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Delivering Integrated Financial Planning


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  • 1. Delivering Integrated Financial Planning A strategy for a unified customer experience
  • 2. Contact Details Financial Technology Delivering Integrated Financial Planning Research Centre e-Excellence Research Enquiries “Delivering Integrated Financial Planning” T: 020 7863 0863 Tel: 020 7659 2345 provides an overview of the full range of financial An integrated approach delivers: Ian McKenna planning tools that are available across both Director distribution channels and product sectors. By E: ian mckenna@ftrc co uk defining an holistic tools set which will be appropriate to both new and existing channels, Instant results significant benefits can be delivered by supporting ensures a Samantha Smith compliant sale is Head of Marketing & Admin a wide range of routes to customers. made across all E: the retail products The document is constructed to allow the user to and distribution navigate using h i t i hyperlinks, enabling easy access t li k bli to channels h l areas of interest or specific tools as required: Select from the range of product sectors or Tools that can distributor channels accommodate multiple brands p and multiple channels Examine how tools are used within the product sectors or distribution channels The tool functionality can be tailored to the channel according to the complexity and depth required for that channel Detailed study of the tools, including objectives, output, benefits, sales opportunities, product areas and aggregation/reporting A pictorial example journey of how the tool can be used in the advice process Helps the whole sales process come alive and keep the customer’s interest and engagement at a high level through the sales process. “At a glance tables for both the product sectors At glance” tables, and distribution channels, colour coded to Price: £12,000 + VAT denote the complexity required for each tool Delivering integrated financial planning page 2
  • 3. Contact Details Financial Technology Contents Research Centre e-Excellence Research Enquiries Introduction and overview - A brief explanation of the benefits of an integrated approach to tools One tool for multiple distribution channels T: 020 7863 0863 How to use this document - An overview of how best to use this hyperlinked document • Rather than construct specific tools for specific distribution channels, a single tool with different outputs depending on the needs of the user can achieve a more consistent experience and be more economic in the long term. • By allowing all customers (whether they are B2C, B2B or B2B2C) use of the best range of tools, it is possible to maximise the Tools contents - Gives an alphabetic list of all the tools • benefit and drive them towards a suitable solution using an LBG product. Matching the tools needed to both the product and distribution types makes it possible to recycle existing tools and plan for Ian McKenna • new ones across multiple distribution channels, tailoring each to the specific needs of each of the groups. Allowing the same tool to be viewed in different ways by different users and through pre-populating information, time and Director resources can be saved and will maximise the benefit across LBG. Pre-populated from existing data e.g. Client Pre-populated from existing data e.g. Client E: ian mckenna@ftrc co uk Touching technology - The need for technology and Person to Person ( g gy gy (P2P) interaction ) Management Systems or provider client records Management Systems or provider client records Tools – Pre and Re-population - The essential of re-using information Inputs Distribution Input Distribution Output channel A channel B Output Distribution Samantha Smith Tools – Factsheet information - The need for information on the tool Data 1 Data 2 Data 3 Data 1 Data 2 Data 3 A Planning Tool channel A Output Distribution channel B Data 4 Data 4 Head of Marketing & Admin Tool complexity - How complex should the functionality be? Data 5 Data 6 Items not needed for E: Data 7 simple calculation Guided Sales – the range of products One tool for multiple distribution channels - A single tool with different outputs General Information Contents Next page Previous page Scottish Widows Tools Strategy ©F&TRC 2009 Not to be reproduced without written permission 11 Cradle t C dl to grave products - Tools to assist the buying process across all ages d t • The term Guided S l i referred t as a ‘W ki Titl ’ i th R t il Di t ib ti R i and refers t th possible evolution of both an Th t G id d Sales is f d to ‘Working Title’ in the Retail Distribution Review d f to the ibl l ti f b th advised and non advised simplified sale process for consumers with more straightforward needs and seeking less complex solutions. • Essentially it is a self-service environment that replicates the expertise of sales staff, engaging users in a dialogue that helps them select exactly what they need. • A Guided Sales system can reduce sales channel costs and can provide 24/7 customer access to product solutions. • The success of a system is dependant on the range, quality and specification of the tools and product information that customers can use to The product sectors & distribution channels - A breakdown of the product narrow product selection and choose options. Range of Products sectors and distribution channels Long term savings (decumulation): Medium term savings (5 to 10 years) and Annuities Individual pensions WRAP Stakeholder pensions Endowments Bonds (onshore and offshore) Structured Products Long term savings (accumulation 10+ years) ISAs Child Trust Fund Collectives Tools and the distribution channels - An examination of the tools in these channels: Short term savings (0 to 5 years): Protection: Savings Account Individual ISAs Income Protection Whole of Life Private Medical Insurance o Execution Only Term Assurance Critical Illness Buildings Insurance ASU Payment Protection Insurance Travel Insurance o Web Based Borrowing: Contents Insurance Prime Mortgages Sub Prime Mortgages Motor Insurance Personal Loans Credit Cards o Call Centre Products Long Term Tools and the distribution channels (A-I) Savings (dec) Long Term Savings (acc) Medium Term Savings Short Term Savings Protection Borrowing Contents Tools Previous page o Guided Sales Distribution Channels Wealth The table denotes the complexity of tool required by the distributionBranch Group Management IFA Multi Tie Single Tie channel e.g. the affordability Sales Centre calculator requires a medium level of detail for web based but less complexity within call centre use. Scottish Widows Tools Strategy Based Narrow/ Guided ©F&TRC 2009 Not to be reproduced without written permission Call Web Execution Only Simple Low 20 Medium High Complex Branch Calculator Affordability Rate (APR) Calculator Annual Percentage Annuity Assessment Annuity Calculator Asset Allocation Comparison Bonds v Collectives Budget Planner CGT Planning Tool Calculator Compound Interest Cost of Delay B with Employee Cover Comparison school fees) Education Planner (i.e. impact of adding to Fee Calculator - GAD Calculator Calculator Home Contents Calculator House Valuation (disability/death) Income Replacement o fi o Narrow/Single Tie o Multi Tie M lti Ti Execution Only Web Based M S L L M M M M S S L L S S S L o IFA Call Centre Guided Sales L L S S L L L L L L L L L L M M S S S S L L L L S S S S S S L L o Wealth Management Branch Narrow/Single Tie L L S S L L L M L L M S S S L L L S S S S S S L L o Group Multi Tie IFA M L S S M H L L M H M H M L H H S S S S L L L L S S M M S S S S L L o Tools and the distribution channels complexity Wealth Management Group M L S S M H L L M C H M L H S S S S L L S M M S S L Affordability calculator Long Term Long Term Medium Term Short Term Tool Functionality: (low) Next Previous Products Protection Borrowing Contents Savings (dec) Savings (acc) Savings Savings page page Objective Output Tools and the product sectors - An examination of the tools in these sectors: • Identify the total available ‘spend’ available for loan repayments, savings, protection and pension needs. Distribution • Calculator adjusts the split of the Channels available ‘spend’ to reflect suggested changes to the product mix. Group Wealth Example Journey Management Scottish Widows Tools Strategy IFA Multi Tie Product sectorBranch complexity Narrow/ Single Tie – Tool Guided Sales Distribution channel – Tool complexity ©F&TRC 2009 Not to be reproduced without written permission Call Centre Web Based Execution Only 34 o Borrowing tools • Allocate premium to the appropriate component. Review – Assess Protection required level o Protection tools (including general insurance) Benefits • Helps client decide how to allocate their available regular surplus Sales Opportunities • Ensures compliant sale and increased probability the product requirement identified of of life, CIC and IP cover income to achieve the desired will stay in force as based on client o Short term savings tools balance in the above areas. • Helps write multiple sales and reduces risk of client seeking affordability. Submit application forms Obtain initial quotes for required cover o Medium term savings tools advice elsewhere. Product Area Aggregation/Reporting o Long term savings (accumulation) tools • Borrowing • Protection • Regular savings • Regular pensions premium. Output of this tool can be used: • to calculate levels of protection cover • to produce illustrations for plans Obtain fi l Obt i final quotes Adjust Identify available il bl budget • as the premium basis for further o Long term savings (decumulation) tools more detailed calculators. amounts of cover to fit budget o Tools and the product sectors complexity Products Long Term Savings (dec) Long Term Savings (acc) Medium Term Savings Short Term Savings Protection Borrowing Contents Next page Previous page Distribution Wealth Narrow/ Guided Call Web Execution Group IFA Multi Tie Branch Channels Management Single Tie Sales Centre Based Only Scottish Widows Tools Strategy ©F&TRC 2009 Not to be reproduced without written permission 47 The tools - A thorough examination of each individual tool and it’s uses page 3
  • 4. Contact Details Financial Technology Tools examined by this report Research Centre e-Excellence Research Enquiries A Affordability calculator O Offset calculator T: 020 7863 0863 Annual percentage rate (APR) calculator Overpayment/underpayment/flexible payment Annuity assessment Ian McKenna Director Annuity calculator P Pension tax relief tool E: ian mckenna@ftrc co uk Asset allocation Personal loan/credit card calculator Portfolio modelling B Bonds v collectives comparison Post retirement death benefits Samantha Smith Budget planner Head of Marketing & Admin R Re-balancing E: C CGT planning tool Repayment schedule over term of mortgage Compound i t C d interest calculator t l l t Rent v mortgage payments Cost of delay Research tools Cover comparison with employee benefits Retirement options comparison/modelling Retirement/pension planner E Education planner (i.e. school fees) Risk profile tools F Fee calculator - impact of adding to mortgage S Salary sacrifice Salary v dividends G GAD calculator Savings plan calculator Standard Lifetime allowance H Home contents calculator State benefits calculator House valuation calculator Sum assured calculator I Income replacement (disability/death) T Targeting income in retirement Income Tax calculator Tax charge (bonds) Inflation calculator Tax charge (p g (pensions) ) Inheritance Tax planning I h it T l i Tax free cash calculator Tax free cash impact of taking early L Lifetime income/objective planner Transfer analysis Lifetime mortgage calculator Long term care planner W With Profits analyser M Mortgage calculators Delivering integrated financial planning page 4