Before we get started This document is for general use. This information has been prepared by Netwealth. Whilst reasonable care has been taken in the preparation of this presentation using sources believed to be reliable and accurate, to the maximum extent permitted by law, Netwealth and its related parties, employees and directors and not responsible for, and will not accept liability in connection with any loss or damage suffered by any person arising from reliance on this information. Netwealth Investments Limited (Netwealth) (ABN 85 090 569 109, AFS Licence No. 230975) and Netwealth Superannuation Services Pty Ltd (ABN 80 636 951 310), AFS Licence No. 528032, RSE Licence No. L0003483 as the trustee of the Netwealth Superannuation Master Fund, is a provider of superannuation and investment products and services, and information contained within this presentation about Netwealth’s products or services is of a general nature which does not take into account your individual objectives, financial situation or needs. Any person considering a financial product or service from Netwealth should obtain the relevant disclosure document at www.netwealth.com.au and consider consulting a financial adviser before making a decision before deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth product.
Exploring the human side of technology
General use only – August 2022 This Document Is for General use. Modification of content is prohibited unless you have Netwealth’s express prior written consent.
AdviceTech Stars are a benchmark and trendsetter AdviceTech Stars
Overall
Have more than 10 advisers
EBITDA/Profitability is more than 25% Stars
28%
Overall
Avg. number of AdviceTech used
17
14
% of revenue spent on technology
9.7% 8.0%
40% 40% 10% Have more than 500 clients
53% 26%
More than 10 support staff
51% 13% Avg. client portfolio $1m+
44% 18%
Are your staff satisfied?
Avg. number of AdviceTech used
17 14
% agree:
AdviceTech Stars
Overall
Our business is responsible for fostering a healthy relationship with work technology
87% 91%
An integrated tech stack improves staff satisfaction Technology leads to improved teamwork and collaboration
78%
Technology leads to happier, more engaged staff
78%
Having great technology helps us recruit and retain top talent
62%
Technology leads to improved employee wellbeing
60%
Technology leads to a better sense of staff community/ improved culture
58%
1 in 10
Putting yourself in the shoes of staff members, how satisfied overall do you think they are with your business’ tech systems?
Hybrid-work Simplify Training People tech
Supporting hybrid work with the right tech & support %age offer the following home office support
9 in 10 Stars allow working from home or remote work
Days working from home
~2 current ~1.5 ideal
Access to important information files
87%
Access to appropriate software
84%
Additional equipment (e.g. desks, chairs, PCs) Security support (e.g. VPNs, antivirus) Mobile phone/internet allowance Tech monetary allowance AdviceTech Stars
51% 42% 29% 16% Overall
9 in 10 Stars have a helpdesk 25% in-house
Happy with helpdesk support
only 50%
Simplifying core AdviceTech 9 in 10
% agree – An integrated tech stack improves staff satisfaction
1 in 10
Our business has a ‘highly integrated system of technologies’
How do you think your business can improve staff satisfaction in relation to their technology usage? Integrate existing software systems better
60%
Replace existing software systems with newer/better ones
36%
Use fewer software systems
33% 20%
Provide better/faster hardware
AdviceTech Stars
Overall
Taking advantage of this trend with AdviceTech Most used supplier or technology (of those that use)
Data/system integration tech Usage and intended usage
78%
inhouse
31% 18% 2019
2020
2021
42% 32% 36% 24%
2022 AdviceTech Stars
Overall
Training, guides, better processes and more time to learn 1.
More hands on training
My staff get appropriate training on new software or software upgrades
2.
Better induction
1 in 3
4. More time to learn
~50%
My staff would consider themselves a master of all the software they need to use in their day
3. Self-service tools 5. Help-desk support
Dedicated workforce technology Do you currently use or plan to use in the next 24 months AdviceTech Stars
Overall
Internal task/project management software
Internal communication tools
Professional development/ learning tools
96% 85%
96% 70%
93% 92%
People (HR) management tech
Staff knowledge sharing
Staff surveys
82% 49%
80% 50%
71% 34%
Improved client satisfaction is a result 96% of Stars
You can’t expect your employees to exceed the expectations of your customers if you don’t exceed the employee’s expectations of management. - Howard Shultz, CEO
Technology is an important service factor when servicing Advisable Australians Of those Affluent Advisable Australians receiving advice, the following service aspects are very or somewhat important to them
~80%
~75%
Client experience & service
Personalised offer
~75%
Innovation
~70%
Digital & tech capabilities
~70%
Being an educator
3 in 5
increase spending on client engagement tools
Hybrid-comms
Paper wars
Self-service
Data & CX
Info overload
Social media
Data viz
Hybrid communications are here to stay
Email is the #1 digital. Some younger prefer client portal.
~8 in 10
Initial meeting and follow up meetings Phone & online meeting equally preferred to F2F
Mostly in-person
50/50
Answers to queries, advice updates, document signing
50/50 in-person / digital
Email is the #1 digital. Some younger prefer social media for news and insights.
~65%
General info, document storage, news & insights
Mostly digital
Taking advantage of this trend with AdviceTech Most used supplier or technology (of those that use)
93%
78%
65% 53%
AdviceTech Stars
Frequency of sending educational newsletters to clients
Email marketing systems – Usage
89%
Weekly 8%
66%
Monthly 44% Quarterly 38% Half yearly 5%
2019
2020
2021
2022
Overall
Most used supplier or technology (of those that use)
44% 42% 26% 10% 22% 13%
The paper wars are almost over (Do we really need a printer?)
7 in 10 want to store financial documents
8 in 10 approve and sign financial documents
AdviceTech Stars
Overall
Taking advantage of this trend with AdviceTech Document storage and file sharing – Popular suppliers
Digital signature technology – Usage
2019
2020
75%
84% 68%
39%
43% 25%
Client portal – Usage and intended usage
2021
42% 30%
2022
30% 40% 30% 28% 62%
84%
2019
2020
2021
2022
Empowering clients with self-service tools (Helping clients help themselves)
Taking advantage of this trend with AdviceTech
42%
2024
75%
29%
control
59%
of wealth
Must have or somewhat value Established Affluents
Emerging Affluents
% Offered by HNW advice firms*
53%
Access performance on my investments
47%
View total household balance sheet
35%
Track spending and budget
65%
44%
Securely store/access documents
Access financial education & tools
79% 88%
43%
Approve or sign financial documents
Chat/meet with my financial planner
72% 85%
40%
Track progress to my financial goals
Buy and sell investments
85% 93%
9%
81% 75% 86%
60%
83%
75% 80% 32% 35%
*with $750k or more in investable assets or $150k or more in personal income.
76% 85% 71% 82%
Netwealth’s mobile app White labelling
Mobile ‘whole of wealth’
Mobile app plus browserbased desktop configured to the brand.
Bank and property feeds plus integration with Xeppo data.
Daily business & finance news A daily feed of our morning business roundup business and finance news.
Activities on mobile Clients can view tasks and approve or action Netwealth or adviser originated activities, e.g. fee proposals. Prototype only
Avoiding information overload Where do you typically go for info and advice about your investments?
Frequency of reading business, investment or financial news online Daily
35% 33%
Established Affluents
Weekly + Daily
66% 55%
Emerging Affluents
Source: https://tradebrains.in/stock-market-memes/
42% my adviser 35% AFR, etc. 28% company websites 26% websites ~20% seminars, ASX, trading websites, PDS, research Established Affluents
~25% company
websites, social media, online forums, AFR ~20% my adviser, ASX, podcasts, PDS, research
Emerging Affluents
Taking advantage of this trend with AdviceTech Which types of content do you create for your clients?
71%
Articles
40%
Videos
9 in 10 Stars produce content for clients
Webinars/Live streaming
24%
Case studies/Success stories
24%
Podcasts
20%
Research studies
18%
Infographics
18%
Templates/Workbooks/Manuals
9%
AdviceTech Stars
Overall
How do you distribute this to clients
Email 90% Website/blog 55% Social media 38% Client portal 20% Podcast feed 18% Organic search 13% Paid online ads 8%
The social media phenomenon Generational breakdown of social media users in Australia by platform Roy Morgan Research Feb 2022
YouTube
33% daily use
65% never use 65% 38%
56% daily use 87% 76%
86% 59% 20%
Pre-Boomers
32% Baby Boomers
40% Gen X
77% daily use 90%88% 61%
Gen Y
77% daily use 82%91% 69%
Gen Z
Taking advantage of this trend with AdviceTech Social media network used (those that use)
Frequency of posting to social media
Social media management technology / suppliers usage AdviceTech Stars
Daily 7% Weekly 36%
90%
18%
Overall
71% 74%
40% 19%
69% 20%
Monthly 20% 31%
2019
2020
2021
2022
29% 26% 9%
25% outsource
Data and its importance in CX
Taking advantage of this trend with AdviceTech Online fact find technology – Usage and intended usage
Data/system integration tech Usage and intended usage
91%
78%
60% 39% 2019
2020
2021
2022
Client dashboard & reporting Usage and intended usage
75%
31% 18%
40% 31%
2019 2020 2021 2022
36% 2021
18%
22% 37% AdviceTech Stars
Overall
2022
Client experience
Marketing Mailchimp
Sales Xeppo
Workflow Xeppo
Documents Sharepoint
Reporting PowerBI
Platform Netwealth
All data is normalised into a common format allowing for seamless, scalable two way connections Open API Connection Engine
Business software & Data 25+ connectors
Accounting Xero
SMSF Class
Matching & Grouping Engine
Wealth iress
Finance AFG Home loans
Data Sync Engine
Platforms Other
Compliance Opex
Security Engine
Documents Sharepoint
Prototype only
Data visualisations (a picture speaks a thousand words)
90%
of information transmitted to the brain is visual
vs
Taking advantage of this trend with AdviceTech Tools and calculators - Usage
Tools and calculators – Popular suppliers
Presentation tools – Usage and intended usage
93% 69% 43%
76% 75% 65%
62% 2021
2022
39%
26% 85% AdviceTech Stars
Overall
71%
13%
25%
Netwealth AdviceTech Adoption Framework Intended adoption
High potential adoption
Approaching mass
Niche adoption
20%
Mass Adoption
Mature but not mass adoption
30%
60%
Current use
80%
100%
High potential adoption AdviceTech Client portals
29%
2021
Client survey & feedback
49%
2022
Scaled advice
1 in 3 2024
47%
2021
58%
49%
2022
2021
Business reporting/ dashboard tools
2 in 5 2024
Website & blog content management
69%
2022
Client reporting/ dashboard tools
2 in 5 2024
Online fact-find tools
38% 2021
60%
2022
Data/system integration tools
~50%
Presentation software
49%
2021
69%
2022
Off-platform asset management
34%
51%
2024 2021
2022
www.netwealth.com.au/advicetech More resources to help you on your AdviceTech journey
Disclaimer
This document is for general use. This information has been prepared by Netwealth. Whilst reasonable care has been taken in the preparation of this presentation using sources believed to be reliable and accurate, to the maximum extent permitted by law, Netwealth and its related parties, employees and directors and not responsible for, and will not accept liability in connection with any loss or damage suffered by any person arising from reliance on this information. Netwealth Investments Limited (Netwealth) (ABN 85 090 569 109, AFS Licence No. 230975) and Netwealth Superannuation Services Pty Ltd (ABN 80 636 951 310), AFS Licence No. 528032, RSE Licence No. L0003483 as the trustee of the Netwealth Superannuation Master Fund, is a provider of superannuation and investment products and services, and information contained within this presentation about Netwealth’s products or services is of a general nature which does not take into account your individual objectives, financial situation or needs. Any person considering a financial product or service from Netwealth should obtain the relevant disclosure document at www.netwealth.com.au and consider consulting a financial adviser before making a decision before deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth product.