Strictly confidential Public Smart Wealth Lend It Europe
Strictly confidential Public Smart. Wealth Lend. It Europe Shane Williams October 11 th 2017
Observing change 1
Changing Landscape. REVOLUTION ROBOS • 4 th Industrial Revolution being driven by extreme automation and connectivity , implementation of artificial intelligence. • Rise of Fin. Tech firms • Disruptive innovation in financial services exerting pressure on traditional business models 2010 REBELS RUSH • Robo-advisors, online platforms for self-directed, algorithm-driven investment • Robos targeting Millenials • Fully automated, no human interaction, state-of the art user experience, low fees, low minimum levels of investment, straightthrough processing • "High earning, not rich yet" • Born into an era of mobile technology and social network • Many new entrants enter the landscape • Large players are also now coming to market • Shifting customer preferences • Highly overlooked by large WM firms • Portfolio of ETFs 2015 2020 2
Thinking differently 3
Build or Buy. $ + BUILD • No or limited legacy • Use latest technologies • Use latest architectures • Perfectly suited to the experience you want to create • Can integrate and use services within the company - • Start from scratch – have to write everything • Have to make technology bets • Have to deliver the whole business, including operational aspects + BUY • Everything already set-up and running • Culture may be different • Already have clients • Technology integration? - • Cost – high valuations • Solution might not be exactly what is required 4
In or Out. + OUTSIDE - + EMBEDDED - • Agility + speed of decision making • Licences, regulatory approval • Licence in place • Agility = hard work • Foster innovation • Operational controls + risk management • Leverage brand • Leverage expertise • Not invented here syndrome • Lower initial cost • Brand • Higher integration cost later • Lower integration cost • Noise and fear of disruption • Bureaucracy 5
Build a Business not a Channel. VISION STRATEGY Strategic Rationale / Global Rollout BUSINESS DEVELOPMENT Planning / Targets / Business Performance / Management Communication FINANCE Funding / Budget GOVERNANCE Organisation Structure / Governance Bodies / Business Management / Role Profiles / Hiring CULTURE People Strategy / Business Priorities / Values / Behaviour / Motivation /Reward IN LIFE ON-BOARDING TEST DRIVE LOGGED OUT FRONT-END ELEMENTS BACK-END SYSTEMS "FACTORY" PROCESSES Query Handling / Complaint Management / Service Excellence / Client Development / Training & Gamification "LOGISTICS" "SUPPORT" BUSINESS IT • Client Journey • User • IT Architecture • Release • Requirements • Product • System Roadmap • Reactive Enhancements • Change Mgmt Procedures INVESTMENT PRODUCTS: Offering Architecture / Product Features / Digital Financial Advice OFFERING DATA ANALYTICS DEVELOPMENT Experience CMT SOLUTION "PLACE" CONTENT: CIO & IPS Content / Educational Content / Contextual Content / Editorial Board PRICING Management Integration • Testing • Maintenance • Security Data Feeds KPI Framework Client Insights Web & campaign analytics Complaint & client satisfaction • Predictive modelling • Customer value modelling • • • "PRODUCT" "PRICE" MARKETING & SALES Value Proposition / Positioning / Branding / Narratives / Communication Plan / Acquisition Strategy / Campaign Management "PROMOTION " STAKEHOLDERS CONTROL FRAMEWORK Business Integration / Requirements Validation IPS / HR / Operations / Marketing / CFO other Initiatives / other Divisions Business Rules / Risk Mitigation Regulator / Legal / C&ORC / AML / Credit Risk NBI / ODP 6
The layers of success by digitally enabling The 3 building blocks. 'Pure' digital advisory Digital support for Advisor led model Foundation layer Complement the traditional advisor-centric model for with a digital-only model ® UBS Smart. Wealth Enhance the traditional advisor-centric model for using technology and integrating all relevant channels (Advisor, Specialists, Online /Mobile, Service Centers, etc. ) in a seamless way. Critical prerequisite to build our digital capabilities at scale ® One Wealth Management Platform ® Related main initiatives 7
The Technology What did we build, as we had a clean sheet • Microservice architecture (Java/React) • Multi-entity capable • Multi-language capable • Abstraction layers for multiple services (flexibility) • AI (NLP) for onboarding to enable STP 8
Operation. How to operate? 9
Find a sweet spot. Combining the capability and heritage of UBS… • • … with the agile approach of a start-up. Get access to people who can navigate and can orchestrate access to existing capabilities Involve internal subject matter experts • Leverage licences and a well known brand • Build on 150 years of heritage and expertise based investment knowledge UBS Smart. Wealth • Allow greenfield approach • Increase speed of decision making • Agile product development • Collaboration due to co-location • Limited and lean investments • Data Driven Decisions - Analytics 10
Ingredients for success. • Outside-in view • Experience design, Design thinking, blue sky • Tools to define value • Business model canvas, VP canvas • Craftsmanship & change makers • Control functions • Legal, compliance • Senior sponsorship 11
The people. + THE TEAM • Diverse (truly) • Co-located • Multi-disciplinary • Experts • Push for change - • Keep stimulated and engaged • Constant pull from other organisations (inc start-ups) • Constraints of large organisation (equipment, processes etc) 12
Ripples The art of the possible 13
Scale Showing the scale of the team You are here. 14
Business Transformation, the aura effect. Today With UBS Smart. Wealth Online Access • With hard token, card reader and password only. • Two-factor authentication using e-mail address and mobile telephone number. Risk Profiles • Standard questions. • Complex stress-tests to confirm client's capacity to withstand risk as well as their attitude to risk. KYC Checks • AML require manual searches every year. • Fully automated and continual. Portfolio Performance • From monthly. • To Daily Account Creation • Manual paperwork and taking days once returned correctly completed. • Within 6 minutes once a client has submitted the on-boarding form. 15
Feedback. On the right track? 16
Business Performance. The cockpit to anticipate upcoming obstacles and to steer the UBS Smart. Wealth business into the right direction. UBS Smart. Wealth Destination locked in Get feedback from system Business Case / Objectives Instrument & Analysis Predict Digital offering allows high operational efficiency based on systematic application of data analytics. • Scalability to increase client base efficiently • Anticipate changing needs to attract new clients Test & Learn • Highly reactive to quickly respond to observed client behaviour KPI / Business Performance 17
1. KPIs • How the Business is performing – an overall view Business Performance 2. Marketing Segmentation • The core marketing knowledge of the customer base 3. Marketing Models 1. KPIs 2. Marketing Segmentation 7. Web Analytics • How UBS Smart. Wealth positions itself to acquire and retain valuable customers • Value Models to calculate the current or potential value of customers 4. Predictive Models • Predict how likely it would be for a customer to take a particular action Insight 6. Customer Service Analytics 3. Marketing Models • Forecast the number of Customer Service Centre (CSC) agents at different times 5. Campaign Analyses • Detailed analysis to select customers • Analyse the success of a campaign and revenue generated as the 5. Campaign Analysis 4. Predictive Models result of that campaign 6. Customer Service Analytics • Analyses of the complaints, customer satisfaction, increase the efficiency of the CSC agents in dealing with different queries 7. Web Analytics 18 • Number of pages clicked, time on each page, most hit pages, when
Expansion, what's next The tech supports, future roll out tbd 19
Smart. Wealt h Bringing your wealth to life. 20
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