Private Banking Business Models

Slide 1: Business Models in Private Banking discover, understand and define © Arvetica 7th of February 2008

Slide 2: (Innovative) Business Models in Private Banking © Arvetica Page 2

Slide 3: © Arvetica Page 3

Slide 4: UBS © Arvetica Page 4

Slide 5: UBS  one bank strategy: close cooperation between wealth management, asset management and investment banking © Arvetica Page 5

Slide 6: UBS  one bank strategy: close cooperation between wealth management, asset management and investment banking  jointly explore business opportunities, create synergies and propose integrated offer © Arvetica Page 6

Slide 7: UBS  one bank strategy: close cooperation between wealth management, asset management and investment banking  jointly explore business opportunities, create synergies and propose integrated offer  investment banking business can have a negative impact on private banking © Arvetica Page 7

Slide 8: Geneva Private Banks © Arvetica Page 8

Slide 9: Geneva Private Banks  historically successful based on relationship and brand equity focused © Arvetica Page 9

Slide 10: Geneva Private Banks  historically successful based on relationship and brand equity focused  challenged to adapt to a shift in client needs towards a new breed of global entrepreneur clients © Arvetica Page 10

Slide 11: Geneva Private Banks  historically successful based on relationship and brand equity focused  challenged to adapt to a shift in client needs towards a new breed of global entrepreneur clients  today’s newly wealthy often require a holistic and integrated offer © Arvetica Page 11

Slide 12: Investec © Arvetica Page 12

Slide 13: Investec  specifically targets C-level executives of public companies with tied wealth © Arvetica Page 13

Slide 14: Investec  specifically targets C-level executives of public companies with tied wealth  offers them credit against their company shares to allow them to diversify risk © Arvetica Page 14

Slide 15: Banque Syz © Arvetica Page 15

Slide 16: Banque Syz  differentiation through performance based brand © Arvetica Page 16

Slide 17: Banque Syz  differentiation through performance based brand  strong competencies in the field of alternative assets © Arvetica Page 17

Slide 18: Banque Syz  differentiation through performance based brand  strong competencies in the field of alternative assets  substantial investments in human resources with knowledge at the forefront of alternative assets © Arvetica Page 18

Slide 19: Independant Asset Managers © Arvetica Page 19

Slide 20: Independent Asset Managers  rise based on better informed clients who seek objective and independent advice © Arvetica Page 20

Slide 21: Independent Asset Managers  rise based on better informed clients who seek objective and independent advice  rise based on advisors who seek independence from large structures to give their clients neutral advice © Arvetica Page 21

Slide 22: Independent Asset Managers  rise based on better informed clients who seek objective and independent advice  rise based on advisors who seek independence from large structures to give their clients neutral advice  focus on advisory services and client relationship © Arvetica Page 22

Slide 23: Sodi © Arvetica Page 23

Slide 24: Sodi  offers independent asset managers (IAMs) a physical and administrative platform © Arvetica Page 24

Slide 25: Sodi  offers independent asset managers (IAMs) a physical and administrative platform  IAMs can draw on professional services offered by Sodi © Arvetica Page 25

Slide 26: Sodi  offers independent asset managers (IAMs) a physical and administrative platform  IAMs can draw on professional services offered by Sodi  gives IAMs the advantages of scale, while allowing them to retain independence © Arvetica Page 26

Slide 27: Mirabaud Private Bank © Arvetica Page 27

Slide 28: Mirabaud Asset Management  gives bankers the security, brand and platform © Arvetica Page 28

Slide 29: Mirabaud Asset Management  gives bankers the security, brand and platform  leaves them the flexibility and entrepreneurial context of independent asset managers © Arvetica Page 29

Slide 30: Mirabaud Asset Management  gives bankers the security, brand and platform  leaves them the flexibility and entrepreneurial context of independent asset managers  combines the best of “both worlds” © Arvetica Page 30

Slide 31: EFG © Arvetica Page 31

Slide 32: EFG  A bank built for and around “Client Relationship Officers” (CROs) © Arvetica Page 32

Slide 33: EFG  A bank built for and around “Client Relationship Officers” (CROs)  Aims at liberating CROs from any work that restrains them from focusing on client relationships © Arvetica Page 33

Slide 34: EFG  A bank built for and around “Client Relationship Officers” (CROs)  Aims at liberating CROs from any work that restrains them from focusing on client relationships  Clients “belong to” the CRO not the bank © Arvetica Page 34

Slide 35: Swissquote © Arvetica Page 35

Slide 36: Swissquote  Emergence of a new breed of clients that plays with online trading, while delegating the management of the core part of their wealth © Arvetica Page 36

Slide 37: Swissquote  Emergence of a new breed of clients that plays with online trading, while delegating the management of the core part of their wealth  These clients are very likely to question the added value and cost of their bankers, based on their trading experience © Arvetica Page 37

Slide 38: TIGER21 © Arvetica Page 38

Slide 39: TIGER21  peer network of (U)HNWIs with confidential groups of 12 members, who meet once a month © Arvetica Page 39

Slide 40: TIGER21  peer network of (U)HNWIs with confidential groups of 12 members, who meet once a month  every month a different member performs a “portfolio defense” in front of the other group members © Arvetica Page 40

Slide 41: TIGER21  peer network of (U)HNWIs with confidential groups of 12 members, who meet once a month  every month a different member performs a “portfolio defense” in front of the other group members  TIGER21’s peer network complements bankers and leads to better informed clients © Arvetica Page 41

Slide 42: CONCLUSION multiple business models are competing in private banking © Arvetica Page 42

Slide 43: © Arvetica Page 43

Slide 44: WHICH …path should I choose? How can I make the right decision? © Arvetica Page 44

Slide 45: WHAT …actually is a business model? © Arvetica Page 45

Slide 46: Practice Shows: Understandings Diverge © Arvetica Page 46

Slide 47: a business model is the blueprint of how a business intends to generate profits and it can be described by a number of components © Arvetica Page 47

Slide 48: what do we offer? WHAT? © Arvetica Page 48

Slide 49: whom do we offer it to? WHAT? WHO? © Arvetica Page 49

Slide 50: how do we do it? HOW? WHAT? WHO? © Arvetica Page 50

Slide 51: what‘s in it for us? HOW? WHAT? WHO? $? €? © Arvetica Page 51

Slide 52: 9 Bricks to Describe your Business Model CLIENTS HOW? WHAT? WHO? $? €? © Arvetica Page 52

Slide 53: 9 Bricks to Describe your Business Model CLIENT CLIENT CLIENTS CLIENT HOW? WHAT? WHO? SEGMENTS SEGMENTS SEGMENTS $? €? © Arvetica Page 53

Slide 54: 9 Bricks to Describe your Business Model CLIENT CLIENT CLIENT OFFER CLIENT CLIENTS CLIENT HOW? WHAT? SEGMENTS SEGMENTS WHO? SEGMENTS SEGMENTS SEGMENTS $? €? © Arvetica Page 54

Slide 55: 9 Bricks to Describe your Business Model CLIENT CLIENT CLIENT OFFER CLIENT CLIENTS CLIENT HOW? WHAT? SEGMENTS SEGMENTS WHO? SEGMENTS SEGMENTS SEGMENTS ACQUISITION CLIENT CLIENT CHANNELS SEGMENTS SEGMENTS $? €? © Arvetica Page 55

Slide 56: 9 Bricks to Describe your Business Model CLIENT CLIENT CLIENT RELATIONSHIPS SEGMENTS SEGMENTS CLIENT CLIENT CLIENT OFFER CLIENT CLIENTS CLIENT HOW? WHAT? SEGMENTS SEGMENTS WHO? SEGMENTS SEGMENTS SEGMENTS ACQUISITION CLIENT CLIENT CHANNELS SEGMENTS SEGMENTS $? €? © Arvetica Page 56

Slide 57: 9 Bricks to Describe your Business Model CLIENT CLIENT CLIENT RELATIONSHIPS SEGMENTS SEGMENTS CLIENT CLIENT CLIENT OFFER CLIENT CLIENTS CLIENT HOW? WHAT? SEGMENTS SEGMENTS WHO? SEGMENTS SEGMENTS SEGMENTS ACQUISITION CLIENT CLIENT CHANNELS SEGMENTS SEGMENTS REVENUE CLIENT $? €? CLIENT FLOWS SEGMENTS SEGMENTS © Arvetica Page 57

Slide 58: 9 Bricks to Describe your Business Model CLIENT CLIENT CLIENT RELATIONSHIPS SEGMENTS SEGMENTS CLIENT CLIENT CLIENT CLIENT KEY RESOURCES CLIENT OFFER CLIENT CLIENTS CLIENT HOW? SEGMENTS SEGMENTS WHAT? SEGMENTS SEGMENTS WHO? SEGMENTS SEGMENTS SEGMENTS ACQUISITION CLIENT CLIENT CHANNELS SEGMENTS SEGMENTS REVENUE CLIENT $? €? CLIENT FLOWS SEGMENTS SEGMENTS © Arvetica Page 58

Slide 59: 9 Bricks to Describe your Business Model CLIENT CLIENT CLIENT RELATIONSHIPS SEGMENTS SEGMENTS CLIENT CLIENT CLIENT CLIENT KEY RESOURCES CLIENT OFFER CLIENT CLIENTS CLIENT HOW? SEGMENTS SEGMENTS WHAT? SEGMENTS SEGMENTS WHO? SEGMENTS SEGMENTS SEGMENTS ACQUISITION CLIENT CLIENT KEY ACTIVITIES CLIENT CLIENT CHANNELS SEGMENTS SEGMENTS SEGMENTS SEGMENTS REVENUE CLIENT $? €? CLIENT FLOWS SEGMENTS SEGMENTS © Arvetica Page 59

Slide 60: 9 Bricks to Describe your Business Model PARTNER CLIENT CLIENT CLIENT CLIENT NETWORK CLIENT RELATIONSHIPS SEGMENTS SEGMENTS SEGMENTS SEGMENTS CLIENT CLIENT CLIENT CLIENT KEY RESOURCES CLIENT OFFER CLIENT CLIENTS CLIENT HOW? SEGMENTS SEGMENTS WHAT? SEGMENTS SEGMENTS WHO? SEGMENTS SEGMENTS SEGMENTS ACQUISITION CLIENT CLIENT KEY ACTIVITIES CLIENT CLIENT CHANNELS SEGMENTS SEGMENTS SEGMENTS SEGMENTS REVENUE CLIENT $? €? CLIENT FLOWS SEGMENTS SEGMENTS © Arvetica Page 60

Slide 61: 9 Bricks to Describe your Business Model PARTNER CLIENT CLIENT CLIENT CLIENT NETWORK CLIENT RELATIONSHIPS SEGMENTS SEGMENTS SEGMENTS SEGMENTS CLIENT CLIENT CLIENT CLIENT KEY RESOURCES CLIENT OFFER CLIENT CLIENTS CLIENT HOW? SEGMENTS SEGMENTS WHAT? SEGMENTS SEGMENTS WHO? SEGMENTS SEGMENTS SEGMENTS ACQUISITION CLIENT CLIENT KEY ACTIVITIES CLIENT CLIENT CHANNELS SEGMENTS SEGMENTS SEGMENTS SEGMENTS COST CLIENT REVENUE CLIENT $? CLIENT STRUCTURE SEGMENTS €? CLIENT FLOWS SEGMENTS SEGMENTS SEGMENTS © Arvetica Page 61

Slide 64: The 5 steps of business model design & innovation 1 VISUALIZE 2 ASSESS 3 INNOVATE 4 PLAN 5 IMPLEMENT → describe → assess → brainstorm on → turn new model → communicate existing strengths and improvements into a project & implement business model weaknesses & opportunities roadmap © Arvetica Page 64

Slide 67: ASSESS: question your business model acquisition and distribution channel assessment strengths (+) (-) weaknesses our channels have a our channels only reach strong reach among our a fraction of our target target clients clients we don’t know how we know how effective successful our channels each of our channels is are we know how cost we don’t know how efficient each of our costly our channels are channels is we use our most costly unprofitable clients channels for our most regularly use our most profitable clients expensive channels … … © Arvetica Page 67

Slide 70: INNOVATE: ideate, prototype, iterate, decide PARTNER CLIENT CLIENT CLIENT CLIENT NETWORK CLIENT RELATIONSHIPS SEGMENTS SEGMENTS SEGMENTS SEGMENTS CLIENT CLIENT CLIENT CLIENT KEY RESOURCES CLIENT OFFER CLIENT CLIENTS CLIENT HOW? SEGMENTS SEGMENTS WHAT? SEGMENTS SEGMENTS WHO? SEGMENTS SEGMENTS SEGMENTS ACQUISITION CLIENT CLIENT KEY ACTIVITIES CLIENT CLIENT CHANNELS SEGMENTS SEGMENTS SEGMENTS SEGMENTS COST CLIENT REVENUE CLIENT $? CLIENT STRUCTURE SEGMENTS €? CLIENT FLOWS SEGMENTS SEGMENTS SEGMENTS © Arvetica Page 70

Slide 72: PLAN: draw a project roadmap and align your enterprise direction Strategy new business model [Galbraith 2001] © Arvetica Page 72

Slide 73: PLAN: draw a project roadmap and align your enterprise direction Strategy Structure new business model power [Galbraith 2001] © Arvetica Page 73

Slide 74: PLAN: draw a project roadmap and align your enterprise direction Strategy Structure new business model power Processes information [Galbraith 2001] © Arvetica Page 74

Slide 75: PLAN: draw a project roadmap and align your enterprise direction Strategy Structure new business model power Rewards Processes motivation information [Galbraith 2001] © Arvetica Page 75

Slide 76: PLAN: draw a project roadmap and align your enterprise direction Strategy People Structure new business skills/mind-set model power Rewards Processes motivation information [Galbraith 2001] © Arvetica Page 76

Slide 81: Contact Arvetica 24, Route des Acacias CH-1227 Geneva Telefon: +41 - 22 304 12 30 Fax: +41 - 22 304 12 39 E-Mail: alex@arvetica.com © Arvetica Page 81

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