Jeremy Oakley and Matt Thomas

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Abner Ford
5 years ago
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1 Jeremy Oakley and Matt Thomas KPMG Evolution of distribution TISA conference March

customer access The net effect of all regulation is to compress

2 It s good afternoon from me The industry is no longer paying lip service to customer centricity Distribution will be superseded by customer access The net effect of all regulation is to compress margins and stimulate vertical integration 7 The customer is will be king 8 2

3 Technology is a change agent that will enable the transformation of the retail investment market 9 By disrupting commercial ties between providers and distributors, RDR incentivises vertical integration The elephant in the room is now a dog 10 3

4 Increasing share of wallet or of the value chain is a rational response to margin compression High 2014 Vertical integration Low Narrow proposition Horizontal integration Wide proposition 11 A retail market scenario 1. Self-direction but not as we know it 12 4

5 A retail market scenario 1. Self-direction but not as we know it 2. Anytime, anywhere, anyhow 13 A retail market scenario 1. Self-direction but not as we know it 2. Anytime, anywhere, anyhow 3. A belated industrial revolution David Brailsford Aggregation of marginal gains is about making numerous small improvements which add up to a significant gain in performance Brian Pitman finance is the one industry which have never had its industrial revolution, but when it comes, most of what we take for granted will be swept away 14 5

John Lewis bank Low Narrow proposition Horizontal integration Wide proposition 15

6 Today s leaders must expect trusted retail brands to attempt to eat their lunch High 2019 Amazon Saga Vertical integration Which? John Lewis bank Low Narrow proposition Horizontal integration Wide proposition 15 Delivering tailored customer propositions is testing the operating model Customer Proposition Operational capability 16 6

7 Platforms have moved the LTSM along the tech maturity curve Level 5 E-cosystem cooperation & interoperation The Crowd Level 4 Process Automation Online Information Level 2 Online paper Level 3 Transactional enquire apply confirm People like me Level 1 Offline World Employer Customer Family report Platform HMRC rebalance Advisor 17 Multi-channel distribution will serve the client which ever route they engage through Workplace Buys annuity by rolling over workplace savings Buys annuity by rolling over workplace savings Auto-enrolled into employer pension scheme ti Channel Platform Advised Takes advice on estate planning Advised on retirement income options & tax efficiency Takes advice on saving for school fees, retirement & contingency Mult Direct Draw down from ISA and GIA Self-directed annuity quote Self-directed investment in ISAs and GIA Opens Cash ISA 18 7

8 A retail market scenario 1. Self-direction but not as we know it 2. Anytime, anywhere, anyhow 3. A belated industrial revolution David Brailsford Aggregation of marginal gains is about making numerous small improvements which add up to a significant gain in performance Brian Pitman finance is the one industry which have never had its industrial revolution, but when it comes, most of what we take for granted will be swept away 19 8

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