Digital delivery of Wealth Management - the era of the platform? Damian Hitchen, CEO Swissquote MEA Ltd

Transcription

1 Digital delivery of Wealth Management - the era of the platform? Damian Hitchen, CEO Swissquote MEA Ltd

2 Transition of WM into the digital era The wealth management industry is undergoing a series of changes that will shape it for years to come 2

3 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 3

4 Where are we today: Considerations: Uni-channel offering Face-to-face: basic advisory >> Discretionary management Direct: online or call centre brokerage channels Administration heavy; RM >> middle & back office Industry cost-income ratios under pressure (particularly Private Banking) Increased regulatory challenges following on global RDR THANK YOU Changing landscape to digital delivery the use of digital delivery platforms are becoming not only a driver but a pre-requisite to remain and compete in wealth management Changing demographics of WM HNW UHNWI segment the allocation of wealth is changing, particularly in EMs and the relationship delivery method needs to adapt to this Changes are with us now.. Once you start with digital delivery, you need to constantly evolve A quick fix alone on the front-end will not last medium-longer term. You can only run as fast as your slowest part

5 THANK YOU What do today s clients demand: Omni-channel delivery from their provider; face-to-face, online, hybrid Increased level of access and transparency on their portfolio Reduction in WM fees Increased choice; a broader investment universe Enhanced ability to react to increasingly volatile markets need simple access from their preferred channel

6 Evolution of business models? AGENDA What are we talking about? Some Figures Increase access for new non-financial entrants >> Google Amazon Alibaba???? Should the Banking Industry be afraid? Collaborate with various service providers >> Banking >> Cards >> Trading >> Robo-advisors Demo

7 Business evolution what are the likely delivery models? Holistic adapters end to end adoption driven by technology Requires scale: large firms who can justify investment spend Reduce end-to-end processing costs Increase value-offering for (i) Clients (ii) Advisors / RMs Examples: UBS & Credit Suisses over last 2-3 years Platform partners Firms linking with platform providers: Enhance proposition and revenues per client; Enhance investment offering; Reduce middle/back office costs per client; Provide omni-channel offering to clients; Niche players typically smaller players Focus on selected areas of digital delivery to supplement offering Robo-advisory Outsoucred DFM strategies

8 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

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 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

11 Business evolution why? Defend existing position / trust relationship Keeping up with the competition... AGENDA Expanding deliverables to drive and maintain the trusted relationship What Increase are revenue we opportunities talking about? Some Figures Should the Banking Industry be afraid? Demo Enhanced client access >> trading behaviour Leverage increased volatility in markets >> access allows for faster reaction by both client & advisors Reduce revenue concentration risk via multi-revenue models Omni-channel, omni-product delivery Tailored offering to defined client segment

12 How does this play out? Increased commoditisation of the individual nodes of WM increases the potential for new market entrants Society has adopted digital into our everyday lives Financial services is moving rapidly into the Digital space 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

13 B2b services Provide execution custodian -middle & back office support to >500 B2b partners Over 75,000 segregated client accounts, with >CHF5 billion AUCs Choice of full or partial branding / white-labelling Customisable investment universe [SQ universe is >2,75 million products across global markets / asset classes] Functionality menu options for partners 2.20pm - Workshop Delivering wealth management via a digital platform

14 Thank-you