First, it was the shelf of financial products. Then the largest distribution network through investment advisers. Now, XP Inc. () bets on the excellence of the service to guide a third wave of growth – and, if all goes well, leave the current 11% market share to 20% by 2032.
Excellence, by the way, became a watchword in the company and in the program, considered one of the largest investment events in the world. With the expectation of gathering XX mil People in Sao Paulo this week, the conference is an environment of exchange and learning for investors – as well as evangelization of the network of internal and external advisors, about what is priority for the company.
“We are accelerating our value proposition to reach the right customer with the right offer,” said Guilherme Sant’Anna, XP’s channel director, in a special series of the program Infoomoney Interview with panelists of the event. This is despite the economic scenario: “We always face high interest and difficult politics. We go through crises with less resources, less brand, less qualified people, a less complete platform than we have today,” he said.
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Ensure that nearly 18,000 advisors – most partners, not employees – are committed to excellence is a challenge, says Sant’Anna. The way out is to invest in processes, tools and offering support. “We believe that, above all, the prepared advisor is the main lever up to 20% [de mercado] and more in the future. ”See the main excerpts of the interview below or the full version in the player above.
Infoomoney – XP aims to have 20% of the investment market in Brazil – today has 11%. What is the strategy to get there?
Guilherme Sant’Anna – In addition to everything we have been doing for the last 10 or 12 years on a platform, distribution network, completeness of solutions for customers, we are now accelerating our value proposition to reach the right customer with the right offer.
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We have almost 6 million customers – some are starting to build heritage, others are more mature. For each segment, we define a specific and custom value proposition.
O financial planningtool that helps to show the customer whether adhering to whether or not their long -term goals is an example of what we are ensuring that every advisory use to ensure better and better service.
We really believe that, above all, the advisor prepared to apply all this to different segments is the main lever up to 20% and much more in the future.
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IM – But in parallel to these levers, the market moment – with high interest rates and political noise – mainly challenges the variable income segment, in which XP stands out.
Sant’anna – We are a company that challenged the the status quo of a market that is hyper-transitional. Some of the big banks are over 100 years old – we are 25 years old, 12 as a platform and we are already the fifth largest player on the market.
We always face high interest rates and difficult political context in our history. We cross all the crises – the 2008, impeachment… In previous crises, we had fewer resources, less brand, less qualified people, a less complete platform than we have today. So this should not change anything in our strategy.
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Yes, we adapt our market positioning, in the media, in social networks. But the north is still the same and we are even more prepared.
IM – XP calculates that it has, on average, 50% of the share of wallet (percentage of heritage) of customers. Has it been able to expand this slice?
Sant’anna – Since 2020, we have been very accelerating our service ecosystem and are able to offer more and more options for the customer to detach from traditional financial institutions and relate to us. The new customers bring an increasing portion of heritage already in the first contribution. We evolved this by over 70% – that is, if I had 30% share of wallet In the first contribution, now I have 40% or 50%.
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IM – XP identifies three growth waves in its history: a first linked to product supply, a second linked to the distribution network and a more recent third, focused on the excellence of the service. But often, those who deal directly with the customer are not advisers of XP – but from partner offices. How is it possible to ensure excellence when you have a business model where not everyone is indoors?
Sant’anna – We were the first 100% open platform that distributed all types of assets. With the development of the B2B network – formed by the partner offices – we brought this platform to customers who did not know us through entrepreneurs. We have a very large differential with this distribution.
In the third wave, we return to our origin, but with a much larger ecosystem of solutions and technology. Ensuring that almost 18,000 advisors, mostly partners, are adherent is a big challenge, but we are better prepared than ever.
We invest a lot in processes and tools that give operating scale to advisors so that they can invest time in conversation with the customer. And, above all, we have an internal structure to help partner offices develop their business with good management, leadership and commercial routine execution practices.
IM – How does XP measure the quality of the work of internal and external advisors?
Sant’anna – In the same way. We always follow the NPS indicator (Net Promoter Score) and adherence to the relationship ruler. We were able to follow the client’s journey with us with the tools we built for the advisor and the customer. We know if the advisor is connecting to the platform, if he follows the customer’s wallet. If the customer has no point of contact, no application to the application, if it is not fulfilling its contribution planning, this lights up a sign that it is unraveling.
We have been able to follow this with increasing frequency, and show this to internal and external advisors. At the same time, we create tools to perform these relationship activities in a scalable way. We show where the opportunities are to improve contact points and how they can do it effectively.
IM – How are they dealing with cases of misconduct of advisors?
Sant’anna – We have a governance area of advisers that have control and monitoring tools to identify improper allocations, errors, formal customer complaint.
More recently, we created new triggers, not only in terms of allocation, but also relationship. We define a minimum ruler – if the advisor does not comply with a certain frequency of contact, if he does not present the tools of financial or wealth planningis also notified. At the limit, it is penalized.
It happens, at some point, the deviation of repeating advisers in notifications and penalties. The ruler is exactly the same for advisors who are inside or for those connected to an office.
What has surprised us is the reaction of the advisors to what we are doing. It is very positive, because the advisor who wants to do well for the customer takes care of the brand and hates to know that there is another misaligned advisor.
IM – XP has talked more about the different compensation models of advisers. What exactly differentiates the commission model for the fee-based And what customers can access one or the other?
Sant’anna – The advisor’s remuneration model should be a consequence of the service model. The logic is: if I serve the customer with a higher level of sophistication and depth, more open it must be fee-based [baseado em uma taxa fixa, e não no comissionamento por produto vendido].
At the same time, the customer can wish to have a relationship in this model, regardless of the service I offer. And this should also be considered in the equation.
Our system is multifaceted. A B2B Advisor [externo] can offer two or three compensation models, as well as a B2C advisor [interno] or a patrimonial manager.
Given the investor profile, your risk tolerance, your disposition to allocate in the short or long term, there will be a diagnosis of the best remuneration model. What cannot happen is the advisor to offer the fee-based in your own interest.
By the way, we are also notifying and penalizing advisors when this happens. We have a crucial role of educating the market and the network of advisers about the correct offer for the customer.
