Digitising Your Business in the Wake of COVID-19

A new lexicon. Words and phrases that very few of us had heard of are now part of every-day language. Coronavirus. COVID-19. Lockdown. Furlough. Social distancing. New normal. Oh, and let’s not forget Zoom, Teams or remote working, either.

But it’s not just a new vocabulary, it’s a whole new way of life.

A recent BBC article quoted M&S Chief Steve Rowe who suggested that customers "may never shop the same way again" after the crisis.

And as Neil Wilson, chief market analyst at Markets.com, observed: "COVID-19 has accelerated lots of consumer trends and it may just be the catalyst required to accelerate Marks and Spencer's transformation into a 21st century retailer. In particular, it looks as though M&S has learnt just how important online is.”

The impact on Financial Services may be just as profound. Technology and online services are playing a crucial role during lockdown – financially, socially and mentally. As the brakes are slowly released, some of the changes we are witnessing may last well beyond COVID-19.

It’s not just a new vocabulary, it’s a whole new way of life

Here are four technology-based trends that could become part of the ‘new normal’.

1.      The move to online client meetings and online purchases

In the past, many advisers resisted the idea of video meetings, adamant that face-to-face in person was the only way to build rapport, develop relationships, do business. That resistance crumbled in the wake of lockdown and, in conversations I’ve had with a range of businesses, productivity has increased for many people, including some advisers.

Prediction: while face-to-face will return there will be a shift amongst larger, vertically integrated firms where the opportunity to drive efficiencies, productivity and profitability will not be missed. There will be an increase in ‘relationship’ video calls, rather than in-person visits with more use of shared client/adviser portals and integration to open finance data sources.

Robo advice capabilities will be increasingly accepted and incorporated into advice firms' propositions to increase capacity and improve consistency.

Simply 'being digital’ will not, however, guarantee success. Offering a value proposition that matters, engages and is compelling will be the difference between the winners and the losers.

Prediction: across circa 200 individual digital solutions that Altus tracks, those that survive will fall into two distinct categories:

(1) broader customer-facing propositions where human support is available, to reassure, guide and, where necessary, to advise;

(2) technology suppliers which have honed their B2B solution to provide a modern, streamlined capability to firms in need of a tech upgrade – whether that be to provide a direct to consumer proposition, or increasingly, to provide the tech that advisers can use.

2.      Remote working and location strategy

I recently had a video meeting with the MD of a large advice firm based in the City. With the twin drivers of advisers forced to adopt remote working and a need to reduce overheads in response to COVID, office costs are under significant scrutiny. His view was that they’d reduce their office space by 50%, echoing the view of Jes Staley at Barclays who believes that “the notion of putting 7,000 people in a building may be a thing of the past.”

While swingeing cuts in property rents may sound appealing, it is premature to herald the death of the traditional financial services office.

We are only now beginning to see the mental health impact of being isolated for weeks on end or trying to juggle home schooling or child-care with a day job. Many people have struggled with the practicalities of carving out a home workspace and many more are craving the social interaction that comes with the daily commute to the office.

And let’s not forget the technology. Over the past couple of months I’ve used Teams, Zoom, Webex, GoToMeeting, Skype for Business (once!), even WhatsApp video. Working with international clients over video for a number of years has given us plenty of practice but, let’s be honest, there are times we wish we were all in the same room.

Prediction: for those people fortunate enough to work for an organisation which can make it work, and where the family cat or small child appearing on a Zoom call is not a problem [hands up, it’s happened to me!], the ‘new normal’ will likely be a mix of more flexible remote working and less time sitting at a desk in an office.

The ‘new normal’ will likely be a mix of more flexible remote working and less time sitting at a desk in an office

3.      Online webinars and distance learning

It’s not just schools and universities that shut their doors; every industry event and course was cancelled pretty much overnight.

Many businesses have successfully adapted to offering shorter online webinars to maintain engagement and ensure the key messages still get out despite the disruptions.

Many of the technologies used for remote working have been adopted to deliver these sessions, and some presenters are building up a nice following without the need for expensive event suppliers.

Prediction: the event industry was in desperate need of disruption and innovation, and sadly, it’s taken a pandemic to kickstart this. No longer will I need to get up at the crack of dawn or spend many hundreds of pounds on tickets and train travel to attend an event. I’ll be able to pick and choose what I watch, and when, and if it’s not grabbing me, I can click my mouse and go do something else more productive!

Event organisers with need to up their game, as will presenters – no more sales pitches to a captive audience in a big city venue.

Event organisers with need to up their game, as will presenters – no more sales pitches to a captive audience in a big city venue.

4.      Integrated value chain and automation

Squeaky bum time for any business with a heavy reliance on paper forms, paper-based records, cheques, and manual interventions.

Conversely, businesses that have invested in online capabilities and automated workflow, integrated systems, straight through processing, digital payment and electronic signatures will reap the benefits and pick up clients from those who resisted.

Prediction: We will see a strong focus on streamlining Client Lifecycle Management – from prospecting and onboarding, through managing to servicing and re-engaging. Over the past decade we’ve become accustomed to slick, frictionless customer journeys in other sectors. Financial services now needs to catch up.

Firms will require a systems architecture able to integrate new technology solutions and capabilities simply and quickly across the value chain, along with the stability and robust business controls to minimise business risk and manage costs.

Never the same again

If COVID-19 has taught us anything from a business perspective, it’s the absolute necessity of digital readiness.

If COVID-19 has taught us anything from a business perspective, it’s the absolute necessity of digital readiness. As the World Economic Forum points out, digital readiness “allows business and life to continue as usual – as much as possible – during pandemics. Building the necessary infrastructure to support a digitised world and stay current… will be essential for any business… to remain competitive in a post COVID-19 world.

There will be no hiding from this; every business will be exposed – quite literally.

"It's only when the tide goes out that you learn who's been swimming naked,"

Warren Buffet

As Warren Buffett observed, ‘it's only when the tide goes out that you learn who's been swimming naked.’ Marks & Spencer has accelerated it’s “Never The Same Again” transformation to secure the future of the business and face up to challenges exacerbated by the current crisis.

Time for us all to look in the mirror: what about us? How good are we at executing what’s needed? How many of us will be caught swimming naked? What are we individually and collectively doing to secure the future of our businesses, of our sector, of our profession?

If not now, when? If not us, who?

Simon Bussy, Director - Wealth, Altus Consulting