Private Banking & Wealth Management - What Clients Want

Wealth Management - What clients want Kalpesh Desai CEO, Agile Financial Technologies kalpesh.desai@agile-ft.com YOUR LOGO www.agile-ft.com Confidential Page  1

Agenda Wealth Management Today The Changing Landscape – What clients want Evolving A Needs Based Approach To Wealth Management Technology As An Enabler About Agile Financial Technologies Confidential Page  2

Wealth Management - The Effect • The days of low volatility and high margins are over • Many wealth managers are only marginally profitable • Assets and infrastructure of the parent institution subsidize the costs of the wealth management arm High Costs • Profitability driven by new client and asset acquisition, which relies upon an unsustainable cost structure • Wealth Management associated typically with HNWI – who drive hard bargains & are a demand for extensive and expensive service levels • Marketing to clients with too much or too little wealth • Products and services offered not aligned to the behavior of individual client resulting in Clients failure to target services that fit the goals of their clients • Lack of attention to a new generation of mass affluents • Unavailability of a consolidated perspective and client profiling across an institution‟s various arms (retail banks, brokerage businesses, and insurance operations) and Inability to concerted lead generation mechanism cross-sell Confidential Page  3

Wealth Management – The Cause Inability to align products and services with customer profitability Islands of information created People and by the deployment of relationship point solutions and dependent disparate IT processes solutions Poor visibility of Past revenue growth economic Business led to increased fixed performance and Under- costs of acquiring drivers by customer performance and serving new segments customers. Confidential Page  4

Changing Client Landscape Plan Ultra Build Build & Manage HNWI Legacy Wealth Mega Net Worth Protect Wealth Customers Advice HNW Customers Mass Affluent Customers Personal/Premier Banking Customers Volume of potential Clients Confidential Page  6

Channels Servicing The Landscape Confidential Page  7

What clients want How clients desire to be Traditional process of servicing serviced • Brokerage services (product • Global outlook to the experts and financial advisors) investment approach • Investment Management • Research on international services (relationship-based development approach to financial products) • Transparency and visibility on • Wealth Planning (personal portfolio performance and risk financial planner) mitigation • Support and resources and tracking of social returns on their philanthropic and charitable pursuits • Choice of sectors, geographies, community focused, socially responsible investment screening Confidential Page  8

Hence “I dislike having too many experts involved.” “We work with many professionals –but do not have one person who looks at all scenarios such as selling real estate to finance retirement, options for selling the business, etc. It seems like we have the ideas and the professionals fill in numbers.” “…(strategic wealth) would be about reviewing all of my assets together. My financial “I have found that I planner is only concerned come away with a with what he has under his view that I know direct management.” more than they do.” Confidential Page  9

What clients want  Prefer sophisticated advisors who can serve the entire spectrum of ‘net worth’ and understand their complex financial needs  Sophisticated wealth management services and strategic wealth advice  Evidence of strong governance and risk management practices  Ability to see a 360 degree perspective of their interaction with you – when they want to view it  Transparency and timely reporting Confidential Page  10

The Services Expectation Gap •Automate services; evolve technology •Outsource non-core functions High •Identify and structure fees based on “needs-based” approach Service Needs Level Client NEEDS Service requirement GAP Low Profitable person-to-person servicing capability 0 Mass Emerging Mass Affluent Emerging High Net Market Affluent Wealthy Worth Investable Asset Level Confidential Page  12

Bridging the gap • AUM • Based on Client Lifetime • Client interests, Value frequency of firm • Analyze client needs interaction, and create tailored communication offerings preferences and • Build additional financial behavioral capabilities or find attributes. partners to service the gap Position Customer Products and Segmentation Services Stay Current Service with Client Delivery Needs Model • Continuously monitor • Determine a service and update client approach profiles and behavior • Deliver service through patterns multiple channels and • Engage research and practice models. surveys to question internal assumptions Confidential Page  13

Bridging The Gap Catch Them And Watch Young Them Grow • Identify, attract Service the Deliver • Translate the and servicie entire strategic client‟s attitudes, upcoming spectrum of wealth advice; lifestyles, affluents destined „net worth‟ not “inventory” preferences, and for high net worth goals into service offerings Confidential Page  14

Evolving A Client Centric Approach Confidential Page  15

Aligning Business Business and Organizational Operational customer strategy design effectiveness • Identify and • Break out of silos • Build, buy or migrate clients to transition from partner to offer from banking a product-centric more complete services to wealth to a customer- asset management centric management, services organization retirement & • Position advisory • Integrate different estate planning capabilities and components of and protection best-of-breed offering to provide capabilities investment a single point of • Leverage physical products contact for clients footprint • Assess viability of • Ensure rigorous providing a wealth adoption of “know management your customer offering to the rules” mass affluent Confidential Page  17

With I.T.  Shift from islands of information to a holistic integrated system  Deploy CRM to enable identification of potential wealth- management clients and provide an integrated view of the customer and information across all product groups  Using technology as a platform for serving the mass affluent  Improving information and data exchange to share information across silos - Integrating legacy and new systems  Outsource non-core functions to service providers - Investment Accounting - Research - Reconciliation and transcription Confidential Page  18

Wealth Management Technology Confidential Page  19

About Us Backed by Private Equity, Agile Financial Technology is a mid-sized Indian IT company focused on providing products and services to the Investment Banking, Asset Management, Insurance and Capital Market sectors M&A Strategy led by a strong management team 100% buy-out of IT/ITES companies Management teams of underlying Agile emerges as a vertically integrated focused on the Financial Services & companies are inculcated into Agile‟s mid-market player Insurance Sector core team Create economies of scale, efficiency and a powerful sales, support, and marketing process to leverage a vertically integrated product & services offering Consolidated revenues of US$ 30mn in FY08 Confidential Page  21

About Us • Insurance • Managed Services • General, Life, Broking, • Security (BCP/DRP) • Bank Assurance Consulting • Investment Bank/Fund • Strategic Resourcing Houses • Enterprise Application • Asset Management • Integration • Investment & PMS • • NBFC‟s/Banks Technology Products Services BPO KPO • Banking • Loan, Payments, Liabilities origination processing • Fund Accounting Services • Mutual Funds • IPO processing & Support • Origination, KYC • Equity & Forex Research • Insurance • Claims processing, KYC Confidential Page  22

Milestones Our domestic BPO processes 7% of all retail applications & 27% of all new credit card applications processed in India The largest Mutual Fund in India (over 22 Bn$ AUM) uses our software (iDEAL Funds Our software processes 30% of India‟s Mutual Fund AUM Confidential Page  23

Thank you Confidential Page  24

Private Banking & Wealth Management - What Clients Want

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