So I am here to talk about the Front end and what we can do to improve the customer experience. Before I get onto the consultant speak, let me focus in on the word experience, and use two examples to illustrate this.
Both stories are about a brand we all know – Coca cola, and how they engaged very different customers in the Coke experience.
For the first example, There are a lot of South East Asians working in Dubai – average income of $6 per day. They can’t afford to contact home, although they manage to send a stipend home to feed and educate their families. Coke set up phone booths where the user would insert a coke bottle top into a machine, and in return would be given a 3 minute international call. Needless to say, there was not much more than coke drunk while the promotion was on.
In the second example, new student on a university campus, who didn’t know anyone, were given free access to large fridge full of cokes. How many students don’t like a freebie right? After helping themselves, they found out that a special cap had been put on the lids, ensuring that the only way of opening one bottle was with another. In this way, students were forced to talk to other students in order to get their freebie open. Another example of creating an experience around a product.
So using those stories – if coke was able to create a unique, memorable, experience for completely different segments of their market, around the same soft drink. What do Investment managers, with all the technology in the world need to do to create a defining experience for their customers.
Change is ongoing and relentless Can be a huge distraction from clients
Clients expect far more Needs vary across client types –investment products and advice Whilst ‘standardised’ evident for mass affluent Flexibility as you go upwards Participant firms typically span Single entity or different brands within the same organisation Requires depth a breadth of proposition that is operationally challenging Legacy tech and Ops common
Market changing Clients expectation is changing
idea of retirement gets obliterated. Most millennials will never stop working. Instead, they’ll seamlessly blend their work and life to create a way to make money and have fun at the same time.
https://www.fpsb.org/news/pressreleases/602-global-survey-by-financial-planning-standards-board-finds-consumers-lack-strong-confidence-in-achieving-their-financial-goals.html Montmarquette, C and Viennot-Briot, N, “The Value of Financial Advice” ANNALS OF ECONOMICS AND FINANCE 16-1, 69–94 (2015) http://www.pewresearch.org/daily-number/baby-boomers-retire/
Digital becoming more real But expectations are broader Challenges traditional advice models
We are Increasingly seeing different advice models Often under one brand.
Put significant pressure on ops and systems
This introduces significant risks especially the risk of inconsistent outcome.
Still looking at influences to the customer experience,
As business models change so do ops models Increasingly complex
So what do we see as the way to improve the customer experience?
We see a client centric world
Supported by a range of key components. What I mean by this is:
Putting the client, at the centre, forces a scalable, modular approach, allowing for the introduction and removal of new services, regulation and so forth.
What this allows for is servicing of multiple channels and Enables switching between channels
As we all know, most of these channel's have been around for ages.
The key to a better customer experience, is pulling together the different preferences and propositions leveraging common capabilities and delivering them consistently.
e,.g Recommendaitons / outputs the same irrespective
As an example: It’s not just about advice – its about the experience.
Its about a millennial check a share price from his apple watch, placing a trade from his phone, and viewing the resulting portfolio as he comes back from lunch.
Its about supporting new channels, to create engagement
Video has been around for ages
We need to make it interactive and participative. The video should be recorded, catalogued and stored against the client file for access on another device at a later point.
Example of how we have enable a client journey
In conclusion – the customer experience, needs to be improved, by being tailored to its audience, with the same output or result, no matter what the channel and no matter what the channel may be in a few years time.
Front End: What can we do to improve the customer experience?
Head of Private Wealth Management
What can we do to improve the
Current state Influences
69% Baby Boomers Retiring
Every day in the US.
More likely to feel
confident that they
can achieve their
life goals if they
have a written plan in
place, compared to
Seek financial advice
from sources other
than a financial adviser.
More in retirement
savings of the advised to
the non advised.173%
financial advice online
Across the world, exceeding
the number of people in
Expect customer facing staff
to have a single view of them in real time70%
Changes to advice model
• Handles high
• Advice provided
with adviser and
• Fast & highly
repeatable, but less
• Highly brand-able
• Integration to
• Highly brand-able,
• Simple advice
• Built for scale, so
want to ensure
limited need for
• Very simple
problem solving –
easy to understand
• Tightly linked to
channel who have
same view (screen
Face to Face Execution only
Phone / Online
Full Service No service
Advice models have evolved and increasingly cover a breadth of different
propositions, often with multiple forms in the same organisation.
• Advisory Services
• Investment Services
• Portfolio Management
• Market Data
• Order Management
• Client Management
• Business Automation
• Financial Planning
• Goals based planning
• Access to investment
• Digital access
Integrated wealth management
Access to specialist services -
A large and growing number of participants now provide a range of services.
These span execution only, private asset management, advice, digital servicing…
and usually span multiple legacy systems.
Complex operating models
Business models have evolved through regulatory censure and reform, market
structure, client expectation, and revenue pressure. The operational demands of
an integrated wealth model are complex and increasingly evident.
Robo AdviceExecution Only
Putting it all together
Documentation / evidence
The ‘right’ outcome
Client centred architecture
Modelling / Rec’s
holdings & history
Alerts & checks
Audit & history
Fee collection &
Servicing multiple channels
Compliance & Risk Management
Know your client / Attitude to Risk / Capacity for Loss / Fact Find / Gap Analysis
Advice / Investment Recommendations
DIGITAL FACE TO FACEPHONE
Digital – it’s not just about the advice
Starting out in self-directed
Just got a new job with a big pay rise. He’s decided to get serious about saving for a
house deposit with his girlfriend as they moved in together and the rent is expensive.
How much do
I need to
I be investing
option for me
you set it up
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