Change is the only constant –

keeping pace in an evolving environment Theresa Lintvelt Head of Brand & Online Marketing @TheresaLintvelt

Because things are the way they are, things will not stay the way they are. Berthold Brecht

The masters of disruption...

Jeff Bezos Mark Zuckerberg

Sir Tim Berners-Lee Larry Page & Sergei Brin Steve Jobs

1994 Amazon

1991 1st Website

1998 Google

2004 Facebook

2007 iPhone

2010 iPad

The servants of change...

Bill Shorten Chris Bowen Jeremy Cooper Ken Henry

Late 2010 Stronger Super

Feb - May 2011 Stronger Super Consultation

April 2011 FoFA Mark 2

Aug - Sept 2011 FoFA Draft Legislation

Sept 2011 Stronger Super Announcement

Oct - Nov 2011 My Super T1 Legislation 12% SG Legislation

Oct – Nov 2011 FoFA T1 & T2 Legislation

Mar 2012 FoFA Legislation passed

July 2012 FoFA Voluntary start date

2013 > My Super commences APRA Pudential standards Increase to SG

2013 > Mandatory FoFA

Toto, I have a feeling we’re not in Kansas anymore…

Constant change is the new normal

Drivers of change over the next 50 years.

Global connectivity

Power shift to CHIME countries

GRIN Technologies Ageing

Environment

Future Files: A brief history of the next 50 years – Richard Watson

• 

We are more connected than ever before.

47%!Interacted with a brand"

1 out of 6!couples getting married today met online!

59% of Australians watch online videos to help them make purchase decisions

4/10 Australians login to social media several times per day"

45% growth in LinkedIn accounts over 1 year"

"50% of Facebook users are visiting daily"

60 hours !of video uploaded to YouTube every minute, that’s 1 hour’s worth of content every second

1 Billion Tweets per day world-wide

57% like or follow brands on social media channels "

1 in 6 Internet views in Australia is on Facebook "

More than half of Australians are accessing Internet using a!mobile phone

71% read others opinions about brands,

11 million Australians on Facebook (Spending 5 hrs 2 minutes per month)

5th Highest internet penetration in the world

60%!Of Twitter users have tweeted or posted content"

Acceptance of social media is growing among super fund members

ISF Members Retail Fund Members

Acceptable Not Acceptable

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

35 36 - 50 51 - 65 65+

Disagree Don’t Know Agree

50%+ - Social media is acceptable communication channel

Social media as important future channel for financial services companies

Mobile is the first stage of ubiquitous connectivity.

•  More than 51% of all mobile phones in Australia will be smart phones by the end of 2012

•  Mobile web adoption 8x faster than the desktop web

•  Mobile internet users will overtake desktop users by 2013

•  Mobile search has increased by 3000% in the last 3 years

•  More than a third of all CBA’s Netbank traffic is via mobile devices

•  1.4 million tablets were sold in Australia in 2011

•  Set to increase to more than 11 million by 2016.

Unique mobile visitors have increased by 193% and mobile page views by 191%

Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12

Mobile Visitors and Views Unique Visitors - Mobile Total Mobile Views Expon. (Total Mobile Views )

There are multiple genetic breakthroughs and health inventions…

Bionic eye

Bionic suit

Genetics Brain implants

Life expectancy has increased by 15% in the past 50 years.

http://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyCatalogue/5A9C0859C5F50C30CA25718C0015182F?OpenDocument

•  2056 Male life expectancy - 93.9 years •  2056 Female life expectancy – 96.1 years •  Total population aged over 85 will increase from 1.6% in

2007 to between as much as 7.3% •  More than 3 million people over 85

Increased life expectancy will lead to life- stage and life-style changes.

•  Delayed retirement – already 67 for people born after 1957 – will this increase to 70 and above?

•  Need for higher super balances to deal with longer life expectancy & lifestyle choices

•  Health management - e.g. Dementia set to increase from 280,000 to 943,000 by 2050

•  Greater pressure to deliver pension products, manage outflows

•  Pressure to fund different care requirements, product structures etc.

•  Second life expenses & support costs – study, jobs, lifestyle

http://www.fightdementia.org.au/research-publications/access-economics-reports.aspx

Transparency Connected Data

Structure Self- determination

Customer- centric

How will changes in the macro-environment impact our industry?

Informative, Personal, Easy

Notify me of important changes to my account

Relevant to me

Not too much

information

Timely information

Intuitive

Get what I want, fast

Simple, uncluttered

Suitable for my screen

Accurate

Help me understand my position

The right information

The right format

Easy to understand

Help me make

decisions

Right type of information for

my level of engagement

The face of the empowered customer.

Snack-sized

Know me

Give me guidance

The “Red Queen Hypothesis”

"Now, here, you see, it takes all the running you can do, to keep in the same

place. If you want to get somewhere else, you must run at

least twice as fast as that!"

The innovation to commodity cycle.

Innovation

Avai

labi

lity

Certainty

Custom Built

http://www.gardeviance.org

Product

Commodity

The innovation to commodity cycle.

Innovation

Product

Commodity

Avai

labi

lity

Certainty

Custom Built

You

Market

Competitive Gap

http://www.gardeviance.org

Maintaining a balance between the disruptive and the tested.

NEW = CHAOTIC

•  Dynamic •  Deviate •  Uncertain •  Emergent •  Serendipitous •  Competitive

advantages

KNOWN = LINEAR

•  Repeatable •  Standard •  Best practice •  Predictable •  Process •  Cost of doing

business

Boiling the ocean one drop at a time.

•  Be selective – choose wisely •  Launch quick and small •  Delight in stages •  Know your customer •  Connect the dots •  Individualise •  Be prepared to fail

“Always in motion the future is.” Yoda

Thank you

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Facebook/ColonialFirstState

@CFS_AU