beyond branding - how wealth managers can thrive in the "new normal"
DESCRIPTION
TRANSCRIPT
[email protected]/acluytenswww.linkedin.com/in/agocluytens
Ago Cluytens
How To Thrive In The New Economic Reality
Beyond Branding
Change Ahead
Regaining Trust
Moving On
01
02
03
A brave new world for financial services ?
01
Change Ahead
Financial services brand values have fallen at historic levels
Trend 01
“Brand value has never before eroded as quickly as it has in the financial services sector during the 2008–2009 period.
As a group, financial services brands have lost a third of their value in a matter of months.”
-- Interbrand 2009 “Best Global Brands”
2008
2009
5000 32000
31980
25590
Interbrand Global Best Brands 2008 - 2009
2008
2009
5000 32000
10254
20174
+25%
-49%
That is 10%of Citi’s market cap lost due to “an intangible”
Consumers have lost faith in their bank
Trend 02
“At the height of the crisis, when customers’ trust was at an all-time low, each and every brand was affected by the general mistrust prevalent across the industry - leaving no brand untainted or unchallenged to maintain its reputation.”-- Interbrand 2009 “Best Global Brands”
Brands that invest in marketing during a recession tend to gain market share when the recession ends.
If the message is right and the campaign is well executed, the investment will pay off in the long run.
US Unemployment Rate, 2001 - 2009
“"There’s not one person involved in the demise of Lehman Brothers, Bear or even the troubles that have fallen on Citigroup who thinks they’re living happily ever after," Mr. Solomon said, "because their reputations have been tarnished, and what do you have at the end of the day but your reputation?"
(NY Times, Flickr.com, CCL, pdstahl)
New entrants are reshaping the industry
Trend 03
Peer-To-Peer learning groups are taking a collective approach to investing
The Internet and Social Media are opening the floodgates of competition
“The really exciting innovations in financial services weren’t coming from the big banks.
In addition to peer-to-peer networks, we increasingly saw new entrants like te l ecommun ica t i ons compan ies , software firms and retailers offering alternat ive financial services that harnessed advances in messaging and Web-based-technologies.”
-- World Economic Forum, “Technology and Innovation in Financial Services: Scenarios to 2020”
“What if Starbucks opened an online-only retail bank offering competitive deposit rates and a modest range of loans and mortgages?
It could do that by partnering with a finance company such as ING, which has the appropriate banking licenses.
All it would need to do is install ATM machines in its outlets, which would involve investing some money but would allow it to get more out of its existing branches.”
-- John Gapper, Financial Times
(Flickr.com, CCL, amateur_photo_bore)
98.06%repayment rate
1loan every 13 seconds
5273lenders joined this week
Branding is top on the boardroom agenda
trend 01 + trend 02 + trend 03= result 01
“What do you, as CEO, consider to be your organisation’s current top differentiating factors ?”
-- PwC, “Global Private Banking And Wealth Management Survey 2009”
Brand Value
Quality of CRMs
Product Open Architecture
Investment Performance
50 93,75 137,5 181,25 225
62
106
127
210
Recapturing Consumer Faith
02
Regaining Trust
Remember what happened to the ??
Isn’t that a little simplistic though ?
“As a manager, it is my job to
serve the customer”
“As a manager, it is my job to
protect the bottom line”
“As a shareholder, I am concerned about
your ROI”
“As a shareholder, I am concerned about
your business practices”
“As a lawmaker, I want to oversee your
role in society”
“As a lawmaker, I am concerned about your
financial survival”
“As a client, I am concerned about
my financial health”
“As a client, I am concerned about
our relationship”
Clients are no longer looking for complex products promising high yield, but rather trusted and independent advice that addresses both their short- and long-term needs.
-- Interbrand 2009 “Best Global Brands”
“Most of the financial services brands’ recent advertising campaigns focus on strength and stability, something that may prove to last beyond a momentary marketing campaign.
While the cynical may say that the world will quickly revert to the impetuous motivations of a 2007 bull market mentality, there is a subtle yet profound change in how customers are going to evaluate their service providers going forward.”
96%see clients are demanding increased transparency from their bank and simpler to understand products.
-- KPMG, “Private Banking In Switzerland, Quo Vadis ?”
“Pure Play”
Hybrid Integration
Universal Bank
Independent Asset Managers
25 35 45 55 65
50
29
28
60
Which business model is likely to do well in the next three years ?
-- KPMG, “Private Banking In Switzerland, Quo Vadis ?”
Those that are likely to do well, are those that from the crowd.
stand out
✔
-- Jean-Pierre Cuoni, EFG Chairman
”We accept that clients belong to the CROs in the first place, and not to the bank. That, at the end of the day, creates happy CROs, happy staff members, and happy clients”.
How Forward-Looking Companies Can Benefit
03
Moving On
What box ?
Five Steps To Re-defining Your Box
Revisit Your Brand Values 01
Rework Your Business Model 02
Redefine Your Positioning 03
Reconnect With Your People 04
Rebuild Trust With Your Clients 05
Additional resources
Interbrand 2009 “Best Global Brands”PwC, “Managing Tomorrow’s People”PwC, “Global Private Banking/Wealth Management Survey”KPMG, “Private Banking In Switzerland: Quo Vadis ?”
