Wealth Management: Case Studies

Customer Strategy

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Problem: A top 5-wealth management company needed a customer program and servicing model to support their most important customers.

Solution: Novantas developed the full range of marketing — product pricing, and branding — and service delivery capabilities — prospecting, investment platforms and office infrastructure. Based on a positive NPV, the company decided to move “up-market” and begin servicing these wealthier customers through this new, segmented operating model.

Result: A 150% increase in average AUM/customer and corresponding improvements in advisor compensation and corporate profits.

Pricing

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Problem: A top 10-bank diversified financial services company needed a near and longer term cash strategy.

Solution: Novantas analyzed their current cash accounts for their brokerage and advisor-directed accounts and developed product elasticities for each cash vehicles.

Result: The company realized an improvement of 8bp on their cash accounts and shifted the mix of customer assets from off to on-balance sheet. We subsequently assisted the marketing department to leverage our elasticity models for future repricing decisions.

Merger & Acquisition Support

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Problem: One of the largest online brokers was contemplating a merger and sought recommendations on which products, under which brand, and what customer experience the new company should operate with.

Solution: Novantas ran their clean room prior to the actual merger date. This included an assessment of the brand positions, products / pricing and customer experience. Over a three-month period, under very strict data rules, we developed acquisition and retention elasticities using both existing data from both organizations combined with choice model scenarios to the existing and prospective customers. Based on this we recommended which products, under which brand, and what customer experience the new company should operate with. The net impact was an improvement in deal NPV by over $300 million.

Result: The net impact was an improvement in deal NPV by over $300 million.