iress.com
Preparing for change
Chris PittHead of Market Analysis26th May 2016
Technology disruptors
?So, what
should I do?Consumer
segmentation
Agenda
There is significant disruption within the Wealth Management industry. New ways of delivering advice continue to emerge, and competitive positions will erode while others will strengthen, creating winners and losers across the industry.
Wealth Management firms must strategically evolve to adapt to these critical shifting dynamics.
Shifting dynamics
Source: Deloitte
Impact on other industries
* Source: IMRG Capgemini eRetail Sales Index
24% of retail sales now take place online*
£114bn UK ecommerce sales
Disruptors?
Digital (robo) ad-
vice
Data aggregation
Digital passports
But…
Let’s not forget existing capabilities
• RPQ
• Lifetime cash-flow analysis
• Product sourcing
• Suitability reports
• New business & trading
• And more…
• Video conferencing (Skype)
• Client portal
• Secure document exchange
• Consumer driven calculators
• Online fact-find
• And more…
Streamlining the process More efficient delivery
Data aggregation
What FinTech innovation wouldpeople most like to see in the future?IRESS Data, Disruption and the Digital Consumer report (iress.com).
The ability to view their financial world - bank accounts, mortgages, investments, insurance - in one place.
23%
Pensions dashboard
47% not confident how much their pension is worth.Source: Which?
“The concept is so compelling that it is already an established part of the pensions industry in other countries. Savers in Denmark, Sweden and the Netherlands all have access to a dashboard of some sort.” Darren Philp, The Peoples’ Pension
Digital passports & data vaults
A third of people would save or invest more if it was easier to transfer money and open saving or investment products. Source: TISA
• Barclays
• CitizenSafe
• Digidentity
• Experian
• Post Office
• Royal Mail
• SecureIdentity
• Verizon
Certified companies
• Your online assured identity
• Already an option foraccessing UK Gov’t services
Digital advice
Life Co’s and asset managers making major investments.
ABERDEEEN ASSET MANAGEMENT
Acquire Parmenion
BLACKROCK
Acquire FutureAdviser
INVESCO
Acquire Jemstep
SCHRODERS
Takes stake in Nutmeg
LV=
Takes stake in Wealth Wizards
FIDELITY
Fidelity acquireeMoney Advisor
Digital advice
In a recent webinar, IRESS asked advisers what they thought about robo-advice:
65% 9% 23%
Opportunity Threat Undecided
2016: A Robo Advice Odyssey available on YouTube
Digital advice
What is ‘Robo-Advice’?
Stuff & Nonsense! Real challenges
Who cares?
Many will try - many will fail
Application technology to ‘self-led’ advice
Consumer engagement
Client acquisition
Consistency across channels
Compliance
Proposition
?Technology disruptors
So, what should I do?
Consumer segmentation
Agenda
Dispelling the age myth
IRESS Data, Disruption andDigital Consumer report
• Little difference in tech usage between age groups
• Biggest difference between income groups
• The higher the income, the more likely to access
current affairs information daily online
Who will use robo?
Source: CFA Institute (Fintech Survey April 2016)*
Ultra High Earners
21%
InstitutionalInvestors
24%
High NetWorth41%
100
80
20
40
60
OtherInvestors
67%
Investors positively affected by automated advice tools*
MassAffluent
70%
Who will use robo?
MarketFraud37%
Quality ofService
37%
ProductChoice
55%
100
80
20
40
60
Access toAdvice62%
Consumers positively affected by automated advice tools*
Costs89%
Source: CFA Institute (Fintech Survey April 2016)*
Segmentation
Categories Dimensions
Primary channel preference
Price sensitivity
Financial literacy
Life stage / Life events
Peer-group & influencers
F2F Phone Online
Lo Hi
Lo Hi
1st job 1st child 1st property Retirement
Friends & family Colleagues Social media
?Technology disruptors
So, what should I do?
Consumer segmentation
Agenda
Creating a technology roadmap
• It’s not going away!
• Segment and design accordingly
• Expect an omni-channel world
• Become the point of client data aggregation
• Encourage client access
Creating a technology roadmap
Adapt your proposition suite
Automated advice(robo advice), omni-channel
3
Transform your operations
Workflow, process reengineering, online portals, lower cost servicing, automating compliance
2
Improve your client experience
Consistent, seamless experience; visually stunning, easy access to their provider
1
Underpinned by a digitised omni-channel platform
Thank youEmail: [email protected]: 07920 135708
Chris PittHead of Market Analysis
LinkedIn: Christopher PittTwitter: @chrispitt11
Top Related