World Wealth Management Trends & The Vietnam Market

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World Wealth Management Trends & The Vietnam Market (2010) - Oracle Financial Services Global Business Unit

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World Wealth Management Trends & The Vietnam Market

  1. 1. <Insert Picture Here> Addressing World Wealth Management Trends & The Vietnam Market Lance Tay Senior Director, Financial Services Global Business Unit Ho Chi Minh City, Vietnam 14 October 2010 2 VN Wealth Mgt Press Conf-101014-LTay-v03 Bu i g p m t báo chí Gi i thi u xu hư ng ”Qu n lý tài s n” trên th gi i và Vi t Nam
  2. 2. 3 VN Wealth Mgt Press Conf-101014-LTay-v03 The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. © 2010 Oracle Corporation – Proprietary and Confidential 4 VN Wealth Mgt Press Conf-101014-LTay-v03 <Insert Picture Here> Program Agenda • Facts & Indicators – Global & Vietnam • Emerging Trends & Challenges • Value Drivers for Wealth Management Firms (Private Banks, Retail Banks, Insurance Firms, Wealth Managers) • Oracle Solutions • Selected Customer Accolades © 2010 Oracle Corporation – Proprietary and Confidential
  3. 3. 5 VN Wealth Mgt Press Conf-101014-LTay-v03 Facts & Indicators 6 VN Wealth Mgt Press Conf-101014-LTay-v03 Macro Economic Facts – Wealth Rebound HNWI Population, 2006-2009* In Million (CAGR 2006-2008 = -5.0%) HNWI Wealth Distribution, 2006-2009* In USD Trillion (CAGR 2006-2008 = -6.2%) Key Indicators: • Global HNWI population grew 17.1% in 2009 while wealth raised 18.9% to US$39 Trillion • North America - HNWI population grew 16.6% and wealth jumped 17.8% • Europe – HNWI population rose to 12.5% after dropping 14.4% in 2008 • Asia-Pacific – HNWI population rose 25.8% and wealth surged 30.9% • Latin America – HNWI population grew 8.3%, while wealth jumped 15% • Middle East – HNWI population and wealth grew by 7.1% and 5.1% respectively “Global HNWI recovery was generally stronger in emerging and developing nations than in mature ones” © 2010 Oracle Corporation – Proprietary and Confidential * Source: World Wealth Report 2010, Figure 1. Capgemini-Merrill Lynch Global Wealth Management * Source: World Wealth Report 2010, Figure 2. Capgemini-Merrill Lynch Global Wealth Management .10 .10 .10 .10 9.5 10.1 8.6 10.0 37.2 40.7 32.8 39.0 0.9 1.0 0.8 1.0
  4. 4. 7 VN Wealth Mgt Press Conf-101014-LTay-v03 Vietnam Perspective – Top 3 Fastest Growing Rich * Source: Vietnaminvestment.net, VietNamNet Bridge, Vietnam Business News 8 VN Wealth Mgt Press Conf-101014-LTay-v03 Local & Foreign Inst. Rush To Capture Segment * Source: Nielsen VN_PFMPresentation 2010, Vietnam Business News, IBU Analysis VN Segment est = 1% of 88m pop. = 900k SG segment est = 5% of 5m pop. = 250k
  5. 5. 9 VN Wealth Mgt Press Conf-101014-LTay-v03 Top Differentiating Factors* Global Trends – Post Crisis: Gain Customers’ Trust © 2010 Oracle Corporation – Proprietary and Confidential Emerging Business Model* * Source: PricewaterhouseCoopers Global Private Banking & Wealth Management Survey 2009 Key Trends: • Customer Centric Advisory Model – (Proprietary & Third Party products) • Comprehensive Financial Planning • Customized Portfolio Modeling • Aggregated Reporting • Commission to Fee based revenue • Combination of Producer & Distributor led models • To protect profitability against reducing commission based revenues Key Trends: • Client Acquisition & Retention is the top priority of Wealth Management firms • Qualified CRMs • High Quality & Trusted advices • Tailored Services for customer segments • Due diligence • Pricing and performance is not a primary differentiator 11 VN Wealth Mgt Press Conf-101014-LTay-v03 Global Trends – Technology Perspective © 2010 Oracle Corporation – Proprietary and Confidential Key Operational Strategies* Key Trends: • 66% of COOs plan to offer aggregated client reporting in next two years (consolidated statements) • Online Client Platforms is a top five operational priority over the next two years • Information Security, Client Data Protection and Privacy are critical legal and reputational priorities • 63% of COOs expect to increase their IT spend in the next two years • 82% of COOs will undertake major core system upgrade, including 36% introduce enterprise wide solutions for their organizations • Majority of COOs expect to increase the use of regional and global hubs * Source: PricewaterhouseCoopers Global Private Banking & Wealth Management Survey 2009
  6. 6. 12 VN Wealth Mgt Press Conf-101014-LTay-v03 Emerging Trends & Challenges 13 VN Wealth Mgt Press Conf-101014-LTay-v03 Emerging Business Approach* - VN FSIs needs to decide © 2010 Oracle Corporation – Proprietary and Confidential Marketing/Sales/ Advice Product/Portfo lio Management Operations/ Infrastructure • Disintegration of Value chain by segments (eg OCBC) • Focus on Scale in Lower Segments • Specialization in Upper segments • Niche Players (eg J.Bear) • Focus on upper segments and advice backed sales • Emphasize on product platform; No Commission and No Product push • Large, Integrated Players (eg HSBC) • Team-based sales & service • Increased Cross-selling & cost synergies • Separate Branding (Upper segments) to increase credibility Approaches UHNWIUHNWI HNWIHNWI AffluentAffluent SegmentsSegments Value Chain Standardization Customization Specialization Strategies Standardization Strategies Depends on Segment & Focus of Player * Source: Booz & Company “Balancing revenue with cost to serve is driving Specialization and Standardization Strategies”
  7. 7. 14 VN Wealth Mgt Press Conf-101014-LTay-v03 Evolving Advisory Process* - Customer Centric, Granular © 2010 Oracle Corporation – Proprietary and Confidential Traditional Advisory Process Target Advisory Process • Simple Checklist-based Client-need analysis process • In depth view of Short & Long term goals and expectations was not captured • Simple Checklist-based Client-need analysis process • In depth view of Short & Long term goals and expectations was not captured • Moving beyond simple Investment Portfolio Strategy • Ongoing review and refinement of client needs and objectives, integrating emotional factors into process • Moving beyond simple Investment Portfolio Strategy • Ongoing review and refinement of client needs and objectives, integrating emotional factors into process • Client’s risk profile was calculated as per the existing risk models, e.g., conservative, risk- averse • Client’s risk profile was calculated as per the existing risk models, e.g., conservative, risk- averse • Portfolio Scenario Analysis • Simulation of hypothetical/actual historical events to see effect on portfolio • Portfolio Scenario Analysis • Simulation of hypothetical/actual historical events to see effect on portfolio • General risk tolerance was the primary driver for target asset allocation • General risk tolerance was the primary driver for target asset allocation • Multi-Model Asset Allocation for addressing various types of risks, and goal orientation • Moving to more diversified and global allocations • Multi-Model Asset Allocation for addressing various types of risks, and goal orientation • Moving to more diversified and global allocations • Products offered based on product risk and not the client risk • Products being offered were selected before analysis of client needs • Products offered based on product risk and not the client risk • Products being offered were selected before analysis of client needs • Products innovated toward client goals & demand • Product disclosure: Transparent & Simple • Products innovated toward client goals & demand • Product disclosure: Transparent & Simple • Correlation of asset classes was utilized for assessing risks and rebalancing portfolios • Correlation of asset classes was utilized for assessing risks and rebalancing portfolios • Multi Models across portfolios • Continuous risk analysis & active rebalancing • Clients engaged in revisiting and rebalancing their portfolios • Multi Models across portfolios • Continuous risk analysis & active rebalancing • Clients engaged in revisiting and rebalancing their portfolios • Providing clients with a complete view of their portfolios has been a challenge and was a customized service for higher-band client segment • Providing clients with a complete view of their portfolios has been a challenge and was a customized service for higher-band client segment • Risk-Adjusted reporting of Client portfolios • Regular Portfolio Alerts • Multi-Channel Integration • Risk-Adjusted reporting of Client portfolios • Regular Portfolio Alerts • Multi-Channel Integration * Source: World Wealth Report 2010, Figure 15. Capgemini-Merrill Lynch Global Wealth Management 15 VN Wealth Mgt Press Conf-101014-LTay-v03 Business Standpoint • Trusted Advice • Segmented Approach • Customer Centric • Periodic Review of Clients needs & Rebalancing • Multi-model global allocation of assets • Risk Analysis Operations Standpoint • KYC Compliance • 360 Degree View of Customer Wealth • End to End Aggregated Reporting • Advisor – Friendly • Process – Oriented • Consistency & Scalability • Client Data Protection & Privacy CHALLENGES Business Standpoint • Comprehensive Financial Planning • Parameterizeable Service Differentiation • Online client access • Deviation & Multi Dimensional Exposure Tracking • Automatic Portfolio Rebalancing • Risk Adjusted Reporting Operations Standpoint • Proven Integration to document management system, Product Processors and Reporting Systems • Open Architecture • User Friendly • Scalability • LDAP & database authentication • 360 Degree view of Customer Wealth • Transparent Client Servicing • Tailored Services to specific segments • Increased Advisor Productivity & Cross Sales Opportunity • High client touch • Lower time to market • Quick Usage Ram-up & Faster Customer Service • Increased operational control • Reduced Total Cost of Ownership (TCO) • Lower cost of future upgrade • Re-use of existing IT assets • Quick & Easy Deployment • Future proof technology Oracle Differentiator CAPABILITIES VALUE Challenges – Capabilities – Value Proposition © 2010 Oracle Corporation – Proprietary and Confidential Key - VN priority
  8. 8. 16 VN Wealth Mgt Press Conf-101014-LTay-v03 Oracle Solutions 17 VN Wealth Mgt Press Conf-101014-LTay-v03 © 2010 Oracle Corporation – Proprietary and Confidential Integration with World Class CRM Financial Advisor Desktop ORACLE CRM Wealth Management ORACLE FLEXCUBE Private Banking Contact Household Financial Plan Financial Product Financial Account Financial Holdings Portfolio Planning & Construction Portfolio Reporting Portfolio Analysis & Monitoring Portfolio Execution Portfolio Administration Portfolio Simulation ORACLE Application IntegrationArchitecture
  9. 9. 18 VN Wealth Mgt Press Conf-101014-LTay-v03 Functional Architecture – Plug & Play © 2010 Oracle Corporation – Proprietary and Confidential EXTERNALSYSTEMS Oracle FLEXCUBE Private Banking Financial Planning Order Origination Portfolio Management Oracle or 3rd Party Core Banking Current & Savings Accounts Structured Deposits Lending Foreign Exchange Local Payments Cross Border Funds TransferSWAPS & FRA’s Standing Instruction Teller Services Relationship Pricing Electronic Messaging Nostro Reconciliation Securities (Equities & Bonds) CIF Security – Access Mgmt Limits MIS General Ledger Oracle Business Intelligence Enterprise Edition Standard Reports OBIEE Reports 360DegreeWealth Management ComprehensiveProduct Processor EndtoEnd Reporting Risk & Compliance Customer Relationsh ip Mgmt Product Catalog, Core Maintenances, Reconciliations Revenue Mgmt Biz Perf. Mgmt Term Deposits Money Market Broker Bloomberg Custodian SWIFT MarketData Oracle Universal Content Manager Scanned Customer Documentation & Correspondence – Storage & Retrieval Document Management 19 VN Wealth Mgt Press Conf-101014-LTay-v03 © 2010 Oracle Corporation – Proprietary and Confidential Integrated Process Architecture Customer
  10. 10. 33 VN Wealth Mgt Press Conf-101014-LTay-v03 Customer Accolades 34 VN Wealth Mgt Press Conf-101014-LTay-v03 “We are using Oracle FLEXCUBE Private Banking because it enables us to provide innovative products and services to our customers in a cost effective manner.” William Purdy, Head of IT, Bank of London and the Middle East What Bank of London and the Middle East Is Saying © 2010 Oracle Corporation – Proprietary and Confidential
  11. 11. 35 VN Wealth Mgt Press Conf-101014-LTay-v03 “…gives us the opportunity to address high net worth individuals comprehensively and provides us with a competitive edge. The implementation is in line with Kotak Mahindra Bank's commitment to offer quality service to customer needs.” KVS Manian, Group Head Retail Liabilities and Branch Banking, Kotak Mahindra Bank What Kotak Mahindra Bank Is Saying © 2010 Oracle Corporation – Proprietary and Confidential 36 VN Wealth Mgt Press Conf-101014-LTay-v03
  12. 12. 37 VN Wealth Mgt Press Conf-101014-LTay-v03 Lance Tay Senior Director, Financial Services Global Business Unit lance.tay@oracle.com • Lance Tay is the Senior Director for Banking across Asia Pacific in Oracle’s Financial Services Global Business Unit (FSGBU). • In this role, Lance is responsible for providing deep domain expertise to Oracle’s financial services customers across all of Oracle’s applications and technology products. Lance brings to this role a wealth of experience and valuable insight gained through over fifteen years of experience working with some of the region’s largest financial services companies. His domain expertise includes retail banking, wealth management, and trade finance. Lance has worked with major financial institutions in Australia, New Zealand, South East Asia, India, China, and S. Korea. • Lance is considered a retail banking IT strategy thought leader within the financial services sector and is a regular commentator in leading industry publications. He is often invited to speak at industry seminars about breakthroughs in banking IT strategy. • Prior to joining Oracle, Lance held management positions at The Boston Consulting Group, Accenture, and Cisco Systems. Lance also worked at Fidelity-NIS, and Procter & Gamble. • Lance holds a MBA from Cornell University, and a Bachelor of Science from the Southern University of New Hampshire. He has also lived in Sydney, Bangkok, Mumbai, and Geneva. 38 VN Wealth Mgt Press Conf-101014-LTay-v03
  13. 13. 39 VN Wealth Mgt Press Conf-101014-LTay-v03

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