The Treasure is in the Data - How Three International Brands Found Marketing Gold. Alice Donaldson from Exponential, presented this deck at iMedia Brand Summits, Asia. #imbsummit

1. Marketing to the High Net Worth
Next Generation
Money K
Global Head, Next Generation
Citi Private Bank

2. Marketing to the High Net Worth
Next Generation
April 2014
1

3. 2
The Wealth Pyramid
Ultra High
Net Worth
>$30 million in net worth
High Net Worth
$1 million - $30 million in net
worth
Affluent
>$1 million in net worth

4. 3
• Foster strong relationships and build a business pipeline with scions of our clients
• Enhance their knowledge and capabilities in global finance and wealth management
• Introduce long-term financial planning for them and their families
• Help them build networks and partnership with their peers
• Assist with their business and entrepreneurial ventures
• Enable successful generational transitions to prolong their family legacies
The Next Gen Initiative in Citi

5. 4
Unprecedented Wealth Creation

6. 5
12 million HNWIs ….

7. 6
….. representing $46.2 trillion in wealth

8. 7
US continues to lead the pack

9. 8
About 110,000 (1%) own $16.3 trillion (35%) of that wealth

10. 9
Next Generation
A Global, Social,
Digital Race

11. 10
Generationally speaking …..
Baby-Boomers
(Post-War till 1964)
Gen Y & Millennials
1977 - 1992
Gen X
Born 1965 - 1976

12. 11
What drives your savings and investment decisions?
Friends/Peers
Family Office
Banker Advice
Own Decisions
Parental Advice 35%
27%
18%
13%
8%

13. 12
What has been most beneficial from the Next Gen program?
Networking with peers
Learning Inv. & Wealth M.
Learning non-finance topics
Meeting Senior Mgmt
Social Activities
55%
32%
10%
1%
1%

14. 13
What do you value most in your private banking relationships?
2
12
25
29
33
34
45
64
Other?
Branch Availability
Mobile/Online Banking
Range of Prod/Service
Brand / Reputation
Pricing
Banker Access
Investment Advice

15. 14
Social Media - Usage
57
31
7
10
4
3
1
1
15
11
23
8
6
5
1
2
1
6
6
2
4
1
2
10
12
14
12
8
9
5
Facebook
Instagram
LinkedIn
Twitter
Google
Pinterest
Foursquare
Myspace
Daily Weekly Monthly Rarely

16. 15
How will you keep in touch with your peers?
22
31
40
44
71
GenGlobalNetwork
In person
Phone
Email
Other social media / networks

17. 16
What will drive your decision when choosing a private bank?
74
49
38
28
21
1
Quality of Banker
Global Access & Network
Brand / Reputation of Bank
Continuing with Parents' Bank
Peer Recomendations
Other?

18. 17
• Peer influence is dominant
• Digital engagement is critical (and security is paramount)
• Trusted advisor is irreplaceable
Key Takeaways

19. 18
Unprecedented Wealth Transfer
Over the next 50 years, $41 trillion in wealth will
transfer hands from one generation to another
Source: PWC, 2013

20. 19
Different Expectations, Behaviors, Aspirations

21. 20
Banks are not new to the digital world

22. 21
• Web services
• Automated service systems eg kiosks
• Electronic banking
• Mobile payments
• Online brokerage
• Electronic wallet for loyalty cards
In consumer banking ……

23. 22
Wealth management sector sluggish in being digital
1. 60 percent of all retail banking transactions are now done online – Booz & Company
2. In wealth management and private banking, the transformation has been slower. Only 22 of 50 (44%)
private banks had optimized their websites to integrate smartphone applications - Booz & Company

24. 23
Investment in technology continues unabated ….
O&T
40%
Front Office
30%
Middle Office
30%
IT spending in financial services globally will exceed $430 billion in 2014 and go
beyond a whopping $500 billion by 2020.
(Source: American Banker)
Distribution of Personnel
in a Universal Bank

25. 24
Ages 50 and under are pro-digital

26. 25
US and Asia high on digital ….

27. 26
Tablets more popular than smartphones ….

28. 27
• More spend on innovation: Some 70 per cent of banks said they will expand spending on innovation,
with the mobile and online channels seen as the most important delivery channels to invest in. (Source:
Computer Weekly)
• Smartphones & Tablets: Some 93 per cent of banks will offer mobile payment services and 89 per
cent plan to offer bespoke tablet banking applications to customers in the next three years. (Source:
ComputerWeekly)
• Digital 1st; Branch 2nd : By 2015, digital banking will overtake branch services as the main way clients
interact with their bank, according to a recent PWC study.
• Willingness to Pay: PWC surveyed more than 3,000 banking clients in nine developed and emerging
markets. Most respondents said they would pay a monthly fee of up to US$15.30 for digital banking
services that offer convenience and value.
• High Social Media Influence: 70 per cent of high net worth individuals have used information found on
social media to either change advisors or investment decisions – db Corporate Social Platform
Digital trends ….

29. 28
However, Greater Complexity & Regulation in Financial Services
1. Taxation & Transparency
2. Client Protection & Suitability
Foreign Accounts Tax Compliance Act

30. 29
Digitization – Benefits for Clients
For Client:
1. Instant high-speed, real-time access to research, market data and advice
2. Communicate “live” with bankers and investment counsellors - anytime, anywhere
3. Execute on-line transactions
4. Review and manage portfolio

31. 30
Digitization – Benefits for the Wealth Manager
For the Wealth Manager:
1. Enhance value proposition and drive business
2. Build a 360 degree view of client’s assets and behavioral profiles
3. Streamline back-office operations, eliminate manual activities
4. Better tracking and management of client interactions for compliance and audit purposes
5. Greater efficiency, productivity, savings, profitability – lower cost-income ratios
6. Business sustainability - future clients expect digital experiences / relationships
7. Modernizes the brand and its appeal to Next Generation customers

32. 31
Digitization also poses risks
1. Data thefts
2. Confidentiality breaches
3. Hacker attacks

33. 32
Next Gen want to be inspired ….

34. 33
Thematic, Bespoke, Proactive, Personal ….

35. 34
Another example …

36. 35

37. 36
1. “DIGITAL BANKER” : The private banker plays a critical role – what digital innovations and
behaviors should be adopted to be better bankers?
2. WHAT’S UPCOMING: What new technologies and new opportunities for digital banking?
3. OPERATIONAL EXCELLENCE: Big Data and Cloud – how can they be better leveraged for
operational excellence?
4. SECURITY: Security, privacy and confidentiality are sacrosanct in private banking. What new risks
and threats are there to digital banking?
5. SOCIAL MEDIA ANALYTICS: What can we learn about our future clients’ expectations and
behaviors from the social media? How can we extract more intelligence and analytics?
6. SOCIAL MEDIA MARKETING: How can private banks use social media channels more aggressively
for client interaction and acquisition? Or should they not?
Some Thoughts

38. 37

39. 38
Citi Private Bank is a business of Citigroup Inc. (“Citigroup”), which provides its clients access to a broad array of products
and services available through bank and non-bank affiliates of Citigroup. Not all products and services are provided by all
affiliates or are available at all locations. In the U.S., brokerage products and services are provided by Citigroup Global
Markets Inc. (“CGMI”), member SIPC. Accounts carried by Pershing LLC, member FINRA, NYSE, SIPC. CGMI and
Citibank, N.A are affiliated companies under the common control of Citigroup. Outside the U.S., brokerage products and
services are provided by other Citigroup affiliates. Investment Management services (including portfolio management) are
available through CGMI, Citibank, N.A. and other affiliated advisory businesses. All credit products are subject to credit
approval. Citigroup Inc and its affiliates do not provide tax or legal advice.
Citi and Citi with Arc Design are registered service marks of Citigroup Inc. or its affiliates.
© 2014 Citigroup Inc., All Rights Reserved. Citibank, N.A. Member FDIC

40. The End