Is Investing Dull?How technology can be used to

promote and sustain client engagement

Simon New Group Executive - Strategy

November 9th 2016

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• 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?

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Too much paperwork

Obstacle #1

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Hours of research

Obstacle #2

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Don’t know where to start

Obstacle #3

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Confusing

Obstacle #4

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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

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Acceleration of technology

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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

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1970’sThe Royal Bank

became the first

British bank to offer

a house purchase

loan scheme to

customers

Direct Debits

were introduced

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1980’sFirst telephone

bank launches

First UK debit

card launched

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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

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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

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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

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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)

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• 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

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It’s more than just having an App…

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Basic expectations: Boring but critical...

Application processAutomating typically time-consuming,

basic but critical processes

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Basic expectations: Boring but critical...

Financial planningTools that are increasingly getting

investors to think in terms of their goals

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Basic expectations: Boring but critical...

ReportsSimplifying reporting and moving

away from mounds of paper

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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

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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

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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

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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

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So what does good look like?

Fully

integrated

Digitally

enabled

Visual

planning

PredictiveHabit

formingEngaging

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Integrated approach to powering your client proposition

Digital

Offering

Parity

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Clear graphics & clear messages

are key drivers for communication

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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

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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

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Help clients invest anywhere

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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

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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.

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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.

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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

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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.

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• 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

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So what does good look like?

Fully

integrated

Digitally

enabled

Visual

planning

PredictiveHabit

formingEngaging

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Thank you