Presented at the WMA Annual Summit 2016, Simon New explored the current world of investing and suggested ways in which the industry can take inspiration from others to enhance the client investment process through better engagement

1. Is Investing Dull?
How technology can be used to
promote and sustain client engagement
Simon New Group Executive - Strategy
November 9th 2016

2. iress.com 2
• Perhaps not for professionals who invest for a living, however it
can be time consuming, complex and confusing for the client.
• Technology can’t answer everything - people will continue to
play a significant role.
• However it is clear technology can play a huge part in
enhancing client engagement. Let’s look at how…
Is investing dull?

3. iress.com 3
Too much paperwork
Obstacle #1

4. iress.com 4
Hours of research
Obstacle #2

5. iress.com 5
Don’t know where to start
Obstacle #3

6. iress.com 6
Confusing
Obstacle #4

7. iress.com 7
Bear market
Operating cash flow
Multi-leg options order
Batch trading
Earnings Momentum
Multi-currency Note Facility
BBSY
Accelerated Depreciation
Macro-Hedge Balloon Options
Barometer Stock
Bill & Hold
Intrinsic
value
Extrinsic
value

8. iress.com 8
Acceleration of technology

9. iress.com 9
1960’s
Barclays launched
Barclaycard, the first
British credit card
World’s first cash dispenser
was opened by Barclays in
Enfield. Customers needed to
purchase special vouchers to
use in the machines

10. iress.com 10
1970’s
The Royal Bank
became the first
British bank to offer
a house purchase
loan scheme to
customers
Direct Debits
were introduced

11. iress.com 11
1980’s
First telephone
bank launches
First UK debit
card launched

12. iress.com 12
1990’s
Cashback launched, allowing
customers to withdraw money when
doing their supermarket shopping
1997 - Nationwide
launches first Internet
banking service
1990 was the year for ‘peak’
cheque usage. With 11 million
cheques written in the UK per day

13. iress.com 13
2000’s
Introduction of first ‘chip’ and
‘pin’ credit and debit cards
Contactless card
transactions
Launch of ‘faster payments’ -
which enabled internet and
phone banking payments to be
made almost instantaneously

14. iress.com 14
2010 to now
Debit card expenditure on the
high street exceeded cash
spending for the first time
Contactless bank
payment accepted
on the underground
App only Atom Bank launches
Launch of mobile banking,
with the first apps allowing
customers to check balances
Barclays launced ‘Pingit’, an app that
allows customers to make instantaneous
payments using mobile phone details

15. iress.com 15
2010 to now
11m banking app
log-ins a day during
2015 - 2014
2% fall in Internet
banking logins during
2015 - as people
migrate to the apps
32% fall in branch
visits between 2016
and 2011
347m payments made
via banking apps in
2015, a rise of 54%
since 2014
£1bn – investment
by LBG for digital
banking technology
between 2015
and 2017
3 million people now
registered for Barclays
mobile phone banking
service Pingit (as of
Sept 2015)

16. iress.com 16
• The pace of innovation continues to astound and accelerate.
• What technology is available today for investors and what
does good look like?
• What innovations might we see tomorrow that will further
enhance client engagement?
The technology of today and tomorrow

17. iress.com 17
It’s more than just having an App…

18. iress.com 18
Basic expectations: Boring but critical...
Application process
Automating typically time-consuming,
basic but critical processes

19. iress.com 19
Basic expectations: Boring but critical...
Financial planning
Tools that are increasingly getting
investors to think in terms of their goals

20. iress.com 20
Basic expectations: Boring but critical...
Reports
Simplifying reporting and moving
away from mounds of paper

21. iress.com 21
Embracing the virtual world
• Atom Bank launched in April 2016
• UK’s first bank built exclusively for mobile
• Easy to use and quick to open
• Biometric logins, AI customer service
• Transforming the banking landscape
• Technology core to their existence

22. iress.com 22
Making planning come alive!
• Goals-based planning is
steadily gaining momentum
• In US it accounts for 50%+ of
planning and is expected to rise
over next 3 years to 65%
• Technology plays an important
beyond plan initial creation, by
also stimulating clients during
the investment process

23. iress.com 23
Engage the client
• Investments can be seen as
boring and vanilla
• Other industries have been far
more imaginative in engaging
clients in what could be seen
as a dull process
• Technology can help with mass
customisation and
personalisation – in products
and services

24. iress.com 24
Use information to help the client navigate
• Use of data is a perennial topic
• Using a literal example, technology
can help navigation
• Using data intelligently can also
enable us to provide personalised
options
• It offers us real time analytics and
helps us to generate ideas

25. iress.com 25
So what does good look like?
Fully
integrated
Digitally
enabled
Visual
planning
Predictive
Habit
forming
Engaging

26. iress.com 26
Integrated approach to powering your client proposition
Digital
Offering
Parity

27. iress.com 27
Clear graphics & clear messages
are key drivers for communication

28. iress.com 28
Give your clients news and insights
• Changing approach to research and
providing information and insights
• Increasingly important to provide
interactive support for clients
• Way of driving engagement and
demonstrating value added

29. iress.com 29
Make it easier to see the important things
Tilney Bestinvest – Online Client Experience – Research and Functional Discovery - (c) Ernst & Young LLP – Proprietary & Confidential
• Visual representation is important,
but it’s not just ‘show me’
• It’s also about alerting me as a client to
things I should be aware of
• MiFID II will force certain changes such as
changes in portfolio value
• Technology can help manage the process

30. iress.com 30
Help clients invest anywhere

31. iress.com 31
Video and call enabling
• One of the biggest shifts in
activities enabled through
digital developments is visual
collaboration
• This technology lends itself
very well to advisory services
• A good compromise between
human interaction and digital
service

32. iress.com 32
Digital advice delivery
• Interaction and engagement can be
tailored to reflect different
preferences, styles and
understanding
• Technology allows the delivery of
consistent investment processes but
delivered in very different ways
• We’re already doing this with clients
in Australia.

33. iress.com 33
Same solution, different skin
• In an increasingly fast moving
market, expectations for the
longevity of web design is also
reducing
• The need to keep reinventing
and refreshing is increasing
• An online UI is easier and
cheaper to refresh than
traditional desktop systems.

34. iress.com 34
Make it habit forming
• Understandably, most firms focus
on the size of assets and AuM –
small doesn’t always get attention
• Whilst micro investing may not be
the key to large discretionary
portfolios, some of the lessons we
can learn are important
• Engagement, fun and habit
forming

35. iress.com 35
Make it interactive and interesting
• Similarly being imaginative in the way
clients are engaged in the investment
process can help break down some
of the barriers to investment
• In this particular example, Fidelity
create a ‘stock city’ – to help clients
understand their portfolio
• Whilst it is in a formative stage, its an
interesting example.

36. iress.com 36
• Investing can be daunting and dull
• Technology is evolving fast and provides some
interesting options for making it significantly less so
• Whilst we don’t see technology completely replacing
human interaction, we do think that it can help makes
investing more interesting, engaging and ultimately
rewarding for clients
Conclusions

37. iress.com 37
So what does good look like?
Fully
integrated
Digitally
enabled
Visual
planning
Predictive
Habit
forming
Engaging

38. iress.com
Thank you