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ORM thought leadership in Financial Services
This document discusses digital trends across several financial services industries including banking, asset management, insurance, and lending. It notes that customers are demanding more convenient digital capabilities and are willing to pay for services that offer more value. It also discusses how various industries are facing disruption from new digital entrants and business models. The document explores how established brands can meet evolving customer needs through approaches like being always-on, providing accessible advice, enabling peer investing, developing direct-to-consumer platforms, and using data to power personalization.
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ORM thought leadership in Financial Services
- 1. Thought leadership - digital & financial services
- 2. Locations ORM is… An award-winningdigital agency composed of thinkers, creators and innovators. We lead brands through digital change to confidently face the future. Using data and insight to inform our thinking, we architect strategies, platforms and applications across owned media. We enable our clients to take advantage of tomorrow, while generating meaningful value for them today. • Part of the Howard Hunt Group • Group revenue £75m+ • Group employees 450+ • Established and profitable Our services Our group Clients • Strategy and insight • Experience design • Content strategy and delivery • Technology and development • Client Services ORM • Head Office: London Bridge, London • Project Office: Kings Cross, London • Development Team: Wroclaw, Poland GROUP • Head Office: Dartford, Kent • US Office: Boston, USA • Europe Office: Madrid, Spain • Based in London with 70 staff • Adobe, Sitecore and EPiServer partner • RAR Mobile Agency of the Year 2014 • Top 25 UK Agency - Drum Financial Report 2015 • Best FTSE 100 Website award in 2014 for RBS.com • ISO9001 and ISO27001 accredited Some facts Clients Locations
- 3. Digital trends infinancial services as a whole
- 4. Convenience Trends from retailare now increasing expectations in financial services $83bn — is lost each year in poor customer experiences (IBM)
- 5. 62% — Smartphone penetration in theUK - Europe increase 10-20% YoY We’ve become mobile first 72% of smartphone owners use applications on a daily basis 92% — of UK smartphone users browse the internet daily on their device 25% — of smartphone owners would rather give up their PC than their mobile 34% — of UK smartphone users spend as more time on their mobile as their PC 52% growth in tablet ownership; faster than PCs experienced 84% of mobile device owners browse while watching TV
- 6. Wealthy individuals aredigital natives 48hrs — HNWIs spend this many hours online per week, on 4 devices $2500— is the average one-off online expensive purchase by HNWIs 45% — luxury buyers influenced by online videos and tailored content $4m — those with a net worth in excess of this tend to be the most digitally savvy 65% — highlight the value of online collaboration 80% — of European HNWIs use search engines to find what they need 92% — consider digital tech as a major source of ongoing wealth generation
- 7. They use socialto research and make decisions 4% — of investors currently interact with their adviser on social media 52% — of investors said they would connect with their adviser on social media 30% — use social to recommend a financial product or service 28% — perceive a financial company as innovative if they offer social tools 34% — subscribe to finance- related blogs 44% — seek advice to help make a financial decision 33% — use social media to re-evaluate a financial decision that has already been made 46% — follow a recognised industry expert/exec on social media
- 8. By 2015, “digitalnatives” will hold the majority of buying power in the economy, and by 2025, they will dominate UK savings capacity – PWC
- 9. Revolution is comingto your cyberspace very soon! Timing (years) 0 5 10 15 20 25 30 35 40 45 50 0 1 2 3 4 5 Impact(%changeindigitalbusiness) Realestate Professional services Finance ICT and media retail trade Arts and recreation Government services Utilities Recruitment and cleaning Transport and post Health Education Agriculture Mining Manufacturing Construction Wholesale trade Accommodation and food services Short fuse, Big Bang 32% of the economy Long fuse, Big Bang 33% of the economy Long fuse, Small Bang 18% of the economy Short fuse, Small Bang 17% of the economy
- 10. Audience needs arechanging Consumers to lower-tier intermediaries Authenticity and simplicity • More retail focus to content • Features and benefits • Peer to peer advice • Educational tools • Experts as personalities All expect Hyper-convenience • Digital self-service • Multiple media types • Responsive and adaptive • Specific touchpoints for specific tasks Intermediaries to institutions Accessible expertise and the inside track • Audience specific portals • Thought leadership hubs • Advice centres • Access to experts All expect More relevance • Need based navigation • Personalisation • Content syndication
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- 12. Customers are demandinginnovative digital capabilities to access financial products and are willing to pay for services they believe will offer more convenience and value • Telephone banking - HSBC call volumes down 5% in 2014 after a 4% drop in 2013 • Branches operated by the UK’s retail banks shrunk by +25% in the last 20 years • Only 16% of customers don’t use online or mobile banking* • 39% of SMEs use online at least once a day, 69% at least once a week and 79% at least once a month. Only 7% never use • 69% currently use the internet to purchase financial products *** • 6% via a mobile device. • Nearly 90% of Tesco Bank’s sales currently online *YouGov polling carried out for the BBA **Accenture Survey *** PwC survey of 3,000 banking customers in 9developed and emerging markets Banking habits are changing rapidly
- 13. Joint ventures • JVwith Monitise, "investing in, building and scaling fintech businesses with the potential to redefine and support financial services globally." • Access to Monitise's new cloud-based platform connecting banks to digital innovation for their customers • Opportunity to partner with Santander • Santander set up $100 million fund last year to invest in fintech startups too
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- 15. Browsing states, learningfrom other sectors Advice Commercial Inspiration
- 16. In your industry Helpand Advice Transacting Future Gazing
- 17. Take the logooff and they all look the same…
- 18. Homepage trends • Homepagecontent is focusing on customer’s needs/tasks rather than actual products • Carousels and banners are being replaced by images aimed at engaging customers on an emotional level • The primary navigation tends to show fewer links, to clearly displaying the products range • ‘Mobile first’ approach and responsive websites are a given • Homepages are de-cluttered, making space for highly relevant tasks and content • Innovation – getting customers involved in the digital process through crowdsourcing and feedback • Seamless journeys and a strong brand identity link up online and offline experience
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- 21. Innovative UX &design
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- 23. The UK investmentmanagement industry is at a turning point. Traditional active managers have already had to adapt to institutional changes, but now face a confluence of retail trends” – Deloitte, Seismic shifts in investment management
- 24. Your industry isbeing disrupted Individual Responsibility Concern of high costs and low returns Increasing requirement for international products “Retailisation” Asset Managers going direct New kinds of intermediaries Disruptive wealth creation models Technology
- 25. The trend togo direct at volume is growing New entrants Your peers “Nutmeg targets 100k users by Q2 2015” The group raised £19m from investors including Schroders “Investec to launch a rival to Nutmeg” Wealth manager is setting up a discretionary investment platform later this year. Wednesday 06 May 2015 “Barclays plans D2C offering for 2015” Monday 07 July 2014 “Hargreaves to launch D2C discretionary service to plug advice gap” Wednesday 03 September 2014
- 26. New investment models Q22015: eToro raising an additional $12million The total investment volume raised among the investors amounted to $39 million. Funding circle fund £623,610,260 worth of loans so far
- 27. New investment models Peer-to-peerlending: £838 million and helping both borrowers and lenders get great rates.
- 28. How are brandsmeeting needs? Always on • Real-time performance • Responsive and adaptive • Specific touch points for specific tasks Accessible advice • ‘Retail’ style thought leadership hubs • Online access to professionals • Educational tools Peer investing • Find and follow investors • Transparent performance • Peer comments, advice and sharable info D2C platforms • Audience specific portals • Digital self-service • Needs based navigation • Digital transactional portals Data informed investment • Data informed client acquisition • Personalisation • Content syndication • Intermediary tools
- 29. Closing the ‘advicegap’ “A 'fundamental step-change' is required in order to make financial advice accessible to those with portfolios below £100,000” “For the average person in the UK accessing advice is very difficult and they are left with two choices, one is to do nothing, which I would advocate is not a great idea, or move to DIY investing solutions.” – Chris Williams, founder, Wealth Horizon Accessible advice
- 30. Digitising investment selection andmanagement The move provides increased accessibility and transparency, but reduces the opportunity for AMs to effectively cross and up-sell their services • Platforms reached record highs in the fourth quarter of 2014 as upcoming pension freedoms and demand for income boosted inflows D2C platforms
- 31. Advisers using tabletsas productivity tools “Clients can access our comprehensive range of tools and economic research, as well as analysis across all asset classes, including equities, foreign exchange, fixed income, emerging markets, and futures and options. On-the-Go brings intermediaries all our fund information, market insights and videos.”
- 32. Which audience shouldwe be focusing on in the digital space? Artemis mainly focuses on its individuals audience with its website.
- 33. Which audience shouldwe be focusing on in the digital space? BlackRock’s digital presence focuses more on intermediaries and institutional audiences. Institutional content is particularly strong with specialist events for pension funds with online registration. There are video viewpoints from subject matter experts on themes such as sustainable investing and Beta strategies.
- 34. Which audience shouldwe be focusing on in the digital space? M&G iView and Learning Matters focuses on intermediaries and specifically lower tier IFAs. These are starved of face to face contact and need help running their businesses.
- 35. Regular macro-ecomomic trendsstarting to appear on asset manager’s content pages
- 36. Guest writers JP Morganprovides advice within its insights section from notable financial advice columnists, such as here where Ian Cowie from the Sunday Times talks about the structural advantages of income trusts.
- 37. Owned digital magazines •Insight pieces are finely segmented • Different interest areas reflect make up of major FS online content providers like Morningstar • Overviews, funds, viewpoints, retirement
- 38. Media rich expertanalysis
- 39. Socially powered expertanalysis
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- 41. Macro trends ininsurance Consultative approach Risk increasing due to global change Technology Brokers
- 42. 1 • Lack oftrust in insurers • Apathy and lack of interest • Lack of understanding of what you get for their money How can digital change perceptions of insurance? Challenges facing your industry
- 43. 2 • Digital experiencesprimarily look at price and purchase incentives • This reinforces the perception that insurance is a price-driven commodity • But what about improving the customer experience? Buying insurance is decided on price, isn’t it? Challenges facing your industry
- 44. 3 • Great customer experience/advice •Great UX – e.g. easy to fulfil online How can you buck the disintermediation trend? Challenges facing your industry
- 45. Insurance brokers mustrespond to these challenges Insight led experiences Contextual expertise Fast speed of response Facilitate risk through digital
- 46. From our reviewof the market the direction to market leading is clear: Tactics • More retail approach to IA and customer journeys • Visual merchandising: the placement of CTAs/products on customer journeys that are organised by need • Personalisation and visitor self-selection • Shorter, features and benefits led content • Mobile-first design • More helpful and supportive of customers Success measures • Increase in applications and completions • Increase in proportion of digital interactions • More return visitors browsing more services for longer • More recommendations • Increase in products held by each customer Strategic approach • Differentiated experience from your peers • Customer not inwardly focused • Simpler to consume (across purchase/renewal, advice and inspiration journeys) • Ability to measure, test and learn Achievedby Inorderto A game-changing digital strategy
- 47. 1 • Power shiftingto standardised risk • New business opportunities in emerging risks e.g. nanotechnology • Niche market opportunities now accessible through digital, new sectors and geographies Customer revolution How are brokers responding to this?
- 48. 2 • Investing indigital for competitive advantage • Dealing with the ‘Black Swan’ problem of emerging risks, particularly technological • Managing and tracking risk change Demands for profitability How are brokers responding to this?
- 49. 3 • New markets,new products • Technology and analytics to create insights, data led decision Information How are brokers responding to this?
- 50. What do riskfacilitation leaders look like? Needs-based approach Using digital to support both cost efficiency and a more consultative approach, simultaneously Content leaders Expand information gathering to better anticipate risk, and through content pass this expertise on to the client Data experts Improve their ability to collect, integrate, analyse and communicate data into actionable insights
- 51. What could thismean for consumer needs? Ecotricity use customer data to promote the use of green energy Hive combines gas-use tracking hardware and cloud-based account management to give more control over home heating MyVirgin media uses customer analysis to recommend products, whose delivery can be tracked from within the platform
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- 53. There’s already familiaritywith the digital payday loan model
- 54. This model isbeing rolled out to business lending • Everline allows small and medium sized businesses to borrow up to £120,000 for up to 24 months • Up to date business data and innovative technology supports responsible, real time, automated risk decisions • 10 minute application process. Funds in 5 minutes • Over 6,000 business loans and lending +£60m to small businesses
- 55. Amazon lending –business lending for resellers • The interest rate for all sellers is 5.9%, with a 1% arrangement fee. Less than funding circle • Borrowers must pay Amazon back within four to six months • Apply from within your Amazon merchant account • Buyer ratings and performance count used as part of acceptance criteria • Money within five business days • Already in US and now UK and China
- 56. Bank and peerto peer lending partnerships
- 57. Creating the businesscase • Targeted • Lifestyle approach • Great case studies
- 58. Platform Black: anew working capital model “Pay-as-you-go working capital” innovates the traditional invoice factoring model by allowing clients to auction outstanding payments to institutions and private investors. • Access to a much larger pool of potential buyers • Using digital to deliver services at very low costs • Cash into the client’s account within ten days of the auction closing
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- 60. Know your audiences Whatyou want to communicate What your audience is interested in Successful content The content sweet-spot is about meeting the goals of your business and the needs of your customers
- 61. Case study: ING.world •Story-led approach from a digital quarterly magazine • Gives analysis and insight on the world of business and finance • Interviews, articles, customer stories and opinion pieces - each edition explores a single theme from a variety of angles • Release coincides with ING's results days • 35,000 unique visitors per issue • Won a Digital Communication award for being Europe’s best branded web magazine
- 62. Case study: The Financialist• Credit Suisse thinking relevant to the lives and conversations of a sophisticated UHNW audience • Global trends and the art of living, future-oriented • Informed but offbeat take on things. Not the conventional wisdom • Longer format articles and daily spark blog • Articles organised by interest • Promoted through Twitter and LinkedIn • 70-100 likes for some articles and many shares
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- 64. Move from referenceresource to ‘browsable’ content Reference resource ‘Browsable’ content Tactic for ‘browsable’ Feels like… A journal A magazine Pull quotes, strong imagery, journalistic tone Publishing frequency Quarterly New content weekly or more Editorial calendar User mindset Researching specific topics – search and filter vital ‘Flicking through’ for any interesting articles Promote related content Shelf life Longer Shorter Publish short pieces frequently Length Long form, in depth Snackable’ Vairety of formats – articles, blogs, videos, infographics Looking for… Facts, figures, date and examples Insight, comment, latest trends Tag and categorise by theme/ trend Importance Source credibility vital Author credibility important Showcase author knowledge and expertise
- 65. Give users valuable,online-only content • This will increase interactions • Consider online versions of annual reports – they go above and beyond the usefulness of the hard copy documents by giving video content/interactive charts etc. TUI Travel plc online Annual Report
- 66. Keep long formcontent, but add a shorter version • Traditional FS content is very long form and feels like a report • Sites need more ‘browsable’ content too, so that the needs of all audience types are met Example: JSTOR Daily • Short articles inspired by the journal findings • Each article contains links to the to the relevant journals • JSTOR daily receives 150,000 page views a month JSTOR
- 67. Make your content workonline Web-content should be: • Concise – people don’t ‘read’ online, they scan • ‘Chunked’ using bullets and subheadings • Simple sentence structure and clear language • Linked to and from – unlike print • Findable – site structure should be intuitive • Accessible – PDFs should be avoided where possible Clear ‘share’ button Subheads add structure and make scanning easier Graphs visually illustrate data Links allow users to find out more Blog post from econsultancy
- 68. ‘Heroise’ authors Thought leadershipcontent relies on author credibility. Use bio pages to prove author expertise, raise their profiles, and enable users to see all articles they have written: • Image & Bio • Twitter handles & LinkedIn info • Links to all author articles JP Morgan
- 69. Create a community Simpleways to drive interaction include: • Comment and feedback functionalities • Ability for people to get in touch with authors (LinkedIn) Economist
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- 71. Help users discovercontent that is of value to them • Through easy-to-navigate search • Through curation and recommendation • By helping users stay on top of latest trends and thinking • By helping with a paper or presentation • By supporting decision-making • By making the user part of a community of thinkers • By making it relevant • By introducing personalised content • Through tailored experiences
- 72. Tagging • ‘Reference resource’users need to be able to find content that they’re looking for quickly • Browsing users need to be signposted to related content that they may find interesting Clickable, visible tags aggregate content on a theme Tags also power related content The Guardian article page
- 73. Introduce searching andfiltering • Users looking for content on a specific topic will search • A good search tool will enable them to refine the results based on content type, publication date etc. Clickable, visible tags aggregate content on a theme Econsultancy search results page
- 74. Give users aclear next step Online content should always prompt users into action – this could be reading another article, getting touch, or signing up for an event Prompting action Prompting action Deloitte
- 75. Encourage promoting andsharing • Readership will grow organically if content is useful and sharing is made easy • Professional audiences do share – especially on Twitter and LinkedIn • Promote articles across your own social media accounts too, using relevant hashtags Rbs.com – corporate content, often shared
- 76. Show users contentthat is relevant to them • Basic personalisation – uses tagging to surface content of a similar type (you may also like…), or uses preferences that users have previously given in a login area • Advanced personalisation – rules based personalisation displays relevant content based on previous browsing behaviour, search terms Econsultancy – recommended content
- 77. Proactively alert readersto new content • Allow users to register to receive alerts for new content on topics that interest them most • Tag content as you upload it, and these emails will be automatically generated • Measuring click-throughs will also give insight into which content is working, and which isn’t Henderson Asset Managers: Preference centre
- 78. ’Drip feed’ contentto keep visitors coming back Journal content released quarterly/ monthly/weekly Continuous release of additional shorter pieces in a variety of formats: blogs, interviews, videos, lists etc. Journal content released quarterly/ monthly/weekly Continuous release of additional shorter pieces in a variety of formats: blogs, interviews, videos, lists etc. Journal content released quarterly/ monthly/weekly
- 79. Test and learnto create better content over time Measure impact Learn and adapt Publish • What worked? • What didn’t? • A/B test • Experiment with content formats • Number of views • Dwell time • Bounce rate • Shares Consider best format for message + audience You need to know what users like, and which articles are popular
- 80. Michael Walker, SeniorBusiness Development Manager, ORM michael.walker@ormlondon.com ormlondon.com @ormlondon Thank you