DRAFT: Private Banking Business Models

Business Models in Private Banking discover, understand and define © Arvetica 7th of February 2008

UBS

Geneva Private Banks

Investec

Syz

Independant Asset Managers

Mirabaud Asset Management

Sodi

EFG

Swissquote

TIGER21

CONCLUSION multiple business models are competing in private banking

WHICH … path should I choose? How can I make the right decision?

WHAT … actually is a business model?

Practice Shows: Understandings Diverge

a business model is the blueprint of how a business intends to generate profits and it can be described by a number of components

what do we offer? WHAT?

whom do we offer it to? WHAT? WHO?

how do we do it? WHAT? WHO? HOW?

what‘s in it for us? WHAT? WHO? HOW? $? € ?

9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS

9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS

9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT SEGMENTS

9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT SEGMENTS ACQUISITION CHANNELS

9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT RELATIONSHIPS CLIENT SEGMENTS ACQUISITION CHANNELS

9 Bricks to Describe your Business Model WHAT? WHO? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT RELATIONSHIPS CLIENT SEGMENTS REVENUE FLOWS ACQUISITION CHANNELS HOW? $?

9 Bricks to Describe your Business Model WHAT? WHO? HOW? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT RELATIONSHIPS CLIENT SEGMENTS REVENUE FLOWS ACQUISITION CHANNELS KEY RESOURCES $?

9 Bricks to Describe your Business Model WHAT? WHO? HOW? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT RELATIONSHIPS CLIENT SEGMENTS REVENUE FLOWS ACQUISITION CHANNELS KEY RESOURCES $? CLIENT SEGMENTS CLIENT SEGMENTS KEY ACTIVITIES

9 Bricks to Describe your Business Model WHAT? WHO? HOW? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT RELATIONSHIPS CLIENT SEGMENTS REVENUE FLOWS ACQUISITION CHANNELS KEY RESOURCES $? CLIENT SEGMENTS CLIENT SEGMENTS KEY ACTIVITIES CLIENT SEGMENTS CLIENT SEGMENTS PARTNER NETWORK

9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER COST STRUCTURE CLIENT RELATIONSHIPS CLIENT SEGMENTS KEY ACTIVITIES PARTNER NETWORK REVENUE FLOWS ACQUISITION CHANNELS KEY RESOURCES

HOW … can we sharpen our business model and achieve innovation?

eric calling

The 5 steps of business model design & innovation

describe existing business model

assess strengths and weaknesses

brainstorm on improvements & opportunities

turn new model into a project roadmap

1 2 4 3 VISUALIZE ASSESS INNOVATE PLAN 5 IMPLEMENT

communicate & implement

VISUALIZE: co-create to draw your business model

ASSESS: question your business model acquisition and distribution channel assessment strengths (+) (-) weaknesses our channels have a strong reach among our target clients our channels only reach a fraction of our target clients we know how effective each of our channels is we don’t know how successful our channels are we know how cost efficient each of our channels is we don’t know how costly our channels are we use our most costly channels for our most profitable clients unprofitable clients regularly use our most expensive channels … …

INNOVATE: ideate, prototype, iterate, decide

INNOVATE: ideate, prototype, iterate, decide WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER COST STRUCTURE CLIENT RELATIONSHIPS CLIENT SEGMENTS KEY ACTIVITIES PARTNER NETWORK REVENUE FLOWS ACQUISITION CHANNELS KEY RESOURCES

PLAN: draw a project roadmap and align your enterprise Strategy direction new business model

PLAN: draw a project roadmap and align your enterprise Strategy Structure power direction new business model

PLAN: draw a project roadmap and align your enterprise Strategy Structure Processes power direction information new business model

PLAN: draw a project roadmap and align your enterprise Strategy Structure Processes Rewards power direction motivation information new business model [Galbraith 2001]

PLAN: draw a project roadmap and align your enterprise Strategy Structure Processes Rewards People power direction skills/mind-set motivation information new business model [Galbraith 2001]

IMPLEMENT: just do it…

smoking gun

Thank you.

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