Webinar: Influencing High Net Worth Individuals on Social Media

 Steven Miyao  CEO, Kasina

Jennifer Openshaw Author, The Socially Savvy Advisor

 Executive Director, FWA

 Bill Sullivan Head of Financial Services & Market

Intelligence, Capgemini

Monday, February 9th 2015 Dial-in: 866-469-3239 8am PT | 11am ET Access Code: 922 391 067 Duration: 1 hour Password: areyouin

Twitter: @LinkedInMktg

HNWI Wealth Growth & Digital Demand

32.77

38.96 42.73 42.00

46.22 52.62

6.9% Annualized

Growth

HNWI Investable Wealth Forecast by Region

Wealth expected to pass $64 Trillion by 2016

CAGR 2013–2016F

Europe

North America

Asia-Pacific

Latin America

Middle East

Africa

Global

6.4%

9.8%

7.1%

2.3%

6.0%

6.6%

6.9%

Total 64.3

Global HNWI wealth up 13.8%

Source: Capgemini Financial Services Analysis, 2014 www.WorldWealthReport.com

There Have Been Clusters of HNWI population and wealth growth

HNWI Population vs. HNWI Wealth Growth Across Key Markets, 2008–2013

Global

Average (9.9%

)

Global Average (9.9%)

= US$1Trillion

Sample bubble

Hong Kong 28.2% Wealth 27.3% Pop.

Average-growth

Below-average growth

Above-average growth

Note: Size of the bubble represents HNWI wealth in 2013; Hong Kong has not been placed to scale on the graph as it is an outlier Source: Capgemini Financial Services Analysis, 2014

www.WorldWealthReport.com

Strong demand for digital in wealth relationship 57% of HNWIs Consider Entire or Most of Current Wealth Management

Relationship to be Digital... Increasing to 64% in Five Years

Desire for digital high across all age and wealth bands

Future Current

Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey, 2014 www.WorldWealthReport.com

Under 40s have high digital demands for all firm interactions

Under 40

40+

HNWI Channel Importance for Different Wealth Management Capability Areas

59%$58%$ 58%$

45%$

58%$56%$

46%$

26%$

36%$

20%$

41%$

24%$

0%$

20%$

40%$

60%$

80%$

Respon

dents$(%)$

In-Person/ Phone

Internet E-mail Mobile Social Media

Video In-Person/ Phone


Video

In-Person/ Phone


Video

Inform Engage

Transact Biggest gap lies in the newer digital

channels of mobile, social media, and

video.

www.WorldWealthReport.com

Note: Weighted average of respondents indicating importance level to difference capabilities per channel Source: Capgemini Analysis, 2014; Global HNW Insights Survey 2014, Capgemini, RBC Wealth Management, Scorpio Partnership

HNWI Use of Social Media

Social media usage The vast majority of HNW individuals make use of social media, with LinkedIn one of the most frequently used networks.

Join The Dots, BASE SIZE: 1095 HNW individuals

Do you use the following social media sites/services? All respondents

59% 47% 47% 24% 24%

81% of HNW individuals

make use of social media

70% of $41 Trillion in US Intergenerational Wealth will

transfer over to Women in the next 40 years

Source: Forbes; Boston College, Center on Wealth & Philanthropy

Currently Women in the US control over 50% of wealth, this is projected to shift to 2/3 by 2020 Lack of women advisors > Companies increasing recruitment efforts Source: Forbes

Our industry is beginning to witness the greatest wealth transfer in history of the US of $1 trillion annually over the next 50 years to 77 Million Millennials, a generation almost equal in number to that of Baby Boomers

89% of HNW investors use a Financial Advisors

Only 2% of children will keep their inheritance with their parents’ financial advisors

Emerging affluent investors are more likely to connect with their advisors on social media compared to others

Female investors are more likely than men to connect with their advisors on social media – 11.5% more active

Top 5 social media features investors prefer when choosing advisors

The most important interactions that matter to investors on social media

59% of US financial advisors say that online capabilities influence their brand perception of a firm

Retail Banking and Payments

10% of Banking Customers Noted They Are Already Interacting with Their Banks via Social Media at Least Once a Week

Customers Interacting with Different Banking Channels at Least Once per Week (%), 2013-2014

Source: 2014 Retail Banking Voice of the Customer Survey, Capgemini

www.WorldRetailBankingReport.com

Response times have improved through social

Retail Banks are Already Providing a Full Range of Customer Facing Functionalities via Social Media


We Identified a Significant Gap in Where Customers’ Place Importance versus What Banks Plan on Offering in the Future

Importance Ascribed by Customers and Banks to Social Media Banking Functionalities, 2013

Source: 2014 Retail Banking Voice of the Customer Survey, Capgemini; 2014 Retail Banking Executive Interview Survey, Capgemini


The pace of Social Banking Functionality Roll Out Is Increasing and Firms Need to Move Quickly to Avoid Falling

Too Far Behind

Bank of America Launches Customer servicing on Twitter

ASB Bank Launches

Virtual Banking on Facebook

Deutsche Bank Launches Customer Servicing on Twitter

and Facebook

RBC Launches Money

Transfer on Facebook

BBVA Launches A/C Opening and Money Transfer on

Facebook

ICICI Launches Facebook

Payments via Pockets App

Caixa Bank Launches A/C

Information and Payments on Facebook

ING Direct Launches Crowdfunding Platform on Facebook

Denizbank Launches Facebook

Payments App

Feb, ‘09

Sep, ‘10

2009 2010 2011 2012

Jan, ‘12

Nov, ‘12

2013

Mar, ‘13

Mar, ‘13 Dec, ‘13

Sep, ‘13

2014

Mar, ‘14

May, ‘14

Examples of Social Banking Functionality Roll-Outs, 2009 - 2014

Commonwealth Bank of Australia Launches Facebook Payments

via Kaching App


Winning Practices

Asset Managers Use Social Media as a Bullhorn  Mature firms engage and interact to build interest and advocacy

 Firm’s Primary Objectives  for Social Media  

Connect and Engage

This Putnam wholesaler uses LinkedIn and Twitter to communicate his value alongside their brand

Connect and Engage

This same wholesaler also leverages Twitter and LinkedIn to build on his presence and create dialogue with advisors and industry professionals

Forming connections with influencers is valuable

Cultivate Reach, Interest, and Credibility

T. Rowe Price retweets posts from its influencers including selected financial planners, industry association executives and members of the media

Firms Monitoring and Mining Social Activity

Identify Client Needs, Competitive Trends and Sentiment Analysis

Integrate social channels and websites

BlackRock’s active YouTube channel garners comments and thousands of views with cleverly produced videos

Easy to Connect and Share

Oppenheimer integrates Jerry Webman’s Twitter handle and blog within his bio. They also cross mention handles within tweets

Opportunities to Engage  Mature firms engage and interact to build interest and advocacy   Vanguard’s active Google

+ presence makes use of online exchanges and hangouts featuring Vanguard financial planners on various topics (left) as well as senior executives (right)

Social Care

Schwab Managing service issues (technology, products) Proactive communications: “Site down, hang tight” Brand – Customers assist customers

Improving Success of Sales Team

Leveraging Original Content and “Voices”

Raymond James •  70% is pre-

approved •  30% original

Finding: Original content garners 4x the engagement

Promoting New Investment Opportunities

BlackRock A Tweet can be an invitation to learn more. Link to disclosure in Twitter allows for social sharing

Reaching Target Audience: Busy Women

Using multiple social channels for: Engagement Demonstrate personality Service Education

Thank You!