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WHAT ISCLIENT LIFECYCLEMANAGEMENT (CLM)?YOUR COMPLETE GUIDE TOCLM FOR WEALTH MANAGEMENT

INTRODUCTIONYou’ve surely heard of CRM – the central repository for storing client-contact information,accounts, leads, and sales opportunities, so that they’re accessible to everyone in realtime; all to manage interactions with leads, prospects, and clients.As businesses grow, they need a central place to store their information.CRM is that place.CONTENTS03 What is CLM?04 Why do you need a CLM solution?05 Who benefits from a CLM solution?06 What are the benefits of a CLM solution?08 Where does CLM fit in the technology stack?09 The solution

1WHAT IS CLM?What a difference the ‘L’ makes!COB and EOD: Close of Business (COB) and End of Day (EOD). It’s a distinction without adifference, likely crafted by an acronymist who got paid by the acronym.CRM and CLM: Customer Relationship Management (CRM) and Client LifecycleManagement (CLM). It’s a distinction with a huge difference, whose value towealth management cannot be overstated.Where CRM preserves client data, CLM preserves the client. Focused on the entirechain of client transactions, and designed to produce easily-digestible results, ClientLifecycle Management is an analytical process for managing client lifecycles to encourageretention and maximise profitability.In wealth management, CLM covers the full end-to-end journey of an investoror institution – a lifetime journey shepherded by a Relationship Manager (RM),encompassing a litany of critical processes, and reliant on interactions with variousdepartments across the firm.From prospecting to onboarding to account management to servicing, and finally tore-engagement, CLM creates a 360-degree client lifecycle view that captures every datapoint of an investor’s journey and analyses that data to generate insights into clientpreferences at different stages of one’s relationship with the firm.To what ends? To identify opportunities for growing revenue, boosting operatingefficiencies, and enforcing compliance throughout the client lifecycle.1 Finding prospectsNurturingConvertingCollecting data4 ProspectingServicingInternal processingCompliance checksTeam workingRecord keeping03 wealth-dynamix.com2 OnboardingPaperless processesClient dataTeam workingStrict compliance5Re-engaging Internal processing Digitisation New productrecommendations Record keeping3 Managing360-degree client viewStoring communicationDaily tasksClient analysis

2WHY DO YOU NEED A CLM SOLUTION?1 With client advocacy at an alarmingly low rate (just 39% of clients recommend theircurrent wealth manager1, falling to 23% among US 10m clients), firms must movedecisively to keep clients in the fold and discourage them from moving to a competitor.Clients below US 10mClients above US 10m39%23%61%77%2 Saddled with administrative tasks soconsuming that they relegate client facetime to just 20% of an RM’s time, wealthmanagement is in urgent need of the kindof digital transformation that has revitalisedcustomer experiences across otherindustries.replaces a hodgepodge of disparatetechnologies – hybrid, disjointed processes– with a digital experience consistentacross all customer facing channels andpowered by a seamless, 360-degree view ofeach client.Would recommendthier currentwealth managerWould recommendthier currentwealth managerWould not recommendthier currentwealth managerWould not recommendthier currentwealth manager3 As investors gets younger, deliveringa streamlined client journey has becomethe key differentiator in the hotlycompetitive wealth-management market.Still, the capacity to offer fast, frictionlessonboarding, and beyond, eludes mostfirms.As clients have had other aspects of theirlives “digitised”, so goes the expectationfor their wealth management experience.Clients need information on their financiallives – when they want it and via thechannel of their choice.Today’s wealth management clientdemands a combination of facetime withtheir RM alongside a high quality digitalexperience.Burdened by frequent requests formore information, especially from younginvestors, entrenched manual processestied to disjointed legacy systems createmaddening inefficiencies that mar theclient experience.From prospecting to re-engagement,a CLM solution installs streamlined,frictionless, digital processes in place of theunwieldly, time-consuming, error-pronemanual processes now employed for mostCLM tasks.More, for the vast majority of wealthmanagement firms, a CLM solution04 wealth-dynamix.comBy enabling fast, frictionless processesdesigned to anticipate client preferences,a CLM solution is wealth management’sanswer to cultivating the newestgeneration of investors.1PwC Strategy and Global Wealth Management Survey, 2016

3WHO BENEFITS FROM A CLM SOLUTION?Private banks, wealth managers, and asset managers who support clients with rapidlyevolving needs.Private BanksWealth ManagersAsset ManagersClientThey face mounting regulatory pressures and are saddled with siloed legacy systems.And they are typically inundated with client requests for more information, which straintheir manual operating environments and erode the client experience.As private banking shifts from a business driven by supply to one driven by demand,its product-sales approach is giving way to relationship management that treats clientwealth holistically – end-to-end.Ultimately, its clients who benefit: from frictionless journeys across the wealthmanagement continuum; from the ability to self-serve through multiple digital channels;and from a “capture-once-use-many” approach to data that makes forward planningby RMs more accurate and efficient, which means clients are less burdened withcumbersome forms and administration.Clients benefit from a new breed of relationship manager, equipped by a CLM solutionto see the investor’s whole financial picture from current life stage to imminent needs tofuture goals (and their attendant administrative requirements), and to ensure continuouslifecycle compliance.CLM-equipped, this breed of RM treats client interactions as part art, part science. The art:a uniquely personalised experience. The science: digital interactions delivered at the righttime; via the right channel; informed by a single, integrated view of client information; andrich in insights and next-best suggestions.A fully integrated CLM solution enablesAn appreciably strongerclient experience05 wealth-dynamix.comFaster timeto revenueIncreasedoperational efficiencyEnhancedregulatory protection

4WHAT ARE THE BENEFITSOF A CLM SOLUTION?1 INITIAL ENGAGEMENTEnd-to-end client lifecycle managementstarts with engagement: opportunitycreation and prospect management. Askthe typical wealth management firm howit initiates this work, and you are likely hearthis refrain: “we use data.”prospects to be matched to internaladvisors through digital or intermediarychannels, thus enhancing conversion rates.Enabled by a CLM solution, an integrateddashboard coordinates all prospectnurturing and product marketingcampaigns in one place. Prospectinteraction across the firm is managedfrom a centralised, integrated location.But pose the same question to a wealthmanager equipped with a CLM solution,and you will typically hear, “we use a datainfrastructure.”“Tags” on prospects are created to identifytheir interests, hobbies, preferences, andmore. Rules are built governing marketingcampaign workflows. Relevant, actionablecontent is distributed automaticallythrough email, messaging platforms,and follow up tasks for RMs.Prospecting through a CLM solutionbegins with an intelligent infrastructurethat uses data from relevant longstanding clients, and new ones, to shapesystematic communication designed toconvert prospects into clients. From there,an intelligent matching system enables2 ONBOARDINGAite Group3 estimates wealth managers’global spending on client onboarding willexceed US 400 million by 2020, comparedto around US 290 million in 2015.As Know-Your-Client (KYC) and Anti-MoneyLaundering (AML) procedures have grownmore complex, the time and investmentrequired to onboard even a single clienthave surged. A recent report 2 on HongKong’s private wealth managementindustry, for example, showed that 95%of managers identified KYC and AML asa leading area for resource and budgetallocation, and that from 2016 to 2018 theaverage onboarding time jumped from 30to 40 days.An annual growthof 7% per yearUS 290MILLIONWhile the precise costs associated withonboarding can vary widely dependingon the size of the institution and thejurisdiction, research and advisory firm2015220162017201820192020PwC Strategy and Global Wealth Management Survey 2016Aite Group Client Onboarding in WealthManagement Vendor Review, 2016306 wealth-dynamix.comUS 400MILLION

The flipside of this grim picture is that any improvements to the onboarding process canhave massive impacts in terms of reducing costs and creating new income opportunities.With a CLM solution, automated client onboarding enables parallel workflow that is predefined, fully tracked, and audited across departments working congruently.The purpose: to deliver full visibility of the client-onboarding process across the front,middle and back office – a capability that drives efficiency, cuts costs, and contributes toa much-improved client experience.A CLM solution transforms the client-onboarding experience by placing the client at theforefront of the process, minimising the firm’s effort, and streamlining the orchestrationand regulatory processes.3 ONGOING CLIENT MANAGEMENTWorkflows don’t stop when a client signs on the dotted line; on the contrary, maintainingaccounts involves a multitude of tasks. Managing so much client information entails manymoving parts, and most firms struggle to support all of them comprehensively.A CLM solution lightens this work by providing tailored and actionable client insighton communications, client sentiment, and activities. It allows RMs to manage complexrelationships from a single location, and provides them and their support teams with a360-degree view of all clients, contacts, accounts and households.It makes it easier for firms to stay competitive and remain compliant by monitoringactivities, demonstrating suitability, and providing evidence to the regulators.1A single, integrated view of clientinformation across multiplebusiness lines2Integrated product selection,document generation andsharing with clients3Actionable AI-powered insightsand next-best suggestions toguide RMs4Advanced, innovative client servicingfor dynamic routing, approvals, andworkload managementA CLM solutions unified approach to client and RM input strengthens visibility ofintegrated actions, ultimately enabling RMs to spend more time on value-added activities.Equipping RMs to view data in various ways – among them, a holistic 360-degreedashboard view of clients and family groups for multi-relationship modelling – allowsusers to view all relationships, products, communications, and upcoming activities.Likewise, all recorded client data – like KYC, suitability information, and clientdocumentation – is stored in one place.07 wealth-dynamix.com