Merrill Lynch ebusiness Strategy Conference

Transcription

1 Merrill Lynch ebusiness Strategy Conference Successful Integration of Online and Offline Business Strategies John Michel First VP, Senior Director June 14,

2 Trusted Global Advisor (TGA) Workstation TGA launched in 1994 Facilitate almost 20,000 Financial Advisors in viewing and managing customer information on one integrated presentation workspace As a traditional client/server application, we realized some of the issues in maintaining it and looked for other solutions 2

3 Trusted Global Advisor (TGA) 3

4 US Retail Merrill Lynch Online launched September 1996 Access to account information Access to product information Enhance existing client relationship with Merrill Lynch Financial Advisors 4

5 US Retail Merrill Lynch Direct launched December 1999 Web based service for self-directed investors Part of an integrated strategy focused on client choice Sister site to Merrill Lynch Online 5

6 Institutional Extension beyond the retail client MLX launched Summer 2000 Corporate, Institutional and Professional Investors Trading Portal Providing award winning research, new issues and offering information 24-hour trading MLX MarketEdge provides UK and European investors with a fast and convenient way to access global equity markets with immediate execution and straight through processing 6

7 Global Banking/Brokerage Target clients: Mass affluent & self directed The alliance of Merrill Lynch and HSBC is the competitor that financial companies in Europe fear the most. -The Economist, March 17, 2001 Launched December 2000 Two trusted brands International coverage Complementary technology Intellectual horsepower Broadens product range and distribution capabilities of both companies Speed to market 7

8 Services that Influence Customer Satisfaction Branch personnel 27.5 Online customer service Automated investments Online account summary Online bill payment Electronic funds transfer Direct deposit ATM cash deposits ATM cash withdrawals Downloading activity to PFM 6.6 LOW STICKINESS HIGH STICKINESS November 2000 Forrester Report 8

9 Clicks and Bricks Integrating the online strategy into the traditional model Prior to Merrill Lynch Direct Limited online services = limited client choice Today 20% of new Merrill Lynch Direct accounts are referrals from Financial Advisors Our local portal program which launched in May 2000, currently has 6,000+ out of 20,000 Financial Advisors participating 9

10 Clicks and Bricks Merrill Lynch currently has over one million clients online across all web based offerings. Traditional Relationship with a Financial Advisor Combination with MLOL Self-directed with ML Direct Online trading is quick and easy, online investing takes time. Securities Exchange Commission: Tips for Online Investing, Feb

11 Changing Market Dynamics Physical presence counts 22% of online investors are advice directed - prefer making investment decision with a professional s input Multi-channel In Pure-play Out of Favor 56% of online investors maintain an offline account 24% of these do so to maintain a relationship with their broker Gomez, 2001 Gomez,

12 Timeline of Transformation 12/99 ML Direct 12/00 HSBC 8/98 Funds Transfer 7/99 Online Trading 8/99 Bill Payment Through Web Summer/00 MLX 1994 TGA 9/96 MLOL 2/98 Online Statements 5/99 MLOL Custom Home Page 5/95 1st Public Site 12

13 Merrill Lynch ebusiness Strategy Conference Successful Integration of Online and Offline Business Strategies John Michel First VP, Senior Director June 14,