This document discusses digital trends across several financial services industries including banking, asset management, insurance, and lending. It notes that customers are demanding more convenient digital capabilities and are willing to pay for services that offer more value. It also discusses how various industries are facing disruption from new digital entrants and business models. The document explores how established brands can meet evolving customer needs through approaches like being always-on, providing accessible advice, enabling peer investing, offering direct-to-consumer platforms, and using data to power personalization.
2. Locations
ORM is…
An award-winning digital agency composed of thinkers,
creators and innovators.
We lead brands through digital change to confidently
face the future.
Using data and insight to inform our thinking, we
architect strategies, platforms and applications across
owned media.
We enable our clients to take advantage of tomorrow,
while generating meaningful value for them today.
• Part of the Howard Hunt Group
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• Group employees 450+
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Clients
• Strategy and insight
• Experience design
• Content strategy and delivery
• Technology and development
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ORM
• Head Office: London Bridge, London
• Project Office: Kings Cross, London
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GROUP
• Head Office: Dartford, Kent
• US Office: Boston, USA
• Europe Office: Madrid, Spain
• Based in London with 70 staff
• Adobe, Sitecore and EPiServer partner
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Some facts Clients Locations
4. Convenience
Trends from retail are now
increasing expectations in
financial services
$83bn
—
is lost each year in poor
customer experiences
(IBM)
5. 62%
—
Smartphone penetration
in the UK - Europe
increase 10-20% YoY
We’ve become mobile first
72%
of smartphone owners
use applications on
a daily basis
92%
—
of UK smartphone users
browse the internet daily
on their device
25%
—
of smartphone owners
would rather give up
their PC than their mobile
34%
—
of UK smartphone users
spend as more time on
their mobile as their PC
52%
growth in tablet
ownership; faster than
PCs experienced
84%
of mobile device
owners browse while
watching TV
6. Wealthy individuals are digital natives
48hrs
—
HNWIs spend
this many hours online per
week, on 4 devices
$2500—
is the average one-off online
expensive
purchase by HNWIs
45%
—
luxury buyers influenced by
online videos and tailored
content
$4m
—
those with a net worth in
excess of this tend to be
the most digitally savvy
65%
—
highlight the value
of online collaboration
80%
—
of European HNWIs use
search engines to find
what they need
92%
—
consider digital tech as a
major source of ongoing
wealth generation
7. They use social to research and make decisions
4%
—
of investors currently
interact with their adviser
on social media
52%
—
of investors said they
would connect with their
adviser on social media
30%
—
use social to recommend
a financial product
or service
28%
—
perceive a financial
company as innovative
if they offer social tools
34%
—
subscribe to finance-
related blogs
44%
—
seek advice to help make
a financial decision
33%
—
use social media to
re-evaluate a financial
decision that has already
been made
46%
—
follow a recognised
industry expert/exec
on social media
8. By 2015, “digital natives” will hold the majority
of buying power in the economy, and by 2025,
they will dominate UK savings capacity
– PWC
9. Revolution is coming to your cyberspace very soon!
Timing (years)
0
5
10
15
20
25
30
35
40
45
50
0 1 2 3 4 5
Impact(%changeindigitalbusiness)
Realestate
Professional services
Finance
ICT and media
retail trade
Arts and recreation Government services
Utilities
Recruitment and cleaning
Transport and post
Health
Education
Agriculture
Mining
Manufacturing
Construction
Wholesale trade
Accommodation and
food services
Short fuse, Big Bang
32% of the economy
Long fuse, Big Bang
33% of the economy
Long fuse, Small Bang
18% of the economy
Short fuse, Small Bang
17% of the economy
10. Audience needs are changing
Consumers to
lower-tier intermediaries
Authenticity and
simplicity
• More retail focus to
content
• Features and benefits
• Peer to peer advice
• Educational tools
• Experts as personalities
All expect
Hyper-convenience
• Digital self-service
• Multiple media types
• Responsive and adaptive
• Specific touchpoints for
specific tasks
Intermediaries
to institutions
Accessible expertise
and the inside track
• Audience specific portals
• Thought leadership hubs
• Advice centres
• Access to experts
All expect
More relevance
• Need based navigation
• Personalisation
• Content syndication
12. Customers are demanding innovative digital capabilities to access financial products and
are willing to pay for services they believe will offer more convenience and value
• Telephone banking - HSBC call volumes down 5% in 2014 after a 4% drop in 2013
• Branches operated by the UK’s retail banks shrunk by +25% in the last 20 years
• Only 16% of customers don’t use online or mobile banking*
• 39% of SMEs use online at least once a day, 69% at least once a week and 79% at least
once a month. Only 7% never use
• 69% currently use the internet to purchase financial products ***
• 6% via a mobile device.
• Nearly 90% of Tesco Bank’s sales currently online
*YouGov polling carried out for the BBA
**Accenture Survey
*** PwC survey of 3,000 banking customers in 9developed and emerging markets
Banking habits are changing rapidly
13. Joint ventures
• JV with Monitise, "investing in, building and scaling fintech businesses with
the potential to redefine and support financial services globally."
• Access to Monitise's new cloud-based platform connecting banks to digital
innovation for their customers
• Opportunity to partner with Santander
• Santander set up $100 million fund last year to invest in fintech startups too
18. Homepage trends
• Homepage content is focusing on customer’s
needs/tasks rather than actual products
• Carousels and banners are being replaced by
images aimed at engaging customers on an
emotional level
• The primary navigation tends to show fewer links,
to clearly displaying the products range
• ‘Mobile first’ approach and responsive websites
are a given
• Homepages are de-cluttered, making space for
highly relevant tasks and content
• Innovation – getting customers involved in the
digital process through crowdsourcing and
feedback
• Seamless journeys and a strong brand identity link
up online and offline experience
23. The UK investment management industry is at a
turning point. Traditional active managers have
already had to adapt to institutional changes, but
now face a confluence of retail trends”
– Deloitte, Seismic shifts in investment management
24. Your industry is being disrupted
Individual
Responsibility
Concern of
high costs and
low returns
Increasing
requirement for
international
products
“Retailisation”
Asset
Managers
going direct
New kinds of
intermediaries
Disruptive
wealth creation
models
Technology
25. The trend to go direct at volume is growing
New entrants Your peers
“Nutmeg targets
100k users by Q2
2015”
The group raised £19m
from investors
including Schroders
“Investec to
launch a rival
to Nutmeg”
Wealth manager is
setting up a
discretionary
investment
platform later this
year.
Wednesday 06 May 2015
“Barclays plans
D2C offering
for 2015”
Monday 07 July 2014
“Hargreaves
to launch D2C
discretionary
service to plug
advice gap”
Wednesday 03 September
2014
26. New investment models
Q2 2015:
eToro raising an additional $12million
The total investment volume raised among the investors amounted to $39 million.
Funding circle fund £623,610,260 worth of loans so far
28. How are brands meeting needs?
Always on
• Real-time
performance
• Responsive and
adaptive
• Specific touch
points for specific
tasks
Accessible advice
• ‘Retail’ style
thought
leadership hubs
• Online access to
professionals
• Educational tools
Peer investing
• Find and follow
investors
• Transparent
performance
• Peer comments,
advice and
sharable info
D2C platforms
• Audience specific
portals
• Digital self-service
• Needs based
navigation
• Digital
transactional
portals
Data informed
investment
• Data informed
client acquisition
• Personalisation
• Content
syndication
• Intermediary tools
29. Closing the ‘advice gap’
“A 'fundamental step-change' is required in order to make financial
advice accessible to those with portfolios below £100,000”
“For the average person in the UK accessing advice is very difficult
and they are left with two choices, one is to do nothing, which I would
advocate is not a great idea, or move to DIY investing solutions.”
– Chris Williams, founder, Wealth Horizon
Accessible advice
30. Digitising investment selection
and management
The move provides increased accessibility and
transparency, but reduces the opportunity for
AMs to effectively cross and up-sell their services
• Platforms reached record highs in the fourth
quarter of 2014 as upcoming pension freedoms
and demand for income boosted inflows
D2C platforms
31. Advisers using tablets as
productivity tools
“Clients can access our comprehensive range of
tools and economic research, as well as analysis
across all asset classes, including equities,
foreign exchange, fixed income, emerging
markets, and futures and options.
On-the-Go brings intermediaries
all our fund information, market
insights and videos.”
32. Which audience should we be focusing on in the digital space?
Artemis mainly focuses on its individuals audience with its
website.
33. Which audience should we be focusing on in the digital space?
BlackRock’s digital presence focuses more
on intermediaries and institutional
audiences. Institutional content is
particularly strong with specialist events for
pension funds with online registration.
There are video viewpoints from subject
matter experts on themes such as
sustainable investing and Beta strategies.
34. Which audience should we be focusing on in the digital space?
M&G iView and Learning Matters
focuses on intermediaries and
specifically lower tier IFAs. These are
starved of face to face contact and
need help running their businesses.
36. Guest writers
JP Morgan provides advice within its
insights section from notable financial
advice columnists, such as here where
Ian Cowie from the Sunday Times
talks about the structural advantages
of income trusts.
37. Owned digital magazines
• Insight pieces are finely segmented
• Different interest areas reflect make up of
major FS online content providers like
Morningstar
• Overviews, funds, viewpoints, retirement
41. Macro trends in insurance
Consultative
approach
Risk increasing
due to global
change
Technology
Brokers
42. 1
• Lack of trust in insurers
• Apathy and lack of interest
• Lack of understanding of what you
get for their money
How can digital change
perceptions of insurance?
Challenges facing your industry
43. 2
• Digital experiences primarily look
at price and purchase incentives
• This reinforces the perception that
insurance is a price-driven
commodity
• But what about improving the
customer experience?
Buying insurance is
decided on price, isn’t it?
Challenges facing your industry
44. 3
• Great customer
experience/advice
• Great UX – e.g. easy to
fulfil online
How can you buck the
disintermediation trend?
Challenges facing your industry
45. Insurance brokers must respond to these challenges
Insight led
experiences
Contextual
expertise
Fast speed of
response
Facilitate risk
through digital
46. From our review of the market the direction to market leading is clear:
Tactics
• More retail approach to IA and
customer journeys
• Visual merchandising: the
placement of CTAs/products on
customer journeys that are
organised by need
• Personalisation and visitor
self-selection
• Shorter, features and benefits
led content
• Mobile-first design
• More helpful and supportive
of customers
Success measures
• Increase in applications and
completions
• Increase in proportion of
digital interactions
• More return visitors browsing
more services for longer
• More recommendations
• Increase in products held by
each customer
Strategic approach
• Differentiated experience
from your peers
• Customer not inwardly
focused
• Simpler to consume (across
purchase/renewal, advice
and inspiration journeys)
• Ability to measure, test and
learn
Achievedby
Inorderto
A game-changing digital strategy
47. 1
• Power shifting to standardised risk
• New business opportunities in
emerging risks e.g. nanotechnology
• Niche market opportunities now
accessible through digital, new
sectors and geographies
Customer revolution
How are brokers responding to this?
48. 2
• Investing in digital for competitive
advantage
• Dealing with the ‘Black Swan’
problem of emerging risks,
particularly technological
• Managing and tracking
risk change
Demands for profitability
How are brokers responding to this?
49. 3
• New markets, new products
• Technology and analytics to create
insights, data led decision
Information
How are brokers responding to this?
50. What do risk facilitation leaders look like?
Needs-based approach
Using digital to support
both cost efficiency and a
more consultative approach,
simultaneously
Content leaders
Expand information
gathering to better
anticipate risk, and through
content pass this expertise
on to the client
Data experts
Improve their ability to
collect, integrate, analyse
and communicate data into
actionable insights
51. What could this mean for consumer needs?
Ecotricity use customer data to
promote the use of green
energy
Hive combines gas-use tracking
hardware and cloud-based
account management to give
more control over home heating
MyVirgin media uses customer
analysis to recommend products,
whose delivery can be tracked
from within the platform
54. This model is being rolled out
to business lending • Everline allows small and medium
sized businesses to borrow up to
£120,000 for up to 24 months
• Up to date business data and
innovative technology supports
responsible, real time, automated
risk decisions
• 10 minute application process.
Funds in 5 minutes
• Over 6,000 business loans and
lending +£60m to small businesses
55. Amazon lending – business
lending for resellers • The interest rate for all sellers is
5.9%, with a 1% arrangement fee.
Less than funding circle
• Borrowers must pay Amazon back
within four to six months
• Apply from within your Amazon
merchant account
• Buyer ratings and performance
count used as part of acceptance
criteria
• Money within five business days
• Already in US and now UK and
China
58. Platform Black: a new working
capital model “Pay-as-you-go working capital”
innovates the traditional invoice
factoring model by allowing clients
to auction outstanding payments to
institutions and private investors.
• Access to a much larger pool of
potential buyers
• Using digital to deliver services at
very low costs
• Cash into the client’s account
within ten days of the auction
closing
60. Know your audiences
What you want
to communicate
What your
audience is
interested in
Successful content
The content sweet-spot is about meeting the goals of your business
and the needs of your customers
61. Case study: ING.world
• Story-led approach from a digital
quarterly magazine
• Gives analysis and insight on the
world of business
and finance
• Interviews, articles, customer
stories and opinion pieces - each
edition explores a single theme
from a variety of angles
• Release coincides with ING's
results days
• 35,000 unique visitors per issue
• Won a Digital Communication
award for being
Europe’s best branded web
magazine
62. Case study:
The Financialist • Credit Suisse thinking relevant to
the lives and conversations of a
sophisticated UHNW audience
• Global trends and the art of living,
future-oriented
• Informed but offbeat take on
things. Not the conventional
wisdom
• Longer format articles and daily
spark blog
• Articles organised by interest
• Promoted through Twitter and
LinkedIn
• 70-100 likes for some articles and
many shares
64. Move from reference resource to ‘browsable’ content
Reference resource ‘Browsable’ content Tactic for ‘browsable’
Feels like… A journal A magazine
Pull quotes, strong imagery,
journalistic tone
Publishing frequency Quarterly New content weekly or more Editorial calendar
User mindset
Researching specific topics –
search and filter vital
‘Flicking through’ for any
interesting articles
Promote related content
Shelf life Longer Shorter
Publish short pieces
frequently
Length Long form, in depth Snackable’
Vairety of formats – articles,
blogs, videos, infographics
Looking for…
Facts, figures, date and
examples
Insight, comment, latest
trends
Tag and categorise by theme/
trend
Importance Source credibility vital Author credibility important
Showcase author knowledge
and expertise
65. Give users valuable, online-only content
• This will increase interactions
• Consider online versions of
annual reports – they go above
and beyond the usefulness
of the hard copy documents by
giving video content/interactive
charts etc.
TUI Travel plc online Annual Report
66. Keep long form content, but add a shorter version
• Traditional FS content is very
long form and feels like a report
• Sites need more ‘browsable’
content too, so that the needs of
all audience types are met
Example: JSTOR Daily
• Short articles inspired by the
journal findings
• Each article contains links to the
to the relevant journals
• JSTOR daily receives 150,000
page views a month
JSTOR
67. Make your content
work online
Web-content should be:
• Concise – people don’t ‘read’
online, they scan
• ‘Chunked’ using bullets and
subheadings
• Simple sentence structure
and clear language
• Linked to and from – unlike print
• Findable – site structure should be
intuitive
• Accessible – PDFs should be
avoided where possible
Clear ‘share’ button
Subheads add structure
and make scanning
easier
Graphs visually
illustrate data
Links allow users to
find out more
Blog post from econsultancy
68. ‘Heroise’ authors
Thought leadership content relies
on author credibility. Use bio pages
to prove author expertise, raise
their profiles, and enable users to
see all articles they have written:
• Image & Bio
• Twitter handles & LinkedIn info
• Links to all author articles
JP Morgan
69. Create a community
Simple ways to drive interaction
include:
• Comment and feedback
functionalities
• Ability for people to get in touch
with authors (LinkedIn)
Economist
71. Help users discover content that is of value to them
• Through easy-to-navigate search
• Through curation and recommendation
• By helping users stay on top of latest trends and thinking
• By helping with a paper or presentation
• By supporting decision-making
• By making the user part of a community of thinkers
• By making it relevant
• By introducing personalised content
• Through tailored experiences
72. Tagging
• ‘Reference resource’ users need to be able to find content that they’re looking for quickly
• Browsing users need to be signposted to related content that they may find interesting
Clickable, visible
tags aggregate
content on a theme
Tags also power
related content
The Guardian article page
73. Introduce searching and filtering
• Users looking for content on a specific topic will search
• A good search tool will enable them to refine the results based on content type, publication date etc.
Clickable, visible tags
aggregate content
on a theme
Econsultancy search results page
74. Give users a clear next step
Online content should always prompt users into action – this could be reading another
article, getting touch, or signing up for an event
Prompting action
Prompting action
Deloitte
75. Encourage promoting and sharing
• Readership will grow organically
if content
is useful and sharing is made
easy
• Professional audiences do share
– especially on Twitter and
LinkedIn
• Promote articles across your own
social media
accounts too, using relevant
hashtags
Rbs.com – corporate content, often shared
76. Show users content that is relevant to them
• Basic personalisation – uses
tagging to surface
content of a similar type (you
may also like…),
or uses preferences that users
have previously
given in a login area
• Advanced personalisation – rules
based personalisation displays
relevant content based on
previous browsing behaviour,
search terms
Econsultancy – recommended content
77. Proactively alert readers to new content
• Allow users to register to receive
alerts for new content on topics
that interest them most
• Tag content as you upload it, and
these emails will be
automatically generated
• Measuring click-throughs will
also give insight into which
content is working, and which
isn’t
Henderson Asset Managers: Preference centre
78. ’Drip feed’ content to keep visitors coming back
Journal content
released quarterly/
monthly/weekly
Continuous release of
additional shorter pieces in a
variety of formats: blogs,
interviews, videos, lists etc.
Journal content
released quarterly/
monthly/weekly
Continuous release of
additional shorter pieces in a
variety of formats: blogs,
interviews, videos, lists etc.
Journal content
released quarterly/
monthly/weekly
79. Test and learn to create better content over time
Measure
impact
Learn and
adapt
Publish
• What worked?
• What didn’t?
• A/B test
• Experiment with
content formats
• Number of views
• Dwell time
• Bounce rate
• Shares
Consider best format
for message + audience
You need to know what users like,
and which articles are popular
80. Michael Walker, Senior Business Development Manager, ORM
michael.walker@ormlondon.com
ormlondon.com
@ormlondon
Thank you