Tag Archives: Surveys

Canadians are stressed about money

Canadians are stressed out about money

Money stress is the leading source of stress among Canadians

Money stress is causing significantly more stress than work, personal health and relationships according to a Financial Planning Standards Council (FPSC) survey released today.

The findings are being released in conjunction with the 6th annual Financial Planning week (November 16-22) during Financial Literacy Month (November)

The FPSC survey finds that financial stress is driving Canadians to lose sleep, reconsider past financial decisions, argue with partners and lie to family and friends about their personal finances.

Canadians’ experience financial stress to varying degrees depending on age, gender and openness to discussing personal finance issues.

Here are the key findings among respondents across the country (excluding Quebec):

  • A significant number of men and women lose sleep over financial worries (51% of women; 40% of men);
  • 45% of Canadians are embarrassed about their lack of control over finances;
  • Millennials are more likely than any other generation to lie about personal finances; 33% admit to being dishonest with friends, 25% with family and 15% with co-workers (compared with national averages across all age groups of 17%, 14% and 9%, respectively);
  • 87% of Canadians wish they had made better financial decisions earlier in life;
  • Four in 10 people in relationships with shared finances argue regularly over finances; and
  • 1/3 of Canadians believe that, on average, their friends are in better financial shape than they are.

You can learn more of the details here

What’s the answer?

According to Cary List, the President & CEO of the Financial Planning Standards Council, the FPSC wants Canadians to know that engaging in financial planning with a qualified professional can help enhance both their financial and emotional well-being,

“We urge everyone to source  a CFP professional on our Find a Planner tool at www.fpsc.ca and discuss their situation, goals and financial needs.”

The founder & CEO of LegacyTracker is a Certified Financial Planner and a member of the FPSC.  One of the primary considerations for building LegacyTracker was to enable individuals & families to become more empowered with their own financial/estate information enabling them to become more proactive with financial/estate planning.

Get ‘engaged’ with a Certified Financial Planner today. It’s easy with the Find a Planner tool provided by the Financial Planning Standards Council

International Credit Union Day

Happy International Credit Union Day !

Credit Unions are an important feature of Canadian Life

Co-operative financial institutions are owned & democratically controlled by their members & Canada has a long history of having a strong co-operative financial services sector with Credit Unions playing a significant role. Indeed, Canada has the world’s highest per capita membership in the credit union movement, with over 10 million members, or about one-third of the Canadian population belonging to one. That makes them 100% Canadian owned. In over 380 Canadian communities, they are the only financial institution, offering essential financial services for those local economies. However, all Canadian Credit Unions pride themselves on having a local focus:

  •  More than 736 credit unions (and caisses populaires) in more than 3,100 locations
  •  Over 10.2 million members
  •  $303 billion in combined assets
  •  More than 27,000 employees

The Canadian credit union system contributed more than $49.3 Million through direct donations, financial services, sponsorships, scholarships and bursaries in 2013 (up from $35.6 Million the year prior)

The 2014 Ipsos® Best Banking Awards for the 10th consecutive year has reported that Canadians have ranked credit unions first among all Canadian financial institutions for:

  • Overall Customer Service Excellence
  • Branch Service Excellence
  • “Value my Business”

Credit unions tied for first among all financial institutions for :

  • Financial Planning & Advice
  • Automated Telephone Banking Excellence and
  • Live Agent Telephone Banking Excellence

Read more about the Ipsos® Best Banking Awards here 

According to the Canadian Federation of Independent Business,  Credit Unions also outperform all banks in serving small and medium-sized enterprises. Credit Unions have been ranked #1 by CFIB members in 4 of the last 5 of their triennial surveys (2000,2003,2009 & 2012) . Read more here 

Credit unions also boast a very rich history of innovation.

Thank a Credit Union for many of these “Firsts” that for the most part, we all now take for granted:

  •  First financial institutions to lend to women in their own names (in the 1960s)
  •  First to offer daily interest savings
  •  First full-service ATMs
  •  First fully functional online banking
  •  First loans based on borrower character
  •  First payroll deduction service for deposits and loan payments
  •  First open mortgages
  •  First home equity lines of credit
  •  First debit card service.
  •  First registered education plans.
  •  First branchless bank (Citizens Bank)
  •  First cheque imaging service

So Happy International Credit Union Day ! A day that internationally, is a day to recognize the positive impact that Credit Unions make in their communities around the world. ICU Day. Have a good one.

Credit Unions across Canada matter. You can read more of the facts behind recent changes announced in the 2013 Federal Budget here 

CUNA_ICU_Logo_Final_WC

Worries of the Wealthy (HNW) in 2014

 

US Trust 2014

The 2014 version of the U.S Trust Annual Insights on Wealth and Worth was recently released. The annual survey provides insight on the wealth management challenges confronting high net worth and ultra high net worth individuals in the US.

High Net worth is defined for the purposes of this survey as being $3 Million or more in investable assets. The 2014 survey sheds light particularly on the growing challenges and needs that come with more complex family dynamics including multi-generational and extended family situations. Worries of the Wealthy.

Some highlights that we found particularly interesting and some of the challenges that LegacyTracker can help with….

The Top 5 risks to family wealth

Divorce, Addictions, Untimely death or disability of a primary income earner, medical problems  and disagreements over inheritance or distribution of family assets

Family circumstances US Trust 2014

“The modern American family is more diverse than it once was, adding to the challenges of wealth management for high-net worth investors and their advisors. Changing family structures and roles among multiple generations of immediate and extended family members affect the way family members interact, communicate  and manage their wealth”

Ranking the most important reasons for having an estate plan

US Trust 2014 Reasons for Estate Planning

How important are Financial Legacies ?

While 60% of those surveyed thought it was important that they leave a financial legacy, 96% of wealthy parents are concerned that their children will be mature enough to receive an inheritance until at least age 25 and 37% think the ideal age is between 30-34. That might explain why only 38% of wealthy parents have fully disclosed their financial status to adult children over age 25.

Executor choices

Perhaps some troubling challenges on the horizon?

  • More than 3/4 of those surveyed have named a family member or friend as executor
  • Most often, individuals name their spouse as an executor but…
  • Nearly a quarter of those surveyed had not yet chosen an executor or trustee
  • 22% have not named a trustee because they have not established a trust

Families and Friends as Executors US Trust 2014

Few consider capacity of executors

Executor challenges

There were many challenges noted by those that have served as an executor or trustee. The 2nd biggest challenge cited was…having access or knowledge relating to where the records and important information was kept.  We would suggest that this issue adds to the biggest challenge noted being, the time commitment of time require to execute a will. Time is money and time can also add to the grief already being experienced in the case of a loved one who has been named as executor which happens a majority of the time even in high net worth families.

 

US Trust 2014 Survey on Executors

Yes. LegacyTracker can help with some of these challenges; important documents & information is critical & so is the sharing of that information as required. Our built in alerts & reminders are all about ensuring that the proper documentation & information is safeguarded.

 

Read the full US Trust Survey US Trust 2014 survey on High Net worth individuals

 

 

US Banking survey

Banks are searching for revenue growth and technology to deliver it

Building revenue is a critical priority for the Banking Industry

The above statement may not perhaps be BIG news in most industries but it is in US Banking. That’s because the emphasis in the US Banking industry is now in high gear after years where the priority (after the financial crisis) was all about managing risk, cutting costs & meeting regulatory requirements.  But now it seems, the focus or refocus is on Revenue Growth in a big way and they are turning to technology to help deliver better relationships with clients & account holders who will help their revenue grow.

The KPMG 2014 Banking Industry Outlook Survey of 100 senior banking executives reports that revenue growth is expected to be delivered by concentrating on relationship building & technology investments that provide better customer experience(s).  

Building better relationships with customers is key to exceeding customer expectations & driving revenue.

  1. Keep customers at the heart of decision-making
  2. Maintain a dedicated focus on understanding customer needs in various customer segments
  3. Deploy an omnichannel approach that offers superior and consistent client experience

The KPMG survey also highlights the areas where most US banks will look for this additional revenue growth. There is a clear eye on wealth management and lending. That means the wealth management sector is going to see competition really heat up.

 

2014 KPMG Banking Survey

Here’s the survey for your reference KPMG_Banking Industry Survey 2014

 

Who`s in charge of your family finances ?

Talking about your family finances makes for a happy marriage

So says a recent survey from Experian Consumer Services about Love & Marriage and Credit Open dialogue about family finances helps avoid conflict and can prevent one spouse feeling that they carry more of a burden over the other. It`s also apparently sexy! 73% of women and 60% of men in the survey said open communication with their spouse or partner about finances makes him/her more attractive.

So…It makes you wonder why on average, only 39% of all married adults are sharing responsibility for their family finances ?

Family Finances

 

Who`s in charge of your household finances

 

LegacyTracker can help you share & communicate information about your family finances. And, since open communication about such matters is key..We think that means that LegacyTracker can help you have a happy marriage.

Being financially aware is… Sexy

Being financially aware is sexy and will make you more attractive ….Forget the Beauty Makeover!

Thanks to a recent survey ( Experian Credit Score Marriage Survey Report 2014 by Edelman Berland) there is now compelling evidence that you can forgo the beauty makeover. It’s all about being financially aware (or mostly)

Married adults value financial responsibility more than physical attractiveness in a long-term romantic partner (spouse)

What makes a spouse attractiveÉ

 

And…financial compatibility is more important in a big way for both married and unmarried adults than Politics, Religion, Career goals & even sex & Intimacy…

Financial compatibility is sexy

 

We think that means that LegacyTracker can make you sexier by helping you become more financially aware. LegacyTracker allows you (and your spouse) to simplify, safeguard and share your important financial information. LegacyTracker comes pre-loaded with a comprehensive set of templates that enables you to become empowered with your own financial information, a net worth tracker and reminders and alerts about outdated or missing information. Yes. Who knew that could make you more sexy right ?

Definitely Good to know.

Here`s more from that survey

Financial awareness makes for a good marriage

Parents, Kids & Money

Interesting but worrisome survey from T. Rowe Price “Parents, Kids & Money Survey” 2013 The survey set out to understand the basic financial knowledge, attitudes and behaviours of both parents and their children age 8-14 . The survey included 1.014 parents and 839 children in the US. The study was quite comprehensive..but we will share 3 with you here

The complete study can be found here

Kids and Money

And…Where do family conversations on money fit with everything else there is to talk to our kids about?

Topics to discuss with kids

Interesting but more worrying.. 50% or less of parents surveyed have strong financial habits to pass along to their children. Notably: Only 46% had life insurance. While 46% are saving for a family vacation & 39% save throughout the year for holiday shopping; only 26% have an up-to-date will.

Parents not covering financial basics

 

Please.

Get a will! We’ll be reminding you to get one …along the way with LegacyTracker.

And also? Let’s work on some of these basics so we as parents can pass them along to our children.

 

Fin Lit for Seniors

FinLit for Canadians-Phase 1 – Seniors’

A long-awaited National Strategy for Financial Literacy is now underway for development now that the also long-awaited Financial Literacy Leader has been appointed. (Jane Rooney) It’s a very BIG project with the goal of enhancing the financial well-being of All Canadians

Work on the National Strategy is taking place in phases and the 1st phase will focus on seniors and “soon be seniors”.   Other phases will focus on younger demographics as well as newcomers, low-income Canadians and Aboriginal peoples.

Life changing events for seniors

 

Seniors face a number of life changing events which we imagine is why Phase 1 will focus on this demographic

 

 

 

 

 

The Seniors’ Financial Literacy Strategy specifically seeks to strengthen the financial literacy of current and soon to be seniors by increasing knowledge, skills and confidence in making responsible financial decisions.

So how will this happen? What’s the Plan? 

That’s the purpose of the proposed blueprint released this month & the call for help from the Canadian Government to Canadians to both identify some of the current challenges faced by seniors & suggest how these challenges can be overcome

Specifically:

  1. How can we best encourage Canadians to prepare financially for their seniors years ?
  2. How can we empower seniors to plan & manage their financial affairs ?
  3. How can we improve awareness and understanding of public benefits for seniors?
  4. How can we better identify, prevent and combat the financial abuse of seniors ?

Canadians can contribute their input by responding to the questions posed in the consultation document by July 15 2014. Following a review of input received, the target date for a finalized literacy strategy is the Fall of 2014.

Refer to the Financial Consumer Agency website for more info  or grab your copy of the consultation paper here:  seniors_financial_literacy_consultation

Orphan Policies increase the risk of Unclaimed Policies

What makes it even more likely that an Insurance policy may go unclaimed  ?

Orphan Policies 

To clarify, Orphan policies do not relate to coverage for Orphans but rather to the fact that over time, lots of policyholders become “unattached” to a servicing agent. The policy holders become Orphans in a sense.

A recent article from  Insurance Business entitled Orphan Policyholders – How many are there ? noted :

Life insurance

Statistics vary about how many policyholders are orphans with figures being reported as high as 50 per cent for some companies. In an economic downturn more agents tend to leave the business, which creates more orphans. This suggests that the number of orphans likely has increased over the last several year.

 

The same article notes a recent survey conducted by Toronto based NewLink Group that estimated orphan policies being as high as 36% of personal life policy holders in Canada and 29% in the U.S. Orphan policies are more likely to be those purchased from a life agent/broker (41 % in Canada & 39% in the U.S.) as compared to those purchased from a financial planner or advisor (18 % in Canada & 22 % in the U.S.)

Whats at risk when a policy becomes orphaned ?

  • Beneficiary changes
  • Address changes
  • Insurance policy maturities as well as
  • Awareness of an actual claim occurring

A major gap develops when individuals and families may no longer have a direct contact with their contract provider by way of servicing agent. Unclaimed policies are more likely to be at risk of becoming unclaimed.  Orphaned policies may provide another reason why industry experts have estimated that Unclaimed policies may be as high as 20-30% of all life insurance policies

 

 

Ethical Wills: An important part of a Legacy & LegacyTracker

 

The results of a 2012 Allianz Life Insurance Study may surprise you. 86% of Baby boomers (age 47-66) &  74 % of elders (age 72+) agree that family stories are the most important aspect of their legacy, ahead of personal possessions (64 % for boomers, 58% for elders) and the expectation of inheritance for financial well-being           (9% for boomers, 14% for elders).

These results do not vary greatly from their study of 2005, that indicated that family values and life lessons were indeed the most important part of legacy before financial assets. That study outlined the 4 pillars of legacy as being 1) Values and Life lessons 2) Personal Possessions of emotional value 3) Wishes and Directions to be fulfilled and 4) Financial Assets/Real Estate

An ethical will captures the non financial part of a legacy. which make for, alongside the financial assets leaving a legacy as opposed to an Inheritance. Ethical Wills are the intangible form of a legacy that can make a real difference to heirs and that’s perhaps why they are being talked about more often in recent years as part of overall wealth transfer planning. An ethical will is not legally binding or enforceable as opposed to a will or living will; it is more concerned with the sharing of principles, values , life lessons, family histories and guidelines that an individuals may want to be pass along to heirs. It can be an informal letter or a long autobiography or a book, or even a video.

A good read on the subject is by Susan Turnbull of Personal Legacy Advisors in her book, The Wealth of your Life: A step by step guide for creating your ethical will.  Ms. Turnbull’s book provides an introduction to the concept of an ethical will and lays out a 5-step path for creating a written document or recording.  Her website is also a valuable resource

From Ms. Turnbull:

“It is a heartfelt expression of what truly matters most in the client’s life….Whether a client actually creates an ethical will or not, it is a measure of value of recommending one…An ethical will opens a door for an advisor to start a bigger conversation about estate planning”

It seems reasonable that Financial Advisors who open up conversations about ethical wills may find that they are then able to better serve the next generation of their existing clients. It provides an opportunity to reach out to that next generation and reduce the risk that comes with the unprecedented intergenerational wealth transfer that has already started while doing “Good” for clients.

Overall, I think most of us understand, that we are all worth more than the money we leave behind and that’s why we have included a place for Ethical Wills inside LegacyTracker

Connect with us to find out about all of the important parts included in LegacyTracker

Here’s a sample and some additional information in the form of FAQ from John Kador’s article on Ethical Wills from wealthmanagement.org 

ethical-faq

ethical-exercises

Perfect Storm Challenges and Solutions

We think there’s a perfect storm coming in the financial services market with challenges being faced by both consumers and the providers they deal with. ….LegacyTracker can help 

Too extreme? Maybe

We’ve been collecting some evidence in the form of published surveys, research & articles for quite some time. We think all of that reading and collecting has paid off. We think there’s a lot of evidence to support the need for LegacyTracker which is our personal financial management tool . This is an ongoing list in no particular order from our growing collection of supporting surveys, articles and research. Note: George Clooney did not help with this project; he was busy filming the Perfect Storm among his many other activities.

From Digital Insight: The  88% of consumers who now pay bills and transfer funds online, 62% would like a single place to manage their complete financial picture, no matter where the information originates. Households on average have more than three financial institution relationships for wealth and savings solutions and up to six credit card accounts. LT: Legacy Tracker provides a safe & accessible place to safeguard all of the important information and documents in life

2011 US Trust Insights on Wealth Survey: A survey of wealthy Americans with $3M or more of investable assets 56% of those surveyed have not documented personal property and assets, and roughly half have not documented instructions about the distribution of personal property or assets among heirs; even though 25% acknowledge their heirs don’t understand their wishes for how to divide special possessions LT: Helps consumers safeguard their hard-earned assets & can help facilitate important conversations with family members and loved ones about estate planning or final wishes 

2008 Innovations in Retail Financial Services IG&H Consulting & Interim, Woerden:  In financial services these days, a lot of companies struggle to win in severe price competition. However, a financial institution should develop it’s business on long-lasting & customer value driven business models; price is not enough. An element could be innovation.            LT: Helps financial service providers innovate & differentiate their offerings

2011 Banking on You by Thomas Watson, Canadian Business Magazine: Canada’s biggest banks are desperately trying to find new ways to connect with customers. Increased competition has heightened the banks’ interest in offering value and quality to customers, and forced banks to form individual identities. “The ability to introduce new fees is limited, raising the importance of gaining share through better service, broader relationships with clients and growth markets” (Margaret Willis, HSBC Executive VP of Retail Banking and Wealth Management) LT: Helps financial organizations differentiate in a busy marketplace and provide a meaningful way to demonstrate customer advocacy which can deepen client relationships

2011 Canadian Life & Health Insurance Association (CLHIA) : A national online survey of 1,504 Canadians over 18 by Leger Marketing showed only 26% of Canadians think their personal and financial information would be easy to access in an emergency. 56% said their personal & financial information is “somewhat organized” while 11% said it was “not very organized”  LT: Helps users enhance their level of emergency preparedness and by safeguarding important financial legacy & information

2010 Intuit Financial Online financial management survey: Banking customers view online financial management solutions from their bank or credit union as competitive differentiators. 52% of those surveyed said they would leave their current financial institution for one that offers better money management capabilities. Nearly 50% of respondents said they’d already switched banks or credit unions recently. and one-third of them switched because their financial institution did not provide satisfactory online solutions LT: Financial institutions need to offer their customers more in the way of tools & solutions that help them manage their money –a differentiator in the marketplace

 2011 Investment Executive Magazine – Prevent Executor headaches Bank of Montreal Survey confirmed CHLIA’s figures, almost 50% of Canadians who have been appointed to be an executor of a will have experienced administrative “complications” More than 25% have experienced legal issues. “If everything is not written down and documented, the difficulty in sorting out the mess can tie up the settling of an estate (Carol Bezaire, VP of Tax & Estate Planning with Mackenzie Financial. ” Technology has made some things invisible. In their capacity as executors, in some cases, the bank has had to take possession of the deceased’s computer and hire experts to search the hard drive to find crucial information (Royal Bank Estate and Trust Services)  LT: Reduces financial risk for individuals & their loved ones of unclaimed funds for families but it also safeguards families from incurring additional grief in the form of additional delay, cost and stress in times of emergency

2013 For the Love of Money Blog  Are you finances organized? Get into the habit of organizing your finances and you’ll be in for some happy surprises. …..The truth is, we create needless work and worry for ourselves when we do not make a little effort to get financially organized. Often, the biggest leap to getting a house in order is getting over a negative mindset. A lot of people are unwilling to organize their finances because they think there is simply too much to do.  LT: We provide the place for consumers to get organized & stay organized. Simple on boarding and Simple to stay updated. Our built-in net worth tracker & alerts are intended to motivate you to stay up to date

2011 Investment Executive A New Focus on Financial Literacy by Keith Costello of CIFP     A new focus on Financial Literacy “What we have heard (The Canadian Institute of Financial Planners) is the need for unbiased but comprehensive learning materials. Consumers want content that will help them understand financial concepts in a more detailed way and that will guide their financial decisions. We should ensure that these types of materials are readily available” “there is no better marketing and brand positioning than investing in your customers”  LT: Providing tools and opportunities to enhance financial literacy will pay off for financial services providers-by way of better engagement and increased revenue opportunities and ultimately the success of their clients  

2011 Investment Executive Having the “talk” with your clients by Brent Jolly  As most clients have experienced lower investment returns over the past 5 years, it is becoming more challenging for advisors to demonstrate their value to clients. LT: Our online solution allows Advisors to offer a valuable tool to clients and their families, allowing them to safeguard financial assets and some assistance in facilitating discussions about estate planning. Advisors in effect are provided an opportunity to reach out to the next generation

 2013 21st Century PFM for a Mass Audience  Capitalizing on the power of personal finance management will first require the industry to break free of 1980s thinking about
who uses PFM and why. Today, 21% of U.S. consumers mix and match 1 or more of the 3 primary sources of PFM services:  1) desktop software, 2) bank PFM offered through online banking 2) bank PFM offered through online banking, or 3) web PFM offered through an explosively growing number of online and mobile players. That translates into 49.3 million adult users – and 191 million who use none of them.  Financial institutions are at risk of losing loyalty from PFM hungry customers.

We’re not exactly done. We’ll add to this list as we find the time. We’ve got lots more to add.

Customer Advocacy is a Competitive Advantage

Forrester Research is a global research and advisory firm that provides insight and guides clients on business, technology, marketing & strategy decisions in a few different industries including Financial Services, Retail and Healthcare.  They are well considered and well sought after thought leaders. 

Customer Advocacy

For the past 10 years Forrester has been highlighting the importance of Customer Advocacy — as being critical in the eyes of Customers of retail financial services. They define Customer Advocacy as being the perception held by Customers that the firm they do business with does what’s best for Customers & not just what’s right for the firm’s own bottom line. Forrester considers Customer Advocacy as being the key driver of loyalty at retail financial services firms which in turn, yields the most sustainable revenue growth for financial services firms. Last year, in their most recent report Forrester suggested that while Customer Advocacy, has always been a smart strategy it has now become an imperative. Demonstrating Customer Advocacy and showing an obsession while both serving and delighting customers is an unbeatable source of competitive advantage Forrester believes, which can survive technology-fueled disruption and provide disproportionate growth. 

Customer Advocacy when demonstrated, makes clients and account holders feel that their financial services provider truly acts in their best interest and that makes those customers want to invest more, borrow more and buy more from that firm. Free Cappuccino or Free Pens will Not have the same impact.

LegacyTracker is all about showing and providing Client Advocacy – for your Client but also their families.

You can get their report here 

2013: How US Customers Rate Their Financial Services Firms

For 10 years Forrester has shown that customer advocacy — the perception on the part of customers that their firm does what’s best for them, not just the firm’s own bottom line — is the key driver of loyalty at retail financial services firms

2012: How US Customers Rate Their Financial Services Firms

When customers feel that a financial services firm acts in their best interest, they are willing to invest more, borrow more, and buy more products from that firm. We call this corporate trait “customer advocacy” — the perception on the part of customers that a firm does what’s best for them, not just what’s best for the firm’s own bottom line

2011: How Financial Services Firms Win Loyal Customers

Marketing leaders at top-ranked financial services firms have found the secret to loyal customers. Forrester calls it customer advocacy: customers’ perception that a firm does what’s best for them, not just what’s best for the firm’s own bottom line.

2010: How Canadian Customers Rate their Banks

Forrester’s research shows that a key driver of customer retention and deeper customer relationships is a trait we call “customer advocacy,” the perception by customers that a firm does what’s best for them, not just what’s best for its own bottom line. When Canadian customers rate their primary banks on customer advocacy, credit unions come out on top, followed by President’s Choice Financial. Four of the big five banks get below-average scores from their customers. 

 

Financial Advice

Rethinking Client/Financial Advisor Relationships

A 2012 Accenture report delved into how changes in client expectations along with a more competitive landscape is forcing wealth management companies to rethink their relationships with clients and their own advisors.

Here’s a summary:

  • 2 Major trends are reshaping the playing field for wealth management: 1) a more competitive marketplace and 2) the changing nature of clients
  1. The market is becoming more crowded with players from adjacent industries entering including those who can leverage significant capabilities and existing relationships (banks) or their brand presence and existing distribution channels (insurance companies) or those that can offer direct product distribution without advice (Non financial firms
  2. The need for advice has never been greater, clients want 24/7 access to advice, diversified sources of advice, and less costly advice. Advice-led distribution will remain a key focus. But those that are successful will find a new ways to deliver & provide more options for delivery including direct access to information, fairly sophisticated planning tools & risk metrics

How can the client-advisor relationship evolve in response to growing consumer demand for customization and the imminent threat of new competitors ? T

he Accenture report suggests firms and advisors work to

  • Be more customer centric.
  • Enable collaboration,
  • Improve process efficiency
  • Support stronger relationships.
  • Leverage technology to reduce risk, improve compliance and make selling simpler.
  • Build deeper relationships with clients/enable advisors to be more productive
  • Integrate mobile and social strategies
  • Enhance client experiences via mobile access to data along with interactive technologies 
  • Add a human element to digital interactions
  • Add analytics, insight driven intelligence and interactive tools for advisors

Accenture reports that firms must integrate the digital experience into the overall advisory experience, to support the advisors’ role. Top advisors at wealth management firms will adapt to changing client expectations and new competitive forces by doing what they already do best and

  • Showclients that they can provide value beyond that of direct channels
  • Provide high-touch, client-focused advice that reinforces their understanding of clients’ financial needs
  • Use tools and systems to increase productivity
  • Collaborate both internally and externally to build solutions that are tailored to their clients’ personal preferences as well as meet their financial goals.

Today’s top-performing advisors have developed personal, successful strategies and tactics. but those at the top, need to work to leverage such practices throughout the broader advisor network. Accenture suggests that Firms should give adequate consideration about how to provide advisors at all levels with the tools and capabilities needed to deliver a branded, valuable and distinctive client experience.

Also, further strategies are required in order for firms to differentiate by building on their current strengths giving appropriate consideration to how they will:

  • Satisfy client expectations for a customized experience,
  • Institutionalize and promote the practices of top performers
  • Address the proposal creation/meeting preparation activities to make way for more highly tailored experiences  while cutting preparation time
  • Increase customer intimacy through branded and customized client experiences, intended to result in higher prospect-to-client conversion and higher lifetime value of relationships
  • Build capabilities to make the advisor a one-stop-shop for a complete set of financial services, including tax, estate and retirement planning
  • Complement face-to-face with self-serve interactions, providing clients with advice when, where, and how they want it

You can read more of Accenture’s Report here   and …

You can learn about how LegacyTracker can help Advisor/Relationships by contacting us

 

A Tall Order for Credit Unions-Challenges & Opportunities

Credit Unions are trusted financial institutions with a legacy in financial services but like many financial organizations, they are facing more challenges than ever in the financial marketplace. A November 2013 survey  of 547 Credit Unions was undertaken by Sundeep Kapur of Allied Solutions alongside the National Association of Federal Credit Unions (USA) to identify and look at some of those challenges. Regulatory Compliance is always a challenge.

But the results showed many of the challenges today are related to determining HOW TO:

  • Provide member value to last a lifetime
  • Grow Member relationships beyond an average of 2.5 products per member
  • Attract & retain members by creating deeper relationships
  • Increase both Self Service & Digital Channels & Connections with members
  • Help/Mentor members learn what they need to know
  • Compete with non traditional financial organizations
  • Do more with existing members (especially if they are using another partner currently)
  • Reduce marketing costs from an average of $9-$11 per consumer and/or receive specific or better return on that investment

Or In Summary: How to reduce costs, increase member engagement and drive incremental revenue because Credit Union Members want Convenience, Knowledge, Recognition, Services and Innovation while having higher expectations, questionable loyalty to a brand , and lower attention spans A Tall Order to be sure, but these are the key benefits that we truly believe LegacyTracker can help your Credit Union with.

If you would like to read the survey, you can download it here 

What are Credit Union Leaders worried about?

The 5th Annual Global study of “Innovation in Retail Banking” by Efma &  Finacle by Infosys studied 148 banks from 66 countries focusing on ‘simplifying technology to innovate & global innovation trends. There was a particular emphasis on identifying how banks can overcome any barriers to innovation and how they can work to improve their innovation capabilities,

According to the survey, Banks clearly recognize the need to improve innovation in order to protect existing markets & profitability given growing ca landscape of growing competition as well as ever changing consumer and technology trends.  

Of particular interest:

There is a big emphasis for Banks on increasing “Customer Centricity” which is about focusing on products & services that are right for their Best Customers.

Also, whereas only 37% of Banks surveyed in 2009 had an actual Innovation Strategy, 60% of those surveyed in 2013 had an Innovation Strategy. Overall, 77% of Banks surveyed, indicated that they were increasing investment in order to be more innovative. Approximately 26% of that investment being targeted for Channels, 21% for Products , 18% for Process Innovation and 16% for Customer Service and Experience Innovation.

The biggest barrier to innovating,  regardless of their size was noted as “IT Systems” delaying time to market for a new offering most often because those same “IT Systems” often are involved in other changes relating to mergers or compliance changes etc.

We take that to mean that those Banks will be looking “afield” to source out Innovative technologies which seems to be supported with the 4.2 out of 7 that “Partnering with IT companies and other suppliers” received when Banks were asked about the effectiveness of several methods of Open Innovation Techniques.

Read the entire report on Innovation in Retail Banking from Efma and Finacle from Infosys  here

Innovation-in-Retail-Banking-2013 Infosys