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Posts from the ‘Banking’ Category

25
Aug

Digitizing Wealth Management – The Rise of Robo-Advisors

Fintech stands for financial technology. It’s just a blanket term for technology that is disrupting the financial services industry. Payments, Blockchain, Robo-Advisors (or automated investment advisory services) are all segments in Fintech.

Why robo-advisors? We are in the early stages of a shift in wealth management, especially “plain vanilla” investing for the mass affluent and millennial segment.  Until recently, you had only two options when investing:

  • Do-it-yourself (DIY)
  • Hire a registered investment advisor (RIA)

Now there is a third option.  Robo-advisors are new a class of financial advisors that provides online, algorithm based portfolio management with minimal human intervention. Robo-Advisors going after the low-end of brokerage/RIA business with automated asset allocation.

The Robo-Advisors market leaders who are serving the mass affluent include are:

  • Wealthfront (with over USD 2.6bn in assets under management (AuM) and 20,000 investors);
  • Betterment (with over USD 1.4bn in AuM and 70,000 investors); and
  •  FutureAdvisor (With over $600 million in AUM).

The timing for this market shift coincides with three trends: consumerization, digital tools, and disillusionment with status-quo investment advisors.  The gyrating stock market driven by program trading is increasingly bringing Robo-Advisors, algorithmic portfolio management to the forefront.  Investors are getting disillusioned with traditional investment advisors who simply track the market indices (SPY, QQQ or Russell 2000) by purchasing ETFs at best.

Many banks and brokerage firms over the years have shifted their focus to serve ultra high net worth (UHNW) and high net worth (HNW) investors, leaving an opportunity for firms to target the “mass affluent” investors, or those with less than $1 million in investable assets. Younger investors are increasingly interested in online digital advice, as opposed to hiring an adviser.

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25
Aug

Digital Personas, UX and Customer Journey Mapping

Who are we designing for? What are we designing?  What outcomes are we targeting? What are the end-to-end user journeys as boundaries blur  between consumers, stores and consumer brands?

How do you approach the messaging and the storytelling, especially given the challenges of channel proliferation? How do you break through the clutter? The first step in every digital strategy is to develop personas that segment the audience and serve as the foundation for customer UX and journey mapping analysis.digital-persona-development2

The best practice firms start with the user. Working from the perspective of the client who consumes a product or service, they focus on personas or “one idealized digital user.”

The goal is to think about the prospect, consumer, user as a human being. What matters in his or her life. Why?  Because users do not wake up in the morning and think, “I need a new app today,” for example. People wake up in the morning and worry about getting to work, getting kids to school, where to meet friends for dinner, paying your bills and saving for the future.

Understanding the persona and the daily journey is critical in modern experience design.  If marketing is going to interrupt you with something that they think is important to you, they have to find a way to tell the user about it so that it resonates with the user. There has to be a benefit to user. There has to be substance. Hence the need for real-world story-telling and context.

What is a digital persona?

Personas are fictional characters used to represent specific segments that interact with the brand across a variety of touchpoints. Personas characterize attitudes, values and behaviors of customer segments, and draw from various inputs to accurately depict the customer. They are helpful in distilling key information into more succinct stories that can be quickly understood. Personas are developed using qualitative research interviews, ethnographic studies – talking to real people about their real needs, motivations and behaviors.

Why is digital persona development important? The new battlefield is the customer journey and its various touchpoints across the lifecycle: AWARENESS → CONSIDERATION → PURCHASE → LOYALTY → ADVOCACY.

Across every industry, consumerization is changing how People they interact with businesses. Traditionally, most businesses have followed the same marketing and sales playbook to generate leads, close sales and provide support to their customers as they did 10-15 years ago. Businesses need a more effective way to humanize the target audience in order attract, engage and delight customers who have access to an abundance of information and an ability to block traditional marketing and sales tactics. To do this, businesses need to deliver an customized experience, which enables them to be more helpful, more relevant and less interruptive to their customers.

I believe an effective way to illustrate how people have transformed the way they consume information, research products and services, make purchasing decisions and share their views.  You get a sense of this by reviewing these general personas – Digital Susan, Social Ashley, Introvert Dave,  Modern Meghan and Traditional Ted.  Read more »

28
May

The Chief Digital Officer (CDO) – Defining this Critical Leadership Role

“Today’s CEOs are starting to take active roles as the de facto chief digital officers within their companies. Digital transformation is  a CEO-level conversation, we’re in the board room, presenting to the board. In the last three weeks, I’ve had more conversations with CEOs around transformation than in my entire career.” Salesforce CEO Marc Benioff 

“Everything we (Starbucks) are doing in digital is about enhancing and strengthening those connections [with our customers] in only the way that digital can and only the way that Starbucks can. “ Adam Brotman, Chief Digital Officer

“Financial assets are all digital. That’s where your customers are and you want to be where your customers are.” Steve Ellis, head of Wells Fargo’s innovation group.

———————

New Technologies | New Possibilities | Design Thinking

Consumerization, data-driven digital engagement, insightful multi-screen and multi-channel user experiences are increasingly taking center stage. Companies are building up their Digital DNA to engage with customers, blend physical, digital and virtual elements, and interact via new channels.

There is often a big difference between the digital experience companies deliver and what the consumer is looking for. Most companies flat-out miss this point. As a result, there has been an exponential increase in executives being assigned Chief Digital Officer (CDO) titles.

CDOIn fact, there have been a tremendous proliferation of new XO titles that all focus on the customer, innovation, omni-channel platform and revenue growth in some form or fashion:

  • CDO – Chief Digital Officer
  • CDO – Chief Data Officer (data is at the heart of  digital today)
  • CCO – Chief Consumer Officer or Chief Creative Officer
  • CXO – Chief Experience Officer
  • CIO – Chief Innovation Officer
  • Cross Channel Customer Officer (also Chief Revenue Officer is title i am coming across more)

In this article, we focus on the Chief Digital Officer (CDO), an executive who is in charge of emerging digital customer experience and next generation experience (e.g, Augmented Reality or Speech Driven UI). Wikipedia describes the CDO as an executive who helps a company drive growth by converting traditional “analog” experiences to digital ones, and by overseeing operations in the rapidly-changing digital channels: mobile applications, social media and related applications, as well as web-based information management and digital marketing.

CDOview

CDO roles are permeating every large consumer facing organizations.

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