As part of this year's Money Marketing Interactive; IRESS' Chris Pitt takes a closer looks at - how will consumers want to interact tomorrow?

1. iress.com
Preparing for change
Chris Pitt
Head of Market Analysis
26th May 2016

2. Technology
disruptors
?
So, what
should I do?
Consumer
segmentation
Agenda

3. There is significant disruption within the Wealth Management
industry. New ways of delivering advice continue to emerge, and
competitive positions will erode while others will strengthen, creating
winners and losers across the industry.
Wealth Management firms must strategically evolve to adapt to
these critical shifting dynamics.
Shifting dynamics
Source: Deloitte

4. Impact on other industries
* Source: IMRG Capgemini eRetail Sales Index
24% of retail sales now
take place online*
£114bn
UK ecommerce sales

5. Disruptors?

6. But…
Let’s not forget existing capabilities
• RPQ
• Lifetime cash-flow analysis
• Product sourcing
• Suitability reports
• New business & trading
• And more…
• Video conferencing (Skype)
• Client portal
• Secure document exchange
• Consumer driven calculators
• Online fact-find
• And more…
Streamlining the process More efficient delivery

7. Data aggregation
What FinTech innovation would
people most like to see in the future?
IRESS Data, Disruption and the Digital Consumer report (iress.com).
The ability to view their financial world - bank accounts,
mortgages, investments, insurance - in one place.
23%

8. Pensions dashboard
47% not confident how much their pension is worth.
Source: Which?
“The concept is so compelling that it is already
an established part of the pensions industry in
other countries. Savers in Denmark, Sweden
and the Netherlands all have access to a
dashboard of some sort.”
Darren Philp, The Peoples’ Pension

9. Digital passports & data vaults
A third of people would save or invest more if it was easier to transfer
money and open saving or investment products.
Source: TISA
• Barclays
• CitizenSafe
• Digidentity
• Experian
• Post Office
• Royal Mail
• SecureIdentity
• Verizon
Certified companies
• Your online assured identity
• Already an option for
accessing UK Gov’t services

10. Digital advice
Life Co’s and asset managers making major investments.
ABERDEEEN ASSET
MANAGEMENT
Acquire Parmenion
BLACKROCK
Acquire FutureAdviser
INVESCO
Acquire Jemstep
SCHRODERS
Takes stake in Nutmeg
LV=
Takes stake in Wealth
Wizards
FIDELITY
Fidelity acquire
eMoney Advisor

11. Digital advice
In a recent webinar, IRESS asked advisers what they thought about
robo-advice:
65% 9% 23%
Opportunity Threat Undecided
2016: A Robo Advice Odyssey available on YouTube

12. Digital advice
What is ‘Robo-Advice’?
Stuff & Nonsense! Real challenges
Who cares?
Many will try - many will fail
Application technology to ‘self-led’ advice
Consumer engagement
Client acquisition
Consistency across channels
Compliance
Proposition

13. Consumer
segmentation
Agenda

14. Dispelling the age myth
IRESS Data, Disruption and
Digital Consumer report
• Little difference in tech usage between age groups
• Biggest difference between income groups
• The higher the income, the more likely to access
current affairs information daily online

15. Who will use robo?
Source: CFA Institute (Fintech Survey April 2016)*
Ultra High
Earners
21%
Institutional
Investors
24%
High Net
Worth
41%
100
80
20
40
60
Other
Investors
67%
Investors positively affected by automated advice tools*
Mass
Affluent
70%

16. Who will use robo?
Market
Fraud
37%
Quality of
Service
37%
Product
Choice
55%
100
80
20
40
60
Access to
Advice
62%
Consumers positively affected by automated advice tools*
Costs
89%
Source: CFA Institute (Fintech Survey April 2016)*

17. Segmentation
Categories Dimensions
Primary channel preference
Price sensitivity
Financial literacy
Life stage / Life events
Peer-group & influencers
F2F Phone Online
Lo Hi
Lo Hi
1st job 1st child 1st property Retirement
Friends & family Colleagues Social media

18. ?
So, what
should I do?
Agenda

19. Creating a technology roadmap
• It’s not going away!
• Segment and design accordingly
• Expect an omni-channel world
• Become the point of client data aggregation
• Encourage client access

20. Creating a technology roadmap
Adapt your
proposition suite
Automated advice
(robo advice),
omni-channel
3
Transform your
operations
Workflow, process
reengineering, online portals,
lower cost servicing,
automating compliance
2
Improve your client
experience
Consistent, seamless
experience; visually stunning,
easy access to their provider
1
Underpinned by a digitised omni-channel platform

21. Thank you
Email: chris.pitt@iress.co.uk
Mobile: 07920 135708
Chris Pitt
Head of Market Analysis
LinkedIn: Christopher Pitt
Twitter: @chrispitt11