5 Trends That Will Impact Client Acquisition in 2018 An Executive Briefing with Bill Walton

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Juliet Stevenson
5 years ago
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3 Contents and Agenda Introductions Rationale for Today The 5 Trends: Q&A Close The global socio-economic environment Impact Everything Fiduciary duty and shifts to fee-based models Changing client needs: diversity and complexity Need for digital solutions (internal and external) Emerging advisor/client relationship models 2017 ProDirect LLC All Rights Reserved. 3

4 Todays Purpose Global Wealth Management is bracing for a multitude of changes weaker developed economies, new fiduciary landscape and demographic shifts in what constitutes an ideal client. This briefing will identify challenges and recommendations on how platform providers, advisors and their asset management partners can mean more to a changing prospect and client landscape in The 5 trends we ll discuss: The global socio-economic environment Impact Everything Fiduciary duty and shifts to fee-based models Changing client needs: diversity and complexity Need for digital solutions (internal and external) Emerging advisor/client relationship models 2017 ProDirect LLC All Rights Reserved. 4

The established order has been turned on its head, and powerful trends like climate change, populism, and AI have emerged.

5 Trend 1: Impact Everything What I want, when I want it and how I want it Recent world events have reshaped the political, economic and social map. The established order has been turned on its head, and powerful trends like climate change, populism, and AI have emerged. We all want control, influence and transparency [and a CONNECTION] BlackRock launched new division called Impact ; Goldman Sachs acquired Imprint Capital; and Bain Capital and TPG launched impact funds ProDirect LLC All Rights Reserved. 5

6 Trend 2: Impact of Fiduciary Rule Shift to Fee Based Advisory Robo Advisors and FinTechs Compliance Costs Spike Impact of DOL More Aware Client Revenue Loss Growth In RIA Model Source: Source: Capgemini Financial Services Analysis, ProDirect LLC All Rights Reserved. 6

7 Trend 3: Changing Client Needs The typical HNWI evolving into highly demanding client, looking for high-end financial planning and professional advice. More aware of the types of alternative services available Demanding better fee structures from their asset managers: lower fees for standardized services transparent pricing for clients è price competition è margin pressure Demand for digital communication: real-time and online portfolio management Focus: providing a better customer experience and value add ProDirect LLC All Rights Reserved. 7

8 Trend 3: Changing Client Needs Wealth Management Operating Models of the Future Robo/ Platform Hybrid Goals Based Interesting Fact: Globally, 36.0% of HNWIs believed that the firm is the reason to hold assets with them, compared to 24.0% who said the wealth manager was the reason. Source: 2015 RBC Wealth Management 2017 ProDirect LLC All Rights Reserved. 8

9 Trend 4: Need for Digital Solutions All firms trying to leverage digital technology to transform their businesses. Wealth managers recognize role digital technology plays in delivering service. Tech-savvy users are demanding increased access to information and resources. EXAMPLES: Intuitive website designs and consolidated investment portals that streamline user navigation and delivering information across functions to drive usage and customer collaboration. Multi-channel communications across instant messaging, video chat, social media, and co-browsing. Aggregator models that capture information from clients through self-serve mobile and ipad applications when you know more, you can mean more. Source: Tandem7, How to Digitally Transform the Wealth Management Experience 2017 ProDirect LLC All Rights Reserved. 9

Trend 4: Need for Digital Solutions For Client Acquisition: Focus on understanding the client s objectives, needs, household, health, family history, and risk tolerance.

10 Trend 4: Need for Digital Solutions For Client Acquisition: Focus on understanding the client s objectives, needs, household, health, family history, and risk tolerance. This data should be captured digitally during up front conversations with the client and/or via online selfdirected wizard-like tools. Source: Tandem ProDirect LLC All Rights Reserved. 10

11 Trend 5: Emerging Advisor /Client Relationship Models If we truly want to erase the seams between (customer experience) channels and experiences, these systems of record should become decidedly less distinct. Customer data and voice should be shared and orchestration paths and workflows should be connected and coordinated via a unified hub. Jake Sorfman, Toward a Unified Customer Experience Hub, Gartner Develop services & solutions given investment themes pursued by HNWIs. Employ business models that leverage brand value and technological capabilities. Source of wealth is key inherited or created? Ideal client segmentation never more important. Wealthy Land Owner CEO Entrepreneur Newly Married Professional Couple Family Office 2017 ProDirect LLC All Rights Reserved. 11

12 Recommendations 1. Answer this what do YOU want? (besides more) 2. For firms find the right recipe of tech AND services ASAP 3. For advisors, brokers, Private Client specialists: Who is ideal? 4. Segment by client type build an issue fluency 5. Learn more to know more can the inquisition 6. Clarify your value prop and connect to #3 7. For RIAs and Independent brokers: sharpen your business acumen 2017 ProDirect LLC All Rights Reserved. 12