Bob Dannhauser - head of Private Wealth for CFA Institute, David Lo - director at Scorpio Partnership and I do a deep dive into how to view #wealthmanagement marketing in 2018

1. The Roadmap To Success In 2018 From The
Wealth Management CMO Perspective
Wealth Management Trends and Insights
January 2018

2. 2
Preparing For The Next Phase Of Wealth Management
Age of
Awakening
Age of
Repudiation
Age of
Engagement
1980’s – Late 1990’s
First time private investors
had a single point of
contact for their banking
and investment needs.
Ultimately was not fit to
endure turbulent markets
and advisors struggled to
deliver value beyond
returns.
Late 1990’s – Late 2000’s
More than just investment
results, clients were paying
for wider solutions and
overall client service.
Misalignment between the
advisor value proposition
and investor values,
especially considering the
premium / higher fees.
Late 2000’s - Today
Customer is king and able
to hold their advisors
accountable.
The dynamic between
client and their advisor /
institution at the epicenter
with connection between
professional skills and
customer outcomes
becoming more symbiotic.
* Source: The Value of Premium Wealth Management
https://cfainstitute.org/community/careers/Documents/value_of_premium_wealth_management_for_advisers.pdf

3. 3
Overview And Methodology
CMOs and marketing leadership play a fundamental role in driving customer-centricity in wealth management.
This report details the insights and perspectives of 14 leading CMOs and marketing leaders as they respond
to increased competition, emerging business models, technological innovations, and clients’ evolving
definition of “value” in wealth management.
Of respondents were from firms based in the
Americas (US, Canada, South America); the other
36% based in Europe
64%
Of respondents are marketing heads at regional or
national wealth management firms managing over
$20B of client assets
57%
Of respondents are marketing heads at
independent, boutique wealth management firms
managing between $2B and $20B of client assets
43%
7
5
2
Regional Responsibility of Respondents (Count)
Americas
Europe
Global

4. 4
Roadmap To Success In 2018 - Executive Summary
Increased focus and budget allocation towards
incorporating technology / automation into business
Regulation within the Americas, particularly the United
States, seen less as a top challenge while just the
opposite in Europe with regulation being top of mind
within the industry
Heightened importance around client experience;
specifically on how the online experience and advisor
training deliver KPIs
This session will plan to cover three primary topics for wealth managers:

5. 5
Roadmap To Success In 2018 – Regional Comparison
Europe Americas
Technology / Automation Is A Top
Challenge Facing Their Business 50% 43%
Change In Marketing Budget For
Traditional Media -1% -4%
% Of Respondents Optimistic About
5-year Growth In WM Industry 40% 100%
Expected Marketing Budget Increase
In 2018 5% 15%
% Of Respondents Who Feel
Regulation Is The Biggest Challenge
Facing The WM Industry
75% 0%

6. 6
Focus I: Technology & Automation

7. 7
What Is The Most Important Challenge Facing Your Organization Over
The Next Year?
“Determining how best to
allocate technology in
support of client service
by segment.”
“Breaking silos and
incorporating
technological change.”
“Competition with
technology [tech focused
and/or pure tech firms].”
Percentage of Respondents Indicating Technology as
the Most Important Challenge to the Firm
Europe Americas
50% 43%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Europe Americas
* Bolded numbers indicate that this a top challenge for the region

8. 8
Largest Shift In Dollars Budgeted For Client Experience Development
 Marketing budgets continue to shift dollars away from traditional marketing and towards digital
marketing – traditional marketing budgets expected to be down approximately 3%
 Marketing leaders are increasing efforts around the client, with a 4% projected increase in client
experience development/management and increases in client research, share of wallet, etc.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2017 Budget 2018 Budget (Predicted)

9. 9
Focus II: Client Experience, Client Acquisition, & Utilizing Data

10. 10
What Is The Most Important Challenge Facing Your Organization Over
The Next Year?
“Building a client
experience that appeals to
the current and next
generation, that is
supported by a
sustainable operating
model that can deliver that
experience despite
increased competition
from non-traditional
players.”
Percentage of Respondents Indicating Client
Experience as the Most Important Challenge to the Firm
Europe Americas
25% 43%
* Bolded numbers indicate that this a top challenge for the region
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Europe Americas

11. 11
Firms Often Emphasize The Client Relationship Generally Through In-
Person Engagements
How organizations generally target marketing towards a particular client segment?
1. In-Person Engagements
2. Social Media
3. Sponsorships/Endorsements
4. Search Engine Marketing
5. Print Advertising
What challenges do firms face in trying to market to a particular client segment?
1. Brand Perceptions
2. Messaging
3. Generational Differences (Values, Goals)
4. Financial Limitations
5. Call to Action
What do organizations emphasize when marketing to a particular client segment?
1. Client Relationships
2. Client Experience
3. Firm Legacy / Capabilities
4. Specific Products / Services
5. Talent / Human Capital
* Answers in order of prevalence = top Europe = top Americas

12. 12
Client Segments With Most Dedicated Marketing Propositions
0% 10% 20% 30% 40% 50% 60%
Emerging Millennials
Female clients
Professional Services
Entrepreneurs
% of Firms with Marketing Prop for Given Segment
Americas Europe

13. 13
0%
20%
40%
60%
80%
100%
Online
experience
Advisor training Product
innovation
Fees/pricing Awareness of
client needs and
goals
Clear reporting Costs
associated with
the firm
Discussion and
explanation of
financial issues
Americas Europe
Understanding The Drivers Of The Client Experience Has Benefits
Across The Firm
Areas with Greatest Positive Impact on CX Areas with Most Room for Improvement – CX
& WM Industry Overall

14. 14
The Many Objectives of Client Experience Tracking Programs
Brand Health
Competitive
Benchmarking
Ongoing
Tracking
Measurement
Transactional
Measurement

15. 15
Focus III: Regulation

16. 16
“There are so many
[priorities and challenges]
right now. I think
regulation tops the list.”
MiFID II
* Bolded numbers indicate that this a top priority for the group/region
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Europe Americas
Percentage of Respondents Indicating Client
Experience as the Most Important Challenge to the Firm
Europe Americas
25% 0%
What Is The Most Important Challenge Facing Your Organization Over
The Next Year?

17. 17
Regulation Continues To Add Complexities To Marketers Ability to
Innovate
DoL Fiduciary Rule
MiFID II

18. 18
Regulatory Requirements Facing Organizations Are Very Complex
 Despite few in the Americas listing regulation as their top challenge, marketers share
similar if not stronger sentiments to European respondents regarding the impact
regulation has on their organization and ability to innovate
To what extent do regulatory requirements impact…
1=Little impact,10=High impact
Europe Average Americas Average
Your overall business 7.5 7.7
Your ability to innovate around products and services 5.5 6.4
Your ability to innovate around the client experience 6.5 6.7
Your ability to market to existing and/or prospective clients 6.0 7.1
Key regulations in both regions:
Americas = Department of Labor Fiduciary Ruling – DELAYED
Europe = MiFID II – IMPLEMENTED JANUARY 2018

19. 19
Roadmap To Success In 2018 - Executive Summary
Increased focus and budget allocation towards
incorporating technology / automation into business
Regulation within the Americas, particularly the United
States, seen less as a top challenge while just the
opposite in Europe with regulation being top of mind
within the industry
Heightened importance around client experience;
specifically on how the online experience and advisor
training deliver KPIs

20. 20
For More Information Please Contact
David Lo | Scorpio Partnership
david@scorpiopartnership.com
Twitter: @whatwealthneeds
April Rudin | The Rudin Group
april@therudingroup.com
Twitter: @therudingroup
Bob Dannhauser | CFA Institute
bob.dannhauser@cfainstitute.org
Twitter: @robdnn