ATOM Adviser Transformation Model

ATOM:
Adviser Target Operating Model
Version 2
01 September 2014

2 | ATOM:AdviserTargetOperating Model | September 2014
Content
WIMI Distribution
What is ATOM?
Before & After ATOM
Why a transformation?
The Choice
The Construction of ATOM
The Planner Model
Develop a GoodTraining Environment:
Academy
Business School
AIFA Suites
New Remuneration Model
Product Providers Panel
Building Block 6: Introduction of Controls:
DAC (Distribution Administration Capability)
House Solution
BAR: Business Architecture Roadmap
Leads Management
Bancassurance
Employee Benefits
TOP
10
1

WIMI Distribution
TOP
10
bancassurance
by
2015

ATOM (Adviser Targeting Operating Model)
What is ATOM?
ATOM was launched to restore the adviser value proposition. We want to radically transform the business into an
innovative, modern financial services distribution house that offers an outstanding value proposition to planners.
The ATOM journey
COMPLETE
IMPLEMENTATION
The ATOM story is characterised by the shift from an IFA model to an institutional model.
ATOM (Institutional Model)2012 2015IFA

Before & After ATOM
BEFORE ATOM AFTER ATOM
01
02
03
04
05
06
07
08
09
10
No central advice
Broker is
asset manager
Leads flow
not optimal
Master of
own destiny
No single view
of client
No socialisation
Low trust between
Adviser & banker
No central
middle office
No central promises -
service model
No House Solution
01
02
03
04
05
06
07
08
09
10
Centrally
generated
solution
Adviser applies
recipe from ABSA
Optimal leads flow
and utilisation
Team players
Single view of client
Strong socialisation
and training
Increased
collaboration
Central middle
office DAC
Strong institutionalised
client service model
House Solution
11
Optimal footprint –
roll out a tied
planner model.
12
Implement a new
remuneration model
for advisers.
13
14
15
16
17
Finalise & implement
Practice Management
2015.
Have win-win partnerships
with external product
providers (i.e. Momentum,
Sanlam and Liberty).
Launch AIFA Suites.
Retailisation of
Employee Benefits
Fully embed BAR
(Business Architecture
Roadmap).
1

Why transform the business?
The regulatory environment has changed (eg: FAIS)
Advisers leaving the industry and/or Absa - Demand > Supply
• Needed further qualifications, some did not have these
• Poaching of advisers by competitors
• Absa employee value proposition was not good enough for some advisers
Age of consumerism increased the cost of doing business
• Clients needed further protection
• Rising consumer demands
• Cost of integration – IT, compliance

The Choice
Shut down completely...and start afresh with a new model
• Not good for internal product providers who depended on AIFA
• Some advisers may not like the new model
• Big disruption
Change manage the transformation - ATOM
• Not as disruptive
• The preferred choice for internal product provider
• Requires an effective change management process
The choice to go with ATOM was made in June 2012
A new management team was appointed, with new ideas, fresh thinking.

The Planner Model
This is the first building block towards an institutionalised model Absa for Absa – sell more Absa products; internal advantage
1

Good Training Environment:
AIFA Adviser Academy
TheAIFAAdviserAcademy is housed
within the Business School. *
After the initial training period
of 6 months, advisers are placed
intoAbsa branches or AIFA Suites
for 6 additonal months, to ensure
successful transition into the
exciting world of financial planning.
We had the highest intake of
graduates in the history of
the AIFA academy in 2014.
The purpose of this academy is to
attract, develop and retain talented
individuals who are aspiring to
become intrapreneurs in the
financial services industry.
The academy is an institution
where all new advisers
(green fields and experienced)
will be socialised. All employees
will spend a minimum of 1 week
in the school whether they are
graduates or advisers.
* The AIFA Academy has evolved to form the Business School, expanded on the next slide.
These individuals are trained,
mentored, coached and
developed as professional
financial advisers or planners.
In future, bankers will be
socialised here as well, bridging
the cultural divide between the
adviser and banker.

Good Training Environment: Business
School
Provides continuous professional
development, both in the form of
macro events such as ‘boot camps’,
and individually customised
developmental training.
Upskilling of our people. Everyone
joining WIMI will go to the business
school. Go through the socialisation
programme. People will spend time
at the school learning about our
environment, our value chain,
our houseview, goals, vision, etc.
We have developed, arguably the
best Socialisation programme in
the country.
Continual development for advisers
The Business School aims to become a Global Learning Organisation (GLO) that places a high premium
on the acquisition, creation, transfer and retention of knowledge and skills delivered through its corridors.

AIFA Suites
2014
There are a number of AIFA suites across the country (all developed in 2014).
All planners and advisers will be anchored either in a bank branch or bank suite,
or in an AIFA suite. This is an environment where new planners and advisers can receive
mentorship. It will also provide a home for our experienced advisers with big books who
do not want bank constraints like office hours and other rules, but a professional office
where they can maintain and further build their client base.
Adviser Planner
Branch Suite AIFA Suite
or or

New Remuneration Model
Developing, socialising and implementing a new remuneration model.
Launched in June 2014
Old Model
• Production was the only driver
Our new remuneration model will allow advisers to earn more, provided the right agenda is
driven.
• Keep an eye on regulations - RDI; treating customers fairly
• Behavioural levers: mentoring; leads conversion
• Barclays Values

1
Construct a win-win partnership
model with selected external supplies
(Sanlam, Liberty & Momentum),
that includes Absa Life white-labeled
solutions supplied by FMI (Income
Protection Specialists) and AltRisk
(offering specialised underwriting
solutions for non-standard lives).
1
Product Provider Panel

DAC (Distribution Administration Capability)
These are centralised middle offices, servicing advisers and planners across the country.
The objectives are:
Efficiencies by better centralised processes
(removing certain administration tasks from the front end)
Better compliance, audit and control
(focusing on records management and business process reviews)
Better client value propositions
(by making sure that certain promises to clients are executed centrally)

House Solution
Launching in Q4
We believe that, in future,
there will be relentless
downward pressure on
fees and costs that clients
pay for investment solutions;
businesses will not be able
to survive if they do not
operate in strong House
Solution frameworks.
We will develop an Absa
House Solution and a trusted
investment framework that
governs all advice in the
face-to-face channels, using
the skills of Gl&S (Global
Investments & Solutions).
The adviser’s job is to
advise the client to save
more, cover themselves
from risk, etc.
(but they are not asset managers)
› We will also have a
standardised fee model
(a house Solution on fees)

BAR (Business Architecture Roadmap)
BAR will ultimately deliver
an operating platform that
can compete with the
best in the industry.
The project is all about
improving and optimising
processes and system
capabilities within WIMI
Distribution which will
enhance
the customer experience.
Before BAR (and
ATOM)
advisers used a number
of systems that did not
integrate into one another,
and also did not necessarily
perform the full functionality
required to service the
client.
As a business, we struggled
to keep up with competitors.
BAR is a ongoing journey, as we continually try to stay ahead of our competitors.
1

Leads Management
Develop a state-of-the-art leads process.
We have an excellent ability to mine big data and to channel it to the right sales environments,
using our leads engines. In other words, we have developed all the building blocks to generate
business from our vast data. We must now use it as a competitive differentiator.
Ideally, our new business should come from:
Pure data leads Bank collaboration Own prospecting Internet, etc
30% 30% 30% 10%
Big data
Bank
Customer
Adviser

Bancassurance
What is Bancassurance?
Bancassurance is the partnership betweenWIMI & RBB to provide complete solutions to our bank customers.
The importance of bancassurance to the bank: What is key for bancassurance to work:
Stickiness – the more we cement our customers to us with many different product relationships,
the more difficult it is for them to leave us. It has been proven in many studies that the attrition of clients
with bancassurance relationships in addition to their transactional or borrowing products is much lower.
And in this day and age of being multi-banked and consumerism when consumers easily leave a business
and move on due to the smallest service failure, (low) attrition is very important for banks.
Banks sit with very expensive assets and infrastructure, both bricks and mortar and virtual, and they need
to sweat those assets to be able to earn a sufficient return on capital. Bancassurance is one of the best
ways to do this (use same infrastructure and channels).
The bank needs to protect its assets.
Hence it needs insurance on the houses and other assets that act as security for loans.
Finally, and most importantly, from a customer perspective, it is absolutely the right thing to do.
If we are true to our mission of helping our clients achieve their ambitions the right way,
we must help them to invest for and protect their dreams.There is a world out there in dire
need for what we offer.
Collaboration:Cohesion and collaboration is the name of
the game in the future.Our biggest competitive advantage
at BarclaysAfrica is the ability to offer a holistic solution to
our clients. For this to happen there must be a good trust
relationship between banker and adviser.
Leads management has a huge role to play here.
Bankers must be socialised,
cross and up-skilled, bridging
the cultural divide between
the adviser and banker supporting
a one stop, holistic customer
value proposition.

Employee Benefits
We aim to retailise Employee
Benefits, to create a sustainable
and thriving business.
The business intends to use the
opportunity provided by the exit
of employees from retirement funds,
to customise solutions and render
financial advice.

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