by proactive and collaborative guidance.
In this demanding context, should firms re-engineer their business models around the connected customer and deliver a differentiated digital wealth experience? Could digital engagement and collaboration tools meet evolving client expectations, reduce attrition and enhance efficiency?
The results of our joint survey offer an insight into how digitally-minded investors are approaching and will influence the approach to wealth management in the coming years. As a foretaste, the main findings of the study highlight that:
EXECUTIVE SUMMARY
• Digital Engagement and Collaboration is considered to be a strategic topic, with
board level commitment. Most of the respondents also consider it to be a multi-year
programme, with a multi-year dedicated budget.
The participants in the survey are quite well equipped in terms of digital engagement
and collaboration capabilities. However, the current situation is more about reactive
data provisioning, with a clear evolution towards a proactive approach and from a
unidirectional to a bi-directional attitude.
• Redefining the Client Onboarding Process is a challenge for many financial services
organisations. Building a healthy customer relationship in a compliant and efficient way
is imperative and a greater reliance on a self-service approach could improve efficiency.
5
• Online Investment Management is considered
to be complementary to traditional service
offerings, but is also an offensive strategic
offering for entering new customer segments.
The hybrid advisory model is likely to be the
winning approach for investment servicing.
• Although Customer Experience is the key
element of the new corporate identity, only
a third of respondents affirm to have a
real-time, consistent experience across all
channels. Security is not a limiting factor for
digital engagement and collaboration when
using relevant and appropriate technology.
• Analytics and Social Media are becoming
an integral part of a firm’s digital strategy.
Over the next two years, they will become
important tools for profiling and interacting
with each client more effectively. Companies
will be able to develop the most appropriate
proposal by monitoring client life events,
mainly by capturing static data.
These are among the main themes that this
study will explore to increase our understanding
of the current digital engagement challenge in
an increasingly competitive context.
“Digital engagement and collaboration
between the financial institution and the
client is a fundamental topic because of
the demand generated by increasingly
informed customers. They are looking
for easy ways to connect and to be
educated, aiming to save time and money,
seeking transparency from their financial
institutions and expecting experiences
that fit into their everyday life. There
are also important drivers related to the
organisation’s needs - such as saving costs
and raising competiveness via automation,
reducing errors and delays from manual
processes, gaining control, freeing up
resources for more timely financial
analysis, drastically decreasing the burden
of compliance and using a self-service
approach by reducing administrative tasks
from the professionals and providing an
‘at your leisure’ service to clients.”
“The need for action is acute, especially
in today’s environment, as it has become
crucial to create sticky client relationships
in the digital world. Banks have only a short
period of time to become digitally proficient.
If they fail to take action, they risk losing
their competitive edge. Revenues and profits
will increasingly migrate towards banks
that successfully use digital technologies to
automate processes, create new products,
improve regulatory compliance and transform
the experiences of their customers.”
DIGITAL BEST PRACTICE Digital Innovation as the key to the future
CHALLENGE To create “sticky” client relationships in the digital word
FOCUS ON
ONE OF THE LEADING FINANCIAL SERVICES GROUP
5
DENMARK
6
THE CONNECTED CUSTOMER
To rise to the challenge of engaging the
digitally-minded client, firms need to re-engineer
their business models around the connected
customer. According to many research
studies, the top reasons cited by investors for
switching to another financial advisor are all
communications-related: for instance, advisors
do not return clients’ requests in a timely manner
and are not proactive in providing advice.
Today’s connected clients want access to their
advisor on their own terms, using the channel
with which they are most comfortable.
REGULATORY REQUIREMENTS
Regulatory requirements represent a major
driver for IT spending, particularly in relation
to the application of rules based on the
forthcoming MiFID II regulation. This, along
with the control of the appropriateness of the
investment, implies that every order received via
a recordable electronic communication channel
is considered valid and needs to be recorded.
Therefore, companies should take all of the
digital steps needed to prevent employees or
contractors from having private communications
that the company is unable to record or copy.
THE IMPORTANCE OF CUSTOMER EXPERIENCE
When engaging with a financial institution, a
potential client’s first impression of the wealth
firm will come from their customer experience.
This will form the lynchpin of the corporate
identity of the future. Clients expect leading-
edge technology when dealing with their
financial institution and advisor. A personalised
user experience is considered key to business
growth, and is one of the top elements in the
future evolution of digital engagement and
collaboration.
CLIENT ONBOARDING TRANFORMATION
The use of digital tools to engage and
collaborate with the client is transforming the
onboarding process into a revenue function,
with a strategic impact on a firm’s business.
Identification of the client’s risk level and the
standardisation of processes are key to ensuring
constant compliance. Furthermore, the client
experience can be enhanced if the onboarding
process is fast and of a high level quality.
Finally, the ‘straight through processing’
of onboarding can improve organisational
efficiency and keep customer loyalty high.
Wealth firms are feeling pressurised to implement a digital wealth management strategy and various factors contribute to this. However, the competitive advantage that digitalisation can provide also leads to business growth. This includes delivering concrete benefits for both investors and wealth professionals. To achieve this, financial institutions must manage their customer experience, data analysis and business processes in a digitally integrated way.
What are the major trends and challenges that should be considered for technological investments in digital transformation?
INTRODUCTION
7
HYBRID ADVISORY AND GOAL-BASED INVESTING
Digitally-empowered clients tend to require a
complementary approach to financial advice: a hybrid
approach that combines human interaction with
digital capabilities. Investors can start their investment
experience with a robo advisor, and can then consult a
human advisor for investment decisions through safe
chat, video or co-browsing tools. Goal-based financial
planning increases the effectiveness of the investment
strategy through constant portfolio monitoring and
rebalancing.
This study explores how financial institutions are using
digital technology to overcome these challenges and
add value to their clients in wealth and investment
management services.
STRUCTURE OF THE REPORT
The findings presented in this report are divided into
two categories: general/demographic information about
the survey respondents and a detailed discussion and
analysis of digital engagement and collaboration trends
in the wealth and investment management segment.
Interspersed with the results are case studies and
quotes that highlight the strategies, best practices and
challenges reported by selected survey participants in a
series of drill-down interviews.
WHY WE UNDERTOOK THIS STUDY
Two years ago, Objectway and Efma conducted a joint
study, called “Digitisation in practice: transforming
investment services for affluent clients.” This involved
interviews with leading banks and wealth managers
and explored how firms were undertaking an integrated
digital strategy.
In this year’s edition of the survey, “Digital engagement
and collaboration in wealth and investment
management: the hype, the reality and the future”, we
have focused on observing how the wealth and
investment management sector has capitalised on
digital engagement and collaboration in relation to
our first survey’s findings.
As a result of this study, we can now enrich our view
by adding new aspects, calibrating industry vision,
monitoring its evolution and offering a glimpse of the
years to come.
DIGITAL BEST PRACTICE Digital transformation as a natural transition
CHALLENGE TO OVERCOME Improve the investment experience through algorithms
“The face-to-face approach continues
to be a fundamental interaction for our
private clients; on the other hand, we are
also aware that our customers often travel
and are not always resident in Switzerland
or Luxembourg where Portfolio Managers
are based. In these cases, face-to-face
interaction cannot be easily satisfied
without a digital support. In this, we
see digital transformation as a natural
transition.”
“We continue investing on innovation,
which is mainly focused on algorithms.
Our algorithms support the automated
advice model, where quantitative advanced
analytics are used for the construction of
model portfolios and product picking, at a
lower cost. The algorithms follow the rules
set by the portfolio managers and perform
theirs visions in the most automated
way. The combination of a good quality
engine and the precise inputs given by the
portfolio managers differentiate us from
competitors.”
Marco Silvani Managing Director
Lemanik SA
7
FOCUS ON
SWITZERLAND
8
• Workshop phase: An initial in-house workshop phase involving Objectway and Efma, including a
preliminary desk study, set up to analyse and understand the most important scenarios within the
wealth management market.
• Questionnaire: The workshop findings provided source material with which to prepare the
extended research phase. This involved an online questionnaire, with over 2,000 financial
institutions being contacted.
• Interviews: Some of these respondents were selected for interviews. We chose those that had
adopted particularly interesting approaches and conducted in-depth qualitative interviews with
them, to gain a better understanding of their future plans.
Here are the financial services providers that shared their digitalisation plans and strategies in the
interview phase:
• CheBanca! - Italy
• Nedbank – South Africa
• Targobank – Germany
• Lemanik SA - Switzerland
• BNP Paribas Fortis Private Banking - Belgium
• One of the leading Financial Services Groups - Denmark
The survey consisted of three phases:
The main objective of the joint Efma and Objectway study is to observe and explore the latest digital engagement and collaboration trends, in terms of tackling challenges and leveraging opportunities for the growth, management and preservation of client wealth. The results of the study enable us to identify the best practices for transforming the client experience whilst complying with regulations and safeguarding the operational efficiency of an organisation.
ABOUT THE SURVEY
9
METHODOLOGY
The extended survey was based on a semi-
structured questionnaire containing 22 questions
(a mix of pre-coded and open-ended questions)
and lasting approximately 15 minutes. The
questionnaire was developed by Objectway and
sent by Efma to its member banks via computer-
assisted web interviews, with over 2,000 financial
institutions being contacted.
PARTICIPANT ROLES AND JOB TITLES
Managers from the marketing, business and
development areas were surveyed in their
institution’s head offices. They included executives
in the following roles: Head of Private Banking,
Head of Affluent Banking, Head of Investment
Management, Chief Operating Officer, Chief
Marketing Officer, Innovation Manager, Head of
Direct Channels, Head of Digital Strategy, Head
of Business Development, Head of Customer
Experience.
DIGITAL BEST PRACTICE Human & Digital Interaction
CHALLENGE To retain a competitive edge within a digital world
Jeroen MachielsenSegment Manager Private Banking
BNP Paribas Fortis Private Banking
“We believe that most customers
value human interaction above all
other forms of contact. However,
today the relationship between the
financial institution and its clients must
be digitally facilitated, whilst being
complementary to the face-to-face
approach: the two should go hand-in-
hand. In the private banking segment,
digital can support and enhance the
personal relationship.”
“Today, digital engagement and
collaboration is quickly becoming
the norm: it is a qualifier and a ‘must-
have’ within financial institutions.
Therefore, for banks and other financial
institutions, it is becoming harder to
differentiate themselves through their
digital offering. This means that the
window of opportunity becomes smaller
and smaller and it is more difficult to
maintain the differentiating advantage
in the long term.”
FOCUS ON
BELGIUM
10
This section provides general information about the financial institutions that are opinion leaders and that took part in the study. These details include country location as well demographic information on their investment services, such as geographic focus, assets under management, and number of clients per advisor.
GEOGRAPHICAL RELEVANCE
The sample of opinion leaders was representative of the countries of greatest interest in relation to the
topics examined. It was well distributed and therefore offered a good coverage of the market mix.
The following chart shows the 27 countries where the financial institutions, that took part in the
study, are located.
GENERAL CHARACTERISTICS OF OPINION LEADERS
• AUSTRIA
• BELGIUM
• CANADA
• CZECH REPUBLIC
• DENMARK
• EGYPT
• FINLAND
• FRANCE
• GERMANY
• GHANA
• GREECE
• IRELAND
• ISLE OF MAN
• ITALY
• LUXEMBOURG
• MOROCCO
• NETHERLANDS
• POLAND
• PORTUGAL
• RUSSIA
• SOUTH AFRICA
• SPAIN
• SWEDEN
• SWITZERLAND
• UNITED KINGDOM
• UNITED ARAB EMIRATES
• ZAMBIA
27 COUNTRIESREPRESENTEDIN SURVEY
11
AFFLUENT AND HNW INVESTMENT SERVICES: CLIENT SEGMENTS, AUM AND CLIENTS PER ADVISOR
The following charts focus on the main client segments served by the surveyed financial institutions:
the organisation’s assets under management (AUM) of HNW/affluent clients and the average
number of clients per advisor. We also investigated whether investment services to affluent and
HNW clients are considered to be a core service offering.
WHAT ARE YOUR MAIN CLIENT SEGMENTS?
HIGHLIGHTS
Most of the surveyed financial institutions (60%) are serving both affluent and HNW clients. There are also huge differences in assets under management, as shown in the chart below.
21%HNW CLIENTS
60%BOTH
19%AFFLUENT CLIENTS
WHAT ARE YOUR ORGANISATION’S ASSETS UNDER MANAGEMENT?
HIGHLIGHTS
Financial institutions providing investment services for the affluent and HNW market vary in size from small to very large. Our study provides insights from across this broad AUM range and is truly representative of a complete cross-section of wealth and investment management.
N.B. The opinion leaders consulted include individuals who, for reasons of corporate policy or because they work in more technical areas, preferred not to disclose precise figures for assets.
12%US$10-20BN
12%US$5-10BN
16%US$1-5BN
6%LESS THAN US$1BN
19%MORE THAN US$50BN
9%US$20-50BN
26%DON'T KNOW
FIGURE 2 | ASSETS UNDER MANAGEMENT
FIGURE 1 | CLIENT SEGMENTS
12
ARE INVESTMENT SERVICES TO YOUR CLIENTS A CORE SERVICEOFFERING OF YOUR ORGANISATION?
HIGHLIGHTS
Investment services to affluent and HNW clients are considered a core service offering and in both cases they have existed as an offering for a long time. However, for affluent clients, 14% of the respondents express that the offering has just started, which would certainly explains the constant growth of digitalisation.
71%LONG-TIME EXISTING OFFERING
10%UNDER DEVELOPMENT
AFFLUENT CLIENTS
5%NOT CURRENTLY IN SCOPE
90%LONG-TIME EXISTING OFFERING
5%UNDER DEVELOPMENT
HNW CLIENTS
14%JUST STARTED OFFERING
5%NOT CURRENTLY IN SCOPE
FIGURE 3 | INVESTMENT SERVICES
13
WHAT IS THE AVERAGE NUMBER OF CLIENTS PER ADVISOR IN YOUR ORGANISATION?
HIGHLIGHTS
On average, the institutions surveyed said that each advisor handles around 350 affluent clients, whilst the comparative figure for HNW clients is around 100 clients per advisor.
AFFLUENT CLIENTS
HNW CLIENTS
5%201-300
5%501-1000
5%DON'T KNOW
5%LESS THAN 100
5%MORE THAN 2000
24%201-300
24%101-200
10%1001-2000
24%301-500
5%501-1000
45%101-200
45%LESS THAN 100
FIGURE 4 | NUMBER OF CLIENTS PER ADVISOR
14
Wealth and investment management is all about relationships and service. This means being able to collaborate and share information anytime, anywhere, by overcoming the traditional limits of physical encounters.
Always-on connectivity is ubiquitous. Clients use multiple devices to access the overwhelming amount of information that is at their disposal. They want to find what is valuable to them in the shortest possible time. It is therefore of paramount importance that the advisor and the firm can engage in processes and collaborate with their clients to improve the customer experience and to enable them to access services in the most simple, natural and context-aware way.
DIGITAL STRATEGY
Today’s investors - at least, those that are growing - are different. They use social media to
support them to make financial decisions, they watch financial videos on YouTube and often
prefer to video-chat rather than meet their financial advisor in person. They also expect
leading-edge technology when engaging with their financial institution and advisor.
Are advisors and firms ready to rise to this challenge and deliver a differentiated digital
wealth experience?
DIGITAL ENGAGEMENT AND COLLABORATION
15
WHAT IS YOUR ORGANISATIONAL STRATEGY IN RELATION TODIGITAL ENGAGEMENT AND COLLABORATION?
Digital engagement and collaboration is considered a strategic topic, with board level commitment. Most of the respondents also consider it to be a multi-year programme, with a multi-year dedicated budget. In fact, the statistics demonstrate that 90% of the institutions are working on it.
HIGHLIGHTS
46%A BOARD LEVEL COMMITMENT
WITH A STRATEGIC FOCUS
22%A MULTI-YEAR PROGRAMME
WITH A MULTI-YEAR BUDGET
12%A PROJECT, WITH A
DEDICATED BUDGET
15%AD-HOC INITIATIVES
2%THERE IS NONE
2%DON'T KNOW
FIGURE 5 | DIGITAL STRATEGY
16
WHO ASKS FOR DIGITAL ENGAGEMENT AND COLLABORATION?
In the affluent segment, 47% of the respondents affirm that digital engagement is considered to be the mainstream interaction approach for most customers, enabling them to manage a large number of clients per advisor.
In the HNW segment, a smaller percentage of customers seek digital engagement and collaboration tools, but financial institutions are sometimes improving their digital capabilities to address specific target needs (i.e. millennials).
HIGHLIGHTS
21%MINORITY OF CUSTOMERSACROSS ALL SEGMENTS
47%MAJORITY OF CUSTOMERS
16%MINORITY OF CUSTOMERS IN SPECIFIC SEGMENTS
11%FINANCIAL INSTITUTION IS PUSHING THIS TO THE CUSTOMERS
5%ALL CUSTOMERS
6%DON’T KNOW
11%DIGITAL ENGAGEMENT IS NOTTHE MAINSTREAM INTERACTION APPROACH AT ALL
22%MINORITY OF CUSTOMERS IN SPECIFIC SEGMENTS
33%MINORITY OF CUSTOMERS ACROSS ALL SEGMENTS
MAJORITY OF CUSTOMERS28%
AFFLUENT CLIENTS
HNW CLIENTS
FIGURE 6 | DIGITAL ENGAGEMENT
17
RANK THE CHANNELS THAT YOU CURRENTLY USE FOR INTERACTINGWITH YOUR CLIENTS
HIGHLIGHTS
The respondents’ preferences show that a hybrid and complementary approach is required: a branch-based advisor with a face-to-face approach is needed for the most sensitive issues, whilst remote support with digital collaboration opportunities ensures immediacy, connectivity and ubiquity.
BRANCH-BASED ADVISOR
2° MOBILE ADVISOR
3° INTERNET
4° REMOTE MEETING ADVISOR
5° MOBILE
6° AGENT OR INTERMEDIARY
1°
FIGURE 7 | CHANNEL IMPORTANCE
18
WHAT ARE YOUR MAIN DIGITAL ENGAGEMENT AND COLLABORATION CAPABILITIES? MULTIPLE CHOICE ALLOWED
The participants in the survey are quite well-equipped in terms of digital engagement and collaboration capabilities, and are willing to enhance these further. This suggests that wealth and investment firms will opt for a tailored mix of digital features for engagement and collaboration, rather than for one prevalent tool.
However, the current situation is more about reactive data provisioning, with a clear evolution towards a more proactive approach (online recommendations) over time, and from a unidirectional to bi-directional attitude (co-browsing) over the next two years. Interaction is considered pivotal.
HIGHLIGHTS
49% 26%DOCUMENT INPUT & OUTPUT
42% 28%MARKET INTELLIGENCE
33% 24%ONLINE CALENDAR & CONTACT FEATURES
33% 29%WEBCAST
26% 16%TASK MANAGEMENT
19% 22%ELECTIVE CORPORATE ACTIONS
29% 34%ACTIONABLE SOFT REPORTING
27% 37%CO-BROWSING
35% 45%ONLINE RECOMMENDATIONS
40% 41%VIDEO
44% 44%CHAT
FIGURE 8 | DIGITAL CAPABILITIES
HIGHLIGHTS
A greater personalisation of the user experience, behavioural analysis, access to dedicated tools and a virtual personal assistant are quoted as the top elements in the future evolution of digital engagement and collaboration.
The opportunity to enable a differentiated customer experience, based on the organisation’s business and depending on the type of client being served (such as affluent and HNWI), will be key to feeding business growth. Being sufficiently distinctive to provide new sources of value is the main aspect.
19
WHAT ARE THE MOST IMPORTANT FUTURE ELEMENTS OF DIGITAL ENGAGEMENT AND COLLABORATION?
DEEP PERSONALISATION
2° BEHAVIOURAL ANALYSIS OF YOUR CLIENTS
3° ACCESS TO DEDICATED TOOLSquantitative tools, calculators, personal financial management, back-testing, screeners, projections
4° VIRTUAL PERSONAL ASSISTANT
5° SOCIAL MEDIA INTEGRATION & INTERACTION
6° THEMATIC VIRTUAL COMMUNITIES
7° SHERPA APPROACH learn by watching over the shoulder of a professional
8° COLLABORATIVE APPROACHES share insights, earn recognition
9°ACCESS TO BROAD MARKET INTELLIGENCEnews, fundamentals, corporate events, instrument data, historic data
10° PEER-GROUP ANALYSIS AND COMPARATIVE BENCHMARKING
11° SELF-TRAINING, EDUCATION AND ONLINE LEARNING
1°
FIGURE 9 | LOOKING TO THE FUTURE
20
WHAT TYPES OF INFORMATION AND EDUCATIONAL TOOLS COULD BE RELEVANT FOR YOUR DIGITAL STRATEGY? MULTIPLE CHOICE ALLOWED
HIGHLIGHTS
All information and educational tools are almost equally relevant for building a digital strategy. This is not surprising, as digital investors are more demanding in terms of accurate and constant information about their investments. Moreover, a growing self-service approach fuels the need for them to become more educated on financial matters and to collect information from many different sources, including financial news portals, blogs, investor communities and online automated investing services.
28%ONLINE CERTIFICATION
70%ONLINE EDUCATION AND TUTORIAL
77%PERIODIC MACRO INFORMATION
80%MARKET REPORTS
69%NEWS OF INTEREST
IF A SELF-SERVICE APPROACH IS AN ESSENTIAL ELEMENT OF YOUR FUTURE DIGITAL STRATEGY, FOR WHICH ASPECTS IS IT IMPORTANT? MULTIPLE CHOICE ALLOWED
HIGHLIGHTS
A self-service approach is
considered to be an essential
element in many areas: onboarding
processes; tools and simulators; risk
profiling; regulatory questionnaires;
and standing payments/withdrawals.
The approach depends on the
respondents’ most urgent needs.
Most of all, redefining the client onboarding process is a challenge
for many financial services
organisations.
Building a healthy customer
relationship in a compliant and
efficient way is imperative, and
relying on a self-service approach
could improve efficiency. If self-
service could be directly accessed
by the clients, once the data has
been collected, a clear investment
strategy can be designed for them,
which will eventually lead to an
account set-up process.
25%PEER-GROUP ANALYSIS
67%ONBOARDING PROCESS
59%
TOOLS, SCREENERS, CALCULATORS, PROJECTION TOOLS, SIMULATORS
55%RISK PROFILING AND REGULATORY QUESTIONNAIRES
52%STANDING PAYMENTS/WITHDRAWALS
49%FACT-FINDING
KNOWLEDGE/TRAINING ON INVESTMENTS 44%
38%ORDER CAPTURE
37%EDUCATION
5%
SELF-SERVICE APPROACH IS NOT STRATEGICALLY IMPORTANT AT ALL, MAYBE IN THE FUTURE
8%TAX HARVESTING
FIGURE 10 | INFORMATION AND EDUCATIONAL TOOLS
FIGURE 11 | SELF-SERVICE
21
IS THERE AN ACTIVE MOVE TOWARDS ONLINE INVESTMENT MANAGEMENT?
Online Investment Management does not replace the current capabilities: in fact, 31% of the respondents see it as a complementary offering to traditional service offerings.
For a quarter of them, it represents an offensive strategic offering for entering new customer segments. Only a small number of respondents don’t show any interest in it.
ONLINE INVESTMENT MANAGEMENT
Investors are at the centre of the new digital workplace. A set of technologies and solutions enable
them to interact with services, contents, advisors, investment experts, helpdesk employees or other
fellow investors. A connected client is a new kind of client who needs access to advisors on his
own terms, at a time and through channels with which they are most comfortable, using safe online
investment tools.
HIGHLIGHTS
13%AS A SANDBOX / PLAYGROUND
31%AS A COMPLEMENTARY OFFERING, NEXT TO TRADITIONAL ONES
13%NO ACTIVE INTEREST
10%AS A DEFENSIVE STOP-GAP OFFERING TO AVOID CUSTOMER ATTRITION
9% AS A STAND-ALONE SERVICE
3%DON’T KNOW
21%AS AN OFFENSIVE STRATEGIC OFFERING TO ENTER NEW CUSTOMER SEGMENTS
FIGURE 12 | INVESTMENT MANAGEMENT
22
IS ONLINE INVESTMENT MANAGEMENT FOCUSED ON A SPECIFIC PART OF THE MARKET?MULTIPLE CHOICE ALLOWED
HIGHLIGHTS
Online investment management isn’t seen by most respondents as being specifically for a certain segment of customers (i.e. age, size) but potentially appeals across the whole spectrum of clients.
ACROSS THE FULLWEALTH SCALE39% 50%
ONLY VALID FOR SOMEGENERATIONAL SEGMENTS34% 33%
14% 28%ONLY VALID FOR CERTAIN
PORTFOLIO SIZES
NO CLEAR OPINION14% 11%
FIGURE 13 | MARKET SEGMENTS
23
WHAT TYPE OF ONLINE INVESTMENT AND WEALTH MANAGEMENTTOOLS ARE YOU OFFERING TO YOUR CLIENTS?MULTIPLE CHOICE ALLOWED
Many firms are thinking about how to position themselves in terms of online investment management services, but not many are yet providing tools and services for this purpose.
The chart underlines the belief that in the next two years, an evolution from online investment tools to online investment servicing will take place, with a strong surge in robo and hybrid advisory as online investment solutions for the next future.
HIGHLIGHTS
HYBRID ADVISOR8% 45%
ROBO ADVISOR8% 52%
FINANCIAL PLANNING32% 39%
INVESTMENT PROPOSAL49% 42%
PTF MGMT & ALERTING TOOLS44% 39%
GOAL ANALYSIS27% 35%
RETIREMENT PLANNING TOOLS37% 32%
FAMILY BUDGET37% 32%
PRODUCT SCREENERS32% 28%
PROTECTION ANALYSIS21% 25%
FISCAL TOOLS14% 23%
FIGURE 14 | ONLINE TOOLS
24
CHEBANCA! DIGITAL INNOVATION IN ONLINE INVESTMENTS
The established Milanese investment bank, CheBanca!, is offering customers a new concept in banking by providing products that are simple, safe and low-cost, and tailored to meet the needs of modern consumers.
To achieve this, CheBanca! has deployed a multi-year programme with a multi-year budget designed to make wealth management much more accessible and more client-oriented for the mass affluent segment. It will also facilitate money transfer from savings to investments for its existing customers and will attract new ones looking for an auto-investment experience at an affordable price.
Digital engagement and collaboration is one of the main interaction approaches requested by most CheBanca! customers. The digitally affluent and next-generation customers value this approach to satisfying their payment and investment needs. “We have identified the hybrid advisory model as the best fit for the demand for consumer advice. It is also the most competitive one, as it combines best-of-breed digital technologies and user experience with human interaction” says Alessandra Grendele, Director at CheBanca!.
CheBanca!’s goal is to offer its customers a native multichannel model which provides them with a few simple product offerings, a product offer expansion, and an innovative and distinctive advisory service.
“To do so, we are focusing our efforts on developing a totally digital and paperless platform for our advisory channel, with customer behavioural analysis, a virtual personal assistant, self-training, education and online learning, collaborative approaches that include sharing insights and earning recognition etc. and last but not least, a peer-group analysis and comparative benchmarking.”
BUILDING A NEW ADVISORY MODEL
The bank also aims to encourage existing traditional and conservative customers to move their assets from low-yielding cash accounts and term investments to higher-yielding funds, equities and fixed-income investments. It is providing the advisor network with a platform to make high-quality and tailor-made advisory solutions available.
CASE STUDY
25
KEY TAKEAWAYS
• CheBanca! has conquered the
market thanks to a simple, intuitive,
and transparent product offerings,
and an innovative & distinctive
advisory service
• The bank has identified the hybrid
advisory model as the best and
most competitive fit for the demand
for consumer advice
“We would also like to disintermediate some steps of the onboarding, goal setting and financial planning processes, by giving our customers the freedom to choose if and to what extent they want to operate by themselves or to be assisted by any other channel: branches, customer service, or advisors” explains Grendele.
CheBanca! continues to invest in innovation to meet its customers’ demands. The bank offers a multichannel distribution model that is geared towards maximum efficiency – website, customer service and branches – and relies on a customer-centric service with a distinctive offering: transparent, standardised and price-efficient products.
“This gives us a distinctive business approach that satisfies our clients’ needs, such as: savings, high standards of service and consummate professionalism. We can meet these demands by enhancing the banking business model - from IT systems to staff training and distribution - and by leveraging the strategic opportunity offered by the rapid changes in the regulatory environment and the traditional customer-bank relationship” points out Grendele.
To retain its competitive edge, CheBanca! is also deploying an offensive strategic offer to enter new segments as well as providing excellent capabilities, innovative technologies and competitive products and services.
DISRUPTIVE HYBRID ADVISORY PLATFORM
“We are proud of having believed in the value of selling investments online” affirms Grendele.
In January 2014, the bank started selling mutual funds through an open-architecture model, which later became an insurance product. Today, it offers a disruptive, automated hybrid advisory platform, combining human interaction with digital capabilities.
Clients can use a robo advisor and then consult a human advisor for more complex investment decisions. This will provide both the advisors and the customers with a unique experience of goal-based analysis and investment planning.
In conclusion, with Yellow Advice, CheBanca! wants all investors to have access to an advisory service which is currently reserved for private banks. This is unique, because it is simple, personalised, monitored, multichannel and threshold-affordable. In fact, the minimum threshold to access the service, along with the lower costs, make it a very democratic product that is available to a range of customers that have previously been neglected.
“We hope to bridge this gap by making the investment world really affordable for everyone” concludes Grendele.
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WHAT DO YOU THINK WILL BE THE LONG-TERM SWEET SPOT OF ONLINEINVESTMENT MANAGEMENT?
15%NO CLEAR OPINION
3%OTHER
10%AUTOMATED ROBO MODEL
1%NOT REALLY LONG-TERM
VIABLE
71%HYBRID ADVISORY MODEL
The use of these online investment tools and service offerings will change wealth managers’ business models. According to 71% of the respondents, the hybrid advisory model will represent the winning approach for investment servicing. There is no ‘prototype client’ that requests a totally automated or face-to-face contact: some clients prefer to be approached online whilst others prefer a personal, face-to-face engagement.
Between these two extremes, financial institutions need to be able to support a wide variety of approaches. This need could be satisfied by a hybrid approach that complements human interaction with some digital capabilities. Investors can start online in a self-service model and then request help from an advisor, typically for more complex or strategic investment decisions, via the digital channel they prefer - asynchronously or in real time via safe chat, video, co-browsing tools etc.
HIGHLIGHTS
FIGURE 15 | LONG-TERM SWEET SPOT
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CUSTOMER EXPERIENCE
Customer experience will become the key element of the corporate identity of the future. As everyone
pays attention to how branches are organised and how to approach clients in the physical branch most
effectively, the same level of attention should be given to how clients are approached in the digital
branch. The customer experience is a vital aspect of corporate identity and is a pivotal element in
attracting, retaining and inspiring customers.
Personalisation and the development of a specifically tailored service are considered key elements
for enabling future business growth, and are two of the main aspects of the future evolution of digital
engagement and collaboration.
IF CUSTOMER EXPERIENCE IS RATED AS STRATEGICALLY IMPORTANT WITHINYOUR ORGANISATION, HOW DO YOU MONITOR IT?
HIGHLIGHTS
Most of the respondents claim to periodically monitor customer experience in several ways: net promotor score tracking (NPS), regular customer surveys, a customer experience focus team and competitive benchmarking. Customer experience is the new competitive battlefield and its monitoring is considered fundamental.
40%NET PROMOTOR SCORE TRACKING (NPS)
30%REGULAR CUSTOMER SURVEYS
12%CUSTOMER EXPERIENCE FOCUS-TEAM
10%COMPETITIVE BENCHMARKING
4%USABILITY LABS
3%AGILE USER EXPERIENCE POLISHING
1%OTHERS
FIGURE 16 | MONITORING CUSTOMER EXPERIENCE
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ARE CHANGES IN CUSTOMER LOYALTY EXPERIENCED IN A MAINLY DIGITAL RELATIONSHIP VS. A MAINLY FACE-TO-FACE RELATIONSHIP?
HIGHLIGHTS
For more than half of the respondents, the digital relationship is an issue when it comes to customer loyalty. How does a financial institution create a ‘sticky’ relationship with a predominantly digital customer?
The top reasons cited by investors for switching to another financial advisor are all communications-related: e.g. advisors do not return clients’ requests in a timely manner and are not proactive in providing advice.
Additionally, when the digital process is not automated and is inefficient, clients could feel that working with the firm is a tedious process and might decide to stop doing business with that financial institution. Making digital engagement an enjoyable experience is therefore an essential objective of the customer experience mantra.
33%DIGITAL RELATIONSHIP IS LESS LOYAL
NO CLEAR OPINION30%
19%IT COULD BE AN ISSUE
3%FACE-TO-FACE RELATIONSHIP IS LESS LOYAL
15%NO (OR NON IMPORTANT) DIFFERENCE
FIGURE 17 | CUSTOMER LOYALTY
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IS YOUR DIGITAL INTERACTION REAL-TIME AND CONSISTENT ACROSS ALL YOUR CHANNELS?
The information provided by omnichannel and omni-device solutions needs to be consistent and real-time across all channels. Two years ago, 48% of the respondents said that customer experience was not consistent and was not real-time: this figure has now decreased to 36%.
Although customer experience is key to the new corporate identity, only 31% of respondents claim to have a real-time and consistent experience across all channels. There is therefore still a lot of efforts required to create a consistent omnichannel customer experience.
HIGHLIGHTS
TWO YEARS AGO
NOT REAL-TIME & NOT CONSISTENT48% 36%
REAL-TIME & CONSISTENT15% 31%
NOT REAL-TIME BUT CONSISTENT18% 22%
19% 11%DON’T KNOW
NOW
FIGURE 18 | CUSTOMER EXPERIENCE CONSISTENCY
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TARGOBANK IMPROVES THE CUSTOMER EXPERIENCE FOR THE DIGITAL CLIENT
In today’s world, online banking has almost become a commodity. However, 15 years ago, when the Euro was making its first steps across Europe, thinking about the creation of an online banking service was quite revolutionary. TARGOBANK, the German retail banking arm of Crédit Mutuel, was an early mover at that time.
The bank has understood the importance of having an online presence since the very beginning of the wave of online channel integration into the banking ecosystem. This is why, as a ‘true omnichannel bank’, TARGOBANK now offers Internet, mobile, telephone and branch banking. With over 360 locations across Germany, it provides personal banking to private clients.
CUSTOMER EXPERIENCE CONSISTENCY
Over the last three to five years, the growing demand for self-directed advisory services has led to a new challenge for TARGOBANK: providing its digitally-minded clients with a hybrid journey, where they can start the advisory process on mobile and then complete the mandate at the branch. They started delivering a robo advisory functionality - an online investment planner that is fully consistent with the branch data - to give clients a quick view of an investment plan (including ATR, asset allocation, quick recommendations etc.) in a couple of steps.
CASE STUDY
31
KEY TAKEAWAYS
• TARGOBANK’s objective is to
improve the consistency and quality
of customer experience across all
channels and to optimise the costs
of traditional face-to-face advice
• The delivery of a superb client
experience to a very clearly focused
segment is a key aspect of turning a
project into a success
• Once a customer starts online,
it’s important that the first digital
interaction stays consistent across
all the channels and services
offered by the bank
In undertaking this effort, TARGOBANK’s objective was clear: to improve the consistency and quality of the customer experience across all channels, and to optimise the costs of traditional face-to-face advice. Equally clear was the target to serve customers with a minimum of €50,000 investible assets. “This hybrid segment now represents 25-30% of our customer base” says Juergen Lieberknecht, Member of the Board and Head of Marketing, Product and Sales. “Delivering a superb client experience to a very clearly focused segment was a key aspect of turning the project into a success.”
In parallel, TARGOBANK is in the process of delivering 30 more mobile banking services that are already available on its Internet banking channel. “Once a customer starts online, it’s important that the first digital interaction stays consistent across all of the channels and services offered by the bank.”
Furthermore, TARGOBANK plans to increase the automation of its banking and wealth management services in areas such as KYC (know your customer) policy, reducing manual intervention, and making the robo advisor more sophisticated, with additional functions such as automatic rebalancing.
How TARGOBANK dealt with legacy constraints is exemplary. Integration with legacy systems is often an obstacle to digitisation. Consequently, in TARGOBANK, “All of the digitisation hangs off our core banking system, implemented with the acquisition by Crédit Mutuel in 2008. That was pivotal for the success of this project” points out Lieberknecht.
Is there any challenge that this firm still has to face? One, of course, is keeping up with regulation. Because this effort could be very costly, in the coming years dealing with increasing compliance issues will be crucial.
This includes the MiFID II compliance of digital communications: for example, tracing and archiving any advisory conversations using features such as virtual meetings, video, chat, co-browsing, is a highly relevant element of TARGOBANK’s agenda.
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IS SECURITY SEEN AS AN OBSTACLE TO DIGITAL ENGAGEMENT AND COLLABORATION IN YOUR ORGANISATION?
ANALYTICS
Analytics offers a better way to listen to and understand client needs. Relevant information is
needed to grasp, profile and monitor customers’ behaviour. Combining information about client’s
lifetime events with the financial institution’s customer database offers a clear advantage for
providing differentiated and personalised services and experiences.
Security is not a limiting factor for digital engagement and collaboration when using relevant and appropriate technology. It is a qualifier that is perceived to be under control.
HIGHLIGHTS
FIGURE 19 | SECURITY
HOW DO YOU USE ANALYTICS TOOLS WITHIN YOUR INVESTMENT SERVICES?
FIGURE 20 A | ANALYTICS TOOLS
TWO YEARS AGO
50%USE ANALYTICS TO CAPTURE STATIC DATA
USE THEM TO CAPTURE BEHAVIOURAL DATA25%
11%DON’T KNOW
6%ACTIVELY USE THEM TO TAILOR SERVICE TO CLIENT BEHAVIOUR
8%DON’T USE ANALYTICS TOOLS
56%IT IS A CONCERN BUT WE ARE EQUIPPED WITH ROBUST TECHNOLOGY
SECURITY LIMITS WHAT WE CAN DO IN THE DIGITAL AREA 26%
8%NO CLEAR OPINION
4%SECURITY INHIBITS OUR DIGITAL INITIATIVES
6%NO IMPACT, NO CONCERN
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In previous years, financial institutions have used analytics mainly to capture static data. Today and in the near future, it will be used to extract relevant life events of the client. A financial institution stores an incredible amount of valuable data about its clients, especially when they start interacting more and more digitally.
This vast amount of customer behaviour information is typically untapped and hardly used. However, it contains relevant data about clients that could support a bank to approach them more effectively, according to their own specific ‘landing strip’.
HIGHLIGHTS
HOW DO YOU USE ANALYTICS TOOLS WITHIN YOUR INVESTMENT SERVICES? MULTIPLE CHOICE ALLOWED
TO BETTER UNDERSTANDTHE CLIENT69% 28%
TO EXTRACT LIFE EVENTSOF THE CLIENT35% 44%
34% 34%TO TRAK DISCREPANCIESOUTLIERS AND PATTERN CHANGES
38% 34%FOR PEER-GROUP COMPARISON
38% 31%FOR SPENDING PATTERN ANALYSIS
IT’S NOT USED TO IMPROVESERVICE OFFERING11% 4%
IN TWOYEARSNOW
FIGURE 20 B | ANALYTICS TOOLS
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NEDBANK’S DATA INTELLIGENCE FOR PERSONALISED INTERACTIONS WITH CUSTOMERS
Nedbank is Africa’s most admired bank by all stakeholders: it is ambitious and strongly supported, as it strives to achieve digital transformation.
With more than €16 billion of assets under management and 7.7 million clients, it is one of the top five banks on the continent. It provides insurance, asset management and wealth management solutions, as well as a wide range of wholesale and retail banking services. The bank operates in 39 countries across Africa, with a major presence in six countries in the Southern African Development Community (SADC) and East Africa1.
In this region, it aims to put itself “ahead of the competition”, affirms Simon Marland, Executive Head of Digital and Business Intelligence, Retail Client Engagement.
DEEP CUSTOMISATION THROUGH DATA ANALYTICS
To achieve this goal, Nedbank is implementing its new ‘single client portal’ to enable all clients to interact online with transactional banking and the wealth management aspects of their full banking offering. The digitisation trend, the cost of face-to-face meetings, and customers wanting to help themselves drove the bank towards providing clients with a tailored digital interaction.
However, since there had not been a huge uptake of online capabilities in the past, due to tools that were too feature-rich and difficult to use, Nedbank embarked on this project with ease-of-use as its focus. The bank therefore adopted a three-step, scalable approach: configuration, clustering, and personalisation.
1 Nedbank Group at 30 June 2016
CASE STUDY
35
KEY TAKEAWAYS
• Using Nedbank’s ‘single client
portal’, clients can interact online
with all aspects of banking
including wealth management
as a one stop shop
• Data and business intelligence are
strategic for enabling the complete
digitisation of the bank
• Through the creation of ‘digital
personas’, Nedbank can segment its
clients and tailor its offerings to suit
their preferences
In the first phase, Nedbank created ‘digital personas’, which define the default client configuration of the banking app and portal. These provide a default view of what a client sees and can do on the app or portal. As an example, HNW investors would have a target-specific configuration showing their brokerage account and portfolios, whereas a pure retail client would only have a view of their bank account.
Through these personas, the bank can categorise which segments of clients are more open to using digitally-enabled financial services, and can then tailor their offering to their clients’ preferences. Nedbank also took into consideration their customers’ negative feedback about complexity of use and decided to cluster the available features into functional grouped themed releases and send them out incrementally to clients, accompanied by tutorial mediums on how use them.
The ultimate stage is the delivery of a personalised ‘single client portal’, enriched by one-to-one marketing actions, to provide an experience that is unique to each client. The key objective of the portal is to increase each customer’s ‘stickiness’ to the Nedbank brand through daily and easy use. “We aim to offer a ‘golden nugget’ to our clients every day” says Marland. This could be as simple as ‘your data needs updating’ or an offer based on the client’s behaviour. “Personalisation will be the key differentiator for Nedbank when compared with our competitors” he adds.
When the new single client portal has been released, “Nedbank will also rely on better customer interaction data” says Marland. The bank’s Data Warehouse, in fact, collects a huge amount of information about its customers’ financial activities. Using its Interaction Management Engine to provide a database of every client’s consolidated interactions and touchpoints, the bank can look at the client’s activity and behaviour on the portal and can instantly push a product offer as a pop-up through its ‘Offer Engine’.
“Data and business intelligence are strategic for enabling the complete digitisation of the bank” concludes Marland. “Our empowerment plan envisages the digitisation of a significant percentage of our business by 2020.”
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SOCIAL MEDIA & VIRTUAL COMMUNITIES
Social media in wealth and investment management is a controversial topic. However, the survey
results show that it is becoming more and more important to understand clients, interact with
them and offer them the solutions they expect. Moreover, for many respondents, a thematic virtual
community represents an opportunity for favourably positioning the organisation within relevant
public communities.
IS THE USE OF SOCIAL MEDIA AN INTEGRAL PART OF YOUR DIGITAL STRATEGY?
So far, social media is being used by nearly half of the institutions and often is not integrated within the investment value chain. Over time, it’s becoming a more integral part of a firm’s digital strategy and, over the next two years, it is perceived as becoming an important tool for profiling and then interacting with each client according to his/her profile.
Social media provides the financial institution with a potential wealth of public information about its clients. Harvesting and analysing the publicly available knowledge about clients, or about a certain segment of clients, will become a more mainstream activity over the coming years.
HIGHLIGHTS
NOW IN TWOYEARS
NO, IT ISN’T19% 10%
AS A PUBLIC RELATIONSHIP TOOL48% 10%
TO INTERACT WITH EACH CLIENTONE-TO-ONE11% 22%
TO INTERACT WITH OUR CLIENTCOMMUNITY AS A WHOLE17% 18%
DON’T KNOW2% 8%
3% 31%TO FRAME AND UNDERSTAND EACH CLIENT BETTER
FIGURE 21 | SOCIAL MEDIA
37
ARE THEMATIC VIRTUAL COMMUNITIES BECOMING AN OPPORTUNITY OR A THREAT FOR YOUR INVESTMENT SERVICES?
For over half of the respondents a thematic virtual community is considered to be an opportunity. It could help to position the organisation favourably in relevant public spaces and 9% of the respondents argue that they have already implemented this in their own customer community.
Enabling clients to interact with other members of their peer group can be seen as a differentiator for an organisation. The client community can become part of the differentiated and enjoyable customer experience that sets an institution apart.
HIGHLIGHTS
9%THEY ARE A THREAT BECAUSE THEYREDUCE OUR DIRECT IMPACT/INFLUENCEON A CUSTOMER
9%THEY ARE AN OPPORTUNITY ANDTHEY ARE IMPLEMENTED IN OUR OWNCUSTOMER COMMUNITY
16%NO IMPACT AT ALL
24%NO CLEAR OPINION
42%THEY ARE AN OPPORTUNITYTO POSITION THE ORGANISATIONFAVORABLY IN RELEVANTPUBLIC COMMUNITIES
FIGURE 22 | VIRTUAL COMMUNITIES
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Our survey results and case studies demonstrate that digital engagement and collaboration is considered to be a strategic topic, with board level commitment. They also show that digital capabilities will become increasingly interaction-related. Furthermore, the opportunity to provide a differentiated customer experience, based on the organisation’s business and depending on the type of client it is serving, will be key for supporting business growth. Here are the main findings and key takeaways of our study:
DIGITAL STRATEGY
In terms of digital engagement and collaboration capabilities, the current situation is more about
reactive data provisioning, with a clear evolution towards a proactive approach and from a
unidirectional to a bi-directional attitude.
A greater personalisation of the user experience, behavioural analysis, access to dedicated tools, and
a virtual personal assistant will be the leading elements in the future evolution of digital engagement
and collaboration. Moreover, redefining the client onboarding process is a challenge for many financial
services organisations.
CUSTOMER EXPERIENCE
Customer experience will be the key element of the corporate identity of the future. It will be strategically
and periodically monitored through net promotor score tracking, regular customer surveys, customer
experience focus teams and competitive benchmarking. Nevertheless, only a third of the respondents claim
to have a real-time and consistent experience across all channels. If the digital relationship is not automated
and efficient, this could be an issue that affects customer loyalty. Security is not a limiting factor for digital
engagement and collaboration when using relevant and appropriate technology.
ONLINE INVESTMENT MANAGEMENT
Along with the pivotal role of interaction, there will be a greater adoption of hybrid and robo advisory
tools than other online investment management solutions over the next two years. The use of these tools
will change the business models of wealth managers: investors could use a robo advisor, and then consult a
human advisor for more complex investment decisions, using the digital channel of their choice. In the long
term, the hybrid advisory model seems to represent the winning approach to investment servicing.
SOCIAL MEDIA & ANALYTICS
The use of Social Media is becoming an integral part of a firm’s digital strategy. Over the next two years,
it will become an important tool for profiling and interacting with each client, by monitoring client life
events in order to develop the most appropriate proposal.
In the same way, analytics will be used to gain a better understanding of the client, to identify relevant
life events and also to create peer-group comparisons.
CONCLUSION AND KEY TAKEAWAYS
39
ABOUT THE AUTHORS
FINAL SYNOPSIS
Digital engagement and collaboration enables a financial institution to ‘mass customise’ their investment service. Mass customisation is about providing a service for an audience of one. It combines a very tailored, personalised service with factory-style, operationally-efficient processing and operations. It is the ‘sweet spot’ for most institutions and the adagio of the ultimate market leaders.
Digital engagement and collaboration, and all of the facets described above, are ingredients for
gradually establishing a mass-customised business model over the coming years. Leaders in the
industry have developed programmes for making quantum steps in this area. This approach can
further distinguish market leaders from market laggers.
To conclude, the results of this survey from Objectway and Efma show that baseline capabilities for
digital engagement and collaboration are rapidly becoming important qualifiers in our marketplace.
Objectway is a leading provider of investment
management and digital software solutions
to the worldwide financial services industry,
with more than 60 million in revenue and
clients in 15 countries. Its awarding-winning
software platform is the trusted choice of
leading wealth and investment firms across
the globe, from EMEA to Canada to Central
America. From offices in Italy, Belgium, the
UK and South Africa, Objectway’s roughly
500 employees support more than 100,000
investment professionals, who manage more
than one trillion euros in wealth. To learn more
visit www.objectway.com
A global non-profit organisation, established
in 1971 by banks and insurance companies,
Efma facilitates networking between decision-
makers. It provides quality insights to help
banks and insurance companies make the
right decisions to foster innovation and drive
their transformation. Over 3,300 brands in 130
countries are Efma members. Headquarters in
Paris. Offices in London, Brussels, Barcelona,
Stockholm, Bratislava, Dubai, Mumbai and
Singapore. To learn more visit www.efma.com
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FOLLOW-UP
WEBINAR
Objectway and Efma will present the findings of this joint study in a webinar that will include a
discussion with a panel of opinion leaders from the Efma members that participated in the study.
The webinar will be recorded for the benefit of Efma members.
ON-DEMAND BRIEFING SESSIONS
If you would like to learn more about the topics discussed in this report, Objectway would be happy
to hold a briefing session at your convenience. We can provide consultations and can help you to
prepare for the opportunities taking place in the digital technology arena.
To learn more, please contact one of our professionals listed in the ‘Contacts’ section below.
CONTACTS
facebook.com/objectway
twitter.com/objectway_fs
linkedin.com/company/objectway-spa
youtube.com/objectway
PETER SCHRAMMEChief Business Development Officer
+32 478 385 028
ALBERTO CUCCUChief Client Solution Officer
+39 335 757 6089
BARBARA GENTILEMarketing Manager
+39 366 672 2043
FOLLOW OBJECTWAY
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DIGITALENGAGEMENT & COLLABORATIONIN WEALTH AND INVESTMENT MANAGEMENT
THE HYPE, THE REALITYAND THE FUTURE
Copyright © Objectway 2016. All rights reserved.
www.objectway.com