Data is the new oil - building efficiencies and identifying growth opportunities with data

2021 AdviceTech Masterclass

Data is the new oil - building efficiencies and identifying growth opportunities with data

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Before we get started This document is for general use.

This information has been prepared by Netwealth. Whilst reasonable care has been taken in the preparation of this presentation using sources believed to be reliable and accurate, to the maximum extent permitted by law, Netwealth and its related parties, employees and directors and not responsible for, and will not accept liability in connection with any loss or damage suffered by any person arising from reliance on this information.

Netwealth Investments Limited (Netwealth) (ABN 85 090 569 109, AFS Licence No. 230975) and Netwealth Superannuation Services Pty Ltd (ABN 80 636 951 310), AFS Licence No. 528032, RSE Licence No. L0003483 as the trustee of the Netwealth Superannuation Master Fund, is a provider of superannuation and investment products and services, and information contained within this presentation about Netwealth’s products or services is of a general nature which does not take into account your individual objectives, financial situation or needs. Any person considering a financial product or service from Netwealth should obtain the relevant disclosure document at www.netwealth.com.au and consider consulting a financial adviser before making a decision before deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth product.

Housekeeping

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2021 AdviceTech opportunities

How to become an AdviceTech Star

Client data as the core of your AdviceTech stack

A digital experience is more than a Zoom meeting

Portfolio construction at scale with managed accounts

How to educate clients with content marketing

The Emerging Affluent – an important group of millennials

Data and the client experience What client data are you trying to or would like to connect/integrate across different systems or databases?

Whole of wealth reporting Insurance information

67%

On-platform assets/portfolio holdings and transactions

69%

Super/SMSF information

64%

Banking and other financial institution balances and…

64%

Off-platform assets/portfolio holdings and transactions

60%

Mortgages and loan information

53%

Client analytics Website usage and visits (e.g.

29% visits, frequency, time spent) Email activity (e.g. open rates, click through rates)

44%

Client portal usage and activity (e.g. visits, frequency, time spent)

44%

Fee and revenue information

78%

Client details

80%

Meet Paul Campbell from Xeppo

• Managing Director of Xeppo • Director of Open Consulting

Know > Run > Grow

Introduction Data is the new oil!

Key to business efficiencies and growth is tapping into one of your most valuable assets – Data!

Today we will work through how to achieve this practically, following the suggested approach in Netwealth’s Advice Tech Report

Developing a clear implementation strategy Where are you now?

Usable data - Do you have the right data?

- Is it in one system, or is it across a variety of systems?

Timely data - Can you get the data easily (ie automated) ?

- Is it real-time or delayed?

Accurate data - Is the data accurate?

- Is data being captured consistently ?

Don’t forget about Documents!

Documents are data and should be considered as a key resource.

Data Standards • Define your data standards • These should apply across all your key systems • This will underpin your ongoing data quality • Don’t over engineer it – capturing and managing large volumes of data is hard work!

• Write up a policy and ensure everyone understands it • Seems simple but you will be surprised when you analyse your client data quality that the basics are most likely where you need to start

Data Standards

Do you have a clear set of guidelines as to how your staff should capture data as well as manage the ongoing accuracy of the data? e.g. How does your Practice manage “Change of Address” to ensure all systems are updated..

Client Basics

Specialist

Key Details

Portfolio Data

Fact Find

Insurance Data

Marketing

Lending Tax / Accounting

Change of details SMSF

Revenue Business Lines Revenue Types Upfront vs Ongoing Opt-in ready Reportable (Client linking)

Advice & Compliance Compliance Opt-in Reviews

Documents Filing structure (simple) Files notes/activities Emails Reportable

PI Renewal Signing (evidence)

Data standards - Compliance considerations • Opt-in • • • •

Do all Opt-in related clients have an Opt-in Date? Who fits into this category?

Are all clients paying a fee properly captured?

Are Renewals being sent on time?

Are Opt-in notices being sent on time? Are they responding in time? Are you acting on responses appropriately?

• Are you collecting evidence of the process?

• Observation: Obligations consistently not being met by Practices

Linking client revenue to your client data is critical!

- Streamline opt-in - Real-time analytics - Data monitoring

• Data breach obligations

Compliance Checks can be automated if you have your data right.

• Investments

e.g. Identify any clients paying advice or platform fees who don’t have a Risk Profile on file

• Systems and processes • Min. data standards critical • Monitoring Asset classes against client risk profile and age

• Advice

• Do all clients have a current SOA? • Are there any clients with ROA’s without an SOA on file?

Data Standards - Document storage considerations • Filing structure

• Keep it simple • Complexity will lead to inconsistency of filing • Make it easy to find documents later!

• Document Solution • • • • • •

Efficiency of use Searching capabilities Connected to data platform Connected to your document production tools Proprietary solutions locking up your documents?

Not leveraging document automation capabilities?

Did you know?

If you have Office 365 then you already have a great document management solution!

SharePoint is an untapped resource in the majority of Practices.

It provides powerful document storage and automation capabilities, including connectivity to document signing tools.

Data Platform – Advice Tech Report

Data Platform – Advice Tech Report • The Average number of AdviceTech tools used in an advice firm is 14, and one in four use more than 15+ • This number is even higher when looking at integrated firms.

+Source:

Netwealth Advice Tech Report 2021

Data Platform – Centralise & integrate data minimums

Client data

Portfolios

Documents

Revenue

Compliance

Data Platform – Platform solution considerations

Key things to consider when choosing the right data management technology • • • • • • • •

Who owns the data?

Where is the data platform located (Australia or offshore) Who controls access to data platform? You or them?

Am I free to choose how and who accesses my data?

Costs and potential cost synergies / efficiencies Integrations and connections supported (out of the box)?

Portability of data?

Security and privacy considerations?

Data Platform – Centralise & integrate data solutions Business Apps Reporting

Client portal

Open API Connection Engine

Business software & Data (examples)

Wealth

Matching & Grouping Engine

Accounting

SMSF

Digital Signing

Data Sync Engine

Investment s

Security Engine

Documents

Visualise your data • Critical that your data platform connects real-time to your data visualisation tool • Power BI • • • • •

Office 365 add-on Inexpensive Scalable Connects to wide range of data solutions Consulting services widely available

• Other options you may wish to consider • Excel • Tableau

Visualise data quality

Visualise discrepancies Ability to monitor and manage key data across your various systems

Visualise portfolios

Visualise fees - Missing Revenue - Lost clients

Visualise fee variations - Missing Revenue - Lost clients

Visualise compliance KRI’s Monitor key compliance fields and advice data items

Create a good client experience (& drive efficiencies) Now that you have your data where you want it, it's time to leverage it to improve client experience and delivery efficiencies.

The opportunities are many, 2 simple ones to consider include: - Document automation (and signing) - Client App

Document Automation • Opportunities to connect your client data to your document storage and signing tools.

• Drives efficiency and consistency

Know > Run > Grow

Document automation (including signing) SharePoint + Adobe Sign • Initiate signing process within SharePoint

• Automate filing to ensure consistency and minimise touch points in the business.

Works with DocuSign as well…

Client App Single view of all client data -

Fact Find Portfolios Personal banking Documents

Know > Run > Grow

Q&A

Your AdviceTech toolkit www.netwealth.com.au/advicetech

#action Read the full report Part A: Insights Part B: Suppliers guide

#action Run an internal AdviceTech workshop

#action Watch the 2021 AdviceTech Keynote presentation with Matt Heine

Disclaimer This document is for general use.

This information has been prepared by Netwealth. Whilst reasonable care has been taken in the preparation of this presentation using sources believed to be reliable and accurate, to the maximum extent permitted by law, Netwealth and its related parties, employees and directors and not responsible for, and will not accept liability in connection with any loss or damage suffered by any person arising from reliance on this information.

Netwealth Investments Limited (Netwealth) (ABN 85 090 569 109, AFS Licence No. 230975) and Netwealth Superannuation Services Pty Ltd (ABN 80 636 951 310), AFS Licence No. 528032, RSE Licence No. L0003483 as the trustee of the Netwealth Superannuation Master Fund, is a provider of superannuation and investment products and services, and information contained within this presentation about Netwealth’s products or services is of a general nature which does not take into account your individual objectives, financial situation or needs. Any person considering a financial product or service from Netwealth should obtain the relevant disclosure document at www.netwealth.com.au and consider consulting a financial adviser before making a decision before deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth product.