International Private Bank Setup Workshop


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A 'lite' version of a workshop for promoting out of the box thinking about the establishment of a new international private bank hub / network including a design we did for another client.

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International Private Bank Setup Workshop

  1. 1. International Private Bank
  2. 2. Welcome.
  3. 3. Fireside chat.
  4. 4. “No one has a monopoly on good ideas. ...and execution is everything.
  5. 5. Agenda New International Private Bank
  6. 6. Agenda Day One Business Team Centric 1. Introductions 5. Why Private Banking Is Different to Onshore - Business & Technology Perspective, APM 2. Disclaimers. Why this is only an initial briefing impact on private banking business technology strategy 6. Why Private Banking in 2010 is even more different - key technologies and their business 3. Opportunity. Execution & Vision. Importance impact of Business Technology Strategy (BTS) e.g in Mergers & Acquisitions if TW banking sector 7. Vendor Landscape - top n and why they are consolidates further 8. Importance of BTS in spinoffs, startups and 4. Background & Case Studies ( 4 or 5) multi-brand umbrella environments - Importance of Business AND Technology examples from mature/open markets. SSVM working together on strategy and business approach. performance ... Recap & redirect with senior team
  7. 7. Agenda Day Two Technology Team Centric 1. Selected items from day one chosen jointly. 7. Technology Product/Architecture Risks & Opportunities 2. Beyond APM - Project portfolio management, Service portfolio management, Deeper APM 8. Vendor Relative Positioning & Benchmarking (Components, Web Services, SOA) Data 3. Channel Architecture Backgrounder 9. The Value & (Time) Limitations of Practical Experience 4. Vendor Momentum & Maturity - why rankings can be misleading, the picture beneath the 10. Architecture & Investment Profile - The numbers simultaneous equation between Business & Technology? 5. Vendor Risks & Opportunities - samples from a business and technology perspective 11. What Are Real KPIs given the simultaneous equation - Value of Time to Market & 6. Negotiation Strategy, Legal Frameworks, value Continuous Innovation Platforms of a experience an a global perspective 12. Some sample internal technology landscapes
  8. 8. Introductions • Peter J Cooper • Cooper Sydney • Network • Business Technology Management as a Management Science • BTM special role in banking technology
  9. 9. Background/Experience
  10. 10. “ Life is short... do something great.
  11. 11. experience.
  12. 12. “It is OK to make mistakes... but only if you own them & learn from them.
  13. 13. Opportunity
  14. 14. excited?
  15. 15. local opportunity TW - This week: Exports up 46.9% yoy, CT $100m insurance comms. Banking Industry 4th in Asia, 6% CAGR for 20 years, 4%pa forecast Tier 1 PBs 23% ^(8) - out performing GOB 55% v (10) - under performing, will privatise, low margins Other 22% v (23) - too small, need capital CT 6.15m, ROAE 12.5% (1st), Efficiency 47.8% (3rd), NPL 1.8% (3rd) BOC ?m, ROAE 12.4%, Efficiency 39.3%, NPL 4.6% CBA 10+m, ROAE 19.8%, Efficiency 51.5%, NPL 0.1% SCB ?m, ROAE 17.7% Efficiency 54.5%, NPL 0.8%
  16. 16. vendor opportunity Apple +147% so what?
  17. 17. Temenos ++350% ... while Baidu is a mere 215% ;-)
  18. 18. competitor opportunity Standard Chartered +178%
  19. 19. global opportunity. 1. Bank of America – $1,501 billion 2. UBS – $1,393 billion 3. Citi – $1,320 billion 4. Wells Fargo – $1,000 billion 5. Credit Suisse – $611 billion 6. JP Morgan – $552 billion 7. Morgan Stanley – $522 billion 8. HSBC – $352 billion 9. Deutsche Bank – $231 billion 10. Goldman Sachs – $215 billion The top 20 global private banks manage nearly $9.2 trillion of private client assets. That’s around 63% of the total global market and challenges the widely expressed view the global wealth industry is fragmented. -Scorpio/Finetik 7/2009
  20. 20. Needs Updating
  21. 21. Execution Onshore vs. Offshore
  22. 22. “ Realizing there is an opportunity ... does not mean you can grasp or maximize it.
  23. 23. Text
  24. 24. ?
  25. 25. “execution is everything ...but do you have an exemplary vision? A cause is even better... ...and how long is the journey?
  26. 26. unique sense of purpose?
  27. 27. “ Where strategic business technology management decisions start.
  28. 28. “Some managers are uncomfortable with expressing emotion about their dreams, but it’s the passion and emotion that will attract and motivate others.” - Jim Collins author of ‘Good to Great’ and ‘Built to Last’.
  29. 29. ‘The customer is not always right’
  30. 30. legacy.
  31. 31. the only channel?
  32. 32. iphone/android ++87% on MS apple/google strategies are driving corporate strategies globally
  33. 33. Over?
  34. 34. 1. Send a clear signal of confidence to customers & markets 2. Creates capabilities in time for the post crisis era 3. Retain best internal resources by providing them with an important and strategic initiative to work on. Boston Consulting Group Q3 2009 on why you should build/buy/renovate in an economic winter NOT hibernate
  35. 35. “ it is all about the client ...and the channels they WANT to use.
  36. 36. technology is the experience. the experience is marketing and personal. the new technology spend is marketing spend. pc0 The new #megabank private bank is really gr8! Thanks @ctlady ctlady Our pleasure @pc0, hope you will tell all your mates especially the #hnw ones :-) + BUT... We don’t control the message any more, the clients, prospects (actually everyone else) does...
  37. 37. 400,000 titles instantly lower cost per title to customer higher margins 30% of revenue already one store high customer satisfaction immense customer lock in
  38. 38. “How many login ids and apps do YOU have to remember? ...all the product silos in the WORLD won’t deliver good self-service UX across multi channels without $$$$$$$$$$$$$$.
  39. 39. integrated vision. by design.
  40. 40. “We all know products generate revenue. Make them easy (& consistent) to use. ... share business logic, and design across channels to reduce cost.
  41. 41. “Business Technology Strategy is a key enabler of long term merger and acquisition strategy. ... and short term too!
  42. 42. EFG International >19 banks/booking centres, regulated on a consolidated basis by Swiss Financial Market Supervisory Authority Member of EFG Group, third-largest banking group in Switzerland (Dec 2008) > 50 locations and > 30 countries 2008 revenue-generating AUM of CHF 77 bn > 2,400 employees and >700 Client Relationship Officers (CROs) CHF 1.8 billion current market capitalisation, BIS Tier 1 ratio of 12.5% at the end of 2008
  43. 43. EFG Acquisition Trail
  44. 44. EFG New Presence Timeline
  45. 45. BTM • Business Technology Management • Management Science • Culture, Tools, Thinking, Process, Resources, Roles • New and old • Separate pack...
  46. 46. Align Project Team 1. Subject Matter Experts Forge the project team from individuals who are respected subject matter experts and who are inspired by the greater goal of the initiative (for us, improving the quality of the care we deliver). If backfilling the vacancies created by these individuals in their work units is not painful, then you probably have selected the wrong individuals. 2. Two Leaders - Commonality Establish two leaders for every project team: a project leader from IT to perform traditional project management functions and drive technical decisions, along with a process leader from the business unit to drive workflow redesign decisions. Pairs mirror the inherent duality of IT-enabled transformation: technical execution married to effective process redesign. Require that team members have a common space, common goals and a functional dependence on one another to succeed. If you demand that they interact intimately on all aspects of project work, the cultural differences that exist among them will soften over time to create a new, shared culture. 3. Commit to Integration - Multi-Disciplinary Decision Forum Establish a forum for integrated decision making, where team members from all disciplines (for us, nurses, physicians, pharmacists, clinical technologists, medical records personnel and IT professionals) must contribute. This forum becomes the nerve center of the project. Eradicate decision making in silos, because there are few decisions that affect only a single discipline within a team-based workflow. Allow no party to proceed along an independent path. Nourish the commitment to multidisciplinary integration where it exists; force it where it does not; and highlight the successes achieved through collaboration.
  47. 47. Lets Talk About... Vendors.
  48. 48. Core Commercials An infrequent investment. Software dominates investment. Licence fees are driver. Game changing is normal. Upfront, variable and ongoing Per User, Per Server, Per Market, User Tier, Per Module, Module caps, Module/User tiers, Instance limits, Contract Term Limits, Licence Term Limits, Module categories, support tiers by module, support levels, tiered PS, rubbery definitions. Tier one vendors are best at playing the game. Control the game from outset.
  49. 49. Vendor Segments Universal Wholesale Private/UHNW/HNW HNW/Professional/Consumer/Retail Specialist (Micro, Islamic, Community)
  50. 50. Contenders ? • Temenos T24 ‘something of value’ (Price? Services?) • Oracle iFlex Flexcube ex-citi (Architecture? Price? Channels? Product?) • Viveo vBank de France (Acquired) USD3.8b • IBM CB Armonk vs Sydney (Acquired) global • ERI Bancaire Olympic Luxembourg (Scale? Product? Technology? market • MiSys Bankfusion et al. -Strategy? Focus? (Maturity? size Architecture transition?), Equation (Products?), Midas Plus (Channels?, Architecture?), Bankmaster (Architecture? Age?) USD23b addressable • Odyssey Triple A upfront. (Scale? Product? Technology?) market • SAP e.g. CBA (Price? Integration? Time to market?)
  51. 51. Vendor Landscape • Categories • Key Players • Geography • Differentiators • Role of bank in a box • A little history vs. evolutionary vs. revolutionary • Architecture and long term corporate strategy • Market share
  52. 52. BTM Yawn.
  53. 53. “ Business Technology Management has economic and human potential that rivals any field of science today. How well people live in the decades ahead may be determined by how well they manage business AND technology together   Dr Michael Nobel Chairman, Nobel Family Society
  54. 54. “ Business Technology Management offers a unique opportunity to transform the global community. Future leaders will need to understand the convergence of business and technology in order to foster economic and social growth. Harriet Mayor Fulbright Chair, The Fulbright Center
  55. 55. Established But not widely known
  56. 56. Good ROI But not widely realised
  57. 57. Why Not? Fear Knowledge Culture Need Desire
  58. 58. More alignment Value focus
  59. 59. Life Cycle Design & Decide - BTS Build & Integrate - ISS Operate & Optimise - IT/IS SD also Strategic Sourcing & Vendor Management - SSVM Tech & Ops Legal & Compliance - TOLC Brand/Marketing Secretariat - APM, SPM, PPM, EA, TARM
  60. 60. “BTMs at the core since 2001... down commitment globally and centralised with 100% coverage.
  61. 61. • Extra Enterprise Future BTM • Plethora of Platforms e.g. Personalised HNW Structured Products • Dynamic Application Portfolio Management • Social Media • APIs for customers, partners • Generation Google e.g. Boomer’s Transition • Social Feedback Tools • Dramatic Channel Growth & Implications • Ecosystem Wars e.g. google vs Amazon vs e.g. channel jump experience and MS vs VM vs IBM vs Governments analytics aggregation • Apps Everywhere • Compliance & more • Proprietary language and tools explode • Security & proactive defense • Mashups not just apps but multiple app stores &
  62. 62. Be Informed. • Trend Radar • Over the horizon radar • Community • Feedback w ranking
  63. 63. informed.
  64. 64. informed. so many more...
  65. 65. Future Technology • Distributed development as standard • Dynamic Application, Asset & Service Portfolio Management • Campaign based development • APIs for customers, partners • Virtualisation mandatory • Social Feedback Tools impact on • Business technology inductions development priorities and business engagement • Channel costs management • Talent Challenges for development and retention caused by Ecosystem Wars • Cloud - internal and external • Social project management and CRM/ • Compliance & more PRM • Security & proactive defense • Plethora of Platforms
  66. 66. Tools • | online erp • • | crm, sfa, paas, • chatter • • google corporate mail and google apps, google docs, google sites • • skype for business • • google wave • • techcrunch trends • • • slideshare
  67. 67. Case Studies Selection
  68. 68. Thank You.
  69. 69. Peter J Cooper +61 2 8005 0551 @pc0