2021-08-05-奥纬咨询-Re-envision_Client_Value_12页_1mb

Reset4Value Series Summary

Background

Customer needs in financial services are evolving rapidly, rendering traditional business models ineffective. Leaders face pressure from cost constraints and market shifts, necessitating a re-prioritization of value creation to drive sustainable growth.

Key Challenges

• Increasing commoditization makes differentiation difficult, with declining margins for insurers and asset managers despite cost-cutting efforts.
• COVID-19 accelerated changes in consumer behavior, with higher demand for digital services and unmet needs growing, such as life insurance, disability coverage, and financial literacy.
• Many firms focus on defensive cost programs ratherthan offensive innovation, wasting resources on minor tweaks instead of meaningful value.

Reset4Value Methodology

Oliver Wyman's approach emphasizes four acts to transform cost programs:

• Re-envision Client Value: Focus on solving customers' pressing problems and delivering tailored solutions.
• Link Costs to Value: Treat costs as investments that fuel growth, reallocating resources to high-priority areas.
• Change How Work Is Done: Embrace digital and integrated capabilities for seamless, omni-channel experiences.
• Leverage Strengths: Build on firm cultures and enhance behaviors that align with customer expectations.

Opportunities for Growth

Unmet customer needs include digital engagement post-pandemic, with data showing shifts towards digital banking. Firms can capitalize by integrating open banking, customizing products, or improving accessibility through data-driven insights.

Recommendations

• Activate a customer-first mindset by prioritizing life-event triggers and gathering real-time data.
• Use test-and-learn strategies to iterate solutions based on customer feedback.
• View cost programs not as short-term cuts but as catalysts for monetizing new capabilities.

Conclusion

Now is the time to act, as leaders can use this approach to realign strategies, capture market opportunities, and ensure long-term success through value-based transformation.