Super 2020: Technology and Social Trends

“I keep saying the sexy job in the next ten years will be statisticians” Hal Varian – Google’s Chief Economist

What I will be covering Social and technology trends forcing change Fintech revolution and “Robo advice” Naval gazing Real life examples

Social trends – driving change Generational evolution Boomers and retirement, Gen Y Digital Hyper Personalisation Customer centricity Engagement to experience

Technology – facilitating the change Technology delivers (SMACi) Social, Mobile, Analytics, Cloud Internet of Things Fintech revolution Gaps and margin Extending opportunities

The Fintech revolution - Aggregators

The Fintech revolution – “Dis-intermediators”

The Fintech revolution – Social trading and P2P

“Robo advice” 1.0 – where we are at now Basic investment account One standalone channel Low cost Examples: Tech savvy / Millennials / New customer Bps model Digital disruptors Human support? https://www.altus.co.uk/consulting/blog/archive/robo-advice-disrupting-the-financial-planning-sector-and-opening-up-new-opportunities/

“Robo advice” 2.0 – where it is heading Broader product needs Mass market / Mass affluent Aggregation Existing customers Examples: Value for money Omni-channel Service- based model Vertical Integration Big brands Tech + people https://www.altus.co.uk/consulting/blog/archive/robo-advice-disrupting-the-financial-planning-sector-and-opening-up-new-opportunities/

“Robo advice” 3.0 – the possibilities Examples: https://www.altus.co.uk/consulting/blog/archive/robo-advice-disrupting-the-financial-planning-sector-and-opening-up-new-opportunities/

In-store payments Add bank account / credit card Transfer money Configure a car Split a bill Hail a cab and pay for it Reading – blogs, media Food & wine delivery Online services, e.g. laundry Book an event Compare online vs instore prices Send instructions Share real-time location Pay utility bills Gaming + rewards Charity donations Water delivery Digital currency Money gifts Wealth Fund A smart-connected digital marketplace – supporting open APIs is critical Examples If you live in China, you can realistically use no other app but WeChat all day

Naval gazing

What is to come

“Hype cycle” – more to come Technology trigger Peak of inflated expectations Trough of disillusionment Slope of enlightenment Plateau of productivity TIME EXPECTATIONS Digital Security Virtual Personal Assistants Volumetric & Holographic Displays Cognitive Commuting Prescriptive Analytics Customer Centric Web Strategies P2P FX Internet of Things Block chain/Cryptocurrencies Big Data Crowdsourcing Hybrid Cloud Gamification Social Analytics Social Network Payment Systems Cloud computing In memory Analytics Consumer Telematics Speech Recognition Mobile Social Networks Years to mainstream adoption Less than 2 yrs 2 to 5 yrs 5 to 10 yrs More than 10 yrs  Obsolete before plateau *Based on Gartner Hype Cycles approach

What may be coming Hyper personalisation One stop shop – trusted brand “Zero margin” offerings Cryptocurrency and Blockchain

Some real life examples

Super – “Coopetition” Partnerships – holistic solutions Product innovation Engagement and experience Servicing and advice models

UK Pensions freedom and de-accumulation Goal based asset allocation Investment and retirement planning CGT Trust Annuity Tax free cash Deferred annuity PRE-FREEDOMS POST-FREEDOMS Life styling 55 Income/capital protection Longevity risk Pound cost ravaging Drawdown vs Annuity

Australian comprehensive retirement products Accumulation Allocated pension Deferred lifetime annuity Ordinary investments Cash account Position Optimisation Portfolio Insurance Family Grouping Tailored Fees and Servicing

Interesting approaches in the UK

and in the US

“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction” Bill Gates

Key drivers of change FINALLY SOME DIGITAL INNOVATION DISTRACTED BY REGULATORY CHANGE MAJOR ADVICE GAP CLIENT NEEDS HAVE CHANGED (AT RETIREMENT) AND A NEW GENERATION OF INVESTORS NEED FOR PRODUCT AND SERVICE INNOVATION BREXIT, US AND WORLD VOLATILITY

Thank you