SEI Investments Company · NASDAQ:SEIC
SEI Investments — ABA Conference 2011
48 slides from SEI Investments's conference presentation, Mar 7, 2011
Slide 1: Understanding the mindset of today's investor
Understanding the mindset of today’s investor Embrace change and become the trusted advisor March 7, 2011 ABA Conference - Miami, FL Presented by Jim Morris, Senior Vice President, SEI Sebastian Dovey, Managing Partner, Scorpio Partnership
Slide 2: Helping clients succeed through improving their business and lives
Helping clients succeed through improving their business and lives 2
Slide 3: Your experience today
Your experience today • The five senses of client centricity • The research • The implications for providers • Wrap 3
Slide 4: Change has elevated the role of client centricity
Change has elevated the role of client centricity • Regulation is changing the rules • Client demands are changing the service proposition • The banking crisis is changing the product mix • The product mix is changing revenue dynamics • Competition is changing the game Life is change. Growth is opti
Slide 5: Change provides new opportunities for growth
Change provides new opportunities for growth • In new markets • With new or better services The best way to predict the • With new talent future is to create it • Targeting new clients • Or targeting the same clients, differently 5
Slide 6: How does the client spell s-u-c-c-e-s-s?
How does the client spell s-u-c-c-e-s-s? Source: Futurewealth 2010 6
Slide 7: Our research: Five issues that frame client-centricity
Our research: Five issues that frame client-centricity Empathy Transparency Independence SEI & Scorpio Partnership Thought Leadership Communication Objectivity 7
Slide 8: Who is Scorpio Partnership?
Who is Scorpio Partnership? SEEK THINK SHAPE CREATE Our interest is in the future because we plan to spend the rest of our life there 8
Slide 9: What makes us all similar?
What makes us all similar? — & & ese 2 J} «4 American Bankers ONO Association 9 ABA Professional Development
Slide 10: The pulse
The pulse 1. What they want Commercially benefitting from a 2. What they need client-centric commitment must 3. What they feel start with a sustained 4. What they are dreaming about institutional understanding of the HNW client base 10
Slide 11: Complexity elevates the importance of advice
Complexity elevates the importance of advice Bank manager Private banker Accountant Financial advisor Other professional None 8% 11% 15% 21% 11% 28% 30% 32% 34% 36% 40% 31% 31% 9% 29% 17% 16% 42% 9% 9% 32% 5% 37% 31% 21% 30% 29% 21% 54% 36% 11% 26% 2% 3% 8% 5% 21% 4% 16% 21% 18% 26% 15% 8% 16% 8% 11
Slide 12: Investors are uncertain about the value of professionals
Investors are uncertain about the value of professionals Q: WHO IS MOST LIKELY TO HELP YOU ACHIEVE YOUR WEALTH GOALS? (TOP 3) “I think there is generally a terrible lack of serious, long term, sensible connection between myself and the financial institution. They don’t know me. It’s really “Them & U
Slide 13: The issue revolves around expectations and reality
The issue revolves around expectations and reality Client expectations Industry focus Showing, explaining Delivery of Reporting and validating Portfolio reporting transaction, tax and investment decisions fee information Explanation of the Fact sheets, scenario Knowledge Client education investment
Slide 14: Transparency
Transparency Empathy Transparency Independence SEI & Scorpio Partnership Thought Leadership Communication Objectivity 14
Slide 15: Transparency is led by disclosure and openness
Transparency is led by disclosure and openness How would you define your transparency in the context of your professional services and wealth management offering? Source: Scorpio Partnership, SEI Topics of Interest 2010 15
Slide 16: Most professionals believe they are very transparent
Most professionals believe they are very transparent How well do you think your firm performs on these transparency factors? Advisors hold strong opinions about the ability to achieve transparency Source: Scorpio Partnership, SEI Topics of Interest 2010 16
Slide 17: And judge the rest of the market too be failing
And judge the rest of the market too be failing… Do you believe the industry is transparent? But a Assets belief that everyone else is # clients per advisor failing… Source: Scorpio Partnership, SEI Topics of Interest 2010 17
Slide 18: All roads lead to upgrading client knowledge
All roads lead to upgrading client knowledge What are the priorities for the future? It appears to be all about knowing the client… Source: Scorpio Partnership, SEI Topics of Interest 2010 18
Slide 19: What does transparency mean to you?
What does transparency mean to you? 19
Slide 20: Empathy
Empathy Empathy Transparency Independence SEI & Scorpio Partnership Thought Leadership Communication Objectivity 20
Slide 21: Empathy is the oxygen of a good client experience
Empathy is the oxygen of a good client experience True contentment comes with empathy, and empathy grows as we learn more about each other. 21
Slide 22: The front office interaction is central to it
The front office (and beyond) interaction is central to it What is the most important aspect of wealth management firms to demonstrate empathy to clients? 5% Branding and identity Visiion and mission statements 23% 21% Product and service offerings Behavior and ethics Communications strategies 7% In
Slide 23: But the industry's empathy skills are falling short
But the industry’s empathy skills are falling short How well do your industry peers understand their clients needs across the following factors? But the key commercial details are still letting the proposition down Source: Scorpio Partnership, SEI Topics of Interest 2010 23
Slide 24: And the investors agree
And the investors agree How successful are different industries at delivering a customer experience? Financial services were the only industry that delivered a negative customer experience. Source: Futurewealth 2010 24
Slide 25: Fees are a particular weak spot
Fees are a particular weak spot… How well do your industry peers understand their clients needs across the following factors? Fees explanation Commissions disclosure A strong # clients per advisor sense that no-one is getting it right Source: Scorpio Partnership, SEI Topics of Interest 2010 25
Slide 26: Empathy comes from understanding the client motives
Empathy comes from understanding the client motives Clients define their own success in terms of money, enjoyment and meeting goals. Source: Futurewealth 2010 26
Slide 27: The wealthier client is driven by pushing boundaries
The wealthier client is driven by pushing boundaries How much energy do you focus on the things that make you successful? The most successful (financially) devote more energy to the qualities of innovation Source: Futurewealth 2010 27
Slide 28: What does empathy mean to you?
What does empathy mean to you? 28
Slide 29: Independence
Independence Empathy Transparency Independence SEI & Scorpio Partnership Thought Leadership Communication Objectivity 29
Slide 30: Independence is apparently a reflection of a model
Independence is apparently a reflection of a model How would you describe the level of independence of the following wealth managers? Larger corporates are thought most likely to not deliver independence Source: Scorpio Partnership, SEI Topics of Interest 2010 30
Slide 31: Yet advisors value independence...mostly for themselves
Yet advisors value independence…mostly for themselves How important is independence to your firm? How important is independence to your client? 4% 4% 6% 11% 24% 23% 17% 64% Critical Very important 42% Important Desirable Not important I don't know Source: Scorpio Partnership, SEI Topics of Interest
Slide 32: The delivery of independence diverges from client needs
The delivery of independence diverges from client needs How do you demonstrate independence to your How can a wealth management firm best investors? demonstrate independence to you? Source: Scorpio Partnership, SEI Topics of Interest 2010 32
Slide 33: What does independence mean to you?
What does independence mean to you? 33
Slide 34: Objectivity
Objectivity Empathy Transparency Independence SEI & Scorpio Partnership Thought Leadership Communication Objectivity 34
Slide 35: Professionals believe objectivity equals impartiality
Professionals believe objectivity equals impartiality How would you define your objectivity in the context of your professional services and wealth management offering? Source: Scorpio Partnership, SEI Topics of Interest 2010 35
Slide 36: And they have a high opinion of the advisor capability
And they have a high opinion of the advisor capability How would you describe the level of objectivity at the following wealth managers? Larger corporates are, once again, thought most likely to not deliver objectivity Source: Scorpio Partnership, SEI Topics of Interest 2010 36
Slide 37: However, the client trust account is almost empty
However, the client “trust” account is almost empty… Q: What do clients define as the qualities of Q: As a client, is objectivity an expectation you objectivity in their relationship with wealth advisors have from wealth advisory firms “Objectivity requires real wisdom and patience. These are not qu
Slide 38: Yet, objectivity hints that this may be the core of centricity
Yet, objectivity hints that this may be the core of centricity How would you demonstrate your objectivity in the context of your professional services and wealth management offering? Intellectual skills are at the foundation of the concept of objectivity Source: Scorpio Partnership, SEI Topics of In
Slide 39: What does objectivity mean to you?
What does objectivity mean to you? 39
Slide 40: Communication
Communication Empathy Transparency Independence SEI & Scorpio Partnership Thought Leadership Communication Objectivity 40
Slide 41: Content channels are in high need of a makeover
Content channels are in high need of a makeover How important are the following types of communications? Face- to-face contact appears to still be the raison d’etre of the deal Source: Scorpio Partnership, SEI Topics of Interest 2010 41
Slide 42: Telling clients about the intellect of investing is overkill
Telling clients about the intellect of investing is overkill How important are is investment research and related magazines? Oversupply of investment content is not being well received Source: Scorpio Partnership, SEI Topics of Interest 2010 42
Slide 43: The written approach is still a staple but changing
The written approach is still a staple but changing How important is written communication? Standard written comms is of less relative interest to very wealthy clients Source: Scorpio Partnership, SEI Topics of Interest 2010 43
Slide 44: Tailored communications is proving more differentiated
Tailored communications is proving more differentiated How important is customized content? Refined content streaming is defined as optimised comms Source: Scorpio Partnership, SEI Topics of Interest 2010 44
Slide 45: And maybe the shmoozing needs to be rethought
And maybe the shmoozing needs to be rethought How important are client appreciation events? While client entertain ment does not always measure up as a plus Source: Scorpio Partnership, SEI Topics of Interest 2010 45
Slide 46: What does communication mean to you?
What does communication mean to you? 46
Slide 47: Summary
Summary Transparency Communication Independence Trust Topics of Interest Program Empathy Objectivity 250 in sample September 2010 47
Slide 48: Dialogue
Dialogue American Bankers Association 48 ABA Professional Development