My 3 Choices: The New Banking Client Experience
Published in the Huffington Post United Kingdom.
With My 3 Choices, the client and the bank take charge of their destiny.
With the sophistication of three service levels: My 3 Choices (Blue, Gold and Black) designed to meet the demands of different client segments.
Also, it does not stop here. The new experience also changes the interaction between clients and the bank, where the bank becomes a ,Need-Fulfilling Destination' for clients.
What choices does My 3 Choices offer?
For each of the asset classes solutions, we have 3 Choices (advisory choices). For example, by choosing Choice Blue, clients will execute their needs without advice from the bank. With Choice Gold and Choice Black, the clients request the bank's advice and expertise.
Choice Blue: No advice is requested by clients. Bank leads clients to cost-effective products.
Clients can choose to invest, for instance, into Exchange Traded Funds (ETFs), like BlackRock's iShares, or just fulfill their basic cash management needs within Cash solutions. Any asset classes combination is possible.
Choice Gold: Advice is requested by clients. It offers more sophisticated solutions, with more involvement by bank. Client's needs and solutions can be more complex.
Choice Black: Advice is requested by clients. It offers the most sophisticated and complex solutions a bank can offer, mostly for high net worth individuals (HNWI), ultra high net individuals (UHNWIs) and family offices. Highest consulting involvement by bank.
What remains the same
One needs to know that My 3 Choices does not improve the advisory services the bank already provides, nor does it improve the financial products the bank offers.
The advisory services, the financial products and the evaluation of the risk and return profiles of clients will remain the same with My 3 Choices.
However, what My 3 Choices does well
It delivers a positive and better client experience where the advisory process starts with the client requesting and controlling it.
With My 3 Choices, clients can choose their mix of advice services (Blue, Gold or Black) within the asset classes group. If they split their savings accordingly, they can be both blue clients and gold client at the same time.
Clients, as well as banks, will benefit with My 3 Choices
Clients benefit with My 3 Choices through a new client experience.
Clients decide how much involvement they want from the banker in their solutions and decisions making process. In other words, clients are in the driver's seat of the advisory process.
A bank now provides simple and understandable asset classes and choices experience, which takes the noise out of client's decision process.
The bank benefits on many levels from My 3 Choices
The bank will regain client's trust since it can show clients that it has obviously learnt from the past through the new approach of My 3 Choices and now has changed to a more client friendly environment.
The bank is now a ,Need-Fulfilling Destination'. Through this new client experience emphasis, clients will be attracted to the bank. Clients will perceive the bank-proposed advice as more credible than that of others.
Clients who choose to be advised by selecting Choice Gold or Choice Black will also appreciate the advice given by the banker and more likely take it.
The bank will in the process re-motivate employees, who see a new vision for the bank, and which will have an extremely positive effect on the interaction between clients and banker.
With My 3 Choices, the bank will show clients a strong and innovative commitment to simplicity, focus and client service'.
The bank's profits will rise
Through the savings that Choice Blue level will bring since there is no or very little advice provided by bankers on that Choice level.
Through Choice Gold or Choice Black, where the bank provides classic involvement and services, which will also bring higher fees. With Choice Gold and Choice Black, the clients request the bank's expertise.
Through gaining new clients who want to experience My 3 Choices. This will also increase the bank's market share and asset under management.
Through clients who stay and not look for another bank.
The bank takes full advantage of existing resources, infrastructure and strengths
Although the Choice Blue level involves little or no interaction between the banker and clients, it will still take full advantage of the banks resources, infrastructure and strengths.
On the Choice Gold or Choice Black levels, clients will want interaction with the banker. Here, the bank can apply its full potential and advisory expertise.
The obvious fear is that the bank will earn much less through this new approach. This fear is unwarranted
On the contrary, it will free up bank employee's time to focus on clients who will want their advice. This focus will allow the banker to find the most fitting products and solutions for the clients. Bankers will have a much stronger conviction behind their recommendations.
Those clients who ask for higher service levels (Choice Gold or Black) and request more complex solutions and advice are also likely to take the bank's advice.
Is the idea of My 3 Choices not too simple, too obvious?
If that is your feeling and perception, then My 3 Choices succeeded, and it is worth further consideration.
Simple and obvious is maybe just the right client feeling in times when everything is so complicated and so unclear.
Why would a bank need another approach?
It is clear that the industry is moving towards simpler, easier-to-understand, intuitive client experience. Without a radical change in the bank's approach, the outside world will not register any changes in the bank's strategy.
Why is a simple, focused approach a better approach for clients?
Too much noise and information never help clients to make decisions. It paralyses their decision process.
Less is more.
"A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be."
- Wayne Gretzky is a former world famous Canadian hockey player, also known as the "Great One".
THE BRAVE STEP My 3 Choices (PDF)