Assets under View – a new KPI in Banking

Did you know that we reached the “Multi Banking Era”? Since this year, the Revised Payment Services Directive (short PSD2) is in place. PSD2 allows Banks, Fintechs

and other players to get current account data and do transactions on their client’s behalf. There are two ways banks are approaching this:

1. Burden: Banks that see PSD2 as a cost factor and threat to their business as Fintechs and other service providers can take use of the client’s data and do payments.
2. Chance: Banks that see PSD2 as an opportunity to provide better services, to get a more holistic view over their client’s total wealth… and thus: better service.

To empower those who see the chance, we at Fincite suggest leveraging a new Key Performance Indicator (KPI):

Assets under View (short AuV)

Assets under view are the assets of a client that are not held at your bank, but that are added to your multi-banking application.

Why Assets under View are so important

Currently, the most important figure for any Robo Advisor is Assets under Management (AuM). But how to manage a good pipeline that increases AuM? If you look at Online Marketing basics, you see the classics: Click rates, time on website, registered users. All are important for the funnel, but they do not indicate the value of the client. If you look at AuV and measure the conversion from AuV to AuM, you learn how big your pipeline really is. You can calculate conversion potential and if the solution you offer finds trust and traction. You basically know the customer lifetime value before he becomes a client.

What does it tell me?

One million EUR AuV based on 100k clients indicates a different target group as a million EUR AuV by 10 clients.  You can also see, if the clients trust you. 100 registered clients do not mean much. If 90 of those 100 trust you with their financial situation, it means a lot. You get a very clear vision about your pipeline, for example:

1. 100 potential clients visit your website
2. 60 register for your free service
3. 50 trust you with their assets -> AuV
4. 20 sign up for your paid service

Before you went from registered users straight to AuM, not knowing what happened in between. Now you have a new KPI, that can show your traction in the market. Are people trusting you? Now, you can steer clearer, where you have to put more effort in, to convert. You can better focus on the client’s pain points and show the potential of your solution.

Where the market will go

We at Fincite believe, that PSD2 is not a threat, but an opportunity, if you have the vision to use it properly. Build services around PSD2 that show your expertise, whether it is investment advice, portfolio management performance, or other services. Account Aggregation and Analysis let you analyse client portfolios at other banks and let your clients see the unique expertise and the edge you offer.

Summary

The new KPI Assets under View is a very important measure to steer your client acquisition efforts. And by getting Assets under View you can show the clients, why you offer the best service and have a good approximation for the customer lifetime value.