The Winning Wealth Management Strategy. Rickie Fung Excel Technology

Transcription

1 The Winning Wealth Management Strategy Rickie Fung Excel Technology 1

2 Evolution of Retail Banking Transactions Convenience Investment Consulting Loans, deposits, cards, ATM, phone banking, payment, Funds, insurance, stocks,.. Financial advice, planning, 70's 80's 90's

3 The Wealth Management Business Market Growth Rate Forecast 2003 to 2005 AUM Revenue Asia Pacific 15% 15% Australia 23% 18% Hong Kong 14% 13% Singapore 12% 15% Source : PwC Asia Pacific Private Banking/Wealth Management Survey 2003 Mutual Fund (Unit Trust) subscription rate in HK 2001 $9.47 billion 2002 $12.65 billion 2003 $19.51 billion 3

4 The Lucrative Customer Base US$ 10 million US$ 1 million US$ 100,000 The Rich High Net Worth Mass Affluent Mass Retail Target Market for most retail banks and finance companies in Asia A customer segment growing in size due to economic growth in Asian countries 4

5 The Value of the WM Business Increase of product sales Mutual funds, structured deposits, ELI etc. Increase customer loyalty Value-add investment services Maximize personal touch effect Retain high net worth customers Better margin per customer 5

6 A Competitive Market The Rich High Net Worth Private Banks Investment Banks IFA Mass Affluent Insurance Mass Retail Retail Banks 6

7 Potential Differentiators According to a survey done in 2003 on wealth management, the perceived key differentiation factors are: Breadth of Product Quality of Advice Quality of Staff Quality of Service Market Image & Brand Personal Relationship

8 Customer Needs Mass Retail The Rich Product Information Product Recommendation Needs Analysis & Planning Personalized Financial Planning Portfolio Management Clearly, the needs of different customer segments are different, with certain overlaps 8

9 Different Approaches Mass Marketing Customer Service Quality / Product Sophistication Personal Service Mass Retail The Rich Customer Net Worth Service approaches are also different in serving different segments of the customers as well. 9

10 The Strategy Segment your customers and prospects Target appropriate customer segment(s) Identify their investment behaviour Analyse products and services preference Design and revamp products as needs change Develop the fitting products or services The Winning Strategy Deliver the product or service efficiently Consistent delivery mechanism Take advantage of technologies 10

11 Customer Segmentation Segmentation by Age years old building wealth years old cumulating wealth years old preserving wealth Segmentation by Investment Style Self directed Receptive to service Total reliance on experts Segmentation by Amount of Wealth, Education Level, Job Capacity etc. 11

12 Product & Service Design Choice of Investment Products Mutual funds Fixed income (bonds, CD, deposits) Foreign currencies Structured products (ELN, CLN, ELD etc.) Insurance Build portfolio models for different risk appetite Product offering Boutique or supermarket Best-of-breed vs choice 12

13 Delivery Efficiency Qualified Staff Regulatory requirements Able to communicate on value propositions Training is important Use of technologies CRM Financial planner Portfolio Management Sales Support Tools Mass Marketing / Call Center Tools 13

14 Excel Wealth Manager Design Philosophy As a mass marketing tool As a personal selling tool As an analytic and planning tool As a servicing tool Cater to different needs of customers Information-only Product recommendation Modular planning / comprehensive planning Portfolio management / tracking 14

15 Excel Wealth Manager The All-in-1 Desktop Campaign & Leads Management Sales Support Tools - Calculators, Forms Financial Planning Tools Portfolio Management / Tracking Integration to other systems 15

16 The All-in-1 Desktop Designed for customer service / sales staff Highly functional Can be configured with Customer Information Account / Planning / Contact Details Promotion Information Result Response Capture Reminder / Schedule / Notepad etc. 16

17 Campaign Management Campaign Definition Define products to be promoted Define target group of prospect Setting of measurable targets By amount of revenue By number of transactions Can have multiple campaign in effect 17

18 Leads Management Leads generation Internal and external lead sources Flexible filtering to select prospect groups Duplicate and opt-out consideration Prospecting Activity Reporting By business units By campaign Interfaces with existing CRM database 18

19 Leads Distribution CRM Call Lists External Call Lists Internet Leads Other Leads The CRM Database Auto Distribution Lead Distribution Manual Distribution Branches Call Center 19

20 Sales Support Tools Product Information Business News / White Papers Self definable Promotion Information Sales Fulfillment Online forms, paper forms or STP Calculators, schedulers, alerts 20

21 Content Management Manages all user definable items Allow user to define static information Format supported: HTML, Acrobat Information supported : Product information Application forms Business news and white papers Promotional materials 21

22 Financial Planning Enable personalized service Complete set of financial planning tools : Customer profiling Financial Planner Performance Tracker Benchmarking Portfolio optimizer Compliance checks 22

23 Financial Planner Flexible design catering for different customer segments More personalized service Methodology: Risk tolerance analysis Need requirements Financial gap analysis Provide product recommendations 23

24 Performance Tracker Track performance of individual portfolio Market Value Cashflow RoR (rate of return) etc. Benchmark against selected metrics Dow / Nasqad index S&P 500 etc. 24

25 Portfolio Optimizer Return of portfolio could be improved by using optimizer Optimize tools and models Markowitz Model Efficient Frontier Monte Carlo Simulation Sharpe Ratio 25

26 System Integration Connect to other Excel systems: UTS mutual funds InterTrade stock trading LOS loan insurance Connect to IBM host & other systems thru MQ Series or SNA LU6.2 TCP/IP 26

27 The Total WM Tool Leads Management / Content Management / Sales Management Product Information Promotion Materials Alerts Electronic Forms Sales Leads The CRM Database Sales Results Calculators Reminders Note Pad Calendar Financial Planners Integration with other system for status / order capture 27

28 Technical Platform Support both Intranet & Internet connection Browser based operations Web / Application Server IBM Websphere Programming Language JSP and Java Database IBM DB2 28

29 Thank You 29