Grow for Advice - Solution Overview Gordon Rennie February 2018 ANZ.800.174.5976
Executive summary
Background
1. Grow for Advice is a digital advice platform developed by ANZ’s Group Innovation team for ANZ Financial Planners
2. It currently provides advice on Insurance, with work underway to extend to retirement and superannuation
3. Grow for Advice transforms the way customers receive financial advice so that it is digital, interactive, consistent and can be delivered in a single appointment
4. In doing so it significantly improves the customer experience, raises the productivity of financial planners and reduces risk to ANZ
5. It works by:
- Radically redesigning and re-ordering the end to end process from referral through to implementation, simplifying the process
- Allowing the customer to co-create their advice digitally on an iPad with a financial planner, increasing engagement
- Digitising and automating decisions and processes via a centrally controlled set of algorithms, reducing risk to ANZ
- Providing a legally compliant personal Statement of Advice in the first appointment a customer has with the financial planner, reducing manual effort
Grow for Advice solves multiple problems with the existing advice process:
• Saving time | Product research completed pre-appointment. Automation delivers
end to end advice in one meeting.
• Easy to understand, interactive fact find, gap analysis, insights and advice |
Customers can now see their circumstances & needs and the connection that
makes with the gaps they may have.
• Automation of decisions & processes | Automation of 180 advice decisions with
visibility of the ~30 decisions planners can override. Straight-through processing
from planner to core systems – ending with customers signing on glass.
This will result in:
• Improved NPS | Currently at ~90 off a small sample
• Improved conversion | Improving conversion rate from 22%-32%.
• Employee productivity gains | savings of 4-5 hours per advice given.
• Quality of advice | Pre-audited algorithms, that have sensible default settings with
an ongoing ability to verify override decisions that planners make.
• Time to advice | ANZ’s insurance advice process is too long, usually 2-3 meetings.
• Hard for customers to understand | Customers struggle to understand insurance
or connect their circumstances & needs to the advice being given.
• Decisions & processing is manual | Decisions lie with the expertise of the planner
and thus are hard to audit. Productivity is low because of process & paper.
This results in:
• Loss of customers | ANZ loses 78% of customers from referral to sale with high
attrition - 18% of insurance customers leaving after 2 years.
• Employee productivity is low | Planners spend an average of 9 hours per
Statement of Advice given.
• Risk of inappropriate advice | ANZ carries advice risk that is hard to estimate,
manage and is long-tailed.
Problems with the existing advice process How Grow for Advice solves the problems
ANZ.800.174.5977
Traditional Advice is manual, time consuming and inconsistent, resulting in a poor customer experience, high risk to ANZ and poor business outcomes
1
Current advice process
requires multiple meetings
and takes 9 hours planner
effort1
Manual advice decisions2
made by financial planners
creates a high risk and
inefficient business
As a result the conversion
rate is just 22%3
With 18% life insurance
attrition4 rate in the first 2
years
3 6 9
2
3 4
Referral First
meeting
Research
Customer
Second
meeting
Customer
accepts Implement
Hours
10.00%
20.00%
30.00%
40.00%
Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16
Conversion rate
Months
0%
5%
10%
15%
20%
Advice Areas
Manual advice decisions
Process steps
Attrition rate
Prepare
Advice
0 50 100 150 200
180
1. Project FIAT Investment Case – WIC Approved, June 2014
2. Project FIAT Investment Case – WIC Approved, June 2014 3. ANZFP Sales Reporting – September 2016
4. Retail Risk Retention Report Australia – June 2016
ANZ.800.174.5978
Grow for Advice delivers an entirely new Advice process and digital platform for ANZ Financial Planners and customers
Extensive research on a customer’s OFI products now
conducted between referral and first appointment
Digital staff and customer experience
delivered via iPad app
Automated rules engine delivers consistent
lower risk decisions Single integrated platform delivers real-time advice
and product recommendations
• Branch referral process completely redesigned
• Research conducted by central admin team
• Large amount of up-front data captured
• Value delivered to clients at start of 1st
appointment not end of 2nd appointment
• Straight-through processing delivers same-day
solution
• Integration with COIN and CSP core systems
• Customer sign-on glass functionality
• 180+ advice decisions standardised and automated
• ~30 advice decisions can be overridden by financial
planners whilst being fully monitored
• ANZ and non ANZ products treated the same
• Engaging, visual and collaborative approach to
providing advice to customers
• Insights and preferences drive automation of strategy
• Objective comparison of ~100 non ANZ products
• Integrated ecosystem of tools such as school fees
1 2
3 4
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As it rolls out across Australia it is delivering strong results
REFERRAL NO-SHOW RATES DROPPED 28% (18% to 13%)
CONVERSION RATE WHEN APP IS USED IS~50%
MORE COLLABORATIVE & INTERACTIVE APPOINTMENTS
PLANNER FEEDBACK AND CUSTOMER NPS WAS STRONG
4 HOURS SAVED PER ADVICE SOLUTION
CUSTOMERS AVERAGED 3.5 INSURANCE COVER TYPES
83% OF PLANNERS HAD HIGH TRUST IN THE ADVICE AUTOMATION ENGINE
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Grow for Advice is an ANZ Data Asset – Capturing ~700 data points
127 customer, partner and family attributes
125 data fields about the family’s financial position
What can
Grow For Advice
capture?
184 advice decisions
93 fields about a customer’s superannuation accounts
160 personal insurance policies data
ANZ.800.174.5981
~700 Over 700 product features and qualities are used to assess each product against the customer’s needs
92/100 Every product is scored out of 100, with the best scoring product default recommended
4 Grow for Advice researches, scores and compares ANZ’s OneCare against 4 competitor retail insurance products
103 And objectively compares those 4 products to over 100 different Industry, Group and Retail insurance products
As products become commoditised, Grow for Advice has already digitised competitor product research, comparison and recommendation
How can we use the data to further improve our offer?
How can we use the data to better understand our customers.
New insights?
ANZ.800.174.5982
APPENDIX: Customers co-create their Advice across four steps, in one appointment
YOUR WORLD & GAPS
Advice generation starts with the collection of customer information..
Your World – Income, assets, debts, lifestyle expenses
Gaps – You Chose Cover Levels
Personal Details – Employment details, address, leave to use at claim
INSIGHTS & PREFERENCES
The rules engine helps customers determine their Preferences towards insurance:
Price Sensitivity
Product Features
Insurance Outlook
Customers review and customise these Preferences with their planner.
STRATEGY
The rules engine runs and recommends an insurance strategy.
Customer reviews and agrees on an appropriate strategy
Both can adjust and override outcomes
Indicative price of insurance is shown so decisions can be made more easily
PRODUCTS
A product quote will run, using the Strategy inputs.
Compares and selects an appropriate product set
Reviews and compare new products
Evaluates suitability of existing products against new products
ANZ.800.174.5984
APPENDIX: Back office support systems create efficiency for planners
All client appointments pre-prepared using back-office admin system 1
ANZ.800.174.5985
APPENDIX: Fact find becomes Your World
Planner collects custom information using iPad 2
ANZ.800.174.5986
APPENDIX: Highly collaborative gap analysis
Planner and customer collectively agree how much insurance is required 3
ANZ.800.174.5987
APPENDIX: Insights driven customer conversations
Insights help the customer understand their situation before agreeing their preferences
4
ANZ.800.174.5988
APPENDIX: Advice determined by easy to understand customer preferences
Customer preferences determine how/when advice algorithms work 5
ANZ.800.174.5989
APPENDIX: All advice decisions now automated
Advice algorithms make 180+ advice decisions with ~30 rules available for override
6
ANZ.800.174.5990
APPENDIX: Independent ANZ and non ANZ product recommendations
Recommendations can be made on ~100 ANZ and non ANZ products 7
ANZ.800.174.5991