1. Ember vagy Robot? Hibrid! Vagyonkezelés prémium ügyfelek részére Imre Rokob – imre.rokob@dorsum.eu

2. We at Dorsum

3. Our customers by sectors: Banks Asset Managers Brokerage Firms Insurance Companies Factoring Companies Pension Funds Partners: Clients and Partners

4. Advice goes digital Robo, human or hybrid?

5. Robo advisors Viable or just a new model portfolio based sales channel?

6. Key figures

7. Mass Affluent segment (Premium)

8. Who is the mass affluent? While wealth management firms were traditionally reluctant to focus on the Mass Affluent market (that is, households with a monthly income of $100.000 and with investable wealth between $250.000 and $1.000.000) Harland Clarke, Tapping the $7.5 trillion mass affluent Market, 2015; Vanguard and SpectremGroup, Today’s affluent investors: insights and opportunities, 2014. A substantial proportion of this wealth increase is going to be realized within the CEE region. A 2013 report of PricewaterhouseCoopers observed that, over the past decade, Eastern European households had the highest growth rate, averaging at around 16% annual growth, and Deloitte forecasts an estimated 11.3% compound annual growth rate of private wealth in Central and Eastern Europe between 2012 and 2020 (compared to the estimated rates of 4.8% on the global scale and 2.4% in Western Europe). PwC, Fortune favors choice, not chance: How wealth management firms can pave the way to growth in new and emerging markets, January 2013. Deloitte, From private banking to wealth management: Challenges and opportunities, in: Inside magazine, issue 5, June 2014.

9. How MiFID 2 changes the landscape „In terms of commission-based revenue, one door is closing forever in the financial services industry. Mass Affluents represent another door; it’s time to push it open.” /Futurelab & Gambit – How to profit from customer centricity in the Mass Affluent investment market/

10. The mass affluent challenges Challenge 4: Expectations in services Challenge 1: Understand your customer better Challenge 2: Differentation in goals Challenge 3: Risk type and various risk profiles

11. Challenge 1: Understand your premium customer better

12. Well Educated, Smart and Savvy Taking Control of Finances Have a Variety of Needs Understand your premium customer better

13. Understand your customer better They are well informed… …so keep their money in several places.

14. Challenge 2: Differentation in goals

15. /PwC – Recipe for success: How financial institutions can forge a sustainable path for mass-affluent customers./

16. Challenge 3: Risk type and various risk profiles

17. Kovács asszony 58-year old Hungarian entrepreneur 120.000.000.- HUF to invest clear set of goals Goal 1. – mortgage pay off turning 65 one-off payment of 40.725.000- HUF low risk low potential high degree of protection Goal 2. – Income stream from retirement Incremental income stream 100.000- HUF per month medium risk steady income stream Goal 3. - Children asset value for her children 30.000.000- HUF much guarantee as possible on the original capital moderate risk capital protection Goal 4. – „Play money” ‘play’ 20.000.000- HUF vintage car high risk high potential return.

18. Risk type and various risk profiles high risk low risk steady returnsprotect capital Level of risk is not enough Because Mass Affluents invest with a purpose they have clear views about the type of return they want and therefore the type of risk they need to consider. Some will want to protect their capital at all costs, but others are looking for a steady income stream. This is an industry blind spot. /Futurelab & Gambit – How to profit from customer centricity in the Mass Affluent investment market/

19. MIFID test and customer risk profile

20. Goal based planning – multiple goals

21. Goal tracking

22. Challenge 4: Expectations in services

23. The Mass Affluent service gap „PwC believes that the mass affluent consumer presents an underserved market worth giving a second look, with a major source of investment assets and potential profits for financial institutions.” /PwC – Recipe for success: How financial institutions can forge a sustainable path for mass-affluent customers./

24. Key requirements to the providers:  Tailored, goal based risk profiles  Performance and risk behavior tracking  Proactive approach across channels the customer prefers Conclusion They expect instead of product push to be listened, will be resistant to sales push Premium customers = made their money by working long, hard and smart. They are well informed They want to be proactively informed about the fulfillment of their personal goals. Premium customers have more money than others but not rich.  If they get the right advice and achieve their goals they become loyal and they help acquire new customers too.

25. Wealth management for the Mass affluent IT solutions

26. Serving wealthy clients how they want

27. Online vs branch?

28. Hybrid tools in Wealth Management

29. Hybrid service Source: PWC

30. User Experience

31. Visually wired

33. Heatmap

34. Visualize risk levels

35. Transparent customer dashboard Flexible client search One click to switch between individual or family views Portfolio evaluation Gross/Net PL Free cash Exposure monitoring by Drill down Compare model and client portfolio performance Model conformity indicator Recent activity Best and worst performing positions

36. Dorsum wealth management solutions

37. Virtual Advice – create investment experience

38. Thank you! Questions & Answers