Wrap Version 2 Where now for the Platform Market?

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1 TISA Wrap Seminar D2C wrap models a growing market post RDR David Thompson Managing Director-Elevate May 9 th 2013 Agenda The Current Market Opportunity & Growth Our Learning's Summary 23 1

2 28% of investors are likely or very likely to use a platform for their next collective investment Platforum s Direct Platforum Guide (Issue No.3 Feb 2013) 43 million people fall into a Guidance Gap as they are unwilling or unable to access financial advice. The Guidance Gap - Fidelity Worldwide Investment report in association with Cass Business School (Jan 2013) The Current Market Average account size in direct platform market is 26700, up from last year s average of Platforum s Direct Platforum Guide (Issue No ) 7% of the UK adult population are actively self-investing today and a further 10% are intending to, or considering selfinvesting Many clients new to selfinvesting have different needs from those of traditional D2C clients Source: AXA Research / Marketing Sciences, March Drivers of Change Specific drivers will continue to change consumer behaviour: Information is ubiquitous Transparency raises customer expectations n Use of: RDR changes role of providers & advisers On going regulation will change price points of advice and service Death of savings culture Baby boomer de cumulation needs Video- Shipped my pants 25 2

3 26 D2C- A Growing Market,, From Sept 2011 to Sept 2012 the Direct Market grew from 73.2bn AUM to 94.3bn - 29% growth the Platforum Direct Platform Guide (Feb 2013), 40% of consumers do not know where to invest or save their money to get a decent return,, 35% who do not currently pay for advice, would be happy to do so post RDR Is DIY investing a threat? SOURCE: AXA Big Money Index, September % believe it will result 65% of advisers in more requests for say they are not financial advice from: threatened Youngsters with questions Sophisticated investors 27 SOURCE: You Gov IFA poll, May

4 New Distribution / Advice opportunities New low touch distribution and advice channels Direct via employer Growing retail Online advice from presence in online fleet of foot new FS entrants 28 What s driving the growth of D2C? Source: AXA Research / Marketing Sciences, March

5 Essential Features in D2C Source: AXA Research / Marketing Sciences, March 2013 Key Considerations in D2C Source: AXA Research / Marketing Sciences, March

6 Grow Existing Share of Wallet Service/retain lower value clients Elements of D2C driving growth Attract Orphan Clients Complementary to service proposition Building Brand Awareness 32 - Our learning's so far Depth of Relationship Quality of Relationship Attract existing clients to D2C offering Pick and Mix approach to investing Want a service that is intuitive and engaging Client Clie nt May need some form of guidance in their decision making Offer advice at appropriate stage Low level of confidence in investing Advis er Advis er Longer term opportunity to deepen relationship Run a CRM and Marketing programme- know when to make contact with your clients 33 6

7 How AXA Supports Clients Advisory services Specialist products Segment A Wrap platform Segment B Non-advised offer Direct platform Segment C Segment D 34 Outsourced D2C proposition 1. Analyse IFA client data base for commercial opportunity 2. Create marketing collateral to speak to clients 3. Marketing invites client to visit website- joint branded 4. Clients enter co-branded website to open ISA 35 7

8 Advisers either take an introducer fee or recurring BPS from every ISA taken out by their clients 36 D2C- A growing market The current market & new opportunities Key Considerations of D2C Our learning's ASI-An An outsourced proposition 37 8

9 Important information Information about tax is based on AXA Wealth s understanding of current legislation and HM Revenue & Customs' practice. Tax treatment can change and depends on your personal circumstances. The information contained in this presentation does not constitute advice. It is designed for financial adviser use only and is not intended for use with individual investors. Any sample screen shots displayed are correct at date of issue but may be subject to change. AXA Wealth, Winterthur Way, Basingstoke RG21 6SZ. Telephone number: As part of our commitment to quality service, telephone calls may be recorded. AXA Wealth includes the following companies: Architas Multi-Manager Limited (No ), AXA Portfolio Services Limited (No ), AXA Wealth Services Limited (No ) and AXA Wealth Limited (No ). All of these companies are registered in England and limited by shares. Their registered office is 5 Old Broad Street, London EC2N 1AD. Each company promotes and distributes its own products and is authorised and regulated by the Financial Services Authority. AXA Wealth Services Limited also promotes and distributes the products of AXA Isle of Man Limited and AXA Life Europe Limited in the United Kingdom. Details of the companies offering specific products are shown in the product literature AXA Wealth is a marketing brand used by AXA Portfolio Services Limited. 38 9