Why e-Business is Good Business

1 December 2008

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About kasina

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About kasina

kasina also runs the kasina Youth Foundation.More information is available at

www.kasinafoundation.org

Our firm has a singular mission:Innovate distribution in financial services

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Our Clients+ kasina works exclusively with asset management firms solving global

problems in a variety of channels and countries

Pictet

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Why is e-Business Good Business?

+ There is a convergence coming: e-Business is moving closer and closer to Sales Sales and service are moving closer to e-Business

The best firms today are acting on this

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Groundwork:

We Are Not As Divided As Our Channels Suggest

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Institutional and Intermediary Channels Share a Lot

+ Core needs of each are similar in nature

+ The “Institutionalization” of retail channels has created a service convergence

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The Needs Do Not Look Drastically Different+ For Advisors, Product, Account, and Commentary are the most important

needs in descending importance

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Two Emerging Major Trends and Best Practices+ Institutional looks very similar – Pricing, Account, and Commentary top this

list of needs

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The Impact of the Institutionalization of Retail Online+ MFS was the pioneer in developing sites designed exclusively for the

professional retail buyer of funds

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+ This is trickling down to the advisor level Fidelity’s advisor site was ranked #1 in large part to extensive, quasi-institutional product

information availabilty

The Impact of the Institutionalization of Retail Online

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Why e-Business Is Good Business

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What Forces Are Making e-Business Good Business?

+ Revenue opportunities are being identified through technology

+ Competition is increasing online

+ Customers of investment management products are increasing online

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The Case for Sales Scale+ e-Business can readily facilitate sales with professional buyers of investment

management products

Source: “Your Site Will Sell,Too” kasina. 2008.

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e-Business Today: Separate and Less Important

Source: Elevating the Role of e-Business, 2008.

+ Firms do not currently value e-Business today

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e-Business Tomorrow: Integrated and Very Important

Source: Elevating the Role of e-Business, 2008.

+ Change in importance indicates e-Business will be an area of greatest competitive change

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Change in the Definition of “Usage”+ Professional buyers are increasing the interactivity and quality of their Web

usage

Source: “What Advisors Do Online” kasina. 2008.

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Best Practices in Integration of e-Business and Sales

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Two Emerging Major Trends and Best Practices+ Firms are being more aggressive in selling their story online

Web sites are becoming more proactive in selling CRM systems are finally getting integrated

+ Distribution models are evolving that will embrace technology more Hybrid Wholesaling has created by technology It is more profitable than traditional models

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Subtle Selling on Product Pages+ Information on product pages flows from right to left to sell stories of its

products

1. Give the data 2. Tell the story 3. Define Action

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Shopping for Institutional Products+ Vanguard’s Institutional site includes a series of Web 2.0 charting functions

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Integration of Research+ AllianceBernstein integrates research and reporting for a service selling

experience

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Selling the Story before the Numbers+ MFS is using the first shows multimedia after inquiring about its funds, not

its performance

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Developing Unique Tools Online+ Calvert is a prime example of a brand-aligned value added program online

Brand alignment – Attaches to Calvert’s SRI message Easy to be explained through any touchpoint (wholesaler, e-mail, etc.)

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+ Goldman Sachs offer an “FX Blog” with insight from its traders

Increasing the Interactivity with the Brand

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CRM is Being Integrated to Dictate Sales+ Nuveen has seen 25% conversion rates in cross-selling funds to SMA clients

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The Big Picture: Sales and Scale+ Hybrid wholesaling seeks to answer two key questions for the Sales team

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+ Territories covered by hybrid range show 0-30% increase in profitability 75% of firms report that success

+ Cultural impact of hybrid wholesaling is largely positive Provides a career path for internals looking to get into the field Provides lifestyle and location flexibility

Hybrid Wholesaling: e-Business Made It Possible

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Summary

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Summary: Why is e-Business Good Business?

+ The Direction e-Business is moving closer to sales Sales is moving closer to e-Business

+ The Business Case Institutionalization of retail Measurable, revenue opportunities Increasing competition Customers want it

+ The Opportunity Cost-effective solutions in a tough economy Competitive bar is still low

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Mike MaPrincipal

e-mail: mwma@kasina.comphone: +1 646 257 4470 fax: +1 212 349 7413

Thank You.For more information, please contact:

581 Avenue of the Americas, 5th FlNew York, NY 10011 United States