Keynote presentation: How to deliver exceptional client experiences with AdviceTech

Research Report

Discover how the digital customer experience became the core focus of AdviceTech

With change comes your chance to use advanced technology In our rapidly changing financial advice industry, it’s now more important than ever to embrace new technology to digitise the client experience and realise new business efficiencies.

With change comes your chance to use Netwealth’s platform, rated #1 by users*, with its newly built mobile app for clients and integrated managed accounts facility.

See wealth differently visit netwealth.com.au/change

Disclaimer: This advertisement has been prepared by Netwealth Investments Limited (Netwealth), ABN 85 090 569109, AFSL 230975 and is of general nature. Any person considering a financial product from Netwealth should obtain and consider the relevant disclosure document at www.netwealth.com.au and determine its appropriateness to their financial circumstances, objectives and needs and see professional advice if required. *Rated by Chantwest as best Advised Product of the Year for four consecutive years (2018-2021), rated by Investment Trends as number 1 in Overall Satisfaction by users for the ninth consecutive year (2014-2021) and rated number 1 by Investment Trends for Best Platform Overall in 2017-2019.

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.

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Research Report

Discover how the digital customer experience became the core focus of AdviceTech

The first step in exceeding your customer’s expectations is to know those expectations.

- Roy H. Williams

Covid and tech acceleration

+

Millennials became too hard to ignore

+

Digital wealth services went mainstream

=

Digitising the client experience became a non-negotiable

Covid and technology acceleration

“You’re on mute” Online meetings to 75% from 46% Cloud-based email+chat to 83% from 76% Digital signatures to 56% from 32% Education newsletters to 71% from 64% Client portals to 28% from 22% Mar 2020 to Mar 2021

Broad shifts to online Learning

Communications Finances

Shopping

Entertainment

Health + wellbeing

Older generations got involved!

Question: Connecting with others online provides some alternatives to our usual social activities. How has the current social isolation measures impacted your use of digital technologies? Source CoreData – Connectivity in The Age of COVID Survey (April 2020), n =5,003

Online news/media Video conferencing

26%

25%

Social media

23%

50yo+ started doing 1st time/doing more

20%

Online chat

13% 8%

Virtual reality spaces Online spaces for seniors

66 days to form or break a habit

Millennials became too hard to ignore

Meet the 1.5m Emerging Affluent 37 avg. age 49% Female / 51% Male

Millennials with money ($2.2T household wealth)

Income: $202,124 (10% > $350k) Property: $1.05m

48% Young family with kids Super: $230k 74% Degree/post-grad degree 52% Senior or exec roles Digital natives 2021 Netwealth Advisable Australian Survey

Investment: $285k Financially capable

Investing in all things Day trading

Investing

43%

Use a robo-service on a monthly basis

51% Login to the super They have even invented their own trading language

app or online portal monthly

Digital wealth services are mainstream

Mainstream digital wealth Bank online weekly Money transfer services eg. Paypal weekly Manage super online weekly

2021 Netwealth Advisable Australian Survey

72%

32%

86%

32%

Digital wallets, eg. ApplePay BNPL, e.g. Afterpay

29%

20% 20%

Online brokering monthly

Robo-investing, eg. Raiz

Source: https://www.verdict.co.uk/square-afterpay-bnpl-acquisition/

Welcome to 2021…

Covid and tech acceleration

+

Millennials became too hard to ignore

+

Digital wealth services went mainstream

=

Digitising the client experience became a non-negotiable

Replication ≠innovation

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

AdviceTech Stars are role model firms that are worth aspiring to

More financial + business success Proportion with revenue over $2m FY20201

Proportion with EBITDA over 30% FY20201

55%

35%

19%

21%

Stars

Stars

Overall

Overall

29%

Revenue growth >11% AdviceTech Stars Overall

Selected benefits received as a result of AdviceTech FY2020

21%

EBITDA growth >11%

23%

30+ staff 9% overall

Improved profitability Improved ability to manage compliance…

Better ability to scale and grow my…

Improved efficiency Growth in client numbers Growth in revenue Growth in assets under management Added a new service offering Additional revenue streams Improved client engagement and…

Improved client satisfaction More time spent with clients Improved quality of advice Greater ability to deal with less…

Improved affordability of advice

35% 55% 75%

Stars are deliberate Avg. number of AdviceTech Tools

17

Proportion with a 12 month roadmap

14

7.3%

% of revenue spent on technology

AdviceTech Stars Overall

73%

33%

56%

18%

Stars

5.8%

% of revenue spent on technology

Proportion with a dedicated technology manager

Overall

58%

24 month roadmap Compared to 39%

Stars

Overall

Benchmark yourself against Stars Marketing

Client experience

Content marketing tools

82% 63%

Email campaign and newsletter management platform

80% 71%

78% 61%

Social media

Survey, review and rating feedback platform

47% 27%

Online/mobile advertising

20% 13%

Overall

Cloud-hosted email service

96% 83%

Super/investment platform

98% 93%

Website

93% 72%

CRM system

93% 90%

Cloud-hosted online document/file storage and sharing service

89% 78%

Managed accounts

51% 43% 49% 31%

Online meeting tool

89% 75%

Cashflow, budgeting and account aggregation tool

Digital signature tool

76% 56%

Calculators Presentation software

AdviceTech Stars

Client administration

62% 65% 49% 43%

Online fact find and risk profiling tool

38% 32%

Client portal

29% 28%

Website content management platform

49% 35%

Off-platform >25%

34% 25%

Scaled advice tool

31% 26%

Social media content management platform

24% 15%

Infrastructure

Cybersecurity policies/procedures, regularly updated and followed

Data/system integration tool

60% 49%

38% 18%

lient data as the core C of your AdviceTech stack

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

Integration technology

Whole of wealth reporting Insurance information

38%

Use today

38%

Intend to use next 24mths

67%

Client analytics Client details

80%

Fee and revenue information

78%

Advice service agreement

64%

On-platform assets/portfolio holdings and transactions

69%

Super/SMSF information

64%

Tax information

58%

Banking and other financial institution balances and…

64%

Statement of Advice

49%

Off-platform assets/portfolio holdings and transactions

60%

Email activity (e.g. open rates, click through rates)

44%

Mortgages and loan information

53%

Client portal usage and activity (e.g. visits,…

44%

Proactive advice

Website usage and visits (e.g. visits, frequency, time…

29%

Basic data client exceptions

Analyse revenue in reporting periods by various key data points, such as Adviser, Revenue Type, Provider.

Plus ability to analyse variance and look for potential lost revenue issues.

Identify ongoing flags

6 step data management plan

01. Develop a clear implementation strategy

02. Choose the right data management technology

03. Centralise and integrate data and technology systems

04. Visualise the data collected

05. Create a good client experience

06. Plan a robust cybersecurity strategy

Portfolio construction at scale with managed accounts

Omni-channel communication Hi Bianca, here is the investment document I mentioned on our call last week.

Investment.pdf Doc type – 758 kB No problem. You can pick the best channel to keep talking when you’re back.

WhatsApp

Facebook

Call me direct

Thanks S. I’ll take a look tonight

Initial meeting Face-to-face Face-to-face Phone call 10.4% Online meeting Phone call9.7%

Online meeting

Documents/forms that requiring signing

Follow-up meeting Face-to-face

80.0%

10% 10%

Face-to-face Face-to-face 0.4% Phone call Phone call 0.9% Online meeting Online Email meeting Other digitEmail al* OtherPost digital

53.8%

Face-to-face Phone call Online meeting Phone call Online meeting

80%

24.7% 21.5% 24%

54%

22%

Post

Answer to queries Face-to-face Face-to-face Phone call Phone call Online meeting meeting Online Email Email Other digital* Other digital Post Post

Face-to-face Face-to-face Phone Phone callcall Online meeting Online meeting Email Email Other digital* Other digital Post Post

5%4.7% 6%5.8% 0.7%

22% 20%

49%

28% 27.8% 47%

3.7% 4% 0.7%

Advice related updates

47.0%

51%

Face-to-face Face-to-face Phone call 2.0% Phone call0.8% 2% Online meeting Online meeting 1% Email Other digitEmail al* 6.1%

22.6%

47% 47%

53%

46.6%

45%

38.1%

45%

10%

OtherPost digital Post

28.4%

Face-to-face Face-to-face Phone call Phone call Online meeting Email Online meeting OtherEmail digital* Post Other digital Post

8.1% 8% 2.9%

50%

6%13.1% 13%

49.6%

56%

News & Insights

9.0% 9% 5.0% 5% 3.7%

4%

31%

28%

Information about new products/services 19.7%

38%

7.4% 10.3% 7%

42.9%

Provide important documents for client records 15.9% 16%

4.9% 5%

43%

19% 71%

71.3%

79%

9.1% Face-to-face 4.2% 9% Phone call Face-to-face OnlinePhone meetingcall 3.2% 4% Email Online meeting 3% Other digiEmail tal* 10.4% OtherPost digital 1.1% 11%

Post

16% 72.0%

72%

83%

The next frontier…

29%

Use today

62%

Intend to use next 24 mths

42%

Better client engagement

39%

Better client satisfaction

39%

improved transparency

35%

37%

improved collaboration

improved communication

total household balance sheet

sign & approve financial documents

performance on investments

securely store documents

track spending

chat/meet with planner via the portal

23%

improved client education access to news, insights, research calculators webinars, podcasts

53%

Access performance on my investments

83%

47% 49%

View total household balance sheet

85%

40%

Track progress to my financial goals

35%

Track spending and budget

78% 71%

43%

Approve or sign financial documents

44%

88%

81% 79% 86%

70%

83%

Securely store/access documents Buy and sell investments on the go

9% 32%

Chat/meet with my financial planner

77% 85%

35%

Access financial education and tools

Advice firms with a client portal that offer

73% 80%

HNW that highly value or somewhat value

70%

Emerging Affluents that highly value or somewhat value

82%

93%

on’t let the finfluencers eat D your lunch – educate clients with content marketing

Client benefits, not just efficiency Do you use or plan to use managed accounts in the next 24 months?

14% 43%

64%

67%

13%

17%

51%

50%

Use Managed Accounts today

60% 14%

46%

Intend to use next 24 months

Better trading efficiency

66%

Better client engagement

42%

Better tax outcomes for clients

37%

Clients have improved understanding of their investment portfolio

36%

Improved efficiency

76%

Additional revenue stream

7%

Client benefits

57%

What benefits have you received from managed accounts, of those that use them?

The Emerging Affluent – an important group of Millennials

The rise of the finfluencers

Source: https://twitter.com/WiredUK/status/831132330236461057/photo/1

Which of the following types of content do you create for clients?

67%

Articles

36%

Videos

Whitepapers

22%

Webinars

20%

Infographics

18%

Images

16%

eBooks

16%

Podcasts

13%

95%

Distribute via email database

60%

Distribute via their website

Frequency of sending

Frequency of updating

61%

Send at least monthly

22%

Update at least weekly

31%

At least quarterly

60% At least monthly

Which of the following types of content do you create for clients?

67%

Articles

36%

Videos

Whitepapers

Webinars

55%

Distribute via social media

Frequency of posting

42% 20%

Post at least weekly

At least monthly

Most used social media network

Facebook LinkedIn Instagram Twitter YouTube

14% 9%

22%

20%

Infographics

18%

Images

16%

eBooks

16%

Podcasts

13%

16%

Distribute via paid online ads

16%

Most used paid advertising

Facebook LinkedIn Instagram Twitter

Distribute via podcasting services, e.g. iTunes

Avg amount spent/month

68% < $500 50% $500-$1,000 21% $5000+ 16%

46% 25% 11%

87% 74% 46%

Real business benefits What key benefits do you receive from your content marketing activities?

Conversion

Awareness

Advocacy 68%

55% 38%

36%

Higher visibility in search engines (such as Google)

Improved perceptions of credibility and expertise

Improved business reputation

33%

32%

More client leads/referrals

Improved client conversions

Improved engagement with clients and prospects

4

See Wealth Differently

http://sugarmamma.tv/

120+k followers

53k followers

2+ videos per week

17k followers

https://www.sassfinancial.com.au/

One big idea…

1. Choose your target audience Pro tip: Its not your entire client base!

2. Come up with one big idea

e.g. White paper, podcast interviews

Pro tip: Speak to your target audience, listen to their needs

3. Create a long-form piece (written, audio, video or presentation) 4. Break that into a number of short form content pieces Pro tip: This should give you 3-4 months worth of content

5. Distribute your content 6. Repeat 2-3 per year

Article

Infographic

Webinar, seminar

Video

Podcast / interview

Beyond 2021…it’s a journey Covid and tech acceleration

Millennials became too hard to ignore

Digital wealth services went mainstream

=

Digitising the client experience became a non-negotiable

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 Masterclass Series Talking tech with Paul Basset Content marketing Cybersecurity Big data with Xeppo Digital innovation with FPA And more…

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.