Shooting Yourself Full of Hormones Won’t Make You a Better Trader
Did you know that brains, like bodies, literally get tired; that it’s really only possible for a human to make a few good decisions in a row? It’s called decision-fatigue and it could be turned into alpha by a CIO savvy enough to insist on such measures as intra-day naps and workouts for his or her traders.
Advisors Think Clients Know More Than They Do, Survey Says
Advisors are three times more likely to describe their clients as very knowledgeable about investing than the investors are themselves (42 percent versus 12 percent), says the firm.
Accenture surveyed 400 financial advisors and compared the results with those of an earlier survey of 1,005 investors and potential investors who use social media at least once a week.
Only 1 percent of advisors described their clients as unknowledgeable about investing, while 25 percent of the investors themselves said they didn’t know about the subject.
The surveys showed advisors are more than twice as likely to see their clients as aggressive investors than the clients themselves (28 percent versus 13 percent).
So What If You Have Big Data? Without Data Driven Processes And Products, It’s Useless
You don’t win gold medals just for having data. The real winners are those like Amazon and Netflix that find ways to leverage their data better than the competition. Without a game plan to turn your data into revenue, you may as well scrap your badass Hadoop cluster and the petabytes of data it contains.
On the other hand, if you find ways to use that data better than your competition, you just might join the ranks of the big (data) boys like Amazon and Netflix.
So, how can you start to turn your data into cash? For most companies, there are two ways they can wield their data assets to create unfair competitive advantages: data-driven processes and data-driven products.
She’s The Boss: Keeping Assets Means Keeping The Power of the Family Matriarch Fully in Focus
The research is tough to take but true: Only 2% of children keep their inheritances with their parents’ financial advisor (1). Why? Because the advisor lacks a relationship with the next generation.
When the assets being passed on to 98% of such heirs are going out the door, something needs to change. Here’s another scary statistic: Upward of 70% of widows change financial advisors within a few months to a year after their spouse dies. Why? Once again, because the relationship does not exist.
Banks Discover Money Management Again as Trading Declines
Goldman Sachs’s stock and bond mutual funds have trailed about 61 percent of their respective peers on average over the five years ended Sept. 30, and about 52 percent over the past three years.
Deutsche Bank AG (DBK) is now counting on the fund unit it failed to sell to help boost return on equity, a measure of profitability. UBS AG (UBSN) is paring investment banking as it focuses on overseeing assets for wealthy clients. Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC), three of the five biggest U.S. banks, are considering expanding asset-management divisions as they seek to grab market share from fund companies such as Fidelity Investments.
Understanding Customer Behavior in Retail Banking
It costs retail banks as much as six times more to attract a new customer as it does to retain an existing one, and yet for many years the industry has not always focused on customer loyalty and the opportunities among its existing client base. In an economic climate as difficult as this one, fostering loyal customers is important to achieve growth.
Bain Capital Report: Customer Loyalty in Retail Stores
More banks are coming to recognize that the way forward requires capturing the economics of customer loyalty, while dramatically reducing costs. They realize that they face a long, steep climb to accomplish this, but they need to find practical first steps that will generate demonstrable progress.
In this report, the 2011 edition of Bain’s annual survey of loyalty in retail banking, we examine where banks have made progress in strengthening customer advocacy and where opportunity still remains. We also delve deeper into the interactions and channels that matter most, to outline specific areas where banks can focus in order to improve customer loyalty most effectively, with the greatest returns.
Working with Research Now, a market research firm, we polled nearly 97,000 account holders from banks and credit unions across the US, Canada, Mexico and Brazil and followed up with 5,100 bank customers to see beyond the routine transactions and zero in on the interactions that customers say matter most to them— those “moments of truth” and “wows” that are decisive to winning their loyalty.