Category Archives: Fintech

Will FinTech dominate the wealth management model of the future?

This short note previously appeared as update on my LinkedIn profile – I recently authored a chapter in the WealthTech Book, a financial technology handbook for investors and entrepreneurs in global wealth and asset management.

My chapter examines the impact of FinTech on the wealth management value chain. The key question I explore is whether FinTech will dominate the wealth management model of the future, or if there still a place for traditional wealth managers. While I encourage you to grab a copy of the book and read the full chapter, the answer is yes!

A lack of innovation in the wealth management sector to date can be attributed to the scattered nature of the wealth management value chain. Banks, which typically own all aspects of the B2C value chain, have been more vulnerable to disruption with new, digitally enabled entrants picking off prize elements of the chain, such as loans or payments. In wealth management, multiple players tend to own specific parts of a B2C chain, making these markets more complex and less attractive.

However, as digital savvy individuals enter the wealth management customer base, a large number of innovative FinTechs are arriving on the scene. New market entrants are already starting to compete with incumbent wealth managers across the value chain. They are leveraging a different technology-based operating model to deliver better customer experiences, at a better price and a lower operating cost. Traditional wealth managers must disrupt themselves; otherwise they are at risk of being disrupted by new players.

To remain competitive, traditional wealth managers should review and transform their traditional service delivery models, find a new balance between human and technology (yes, they go well together!) and focus on the areas where they can add the most value. In addition, they should re-evaluate their business models including how to charge for services and the most efficient, cost effective way to deliver them.

The opportunities and threats from FinTech have just started. To date, we have only scratched the surface in terms of the amount of change we can expect across the value chain. Looking ahead, I anticipate considerable disruption across operating models, especially in terms of how technology and human elements will bring together the FinTech innovations with the traditional nature of the sector.

You can read more about this topic in chapter one of the WealthTech Book. I’d be more than happy to continue this discussion, and welcome you to send me a direct message or leave a comment below!

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Reflections of a year in wealth management

As most of you know I am a wealth management consultant by trade and the past 12-14 months have been big for me personally with many different exciting and international initiatives. Also personally, as I became a dad for the first time and I just enjoyed two months of paternity leave, something great offered by my employer and something I am very grateful of. It provided me with the opportunity to be a full time dad which has been fantastic. I also thought it would enable me to spend more time on writing my blogs when the little boy was asleep (I expected to be more productive to be honest, but you can write a few sentences here and there is what I noticed). The blogs are something I am passionate about, but I haven’t been able to do over the past months.

In this blog I want to provide an overview of the first hand experiences I’ve had in 2017 dealing with wealth managers and/or being active in the market in general. 2017 included quite some travel out of Australia into Asia, Europe and the US enabling me to engage with seasoned professionals and next generation entrepreneurs. While I have not tried to draw any conclusions I feel that my experiences provide a reasonably good indicator on some of the direction the market is moving towards.  Continue reading

Where to go with private banking and wealth management…

Frequently over the past months we have heard about private banks and wealth managers considering divestment of parts of their businesses (e.g. Asian markets for Barclays, Societe Generale and ABN AMRO private banking) or (considering) selling off their wealth management arms (e.g. ANZ Wealth, MLC) to name a few. Although ‘divesting’ is not the only way to increase profitability of the broader ‘enterprise’ it outlines the challenges the industry is currently facing to realise profit.

While there are clear differences between regions, most of the drivers of these challenges are pretty similar on a global scale. I outline key areas of focus, which are not completely ‘mutually exclusive’, but can be looked at from a variety of angles.

drivers-of-industry-challenges Continue reading

Wealth management – What are you doing next?

What a time to be in the wealth management industry… – What are you doing next?

In my work I am confronted daily with clients’ questions on what they can expect next to ‘hit’ them. We read and hear every day about startups, fintechs, robo advice, disruption etc. and I will obviously share my perspectives on these, there is also the logical next question of “what are you doing next?” All wealth managers know too well that their business model is under pressure and that significant change is expected (it has already started). Reality is that in many cases most of their budgets are still allocated to initiatives focussed on legacy technology and regulations. If they are considering top-line growth initiatives these tend to be approached in isolation or as an add-on to the existing practices, instead of being integrated properly into their broader business model and operations. This is interesting considering that there has been a growing emphasis being placed on customer centricity (and contrary to this, legacy technology and regulations are mainly internally focussed initiatives).

SocialFS 21 v2

http://www.wordclouds.com

Change creates opportunities

Some observations to consider before you continue reading…  Continue reading

Guestblog: Where is “PayPal” for my identity? (or the Beatle-esque title “Filing Cabinet in the Sky”)

Please find a guestblog by Sonia Miles-Khan. She is a FinTech and Innovation practitioner and I am excited to share her thoughts on this blog.

Where is PayPal for my identity?

Or more broadly “Where is my digital safe deposit box/identity bank?” my “filing cabinet in the sky” so to speak…..

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Source image: www.buildthesong.net

Why do we need it?

In society’s movement toward faceless and paperless digital transactions in all walks of commerce and life, the need to verify who we are and authorise transactions is increasing. For example, everyday many of us pay for things online. In the past we had to trust payment gateways with our credit card details and keep these details on us at all times. We had to fill out pesky direct debt slips and sign them and fax them off to administration facilities. However now we don’t need to do that. PayPal is the secure payment gateway that we trust. We enter our bank and card details and secure them with an alpha-numeric password in our PayPal account.

Similarly “proving” who we are has evolved as a laborious task.  While 100 years ago a birth certificate and or identity card proved who we were, now we have a complex web of proving our identities; proof of age cards, birth certificates, drivers licences, passports, visas, passwords, PIN numbers, Tax File Numbers, fingerprints, CAPTCHAs…

Not only do we need to prove who we are to obtain an ID, we also need to continue to use ID after ID, to prove who we are and to multiple organisations.

The administration alone of maintaining current identification status quos is laborious. Adding to this the widening ages and literacy levels of those transacting online and the need for simple identification solutions becomes very apparent. Continue reading

Customer Experience: Playing maturity catch up…

Observations from the Sydney CX Design & Implementation Conference

(11 November – 12 November 2015)

I was lucky to be able to attend the Customer Experience Design & Implementation conference in Sydney last week listening to and speaking with organisations as each shared their experiences, success stories (of course) and learnings (can’t be enough) from organisations covering (but not limited to)  Telco’s, Financial services, Age-care, Government, Recruitment, Logistics, Design, Technology vendors, Fintech and Startups.

It was great to hear the variety of ways organisations make an effort to improve customer experiences across different industries. Such perspective across industries becomes increasingly valuable as many of the experiences people have to one industry drive their expectations and perception of others. As a result, a glass ceiling is put over industries with lower maturity levels in regards to customer experience and related expectations. From my view, which focuses on financial services and wealth management, those industries with lower customer experience maturity levels must play ‘maturity catch up’ versus other more established industries and/or organisations.

In case you are not interested to read further for more detail, buzzwords to summarise the conference include: #Employeeengagement drives customerengagement; #Designthinking; #Listening; #Empathy; #ValueExchange; #Culturalchange; #Differentiateyourexperience; #Multiscreen/#Multidevice; #Rewarddrivescustomerbehaviour; #Customerownsthejourney; #Actionable; #Beingandfeeling; #Voiceofthecustomer; #Nuroscience; Continue reading

Rabobank offers Fintech startups a stage to develop

‘Rabobank’, ‘De Lage Landen’ (Insurer) and ‘MyOrder’ announced to partner with the Startup Bootcamp FinTech for the coming three years. Together with Mastercard and Lloyds Bank, Rabobank is the only Dutch bank participating in this European accelerator program to support startups in the Fintech to accelerate their business.

The bank wants to learn from and collaborate with participating startups. In an interview with Harrie Vollaard, Innovation Director at Rabobank, the necessity of this step and the opportunities that come with this participation in Startup Bootcamp Fintech have been discussed.

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Continue reading