Download Wealth Management – Strategic Opportunities for Growth

Wealth Management –
Strategic Opportunities for Growth
Chris Hodgson
Executive Vice-President, Wealth Management
Agenda
z Wealth Management – strong business model
z Our challenge and opportunity
z Key strategies to retain & grow existing customers
z Key strategies to acquire new customers
z Outlook and summary
84
1
Wealth Management Overview
ScotiaMcLeod
Full Service Advice
Retail
Investments
ScotiaMcLeod
Direct Investing
Scotia Mutual Funds,
GICs & Term Deposits,
DayDay-toto-Day Banking
Discount Brokerage
Wealth
Management
Scotia Private
Client Group
ScotiaMcLeod Int’l
High Net Worth
Client Services
Int’l Full Service Advice
85
High Client Satisfaction With Advisor
% Excellent / Very Good
z Strong business model
85%
75%
z Tightly integrated with
Retail Bank
z Very high client satisfaction
SPCG
ScotiaMcLeod
86
2
High Share of Client Wallet
Share of Client Wallet
81%
72%
SPCG
z
High satisfaction has resulted
in significant share of wallet
z
Scotia Cassels second largest
manager of private wealth
ScotiaMcLeod
87
Strong Fee Based Foundation
ScotiaMcLeod Fee-Based Asset Growth
$10.0B
33%
CAGR
$7.2B
$3.2B
2001
Percent of
total assets
8%
2002
2003
2004
Current
18%
88
3
Top Performing Direct Investing Unit
(SMDI)
YTD increase in total assets
Market share growth
19%
11
$1.4B
consecutive
quarters
Ranking by average account size
#1
89
Agenda
z Wealth Management – strong business model
z Our challenge and opportunity
z Key strategies to retain & grow existing customers
z Key strategies to acquire new customers
z Outlook and summary
90
4
Our Challenge:
Below ‘Natural’ Market Share
Share of Wealth Market
(percentage of revenues)
15%
7%
Current Share
z
Smallest among major banks
in Wealth revenues
z
Key challenge is to increase
size and scale
‘Natural’ Share
91
Size of the Opportunity is Significant
Potential Revenue Growth
From Achieving ‘Natural’
Market Share = $1B+
z
$1Billion z
Low current market share =
significant room to close gap
“Natural” share would more
than double current revenues
$930MM
z
Current
Revenue potential in Mutual
Funds is $250MM+
Potential
92
5
Why We Will Win Market Share
Leading business
model
+
Strong, satisfied
client base
Close the gap,
win market
share
+
Focused strategy
93
Agenda
z Wealth Management – strong business model
z Our challenge and opportunity
z Key strategies to retain & grow existing customers
z Key strategies to acquire new customers
z Outlook and summary
94
6
Key Strategies To Retain and Grow
Existing Customers
1. Increase mutual fund sales in Retail Branches
2. Maximize existing Retail & Commercial customer base and
increase internal referrals
3. Capture ‘Primary Advisor’ status in affluent segment
95
Significant Opportunity for
Consolidation
Percent of Canadians who
express a desire to
simplify their financial
affairs
44%
Percent of Canadians
who want to consolidate
investments at one
institution
29%
96
7
Key Components to Grow Mutual Funds
1. Increased sales capacity and investment focus in
Retail Branch network
2. Strong proprietary product line-up
– Scotia Vision Funds
– Diversified Monthly Income Fund
– Scotia Selected Funds
3. Third party solutions
– Scotia Partners Portfolios
– Third party funds
97
Sales Tools and Support in 2006
z Integrated Sales Tools and Intensive Training
z New Technology – Investment Platform
– Enhanced customer experience
– Third party funds accommodation
– Streamlined processing
98
8
Increase Internal Referrals
Investment Balances of
Scotiabank Customers with
>$250M in Investable Assets
$97B
Opportunity
Assets held at
other FIs
$82B
z
Flow of quality referrals
z
Improved process for handoffs
z
Proactive consolidation
opportunities
z
Cross-sell programs
Assets with Scotia
99
Primary Advisor Status –
Key to Success
The opportunity:
z
Typical affluent client deals with 2-3 different institutions
z
Trend to consolidate Æ one primary advisor
We have a proven model:
z
Industry leading platform in financial & estate planning
Our focus:
Build trust Æ capture primary advisor status
100
9
The Impact of a Financial Plan
Loyalty
Share of Wallet
85%
69%
61%
31%
Plan by
Scotia
Plan Outside
Scotia
Plan by
Scotia
Plan Outside
Scotia
101
New Programs and Technology
z Heritage Program
– Premium service offering for high net worth ScotiaMcLeod
households
z New Advisor Desktop
– Improved productivity and efficiency for Advisors
– Enhanced contact and portfolio management capabilities
102
10
Agenda
z Wealth Management – strong business model
z Our challenge and opportunity
z Key strategies to retain & grow existing customers
z Key strategies to acquire new customers
z Outlook and summary
103
Key Strategies To
Acquire New Customers
1. Increase external sales focus
2. Exploit key market opportunities
3. Increase scale through acquisitions
104
11
Expand Sales Force
Growth in ScotiaMcLeod Sales Force
1000
z
Maintain ScotiaMcLeod
recruiting momentum
950
z
Double Financial Consultant
sales force
850
750
2004
2005
2006
2007
2008
105
Increase External Sales Focus
Percentage of Time Spent
On External Sales
50%
z
Refocus 300 ScotiaMcLeod
advisors from internal to
external sales
10%
2005
2006
106
12
A Targeted Approach
1. Leverage strength in professionals market
107
A Targeted Approach
1. Leverage strength in professionals market
2. Capitalize on opportunities from the aging population
108
13
A Targeted Approach
1. Leverage strength in professionals market
2. Capitalize on opportunities from the aging population
3. ScotiaMcLeod International growth
109
Plus a Dedicated “Growth” Team
z High potential team provides
Revenue Goal
increased momentum
$50MM = GOAL
z Originates & implements new
revenue opportunities
40
30
z Excellent success to date
20
$26 MM
$16.5 MM
10
Implemented
In Progress
110
14
Acquisitions To Accelerate Growth
Will aggressively pursue significant domestic acquisition
Disciplined program of smaller “bolt-on business” acquisitions
Strategic alliances and joint venture opportunities
111
Agenda
z Wealth Management – strong business model
z Our challenge and opportunity
z Key strategies to retain & grow existing customers
z Key strategies to acquire new customers
z Outlook and summary
112
15
Well Positioned for Growth
Growth vs. Industry
Faster
Wealth Revenues
Acquisitions /
Strategic Alliances
10%+
Proactive
113
16