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

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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

ANZ.800.174.5980

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

ANZ.800.174.5983

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

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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

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APPENDIX: Insights driven customer conversations

Insights help the customer understand their situation before agreeing their preferences

4

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APPENDIX: Advice determined by easy to understand customer preferences

Customer preferences determine how/when advice algorithms work 5

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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

APPENDIX: Advice Visually summarised before Statement of Advice is signed on glass

A Statement of Advice is generated automatically, presented on screen and saved in to core systems for future access

8

ANZ.800.174.5992