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Merrill Lynch
eBusiness Strategy Conference
Successful
Successful Integration
Integration of
of Online
Online and
and Offline
Offline Business
Business Strategies
Strategies
John
John Michel
Michel
First
First VP,
VP, Senior
Senior Director
Director
[email protected]
[email protected]
June
June 14,
14, 2001
2001
11
Trusted Global Advisor (TGA) Workstation
§ TGA launched in 1994
§ Facilitate almost 20,000 Financial Advisors in
viewing and managing customer information on
one integrated presentation workspace
§ As a traditional client/server application, we
realized some of the issues in maintaining it and
looked for other solutions
22
Trusted Global Advisor (TGA)
33
US Retail
§ Merrill Lynch Online launched September 1996
§ Access to account information
§ Access to product information
§ Enhance existing client relationship with Merrill
Lynch Financial Advisors
44
US Retail
§ Merrill Lynch Direct launched December 1999
§ Web based service for self-directed investors
§ Part of an integrated strategy focused on client
choice
§ Sister site to Merrill Lynch Online
55
Institutional
§ Extension beyond the retail client
§§ MLX
MLX launched
launched Summer
Summer 2000
2000
§§ Corporate,
Corporate, Institutional
Institutional and
and Professional
Professional Investors
Investors Trading
Trading
Portal
Portal
§§ Providing
Providing award
award winning
winning research,
research, new
new issues
issues and
and offering
offering
information
information
§§ 24-hour
24-hour trading
trading
§§ MLX
MLX MarketEdge
MarketEdge provides
provides UK
UK and
and European
European investors
investors with
with
aa fast
fast and
and convenient
convenient way
way to
to access
access global
global equity
equity markets
markets
with
with immediate
immediate execution
execution and
and straight
straight through
through processing
processing
66
Global Banking/Brokerage
§ Target clients: Mass affluent & self directed
“The
“The alliance
alliance of
of Merrill
Merrill Lynch
Lynch and
and HSBC
HSBC is
is the
the competitor
competitor that
that
financial
financial companies
companies in
in Europe
Europe fear
fear the
the most.”
most.” --The
The Economist,
Economist, March
March 17,
17, 2001
2001
§§
§§
§§
§§
§§
§§
Launched
Launched December
December 2000
2000
Two
Two trusted
trusted brands
brands
International
International coverage
coverage
Complementary
Complementary technology
technology
Intellectual
Intellectual horsepower
horsepower
Broadens
Broadens product
product range
range and
and distribution
distribution capabilities
capabilities of
of both
both
companies
companies
§§ Speed
Speed to
to market
market
77
Services
Services that
that Influence
Influence Customer
Customer Satisfaction
Satisfaction
Branch
Branch personnel
personnel
27.5
27.5
Online
Online customer
customer service
service
23.5
23.5
Automated
Automated investments
investments
21.3
21.3
Online
Online account
account summary
summary
20.9
20.9
Online
Online bill
bill payment
payment
20.1
20.1
Electronic
Electronic funds
funds transfer
transfer
17.2
17.2
Direct
Direct deposit
deposit
16.4
16.4
ATM
ATM cash
cash deposits
deposits
14.9
14.9
ATM
ATM cash
cash withdrawals
withdrawals
Downloading
Downloading activity
activity to
to PFM
PFM
12.9
12.9
6.6
6.6
LOW
LOW STICKINESS
STICKINESS
HIGH
HIGH STICKINESS
STICKINESS
November
November 2000
2000 Forrester
Forrester Report
Report
88
Clicks and Bricks
§§ Integrating
Integrating the
the online
online strategy
strategy into
into the
the traditional
traditional model
model
§§ Prior
Prior to
to Merrill
Merrill Lynch
Lynch Direct
Direct
§§ Limited
Limited online
online services
services == limited
limited client
client choice
choice
§§ Today
Today 20%
20% of
of new
new Merrill
Merrill Lynch
Lynch Direct
Direct accounts
accounts are
are referrals
referrals
from
from Financial
Financial Advisors
Advisors
§§ Our
Our local
local portal
portal program
program which
which launched
launched in
in May
May 2000,
2000, currently
currently
has
has 6,000+
6,000+ out
out of
of 20,000
20,000 Financial
Financial Advisors
Advisors participating
participating
99
Clicks and Bricks
Merrill
Merrill Lynch
Lynch currently
currently has
has over
over one
one million
million clients
clients online
online across
across
all
all web
web based
based offerings.
offerings.
Traditional
Combination Self-directed
Relationship
with a Financial with MLOL with ML Direct
Advisor
“Online
“Online trading
trading is
is quick
quick and
and easy,
easy, online
online investing
investing takes
takes time.”
time.”
Securities
Securities Exchange
Exchange Commission:
Commission: Tips
Tips for
for Online
Online Investing,
Investing, Feb.
Feb.2000
2000
10
10
Changing Market Dynamics
§ Physical presence counts
§§ 22%
22% of
of online
online investors
investors are
are advice
advice directed
directed -- prefer
prefer making
making investment
investment
decision
decision with
with aa professional’s
professional’s input
input
Gomez,
Gomez, 2001
2001
§ Multi-channel “In” Pure-play “Out” of Favor
§§ 56%
56% of
of online
online investors
investors maintain
maintain an
an offline
offline account
account
§§ 24%
24% of
of these
these do
do so
so to
to maintain
maintain aa relationship
relationship with
with their
their broker
broker
Gomez,
Gomez, 2001
2001
11
11
Timeline of Transformation
12/00
12/00
HSBC
HSBC
12/99
12/99
ML
ML Direct
Direct
7/99
Online Trading
8/98
Funds
Transfer
9/96
9/96
MLOL
MLOL
1994
1994
TGA
TGA
2/98
Online
Statements
Summer/00
Summer/00
MLX
MLX
8/99
Bill Payment
Through Web
5/99
MLOL
Custom
Home Page
5/95
1st Public Site
12
12
Merrill Lynch
eBusiness Strategy Conference
Successful
Successful Integration
Integration of
of Online
Online and
and Offline
Offline Business
Business Strategies
Strategies
John
John Michel
Michel
First
First VP,
VP, Senior
Senior Director
Director
[email protected]
[email protected]
June
June 14,
14, 2001
2001
13
13