Future of Work in Financial Services

THE FUTURE OF WORK IN FINANCIAL SERVICES Generating the next level of breakthrough performance requires building essential skills, better managing new work processes, and finding ways to boost productivity. COMMERCIAL BANKING BUSINESS TECH 75% OF COMMERCIAL BANKING EXECUTIVES FEEL THREATENED Potential increase in fee BY VENDOR CONSOLIDATION 82% GENERALIST income from a APPROACH generalist approach VENDOR CONSOLIDATION CAN LEAD TO ADVISORY APPROACH 65% of RMs hurt bank profit by giving business ad vice DELIVERY RISK CEB TOWERGROUP COMMERCIAL BANKING CEB COMMERCIAL BANKING INSIGHT INSIGHT Renew the generalist RM to deliver fee-based growth Establish partnersbips that include jointly managed business plans and shared delivery risk RETAIL BANKING BUSINESS TECH HOW ARE FRAUD INCIDENTS DETECTED? CUSTOMER NOTIFICATION Executives point to SOFTWARE THE MASS AFFLUENT 82% POINT OF TRANSACTION as central to revenue & profit recovery 3RD PARTY of financial institutions report that fraud is regularly detected cu stomer POINT OF ORIGIN YET ONLY 19% IMPROVED AUTHENTICATION CAN LEAD TO INCREASED CUSTOMER REPORT CONFIDENCE IN FINANCIAL PROVIDER ADVICE SATISFACTION DECREASED CUSTOMER SERVICE CALLS CEB TOWERGROUP RETAIL BANKING ! INSIGHT CEB RETAIL BANKING INSIGHT Earn confidence of the mass affluent by helping them learn and decide on their own terms Proactive authentication yields dual benefits – bigher customer satisfaction & efficient operational processing WEALTH MANAGEMENT BUSINESS TECH ADVISORS AND TABLET OWNERSHIP 75% 28% More than a third of advisors manage "messy" books of business of wealth management firms do not 33% support mobility 39% DISCIPLINE OKS 43% INCREASE IN MESSY O DO NOT OWN POTENTIAL I OWN BOOKS REVENUE PLAN TO BUY CEB TOWERGROUP WEALTH MANAGEMENT CEB WEALTH MANAGEMENT INSIGHT INSIGHT Provide preloaded tablets to drive better client interactions & promote advisor productivity Boost profits with disciplined sales and service OPERATIONS BUSINESS 104% MORE THAN AUTOMATION COST GROWTH = CAN HELP 70% 49% 51% REVENUE GROWTH REDUCE OTHERS CSTS BY TOP of financial services AUTOMATION processes still require manual intervention PERFORMERS Expense growth relative to cost growth Complement strategic initiatives with "tactical" low investment and quick turnaround automation activities CEB FS OPERATIONS V INSIGHT CAPITAL MARKETS TECH 2011 IT BUDGET INVESTMENTS MOST FIRMS ARE EXPOSED TO 23% TRADING IT *60% HIGHER COMPLIANCE & PORTFOLIO RISK DUE TO UNDERINVESTMENT IN "PRE-TRADE" TECHNOLOGY of new regulatory compliance costs will be incurred in 6% PRE-TRADE IT the next two years Improve performance and compliance by investing in data visualization capabilities instead of additional investments in core applications and infrastructure. CEB TOWERGROUP INSIGHT CAPITAL MARKETS RETIREMENT SERVICES BUSINESS 81% SALES & SERVICE ACTIVITIES of executives place high importance on mitigating margin BUT, COST-CUTTING pressure WON'T DELIVER RETURNS NEEDED Break the cost-eutting cycle and focus on streamlined services, targeted acquisitions & strategic investments CEB RETIREMENT INSIGHT SERVICES INSURANCE TECH 73% OF CUSTOMERS AGED 18-24 ARE LIKELY 52% TO SWITCH CARRIERS IF MULTICHANNEL NEEDS ARE NOT SATISFIED of insurance customers AGE AGE AGE AGE prefer to interact with their carriers through AGE 18-24 25-34 35-44 45-54 55+ MULTIPLE CHANNELS SINGLE VIEW OF THE CHALLENGE IS TO AVOID FRAGMENTED DATA WITH A THE CUSTOMER Create a single view of the customer by increasing access points while investing in CRM, BPM and other technologies CEB TOWERGROUP INSIGHT INSURANCE m CEB NEW NAMES-SAME GOAL CEB programs have new names, To equip financial services firms and technology providers with the insights and tools they need to succeed in today's dynamic economic landscape. the goal is the same: WHAT THE BEST COMPANIES DO VISIT CEB FINANCIAL SERVICES TO LEARN MORE www.EXECUTIVEBOARD.COM/FS