In July 2024, J.D. Power, an international research organization that conducts customer satisfaction studies, published its results, awarding Mitsubishi UFJ Morgan Stanley Securities the highest ranking in the "J.D. Power 2024 Japan Investor Satisfaction Study 〈Full-Service Securities〉" (*). This is the third consecutive year the company won the top place in this category.

This study, which marks the 13th this year, was conducted on individual investors aged 20 to 79 managing their assets nationwide and was designed to ascertain their satisfaction level with the services they received in the last twelve-month period in the following five separate segments: "full-service securities," "full-service national bank," "self-directed securities," "smartphone securities," and "online bank." Keisuke Yamashita, Chief Manager of the Business Strategy Dept., part of the Wealth & Middle Market Business Unit’s Business Planning Division, explained the award’s significance.

"We were ranked first overall in evaluation of customer interaction, products/services, service charge, and facility. The award is truly meaningful because it recognizes the daily efforts of account representatives at our branches who make various proposals and reflects the positive evaluation of our company's services and measures as a whole."
The company ranked highest for the first time in 2020 and has received the top ranking for three consecutive years from 2022 to 2024.

With many individual investors turning to online investment, what is the reason for the company's continued focus on in-person services? "Japan's financial market catering to the affluent class is the world's second largest after the U.S. These wealthy investors use digital tools like the Internet but also want in-person advice. They tend to seek comprehensive services that include both financial asset management and inheritance. There is a high need for face-to-face advice, particularly in the areas of business succession and inheritance planning."

What are the characteristics of Japan's affluent market?
"Some statistics show that the assets of wealthy Japanese people consist of a higher proportion of real estate than cash and securities. At MUFG, we are preparing a wellness management platform and a tool that enables close coordination of bank, trust, and securities staff to provide one-stop solutions for customers' total asset management."

So, what measures does the company take to improve customer satisfaction?
"Since 2019, we have been promoting the Advisory model and facilitated a value chain that includes House View, our official investment insights on asset management, as well as digital tools and services," explained Yamashita. "We have reformed our performance evaluation and personnel treatment system and reviewed our customer account system and human resources development. Ahead of the industry, we have abolished profit targets and introduced criteria that reflect customer satisfaction instead. For example, using the Net Promoter Score (NPS), which measures customer loyalty, we ask customers to rate on a scale of 1 to 10 whether they would be willing to introduce their family, friends, or relatives to our representatives. We promote customer-oriented activities using these tools."

Mr. Fumiya Kondo, Senior Manager of the Business Planning Division's Business Strategy Dept., agrees. He has experienced interacting with customers at a branch office's front line and says focusing on a customer-oriented approach will become even more crucial.
"We are delighted that the efforts of the staff at branch offices and the measures taken by the Business Unit have received high marks from third parties. We will continue to promote the Advisory model, confident that the company is on the right track," Kondo said.

Miyuu Akutsu, Manager of the Business Strategy Dept., joined the company in 2020, the year the Advisory model was introduced. Until recently, she was handling customer accounts at a branch office. When she started at the branch, she thought she would be expected to develop new customers immediately, but she was wrong.
“It seems that our approach of not introducing products at the start is unique and refreshing to customers,” she said. “My supervisors at the branch office told me time and again never to have a meeting with customers with the sole aim of proposing our products. It is most important to have conversations with customers to discover their true needs, and I believe that it is vital to focus on face-to-face meetings to build long-term relationships.”

Proposing a product without understanding the customer's needs won't produce good results for the customer. Therefore, account representatives must carefully profile the customer's needs and future goals, and then suggest a product within the scope of risks acceptable to the customer. Yamashita explained that the key is establishing a formula of approach closely aligned with the customer's needs.

"We plan and make proposals to our customers based on the information we obtain through profiling, and review it every quarter," Yamashita said. "Additionally, we make sure that our account representatives at each branch make full use of digital tools to carry out risk analysis and simulations as they converse with customers. Rather than a performance-based portfolio, we aim to build a risk-oriented portfolio, an optimal portfolio within the scope of risks acceptable to the customer."
"Another focus is on employee training, including new recruits. The earliest a recruit is allowed to contact customers on their own is in November of their first year. Until then, they undergo training on financial knowledge and tools through our extensive education system, including opportunities to learn on-site by accompanying a senior account representative."

The company's training program is designed to develop fully-fledged advisory capabilities within about two to three years. Previously, performance relied heavily on intuition, experience, and acquired savvy of account representatives. Now, a framework created based on the Advisory model focuses on improving the overall capability of the staff at each branch office.

“The launch of the new NISA has energized wealth-management activities of individual investors, and inquiries from customers are increasing. We believe the need for financial advice is growing,” said Yamashita.
Mitsubishi UFJ Morgan Stanley Securities will put even more emphasis on face-to-face customer interaction. In an environment where AI technology continues to evolve, how do they plan to develop services that satisfy their customers?
Yamashita explained, “While the fusion of an advisory function and digital technology will continue to accelerate, face-to-face interaction that enables us to listen to customers, confirm their needs, and provide support has unique merits. We engage in dialogue with our customers from a medium- to long-term perspective, and together, we create the portfolio they need. I am sure this approach will continue to grow in importance. Meanwhile, we plan to strengthen remote FA, a form of non-face-to-face advisory service, as we integrate the advisory function and digital technology.”

A trophy presentation ceremony for this year's award was held on September 26th with Mr. Koji Yamamoto, President and Representative Director of J.D. Power Japan, and Mr. Kiichi Umezawa, Managing Director of J.D. Power Japan.

(*) The 2024 Japan Investor Satisfaction Study was based on responses from 3,439 investors.
https://japan.jdpower.com/ja/awards