19 connected strategy for asian wealth management ^Top Rewards of a Connected Strategy A Connected Strategy helps firms break the trade-off between superior client experi- ences and lower costs. In the past, firms could provide an outstanding client experience (i.e., a higher willingness-to-pay on the part of the client) but they could only do so at a commensurately higher fulfillment cost. However, in multiple industries, ride hailing, streaming movies, meal preparation etc., firms with a Connected Strategy can now de- liver a superior experience at a lower fulfillment cost. They do so by changing the way they connect with clients (“creating bigger information pipes”) and creating new connections in the ecosystem (“creating new information pipes”), helping push out the efficiency frontier and opening a competitive gap with other players. Consider the example of Netflix which connects to consumers, collects precise, real-time clickstream data on client activity and platform engagement over a long period of time and uses intelligent recommender systems to deliver personalized experiences at scale for millions of clients across multiple markets. This has allowed them to drive rapid growth from less than 10 million subscribers in 2007 to over 200 million subscribers in 2021. This has also allowed them to transform their role in the industry from being a con- nected retailer, distributing content produced by others, to also becoming a connected producer, leveraging insights from their platform. why connected strategies for wealth management There are several macro forces at work that offer wealth managers in Asia the opportu- nity to realize the rewards of a connected strategy. First, the technological capabilities needed to deploy connected strategies exist and are proven: In 2011, Marc Andreesen coined the prescient phrase “software is eating the world’18. In the decade since, connectivity (mobile), data analytics (Artificial Intel- ligence), new interaction models (social networks) and increased computing power (cloud computing) have collectively disrupted entire industries such as retail, media, and transportation. Newer entrants in wealth management who are leveraging tech-enabled models are already disrupting the industry – we will elaborate on Ant Financial in this context later in the paper. Connected strategy is not just a technology transformation but fundamentally a business model innovation, given that the technologies needed for success have often been proven already in other sectors. 18 “Why Software Is Eating the World”, Marc Andreesen, 2011