• No results found

FINANCE + INSURANCE SMARTER SMALL BUSINESS REPORT Top tips you can t afford to miss

N/A
N/A
Protected

Academic year: 2021

Share "FINANCE + INSURANCE SMARTER SMALL BUSINESS REPORT Top tips you can t afford to miss"

Copied!
9
0
0

Loading.... (view fulltext now)

Full text

(1)

Top tips you can’t afford to miss

FINANCE +

INSURANCE

SMARTER SMALL

BUSINESS REPORT

(2)

DIGITAL TRANSFORMATION IN THE AUSTRALIA’S FINANCIAL SERVICES SECTOR

ANYTIME, ANYWHERE TRANSACTIONS: THE NEW CUSTOMER FRONTIER

BOOST STAFF PRODUCTIVITY AND ENGAGEMENT

IMPROVE CUSTOMER SATISFACTION - PROFITABLY

MINIMISE PRIVACY AND IDENTITY FRAUD RISK

STORIES FROM SMALL BUSINESSES LIKE YOURS

BUILDING FOR THE FUTURE

FOUR THINGS YOU CAN DO TODAY

4

6

8

10

11

12

14

15

CONTENTS

(3)

Despite the challenges of the global financial crisis,

according to an August 2013 report by IBISWorld

Australia’s financial services sector is still the largest

contributor to our economic output – and the sector is

expected to grow its revenue by 6.7 per cent annually

through to 2018. But with growing competition from

big banks, retailers and even nimble tech companies,

mounting cost pressures, and a revolution in customer

expectations, how can smaller players thrive?

1

DIGITAL TRANSFORMATION

IN THE AUSTRALIA’S

FINANCIAL SERVICES SECTOR

1 Source IBISWorld Finance in Australia Report (August 2013)

GROWTH IN EMPLOYEES IN HEALTHCARE

Between 2005 and 2010 the number of people

employed by this sector grew by 26 per cent.

Of the 737,400 employees, 19 per cent are

aged 55 or older and 75 per cent are female.

Source Towards a Clever Australia - industry insights white paper

(Health): Telstra (2013)

FULL-TIME EMPLOYEES.

Financial services provide

10.1 per cent of Australia’s GDP.

Source IBM Report: Reinventing Australian enterprises

for the digital economy (August 2013)

431,000

3.2%

IBISWorld.com.au predicts that the financial

services sector is expected to grow overall by

3.2 per cent a year through to 2025. However,

fee and interest income is under pressure.

Financial advisors are now expected to charge a

fee for service rather than receive a commission,

and all service providers will need to demonstrate

clear value for money to retain their customers.

Source IBISWorld Finance in Australia Report (August 2013)

ANNUAL GROWTH.

More than 70 per cent of Australians have

used the internet for banking or investment

services, and 36 per cent have conducted at

least one banking task on their mobile device,

quotes the 2012 Nielsen Global Survey of

Investment Attitudes. Consumers expect to

be able to make financial transactions at any

time of the day or night, and increasing speed

in financial settlements or advice.

OVER 70 PER CENT OF AUSTRALIANS

USE ONLINE BANKING.

45%

OF MORTGAGES ARE

SOURCED BY BROKERS.

As the complexity of financial

services and products grows,

so will the need for brokers and

advisors to provide impartial and

independent advice.

Source IBISWorld Report: Mortgage brokers

(May 2013)

$138

Australia’s financial systems rank fifth in

the world. Our financial sector contributed

$138 billion (10.1 per cent) to GDP in 2012,

and is considered large, sophisticated and

well-regulated by world standards.

Source 2010 World Economic Forum Financial development report/

IBM Report: Reinventing Australian enterprises for the digital economy

BILLION

TO GDP.

TOP FOUR ISSUES FOR FINANCIAL SERVICES FIRMS

1

ANYTIME, ANYWHERE TRANSACTIONS

2

IMPROVING CUSTOMER SATISFACTION - PROFITABLY

3

STAFF ENGAGEMENT AND PRODUCTIVITY

4

PRIVACY AND IDENTITY RISKS

55.6%

In its May 2013 Financial Planning and Investment

Advice in Australia Report, IBISWorld says that the

average client age for financial advice is 51 years of age.

And self-managed superannuation funds (SMSFs) are

increasingly popular – with $500 billion in investments it

makes up almost a third of Australia’s superannuation pool.

Source IBISWorld Report: Financial Planning and Investment Advice in Australia

(May 2013); Smart Investor (19 August 2013) SMSFs face shakeout

OF FINANCIAL ADVICE

REVENUE IS FROM

SUPERANNUATION AND

RETIREMENT ADVICE.

99%

There are 147,302 small businesses

within the finance and insurance

service sector, and with competition

increasing, differentiating through

service and value is vital.

Source Key Statistics, Australian Small Business,

Australian Government Department of Innovation, Industry, Science and Rsesearch, 2011.

ARE SMALLER

FIRMS.

(4)

Australians already conduct a lot of their banking, shopping and other financial transactions

online, and using more technology and smarter mobile or Cloud-based technology is our

future. In fact, 36 per cent have already conducted at least one banking task on their mobile

device.

1

Australians now have much higher expectations for the ease, speed and convenience

of financial transactions. So how can the financial services sector keep up with technological

change and still provide a secure, trusted and accessible service?

ANYTIME, ANYWHERE

TRANSACTIONS:

THE NEW CUSTOMER FRONTIER

SELF-SERVICE PUTS CUSTOMERS IN CONTROL

More and more financial transactions are happening on the go via smartphone and tablet applications. A recent Australian Retail Finance Intelligence survey found 38 per cent of respondents had used PayPal – a company that barely existed here 10 years ago – to make or receive payments in any given month.2 It’s a clear sign technology providers will

make inroads into the financial services market.

BY

2015

MORE THAN 80 PER CENT

OF INSURERS EXPECT TO BE USING

MOBILE TECHNOLOGIES FOR CLAIMS,

CUSTOMER SERVICE AND FIELD SALES.

Source IT Spending Insurance, a Global Perspective, Celent, March 2012

http://www.baselinemag.com/industries/finance/technology-drives-insurance-industry-growth/

WHAT TO CONSIDER

n Offer a choice of virtual

contact channels – let customers connect with an advisor via phone, social media, online chat, email or video call using smarter call routing. IP telephony offers simple tools for setting up a call centre quickly

n Build trust with face to face

communication. Online brokers can offer virtual consultations via video, while mobile bankers can take application tools on smart devices for client visits at home or work.

WHAT TO CONSIDER

n ‘Digital natives’ are the next generation of financial services

customers.Make sure you’re meeting their needs for online investment and transaction tools

n Offer self-service apps such as insurance premium or mortgage

repayment calculators, to help customers make educated choices more easily

n Online-only insurance channels are growing and may shake up the

broker market as they simplify premium comparisons. Examples include Bingle for car insurance (owned by Suncorp) and Youi for home and car insurance.

USE TECHNOLOGY TO GET CLOSER

TO YOUR CUSTOMERS

When you have a better

understanding of your customers’ needs you can provide a more personalised experience and tailored advice – vital for retaining loyal customers and improving product or service cross-sell.

I think Facebook and the proliferation of

smartphones make people more comfortable

with using technology in general, more

comfortable doing everything online

and therefore less concerned with

the prospect of using their credit card.

Adam Theobold, Beat the Q

1+2 Source HP-RFi Australian Payments Research, Edition (April 2013)

(5)

Your business success depends on your team, and by making it simpler for them to get

their work done you can improve productivity and keep your most talented people happy.

Financial advisors are increasingly mobile: 47 per cent of financial advisors work from home

at least a few days per week, and a quarter use a tablet instead of a laptop or computer.

1

However, that mobility extends to moving on, too: a Reserve Bank report suggests that

20 per cent annual employee turnover is typical for finance and insurance firms.

2

BOOST STAFF

PRODUCTIVITY AND

ENGAGEMENT

REMOVE THE ADMIN BURDEN

Reduce data double entry and workflow inefficiencies and free up staff to spend more time with customers. Given wages are a high proportion of revenue (in the case of mortgage brokers), this helps maximise the value of their time.

WHAT TO CONSIDER

n Create custom mobile tools through mobile apps such as ARIS,

which allow your staff with a compatible tablet or smartphone to access the latest sales, marketing or training content when they’re out and about instead of carrying paper-based files to client appointments. They can also access digital forms, quizzes to test knowledge, incentive programs and in-app messaging so you can keep staff informed of industry insights

n You can also store your documents in the Cloud – with one

single file you can reduce duplication and make sure everyone can access presentations, application forms or spreadsheets with secure password protection. Back it all up in the Cloud to minimise physical infrastructure. Microsoft® Office 365™ optimises the most popular business software for PC, Mac, tablet and mobile devices.

WHAT TO CONSIDER

n Digitise application

forms with applications like Canvas on a

compatible tablet so you spend less time manually re-typing information (and minimise the risk of human error)

n Provide on the spot

financial investment modelling with near real-time access to customer data, and improve the accuracy of any decisions or advice.

FINANCE AND

INSURANCE FIRMS

TYPICALLY FACE

A 20 PER CENT

EMPLOYEE TURNOVER.

Source RBA Bulletin Dec 2012: Labour Market Turnover and Mobility

ADD COLLABORATIVE TOOLS

Whether you have staff in multiple offices, or outsource to a network of specialist providers, you need smarter tools for working together.

WHAT TO CONSIDER

n Give teams direct access

to calendars, mail and documents on the go, and set up screen sharing and real-time notes options, with Cloud collaboration tools such as Microsoft®

Office 365™

n Use video conferencing

to build better working relationships without the need to travel. It’s ideal for training in multiple branches and can make a real impact on your travel expenses – and time

n Thinking about franchising

your business model? Smart collaboration and training tools will ensure consistent service of all customers – and provide added value for franchisees.

1 Source Telstra Digital Investor white paper:

http://www.telstra.com.au/business-enterprise/download/document/business-enterprise-whitepaper-digital-investor.pdf

2 Source RBA Bulletin (Dec 2012) Labour Market Turnover and Mobility

3 Source IBISWorld Report: Financial Planning and Investment Advice in Australia (May 2013)

CREATE A FLEXIBLE, MOBILE WORKPLACE

Some staff welcome the chance to work from home, and many financial advisors and mortgage or insurance brokers need access to information when they visit a client at their home or work.

AVOID STAFF GROWING PAINS

Many broker and advisory firms are small (the average mortgage broker firm has just 2.2 employees), so outsourcing or partnerships are a cost-effective alternative to in-house recruitment.3

WHAT TO CONSIDER

n 78 per cent of financial

services firms say they’re developing partnerships with third parties. This could include experts in associated services, or administrative and IT support

n Expand your services

without adding to your payroll, building a high-value network of specialists to provide a ‘one-stop shop’ for your clients.

Most brokers have account executives sitting in

the office. We spend 70 to 80 per cent of our time

in the field. But we field 35 to 40 calls a day and

need to respond quickly to customers.

Joseph Nohra, Director FSNI Group

(6)

MINIMISE PRIVACY

AND IDENTITY

FRAUD RISK

Australia’s financial services sector is highly regulated, and the cost of compliance creates

added pressures for smaller businesses. However, it’s a cost you can’t afford to ignore

given the potential risk to your reputation and your customers’ financial future. Streamlined

systems are crucial to staying on top of compliance and risk mitigation measures, and using

reliable IT providers gives you peace of mind when it comes to business continuity.

HELP PROTECT YOUR BUSINESS REPUTATION AND CUSTOMER DATA

When you hold confidential customer financial records, you need certainty around your back-up systems and data recovery plans to minimise the risks of identity fraud or financial theft.

WHAT TO CONSIDER

n Create secure data and systems. Support tracking and

reporting on compliance with anti-money laundering laws and ASIC regulations, and check your back-up processes

n Choose a Cloud provider that is reputable and has a high level

of data protection and privacy compliance standards

n Insurance providers need to have a disaster recovery plan

in place. In the case of a widespread disaster, your communication and data systems need to handle increased customer demand to avoid business downtime.

MAKE THE MOST OF YOUR DATA

Although the focus of patient care is shifting away from big hospitals to local providers, community support and eHealth, the same strict clinical governance procedures need to be in place to guide the quality and safety of healthcare decisions.

WHAT TO CONSIDER

n Consider teaming up with

other smaller firms in your sector to invest in

user-friendly and cost-effective platforms – for example, credit unions may combine resources to share the costs of creating mobile platforms

n Look at ways you can adapt

existing Cloud-based applications to suit your data analysis needs

n Automate as much data capture

as you can, to provide near real-time analytics and value-add reporting for clients.

The real benefit (of the Cloud) is that we

get far better systems. And they keep

on getting better as we benefit from a

string of upgrades and improvements

that we couldn’t manage internally.

Andy Sheats, health.com.au CEO

Customers expect increasing transparency in the fees they are charged for financial services

and advice. Keeping customers happy – and attracting new ones – comes down to demonstrating

clear value for money. So if interest rates and a shift from commission to fees place pressure on

revenue, how can you improve customer satisfaction without risking your profit margin?

IMPROVE CUSTOMER

SATISFACTION -

PROFITABLY

WHAT TO CONSIDER

n Use Cloud-based accounting or project management software

to make it simpler to manage invoicing and time tracking – an effective way to keep cash flow rolling

n Access near real-time data and analytics so you can get more

accurate projections and give clients quality advice. Cloud and mobile technologies let you access these tools from the client’s home or workplace

n In the superannuation sub-sector, using Cloud-based fund

management offers more reliability and convenience. Software company BGL, the maker of Simple Fund software which is used by self-managed super funds, has migrated many of its members to its Cloud-based Simple Fund 360.1

1 Source http://www.bglcorp.com/ronlesh/?m=201304

2 Source Telstra: Towards a Clever Australia Industry Insights white paper – banking, financial services and insurance

http://www.telstra.com.au/business-enterprise/resources-insights/clever-australia-report/industry-insights/banking/

3 Source Telstra: Towards a Clever Australia Industry Insights white paper – banking, financial services and insurance

http://www.telstra.com.au/business-enterprise/resources-insights/clever-australia-report/industry-insights/banking/

GET SMARTER WITH CUSTOMER DATA

By using client data effectively, you can provide better advice or service, faster than your competitors. Plus, spending less time on administration means more time for more complex or specialised services – with a higher value.

85%

OF FINANCIAL

SERVICES FIRMS REPORT

THEY HAVE INVESTED

IN NETWORK SECURITY

SOLUTIONS DURING

THE PAST YEAR.

3

WHAT TO CONSIDER

n Build relationships with face-to-face

meetings. Customers prefer to discuss complex transactions in person but it’s not always convenient for them to get to your office.

Video calls, through a high-definition IP communications system, can bridge the gap. According to a recent Telstra survey, 62 per cent of

financial sector firms have already invested in video conferencing in the past 12 months2

n Convenient new payment

technologies, including mobile apps or ‘digital wallets’ will help you capture and analyse customer data so you can develop better, more personalised product offers. Software-as-a-Service (SaaS) could give you the analytical power

needed to trigger automated messages – without the need to invest in custom systems.

BUILD YOUR REFERRAL NETWORK

If you’re making important decisions about other people’s money, reputation is everything – for both service and results. To grow your customer base and attract potential investors or customers, think about how you can create effective word of mouth campaigns and improve existing client relationships.

MAKE YOUR SERVICES MORE CONVENIENT

Your customers are increasingly busy, so help them tick off their to do list while they’re out and about.

WHAT TO CONSIDER

n Use mobile messaging services to send an SMS alert when

payments are processed, authorisation is needed, salary is deposited or a policy renews. Send bill payment reminders with seamless links to secure online payment portals

n Create simple self-service tools for budget management

or loan calculators, or replace paper forms with easily used digital forms using a mobile app such as Canvas with a compatible tablet.

(7)

STORIES FROM SMALL

BUSINESSES LIKE YOURS

BEAT THE Q SPEEDS CAFFEINE TRANSACTIONS

Adam Theobald developed a mobile phone app to let customers order and buy their coffee in advance – without the need to line up to pay. Now, Beat the Q’s app is helping about 160 cafes handle tens of thousands of coffee orders every week. To convince cafes to get on board, Adam provided them with tablets armed with mobile broadband SIMs and data plans upfront, and then took a cut on the extra coffee sales.

Click here to find out more.

ME BANK MOBILISES BANK ‘BRANCHES’

ME Bank shut down its bricks-and-mortar branches in 2012, and instead uses Telstra’s, mobile and video conferencing technologies to create a truly digital bank, including Australia’s first workplace banking kiosk with ATM facilities and video conferencing. It’s cut the bricks-and-mortar component of establishing new branches by about 30 per cent – and could effectively end up with the largest branch network in Australia.

Click here to find out more.

FSNI GROUP USES CLOUD FOR

RESPONSIVE SERVICE

Being in insurance is about being in the business of bad news, and when clients call they may be under stress. That’s why FSNI Group, the Sydney-based specialist insurance consultancy, provides a highly hands-on service and spends much more time in the field. Now, its mini-Cloud server lets staff access important documents and up to date client notes from outside the office.

Click here to find out more.

HEALTH.COM.AU ATTRACTS

DIGITAL NATIVES ONLINE

FOR INSURANCE

When online health insurance start-up health.com.au approached the federal government for an operating licence, the regulators were dusting off application documents that hadn’t been touched since 1977. Health.com.au is the first genuinely new health insurance provider established in Australia for 34 years. Even though its CEO and founder, Andy Sheats, only started the company in mid 2011, and it didn’t sell its first policy until April 2012, health.com. au’s revenue has already hit $50 million. That’s because Sheats – a digital native and former realestate.com.au senior executive – realised that the established health insurance players were failing to keep up with their digital-savvy customers. “As ‘online people’ we hated driving down to their shop front to make claims and do paperwork. We just thought there had to be a better way,” says Sheats. Sheats reinvented health insurance for younger, healthier consumers who demand simplicity, service and convenience while transacting online. As a start-up trying to be as innovative and agile as possible, health.com.au’s key strategic decision was to move into the Cloud. “It’s a bit cheaper, but the real benefit is that we get far better systems. And they keep on getting better as we benefit from a string of upgrades and improvements that we couldn’t manage internally,” he says. By the time the company sold its first policy in April 2012, its staff headcount was 10. Since then, its sales have shot out of the ballpark and its headcount has grown to 25, with more recruits expected. Sheats is not shy about revealing that the ASX is well within his sights.

(8)

1

MAKE IT EASIER TO CONTACT YOU

n Connect multiple sites with one system that combines mobile, IP telephony and broadband. Smart phone

systems include the ability to automatically forward or divert calls, and voicemail-to-email lets you pick up important messages while you’re out of the office, so you can respond faster to your customers.

n Include a ‘click to call’ link on your website, so customers can contact you directly from their smartphones. n Customers expect a fast response through multiple channels, whether email, phone, online chat or social

media, so make sure your systems are flexible enough to handle this.

2

SPEND LESS TIME ON ADMIN, AND MORE TIME PROVIDING VALUED ADVICE

n If your processes start with a customer application form, consider whether you can digitise it. It’s easier

for the customer to fill it in online and it will save staff time re-keying data.

n Look into low-cost Cloud-based software applications that suit your business needs and can sync with your

other systems – for example, for data capture and analysis, lead tracking, time management or invoicing.

3

MAKE IT ALL MOBILE

n Take your services to your customers – in their homes or offices. Use simple mobile tools and apps to

perform all the tasks you perform in your own branch office.

n Give customers access to helpful tools such as online calculators and budgeting tools.

n Make sure your website is optimised for mobile, as customers expect to be able to transact from

their smartphones.

4

ADD VIDEO COMMUNICATION CHANNELS

n Providing complex advice or working on high-value transactions? Video calls are a cost-effective

alternative to travelling long distances and, thanks to new IP communications technology, it’s more affordable and of better quality than ever.

FOUR THINGS YOU

CAN DO TODAY

SWITCH FROM ‘BRICKS AND

MORTAR’ TO ONLINE

The internet is now the main

channel for searching and selecting

finance and investment products

– especially for the new generation

of ‘digital investors’. Think about

how many of your services could

be ‘self-service’, and see a dramatic

decrease in the physical costs

of providing them. For example,

integrated widgets such as

premium or payment calculators

to help clients to self-manage, and

you could provide access to experts

‘on-demand’ via video chat or

instant messaging.

1

BUILD A NETWORK OF ALIGNED

PROFESSIONALS

Many financial services firms

are now offering a ‘one-stop shop’

by partnering with brokers,

financial advisors or accountants.

Invest in collaboration tools such

as Cloud-based document sharing

and video calls to ensure you

provide a consistent, streamlined

customer experience, and look for

opportunities to cross-sell high value

services to your existing client base.

2

BE SMARTER WITH YOUR CLIENT DATA

Analyse data to provide more proactive

advice, and protect your investment

decisions. Make sure your CRM

(client relationship management)

system tracks data so you can

trigger marketing campaigns based

on market segments, life stages,

spending habits or risk levels, and

give teams mobile access to the

information they need to provide

the best advice.

3

BUILDING FOR

THE FUTURE

MANAGE YOUR RISK AS YOU GROW

Develop a data recovery plan,

establish rigorous online

checks for new customers,

and make sure you have access

to 24/7 system support and

reliable infrastructure.

Ask your suppliers, contractors

and software providers what

systems they have set up to

protect your data and minimise

the risk of downtime.

4

If you’d like to discuss your communication needs or get more ideas on how to

work smarter, feel free to drop into your nearest Telstra Business Centre.

Here are a few simple,

readily available digital tools

that you can begin implementing

today to help you start building

for your business’s future.

(9)

If you have any questions about this publication, please contact Smarter Business Ideas via smarter@bauer-media.com.au Contact Telstra Business directly for information on products and services on 13 2000.

Microsoft and Office 365 are a registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The spectrum device and ™ are trade marks and ® are registered trade marks of Telstra Corporation Limited ABN 33 051 775 556.

Brought to you by Telstra

in association with

Smarter Business Ideas

References

Related documents

dragonscapes adventure hack mod gems and coins generator is one of the most popular online game creation platforms that allows users to build their own video games and share

Optimization of the external dimensions of the coupler Impossible to connect a continuation bar of a different diameter Impossible to screw the continuation bar on the bias

The 3 rd column provides the total number of test questions that are in this sample examination for that major area of the BOK. The last column provides the total number of

(iii) Congestion management - Should there be peaks in demand, unintended congestion or emergency situations, where traffic cannot be contained within the site boundaries,

Cost estimation, profitability and break-even analysis for glycolytic depolymerization of poly (ethylene terephthalate) (PET) waste was revealed that the rate of

Practical matters through our policy and beggs new york city metro area by state of business insurance insurance advice for these issues can i report.. Day if you may be time to be

Harvest of a target fish species, costly avoidance of the bycatch species, and harvesting efficiency are examined in a stochastic production environment with and without

SIPA and has devised a “cash‐in/cash‐out” formulation (CICO) to determine a customer’s