The changing face of Financial Services
Facilitator: Sandi OrleowPanellists:
Carolyn Colley – CEO Decimal Software
Trish Nicklin – Senior Relationship Manager ASX
Amanda Gillespie – Joint CEO Lonsec Fiscal
industries.
Expect quality service 24/7
Personalisation
Omni-channel experiences
Mobility
Landscape changing rapidly
Trust erosion Regulation
Demographic
changes
Digital
innovation
Growing
market
Customers
expectations
changed
Banks under
threat
Ageing population
Shift of assets
Millennials seeking digital
solutions
Consumers exhausted with
conflict & complexity
Industry reputation
Trust peers
FinTech is a booming
sector
New “players” entrants
Transparency
Big market with mandated
growth
Increasing competition and
potential revenue leakage
Unbundling of traditional
services
Barriers to entry falling
Increasing
Coopetition /
Collaboration
Evolved business
relationships, dynamics
and models
Q & A
Carolyn Colley – CEO Decimal SoftwareTrish Nicklin – Senior Relationship Manager ASX
Amanda Gillespie – Joint CEO Lonsec Fiscal
2
The case for a new advice model?
3Source: ABS 6523.0 Household Wealth and Wealth Distribution, Australia, 2011–12
Significant unadvised population
At least
5 millionHOUSEHOLDS ARE UNADVISED
~60% of Australian workers
unadvised
Valu
e o
f fin
an
cial p
ro
du
cts $
’000
AGE
~40%
advised
15-24 25-34 35-44 55-64 65-74 75 and over45-54
300
150
450
600
750
There are
8.6 millionHOUSEHOLDS IN AUSTRALIA1
Advised money
There are
5 millionHOUSEHOLDS IN AUSTRALIA1
UNADVISED
Australia has over
$6.3 trillion in consumer net wealth1
4
Advice needs are bigger than ever
Source: Research by Nature for Mercer August 2014
90%of women will retire
with inadequate
savings to fund a
“COMFORTABLE
LIFESTYLE”
Around
60%of people would NOT
COPE
FINANCIALLY
If their partner died
47%of pre-retirees are
somewhat or
extremely concerned
about LONGEVITY
RISK1
5
What consumers want?
6
Shift towards full service platformsCore banking Travel Healthcare Accounting
Recruitment Real Estate Marketing Financial advice
Making hard jobs easy
www.decimal.com.au
The Decimal solution
First consumer-driven automated financial
advice platform
8
Customer
Engagement &
Experience
Clear and simple
online real time data
lead customer
experience,
frictionless, seamless
& end to end
Integrated mass
personalised online
marketing campaigns
driven by data
analytics
Customer
Compliance
Embedded
regulations and advice
business rules
Digital
tracking of all
customer and advisor
activity
Advice
Process
Auto generation of
personalised
graphical
communications
Configurable and
extendable advice
engine automating
advice topics
Efficiency
Real-time omni-
channel handover
from consumer to
contact centre/adviser
Integrated
compliance, workflow,
triage and document
management &
storage
Operations
Configurability
Configurable screens,
communications,
products, advice
Integrated ecosystem
of external client and
product feeds
Enterprise Grade
Multiple organisations
and brands supported
centrally
Real-time 2-way
integration with
underlying admin
systems straight
through processing
SaaS
End-to-end solution
9
10
11
12
13
Instantaneous, automated, concise and easily understood, helpful infographics
14
Trish Nicklin, Senior Manager: Customer Experience11th Sep 2015
ASX: Investor Supermarket
Important information
This material contains information only. ASX does not represent or warrant that it is complete or accurate. The information is foreducation purposes only and any advice should be sought from a professional adviser If you are seeking advice (including arecommendation or opinion) about a financial product you should consult an Australian financial services licensee. To the extentpermitted by law, no responsibility for any loss arising in any way (including by way of negligence) suffered by anyone acting orrefraining from acting as a result of this material is accepted by ASX. This disclaimer extends to any private discussions orcorrespondence with the presenter of this information.
© Copyright ASX Operations Pty Limited ABN 42 004 523 782 (‘ASXO’). All rights reserved. This publication should not be reproduced,stored in a retrieval system or transmitted in any form, whether in whole or in part, without the prior written consent of ASXO.
Our ASX priorities
Australian investor trends
The growing range of ASX product structures and the mFund settlement service
The expanding asset class aisles within the ASX Investment Supermarket
How to access the ASX Investment Supermarket
Additional Information
Agenda
Our priorities
We are the global leader in A$ and NZ$
We builddeep connections to global markets
We offer an investment supermarket
$
We provide outstanding customer experience
Be first to market, maximise capital and collateral efficiency
To give the broadest choice to our customers
To compete and maximise liquidity The best service,
aligning with our customers’ needs
Source: ASX Share Ownership Study 2012 ATO, Self Managed Super Fund Statistical Report (Sep 2014)
5.98 million hold shares directly
6.68 million adult Australians own shares (38%)
1 million SMSF trustees have chosen to invest 40% of the $560Bn SMSF sector via ASX
Some statistics about how investors use ASX
Source: ATO SMSF Statistical report Sep 2014
How SMSF assets are held ($560 billion)
Total listed
202,416
Cash & Term deposits
156,734
69,861
21,081
58,260
27,322
27,3224,214
13,302 Other assetsMisc
Offshore investmentsOther managed invests
Total unlisted
Residential property
Non-residential property
Source: Australian Super website - Balanced investor
How assets are owned outside of SMSFs
34%
3%13%9%
10%
31%
Australian Equity
Cash
InfrastructureProperty
Fixed Income
International Equity
Listed Traded Settled
Listed Investment Companies (LICs)
Exchange Traded Funds (ETFs)
mFunds
Different product structures
2000
Australian equities
Fixed Income
Australian government Bonds (AGBs)
Exchange Traded Funds (ETFs)
mFunds
FIXED INCOME
GLOBAL
Global equities
Globally: stocks15,000
countries58
in value$66 trillion
GLOBAL
Infrastructure
Australian shares mFunds
INFRASTRUCTURE
GLOBAL
Property
Australian shares mFunds
INFRASTRUCTURE
Second largest listed property
market in the world!
A-REITS
Checkout
CHESSregister
The mFund Settlement Service uses CHESS to automate the process to apply for (buy) and to redeem (sell) units in selected unlisted managed funds using an ASX broker
Units acquired in this way are settled and delivered to the individual investors’ Holder Identification Number (CHESS HIN) in their name
The process is similar to that currently followed for managed funds
What is the mFund Settlement Service?
A way to trade units in managed funds between investors ‘on-
market’
A listing service for managed funds
A trading platform for managed funds
What the mFund Settlement Service is not
Does not require an investor to complete a paper application form
Does not require an investor to provide identification for each transaction
Will hold units under the investor HIN alongside other ASX products
How the mFund Settlement Service is different
Next steps – www.mfund.com.au
Thank you
