Historically, financial advisors, operating on a face-to-face basis with customers, were the basis of the Wealth process across the industry. This Model is underpinned by paper and labour-intensive back-office functions, typically supported by disparate IT systems. It is expensive to deliver and is not scalable. Increasing regulatory requirements cause a heavy compliance cost on the delivery of advice. Although positive for consumer protection, regulation makes advice in its current form expensive and highlights the need to disrupt the current Model.
In addition Global Macro forces, including the accelerating impact of technology on market competition and the accelerating flow of data are also causing challenges to the viability of the traditional model. Consumers are increasingly looking for financial services providers that are embracing technology. Research shows that more than a third of consumers would leave their provider if they didn’t offer more up to date technology.
In Ireland as elsewhere, consumers are turning to technology and increasingly looking for financial services providers that are embracing technology. Research shows that better customer journeys correlate strongly with faster revenue growth while lowering the cost to serve. To be the partner of choice of customers and to maximise efficiencies going forward, Bank of Ireland is adopting a digital culture to become a truly digital wealth business. This is being achieved through a Digital Transformation programme which will result in the enablement of digital, real-time, integrated end-to-end capability for our customer’s Financial Wellbeing and service.
Through digital transformation Bank of Ireland Wealth will compete with both traditional and disruptive competitors by leveraging digital, innovative, agile approaches whilst meeting ever evolving customer expectations and needs. Some assume that only disruptors, such as small fintechs, can take advantage of the gap created in the market by global forces, but, there is no reason why established institutions like Bank of Ireland cannot also disrupt the market.
The platform has been built in partnership with a 3rd party fintech from Australia, Ignition Advice. The partnership leverages Ignition’s development and UX expertise with Bank of Ireland’s market knowledge, scale and customer base. The first phase of the platform, a digital self-serve savings & investment proposition was fully launched in 2020. To date c10,000 customers have registered. The next phase delivered enabled Bank Advisors actively engage with customers via the platform in meeting their financial needs across Retirement and Investment products. It underpins and supports the provision of regulated financial advice across a range of products, and it will ultimately replace the legacy un-integrated Point of Sale system. This digital platform facilitates a truly Hybrid Advice Model, the first of its type in Europe. The platform is fully integrated with other systems. This will provide Advisors with the capability to sign-in seamlessly to the new platform, and to complete end to end advice journeys right through to application stage with their customers.
Key features:
1. Direct-to-Customer (Self-Serve) Savings & Investment option.
The customer can, subject to business rules, elect to take out a regular premium savings plan or a single premium lump-sum investment on a completely self-service basis. However at any point in the process, they can elect to engage with a Financial Advisor. Similarly where the customer journey takes them outside of our business rules, we direct them to one of our Financial Advisors who will assist the customer.
2. Advisor-assisted journey, where the customer and Advisor engage using the platform:
On-boarding the Customer:
Following an introductory conversation with the customer, the Advisor triggers an email link to the customers email address. On receipt of the email, the customer sets up their password, accepts the terms and conditions of the platform and can then access the financial assessment.
3. Complete financial assessment
The financial assessment can be completed by the customer in advance. With one question per page and in plain English the financial assessment is designed to be simple for the customer to complete on their own. By completing at home, the customer will have their financial information to hand, improving the quality of the information captured.
4. Financial assessment overview
The Financial Assessment summary covers a number of key areas. Customers can see at a glance the areas of their financial planning that need attention. Insights are provided in each section to help the customer understand how they are doing against certain metrics. Ratings are consistent with Bank of Ireland's Financial Wellbeing programme with possible outcomes of Stretched, Managing or Thriving with individual scores rolled up into an overall rating.
5. Streamlined and Simplified Advice journeys
The Financial Advisor can study this information in advance allowing the customer meeting to focus on the gaps identified in the financial assessment. Once the next best action is agreed, the advisor can then move into a targeted advice journey to satisfy that need, with only a small amount of additional information needed to complete.
Journey documents are provided digitally and are available through the customer’s own dashboard.
Built in controls ensure consistency of advice across our business. The need for individual notes is reduced with the system performing these quality checks in real time.
6. Apply
The application process is fully integrated with automatic upload to New Ireland back end systems. Only a small amount of additional information is needed to complete the application form. Customer documentation such as photo identification can be uploaded directly on the platform. Integrated ‘Docusign’ allows for electronic signing at the touch of a digital button.
7. Customer dashboard
Customers will have online access to a personalised dashboard allowing them to access their journey documents in a secure location, update their financial assessment as their personal circumstances change over time or start a new digital self-serve or advisor assisted journey. The dashboard gives customers more control over how and when they want to engage with us and will prompt customers to review their wealth needs more frequently.