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Solving the

scalability challenge

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Regulation TechnologyMiFID II

RDR

CASS

FAMR

Rising

expectationsDisruptors

& start-ups

Digital

adviceLegacy

systemsGDPR

The cost of service is high…

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%of firms envisage growing assets

under management between

30% to 90% in the next 5 years

Source - Compeer Compliance report 2016

…as are industry targets

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Revenue

Costs

A growing need for scalability

Stabilising costs | Driving revenue

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How is the

industry responding

to the challenge?

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Investment in technology

Source - Compeer WealthTech 2017

70%

firms to increase

technology

investment

over next 3 years0% 20% 40% 60% 80%

No change

Increase by 0-20% perannum

Increase by 20-50% perannum

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Efficiencies being gained

Source - Compeer Yearly Review 2017

StaffCosts

3.70

3.80

3.90

4.00

4.10

4.20

4.30

4.40

4.50

4.60

4.70

4.80

2012 2013 2014 2015 2016

(£M

)

Down 2%Flat at 0%

0

5000

10000

15000

20000

25000

30000

35000

40000

Number of staff

2015 2016

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What aboutrevenue and growth?

Cost efficiency is only half of the equation.

Revenue Growth Customer

retention

Customer

acquisition

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Minimum level of

investible assets

Women of wealth Future wealth

‘High net worth’ ‘Ultra high net worth’

EntrepreneursHENRYs Accumulated wealth

International wealth

Source - Compeer Front Office 2017

Different segments = different needs and expectations

What is your growth strategy?

A client-centric approach

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Client expectationsClients are demanding more

86% of clients would pay more for better CX*

70% of businesses say improving

CX is a top priority**

*Oracle ** Forrester

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What isthe solution?

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Thinkstrategically• “Where does my firm need to be 5 years from now?”

• It’s not about plugging gaps and

automating manual processes

• Don’t build your next legacy system

• Build a foundation which enables scalability

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Account for the

opportunity cost

of not building a

scalable model

‘Old and reliable’ but...

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Omni-channel delivery

• Highly scalable

• Significantly reduce staff:client ratio

• Service all client segments

• Meet digital service expectations

• Mass personalisation

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People vs and robots• Don’t underestimate either

• Be a hybrid

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Thank you

@iressuk iress.com

#jointhemovement