Digitial delivery of wealth management the era of the platform? Damian Hitchen, CEO Swissquote MEA Ltd

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1 Digitial delivery of wealth management the era of the platform? Damian Hitchen, CEO Swissquote MEA Ltd

2 Transition of WM into the digital era Consumer behaviours and expectations are shifting in ways that will challenge financial services providers to rethink how they service their customers The use of digital delivery platforms are becoming not only a driver but a prerequisite to remain, defend and compete in wealth management. 2

3 Retail financial services is no longer business-to-consumer (B2C) it has become consumer-to-business (C2B) where are we now? AGENDA The GAFA-Alibaba-TenCent [GAFAAT] effect has changed consumer expectations of Financial services SOURCE: Accenture Financial Services Global Distribution & Marketing Consumer Study gathered the views of nearly 33,000 financial services consumers including banking, insurance and investment advisory customers across 18 markets.

4 What is the industry s response? You ll struggle to find any other player in the marketplace that provides a full investment offering fully integrated with banking. November 2016, Financial Times London It s personalised as two customers with the same amount of potential investments will not necessarily have the same recommendation, even if they have the same risk profile... we are one of the first to do this 01 June 2017, Financial Times London 4

5 What are the challenges a 3-step approach. 1 - Financial services providers need to define their roles & core competency 2 - Which Phygital [Physical Digital] parts of the business to prioritise and transform.. Be clear on what can stay as is Eg; physical What needs to be digitized and in what order of priority Driven by Strategy, Revenues etc 3 - How to transform.. Build in-house Partner Outsource 5

6 Evolution of business models how may an omni-product dashboard look? Client side AGENDA What are we talking about? Some Figures Should the Banking Industry be afraid? Demo

7 Evolution of business models increased use of DPMs / Portfolio strategies? Client side.. AGENDA What are we talking about? Some Figures Should the Banking Industry be afraid? Demo

8 Evolution of business models how may an omni-product dashboard look? WM / AM provider side? AGENDA What are we talking about? Some Figures Should the Banking Industry be afraid? Demo

9 Evolution of business models how may an omni-product dashboard look WM provider side? AGENDA What are we talking about? Some Figures Should the Banking Industry be afraid? Demo

10 How does this play out? Why do we need to evolve: Defend / extend relationships: Drive the trusted relationship Get data / analytics of what clients want to do (use AI big data to channel) Increase revenue opportunities: Leverage increased volatility in markets >> access allows for faster reaction by both client & advisors Reduce revenue concentration risk via multi-revenue models Do not underestimate the threat and potential for new market entrants, including non-traditional firms.. GAFAAT.. The only wrong approach to digitization is to do nothing. Change is coming to the WMPB sector, and firms must decide whether they want to cling to the status quo or adopt a more proactive approach

11 B2b services Provide execution custodian -middle & back office support to >600 B2b partners Over 75,000 segregated client accounts, with >CHF9 billion AUCs Choice of full or partial branding / white-labelling Customisable investment universe [SQ universe is >3,2 million products across global markets / asset classes] Functionality menu options for partners

12 Thank-you