Enhancing E Business In The High Net Worth Client

1.Enhancing eBusinessin theHigh Net Worth Client

Objectives

Components of a Successful User Experience

Design & Brand

Information Architecture

Features & Functionality

A Source of Competitive Advantage

Personalization

Channel Access

Data Access

Self Education and Service

Collaboration Tools

Analytic Tools

Successful Execution for the User Experience

Successful Features and Functionality

Site Development

Driving Traffic and Adoption

Illustrations in Differentiation

Scenario #1: Competitive Advantage through Personalization

Scenario #2: Competitive Advantage through Collaboration

User Experience

Look/Feel

Navigation

Global

Workflow

How do we change it?

Moving from Product to Product

Sub-site to sub-site

Accessing research and(personal)informationseamlessly and holistically

Collaboration

Client to Financial Advisor

Financial Advisor to Financial Advisor

Client to Client (explore)

Drive traffic and adoption

Present perspectives around online best practices on the Web, in Financial Services, and with HNW clients

Objectives

Design & Brand

Personalization

Channel Access

Data Access

Collaboration Tools

Analytic Tools

Site Development

Look & Feel

Palette

Brand values

Global navigation

Workflow

Site Map

Wire-frames

Personalization

Channel Access

Data Access

Collaboration Tools

Analytic Tools

Investment Strategy

Banking & Lending

Concentrated Stock Management

Tax Management

Estate Planning/Trust

Philanthropy

Family Office

Disjointed look & feel across BU Web presences

Brand confusion for the customer

Difficulty cross-selling between product-silos (e.g., brokerage and banking)

Different site architectures and multiple navigation schemes resulting in workflow confusion and frustration

Higher call center usage

Drop-off/abandonment

Inefficient Web development (design, IA, technology) due to repeated reinvention of site standards and lack of leverage (reuse) across the system.

Emphasis on ease of use

Centralized (as shared services) Web development

Efficient resource allocation

Standardized training

Hiring & career management

Facilitated standards supervision

Use a Web content management tool to manage content and workflow similarly across all sites

Publication of a robust Style Manual that includes defined standards around:

Design (e.g., palette, font, imagery)

Content (e.g., tone, nomenclature)

Information Architecture (e.g., Global Navigation, workflow)

Utilize Web tracking tools to monitor drop-off/abandonment and high usage pages

Conduct user testing periodically with live site and always with new modules/functionality

Objectives

Design & Brand

Personalization

Channel Access

Data Access

Collaboration Tools

Analytic Tools

Site Development

Customer focused value added features and functionality that are easy to use and (typically) tied to personal and third party content

Heighten relationships for the high-touch, highly personalized relationships of HNW, these value added features can be even more important

Leverage functionality modules that exist in other areas of the bank (e.g. corporate banking)

Introduce new concepts demonstrate new opportunities not in the common vernacular yet

Innovate continuously features and functionality continually change so competitive advantage can be short-lived without an innovation mindset

Six main areas to investigate

Personalization

Channel Access

Data Access

Collaboration Tools

Analytic Tools

Web 2.0 related capabilities have become a source of innovative offerings

Web 2.0 technologies move data and computing power off desktop PCs and onto the Internet, thus making it easier to collaborate and share information, either among close-knit teams or vast populations.

Information aggregation: digg, del.icio.us, Wikipedia

Information management: salesforce.com's customer relationship management tools

Connectivity: CarbonNYC (exclusivity), LinkedIn and MySpace (networking), GuideStar.org (philanthropy)

New Media: YouTube, Second Lifes (virtual world)

Customizable view of information based on user preferences and/or authorizations

Password protected areas to enable qualified investors to access and download paperwork, prospectuses, and memoranda on a variety of investment vehicles

Dashboards timely, personal investment data and statistics at the users convenience and available at different levels of authorization based on customizable business rules

Customized alerts: alerts to an Financial Advisor and the HNW client for tax, stock, etc.

Personalized problem resolution rather than canned answers

Customized reports on trust, custody and investment management accounts

Scenario planning tools to monitor market conditions based on personal assets, plans, and tax efficiency

Financial planning tools

Intimate user experience through consistency in multi-channel interactions (live agent, online, etc.)

Private placement life insurance

Donor advised fund and foundation counseling

Personal trust services

Lifestyle services

Targeted opportunities/advice/marketing driven off of user id/password and/or tracking tools (e.g., cookies)

Tied to customer level knowledge such as products owned, previous inquiries or issues, needs & attitudes, behavior analysis, etc.

Provide alerts to the Financial Advisor as to what the client has been viewing on the site so the Financial Advisor can use that to engage them in discussions and potentially meet there needs

HNW Lens

Investment Strategy

Banking & Lending

Concentrated Stock Management

Tax Management

Philanthropy

Family Office

HNW Lens

Investment Strategy

Banking & Lending

Concentrated Stock Mgmt

Tax Management

Philanthropy

Family Office

Cell/PDA push and pull high-tech for convenience not the gee-whiz factor

Data access on demand

One-set of data supported by multiple presentation layers

Multi-channel consistency

Data/reporting

KYC AUM versus credit requests (e.g. high value purchases on a credit card)

Messaging versus Browsing

Private email

SMS/MMS alerts and messaging

Single view across multiple channels

Web, CSR, Financial Advisor similarity and have access to historical interaction data

Customizable security as requested

Code word protected CSR;key fob code entry

Information security and privacy

HNW Lens

Investment Strategy

Banking & Lending

Tax Management

Philanthropy

Family Office

Information Aggregation

The more complex the portfolio, the HNW customer expects a Private Bank to at least provide financial reports on all of their assets, if not manage them all

Information aggregation technologies like Yodlee (used by Smith Barney) and other more complex tools provide the ability to create this compiled view for personal and family office situations

Single view of customer HNW customers tend to be less satisfied with their banks than the total population so need to identify and aggregate all deposit, credit and other accounts held by these high-net-worth individuals (both personal accounts as well as business related accounts)

Implications may include SSO (like) functionality, document management, content management, etc.

Other Investment Pursuits

Research Some banks are realizing that they no longer can provide all the specialized services themselves so work with other financial advisors which means a need for access to their research

Endowment management and consulting views into compliance, governance, charitable grant making solutions, planned giving guidance and management

Automated Feeds (e.g., RSS, Atom)

Protocols that makes it easy for computer users to receive content from their favorite providers whenever the content is updated

Downloads

Data needs to be accessible for other platforms (e.g. Excel, Quicken, etc.)

HNW Lens

Investment Strategy

Banking & Lending

Tax Management

Philanthropy

Family Office

Online/on-demand seminars

Canned or live discussions with celebrity financial personalities (Buffet, Trump, etc)

Life stage lessons around wealth management

Marriage, children, selling a business, retiring, gifting, estate planning, etc

Pursuits of passion

Podcasts access to and dissemination of innovative ideas from business world to travel to lifestyle

Developed/mature countries global research, trends and international affairs

BRIC and other emerging markets driving wealth creation

Airplanes

Luxury collectibles, wine, art, jewelry, coins, sports investments marketplaces

Ubiquitous Asset Management

Capability to move funds across all bank accounts

Eventually link bank assets to third party accounts

HNW vault

HNW Lens

Investment Strategy

Banking & Lending

Tax Management

Philanthropy

Family Office

Collaboration tools should be considered across traditional as well as non-traditional relationships

Financial Advisor to Client

Financial Advisor to Financial Advisor

Client to Client

Traditional capabilities include instant message, chat rooms, live chat customer service

Blogs A blog is a simple content Website created with inexpensive self-publishing tools. Blogs allow for HNW communication within a family as well as between HNW relationships.

Social Networking/Peer-to-Peer Networking/Social Media - Web-based tools that harness the power of collaboration and group interaction. This can take many forms, from the personal Web pages of MySpace to the virtual worlds of Second Life to the professional networking popular on LinkedIn

Collective Intelligence (e.g., wikis) - A dynamic Web document that allows users to add, change, or edit the content displayed on the page. The user-created Wikipedia online encyclopedia is the most famous example

Implications for Web services emerging technology based on XBRL

HNW Lens

Investment Strategy

Banking & Lending

Tax Management

Philanthropy

Family Office

Planning tools

Tax strategies

Tax advantaged credit/lending

Hedging strategies

Philanthropic strategies

Generation planning

Simulation tools

Monte Carlo analysis

What-if analysis and tax planning

Trust and estate planning

Mash-ups

Websites or applications that combine content from one or more sources.

e.g., Cellreception.com combines Google Maps with a database of 124,000 cell phone tower locations to help users determine where mobile coverage is strong and where it isn't.

HNW Lens

Investment Strategy

Banking & Lending

Tax Management

Philanthropy

Family Office

Objectives

Design & Brand

Personalization

Channel Access

Data Access

Collaboration Tools

Analytic Tools

Site Development

Consider the ramifications on the Financial Advisor/HNW relationship with any piece planned functionality

Tie the tool into an application your customers already use and love

This approach lets the bank place the application into its customers hands while providing a familiar interface.

e.g., Zoho CRM is a widget that plugs into Microsoft Outlook, synchronizing contacts and customer-specific emails between Outlook and Zoho's Web-based customer-relations management tool.

Pre-configure the tool with basic templates or structures to guide new users

Applications that start out as a blank canvas can confuse customers instead of inspiring them. To encourage customers to sample the tools, look to pre-configure applications to be easily customized as users gain experience and familiarity.

e.g., Enterprise-grade wiki tools from BrainKeeper offer a variety of standard templates as well as the ability to make custom ones.

Provide a human being who can help with tech support

There's nothing worse for the user experience of a HNW customer or Financial Advisor than being in the middle of an important task and being told to search through pages of forum questions to find solutions to a technical problem.

e.g., At Inkling, the maker of prediction-market tools, the staff personally answers all emails. The company also maintains a private wiki for clients and publishes its phone number so anyone can call to ask a question

Approach

Design en masse but develop the site in efficient increments

Piggy back development on the back of standard maintenance

Group development across like modules

Avoid incremental changes across the breadth of the site (unless using a CMS)

Roll out new development/redesigns in a modular fashion

Governance

Drive toward a shared services-like development model for leveragable and non-core competency tasks

Develop a responsibilities matrix

Business requirements are owned by the business

Implementation is owned by the eBusiness group (e.g., shared services)

Validation (testing) is owned by both

Define an authoritative Style Manual and mechanism for enforcement

Pilot (live test) concepts/offerings/design changes at the Financial Advisor level first before rolling out to clients

Leverage a common Web platform between Financial Advisors and clients

Basically the same site

Segment within the client population

Emerging HNW vs HNW/UHNW

New to the bank vs Existing to the bank

Financial Advisor vs Client

Drive messaging developed from a tactical understanding of the client where possible

Leverage user-id/password and/or cookie technology to understand needs/attitudinal based segments

Driving Traffic

Search engine marketing

Search engine optimization

Online affiliate/partnerships

Cross-sell within current product relationships (e.g., in the account center)

Driving Awareness

Focus on brand development for segments less likely to be transaction oriented

Driving Adoption approach as a standard marketing campaign

Define a compelling concept

Communicate frequently and effectively

Fulfill on the promise

Objectives

Design & Brand

Personalization

Channel Access

Data Access

Collaboration Tools

Analytic Tools

Site Development

The Excelsior Card is a web driven finance transaction tool (not just a credit card) that exceeds the market parity attempted by cards like the Citi Chairman AMEX Card and includes the ultimate in personalization and unique service features meant to compete with and excel over the AMEX Centurion Card

Target Segment(s):

Emerging HNW

Newly HNW

Competitive Advantage

Personalization to drive loyalty

Deepened relationship: Ability for the bank to understand what members are searching upon for investment ideas to help guide future discussions/ideas

Needs Addressed

HNW Client

Public demonstration of uniqueness and success

Ultimate personalization of primary purchase instrument

Share of Wallet through hyper loyalty obtained through personalization and esprit d'corps

Buzz around first to market personalization instrument perfect match of product to customer need

Increased client information and client understanding

Once established the platform can extend to mass card marketing to drive bank card competitiveness in the broader consumer business.

Based on patternsin his account and buying behaviors Dan Reiro is notified through a targeted marketing email to link to his account center for an exclusive invitation only offer:The Excelsior CardLike no other

On entering the his account center theother targeted messagesDan normally receives are masked by a flash pop-up informing him of his eligibility for a highly exclusive,invitation only cardoffer.The pop-up directs Dan to the Excelsior Card micro-site.

The micro-site provides further information on the Excelsior Card and its truly one of a kind attributes.On Dans request it initiates theuniquely personalized product designprocess.

Dan views anapplication pre-populatedwith his account information.The design process begins by asking Dan to choose the four most important features of a card according to hispersonal set of needs criteria .

The four core features (representing key needs) drives aweb based conjoint analysiswhich helps Dan prioritize over 30 card design features through dynamically generated trade-off questions.The questions are rapidly presented and binary in nature and thus can be completed in less than 5 minutes.

Once completed, the Web based application presents Dan a draft Excelsior Card through a menu ofprioritized features driven by his personal value criteria .

Dancan refinehis Excelsior Cards features to include those features having dependencies (e.g., high rewards may mean higher fees).Web applicationlogic will adjust other card featuresas appropriate based on Dans needs analysis (from the conjoint exercise) and bank business requirements (economics, risk, etc).

Once designed the one-of-a-kind card is printed on a gold embossed white titanium card.

If features and functionality of the card are found to be deficient or circumstances change the Web application can be used to modify the Excelsior Cards features at any time over any Web terminal.

The Excelsior Card offers One Card functionality in that it can be used as both a personal card as well as business card (thus not forcing the member to choose).Each month the member (or their family office) receives an email that links them to a site allowing quick categorization of transactions.

The Excelsior Card can be accepted across two networks (it carries two magnetic stripes) of the Clients choice so that it almost never encounters a merchant out of network (e.g., Visa and AMEX)

Accompanying the Excelsior Card will be a key fob that provides the ultimate in security to online HNW client information.For those with stricter security needs, the Excelsior Card may be swiped through the fob to obtain randomly generated access codes for full access to the site.

For the active lifestyle, a chip in the Excelsior Card can carry important personal information such as medical records and emergency contact information.

The Excelsior Card is actually a test bed using a relatively defined, small segment to test and perfect the card configurator concept.Once done the capability can be rolled out to the mass bank consumer base as a step change differentiator in the card space.

Card Network

Security/Protection

Payment Terms

Payment Timing

Annual Fee

Form (phone, key card, etc)

Visual (graphics, color)

Complex

24/7 Concierge

Rewards program type (air, hotel, cash, etc)

Elite status across hotels and airlines

Themes (travel, entertainment, etc)

Key fob

Multiple Networks

Stored information

One Card functionality

Affiliate donation program (e.g., Green Card)

An invitation only online network from the HNW bank where criteria for membership include achievement in life, a demonstrated passion for your pursuits, and a desire to influence the business world.As a member of the banks exclusive online network, high net worth individuals are provided a safe, secure and reliable means to research and interact with others.As an exclusive club, privacy is the utmost and as such the bank is vouching for the reliability of the networking between individuals.

Sample Segment: Advised Determiner Informed investor with ideas, but values advisory input and informed feedback. Works with their advisor, however, makes all final decisions.

Competitive Advantage

Enhanced collaboration for information and decision making

Esprit d'corps through belonging to a truly exclusive and empowering community

Needs Addressed

HNW Client

Trusted advisor:First source turned to when investigating potential ideas/business investments

The Bank

Deepened relationship:Ability for the bank to understand what members are searching upon for investment ideas to help guide future discussions/ideas

Lead generation:The bank as the network enabler provides referral opportunities to other HNW customers currently not supported by the bank

Improved servicing:Begins the process of improving competitive positioning on important servicing areas such as research information and delivery as well as communication and collaboration

Mr. Longmuir is looking to invest in a high-growth industry and has asked his daughter to do someresearch .

Sara Longmuir has lunch with her father and he asks her to come back withideas around investmentsin a high-growth industry.

To quickly getconnectedto the appropriate sub-segment in the high-growth industry locally, she turns to ExcluNet to provide guidance.

On entering the online network from her bank HNW account, she noticessomething differentthan the other online networks shes seen.

ExcluNet isnt about jumping between people in other community based networks.Instead ExcluNet deals with the privacy of its members by utilizing the financial advisor/private bankeras a proxyfor the HNW clients represented by the bank.

The banks private bankers and financial advisors have filled outattributes/interest areasfor each of their opted in clients.

Bysearchingthe attributes, Sara quickly realizes that there are at least 10 bank touchpoints for information that may be of interest.

Through adiscreetcontact feature, Sara and her Private Banker can reach out to other Financial Advisors/Private Bankers touncover research/ideasthat might be of interest.

If things work out during the research, the banks Private Bankersmay coordinate a discussionwhere the bank serves as the network connector and enabler.

Additional collaboration functionality can be added over time:

ExcluConnect A secure business oriented social networking site used for professional networking. The main purpose of the site is to allow registered users to maintain a list of contact details of people they know and trust in business. The people in the list are called Exclusive Connections. Users can invite anyone in the banks HNW community to become an ExcluNet Connection.A contact network is built up consisting of their direct connections, each of their connections' connections (called 2nd degree connections) and so on. This can be used, for example, to gain an introduction to someone you wish to know through a mutual, trusted contact.

ExcluFolio A secure social networking website offering an interactive, user-submitted network of acquaintances, personal profiles, blogs, groups, and interests (hobbies, passions, etc). Profiles contain two standard components "About Me" and With Whom Id Like to Network which appear in a sanitized fashion (anonymous facts) to clients until they are invited by the poster. Profiles also contain an Interests" section and a "Details" section.Similar offerings exist in aSmallWorld.net and DiamondLounge.com.

FindFriends Each HNW member will have access to an on call networking system.Should an individual be found with time on their hands (e.g., at the Red Carpet Club at LGA for a few hours) they can text the banks HNW FindFriends system to identify similarly disposed members.A list of available members and associated interest briefs is presented (pulled from ExcluFolio) and a request for contact can be sent.Members can gauge communication to their respective comfort level with options ranging from SMS, to anonymous cell connection, to personal contact at their discretion.

FindMe- Cell based location services can be used to notify members that they are in the vicinity of other members (within 3-5 miles).Additionally, the Excelsior Card key fob will be enabled with always on blue tooth functionality tied to the Clients cell.Once in the vicinity of another ExcluNet member (50-100 meters) the fob notifies the Client.A masked collaboration request can be sent to the other ExcluNet member and an anonymous dialogue can begin by SMS, sanitized email or phone call.

Enhancing E Business In The High Net Worth Client

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