A moneyball approach to wealth management

235 Peachtree Street NE, Suite 400 | Atlanta, GA 30303, USA
Tel: 404-855-4604 | www.banksolutionsgroup.com
A Moneyball Approach to Wealth Management
JP Nicols, CFP®
Partner
Experts in the Business of Banking

Bank Solutions Group, LLC | A leader in financial services industry consultingPage 2
9 10Out
of banks
Are considering a serious
overhaul of their strategy, and
40%
Say wealth
management will be
an important part of
that strategy.
Source: KMPG, American Banker 6/12

But the game has changed.
The era of “build it and they
will come” is over.

Everyone plans to take market share from everyone else
Where will the growth come from?
Bank Solutions Group, LLC | A leader in financial services industry consulting
3%
5%
6%
19%
40%
49%
79% Acquistion
Expansion
Focus on Affluent Clients
Lower costs
Unsure
Other
No growth expected
Source: WealthManagement.com survey of 648
wealth managers from all channels (Oct 2012)
Page 4

Five massive shifts define a new era in wealth managment
Low Growth/
Low Yield
Regulatory
Environment
Competitive
Environment
Demographic
Shifts
Technology
Shifts

*Up to 90% of heirs plan to leave their family’s institution.
Huge wealth transfer opportunity over the next couple of decades
Bank Solutions Group, LLC | A leader in financial services industry consulting
Baby Boomers
Gen X
Gen Y
$41 Trillion*
Wealth of Gen X +
Gen Y expected
to exceed
Boomers by 2018
Page 6

How Can Smaller to
Midsized Financial
Institutions Compete in the
Big Leagues?

A Moneyball
Approach to
Wealth Management

The $1-$10MM investor space is twice as profitable and is growing twice as
fast as the $10MM+ space, according to McKinsey & Co.
Bigger isn’t Always Better

Traditional metrics such as Assets Under Management and Loan Volume are
poor predictors of actual financial success. Today’s key metrics must favor
measures of productivity and profitability over raw volume growth.
Focus on the Right Metrics

It’s nice to have batting champs, but it’s even better to play in October.
Likewise, wealth managers need to focus on the activities that are correlated
to maximizing profitable growth over the long run.
Focus on Wins Not Hits

According to WISE Gateway, allocated costs can impact margins by as much as
30-40%. Get behind the numbers to understand the true costs and ROI
opportunity.
Look Beyond Allocated Costs

Firms should expect $2.50 to $5.00 for every dollar of front-line compensation
expense, firms supporting growth and/or in newer markets will take some time
to reach this level as new hires ramp up production levels.
Invest, Support and Challenge the Client-Facing Staff

The ideal front-line support to maximize revenue growth is a little less than
one support person for every client-facing professional.
Role Players Can be More Important then Sluggers

BSG Wealthcare Model
Standardized Process Specialized
LowTouchIntimacy/EQHighTouch
Execution Diagnosis
Adapted from True Professionalism by David H. Maister
© 1997 David H. Maister , used by permission
• Standard Credit
• Product Advice
• Estate Settlement
• Discretionary
Trusts
• Complex Issues
• Goal Setting
• Financial Planning
• Complex Estates
• Succession Issues
• Nonfinancial
Issues
• Moral Support
• Custom Credit
• Asset Allocation
• Basic Trust Admin
• Complex Assets
• Basic Estate Plans
• Basic Service
• Statements
• Web and mobile
• Standard products
• Transactions
• Item processing

They just have to make the right investments and establish the right metrics to
manage them.
A Moneyball Approach to Wealth Management
There is no reason for
smaller banks to relegate
themselves to the minor
leagues.

Email: jp.nicols@banksg.com | Twitter: @JPNicols | Tel: +01 425-522-3579
He is a partner at Bank Solutions Group and the founder and CEO of the research and
innovation firm Clientific. He has served in various leadership positions at top financial
institutions, including as the first Chief Private Banking Officer for U.S. Bank. In addition
to holding a BA and MBA, he is a graduate of the Cannon Personal Trust School and has
held the CFP® designation since 1996.
He writes about the leadership, advice and innovation for the future of wealth
management on his Affluent Strategies blog at jpnicols.com.
A leading voice for leadership and innovation for the future of financial
services in affluent markets, JP combines 20+ years of experience with a
fresh perspective on combining high-tech with high-touch. His work has
been featured in some of the industry’s top publications, including
American Banker, BAI Banking Strategies and Bank Innovation.
About JP Nicols, CFP®

About BSG

• That banking is a business – essential, unique, and
embattled as never before
• Banking today requires the wisdom of the veterans,
coupled with a vision for the future
• Expertise isn’t talent or intelligence or any one thing
• Expertise is the combination of skill-honed, time
invested, success reinforced, and trust earned
• True experts earn long-term relationships
“Researchers have
settled on what they
believe is the magic
number for true
expertise: ten thousand
hours.”
Malcolm Gladwell,
Outliers: The Story of Success
Bank Solutions Group, LLC | 235 Peachtree Street NE, Suite 400 | Atlanta, GA 30303, USA | Tel: 404.855.4604 | www.banksolutionsgroup.com
As “Experts in the Business of Banking” we understand…

BSG is a financial services industry consulting firm with…
• The scale and skills to fill the gap between small boutique firms and “Big Firms”
• Deep industry expertise covering 11 practice areas
• Consultants in 11 countries on 5 continents combining global insight with local
expertise
• Professionals averaging 15 years of industry experience, 10 years as consultants
• Projects leveraging small, cost effective teams of 3-5 industry experts
• Shorter timeframe engagements
• Additional local resources accessible to support larger projects

Our 11 practice areas encompass the “business of banking”
• Consumer and Small
Business Banking
• Wealth Management and
Trust
• Payments and eCommerce
• Commercial Lending
• Insurance
• Risk and Compliance
• Operations
• Information Technology
• Treasury and Finance
• Marketing and Segmentation
• Organizational Effectiveness

How can we help?
(Partial list representative of past engagements)
• Corporate and Business Line Strategy
• Competitive Assessment
• Performance Management
• Revenue Growth
• Marketing and Market Planning
• Product Management and Pricing
• Segmentation
• Value Proposition Development
• M&A Support
• Risk Management
• Business Transformation
• Bank Turnaround / Recovery Planning
• Project Management / Implementation
• Distribution and Planning Tactics
• Vendor Sourcing / RFI / RFP
• Contract Negotiation
• Operational Reengineering
• Operational Assessment
• Peer and Industry Benchmarking
• IT Assessment and Planning
• Sales and Service
• Strategic Finance and Treasury
• Portfolio Valuation
• Expense Improvement
• Regulatory Actions
• Compliance

BSG has developed several proprietary, cost effective accelerated performance
improvement projects that require just six to eight weeks to complete and provide
immediate results
Quick ImpactTM
Revenue Enhancement
Quick ImpactTM
Cost Improvement
Quick ImpactTM
Vendor Contract and Pricing Review
Quick ImpactTM
Line of Business Peer Benchmarking and Competitive Assessment
Quick ImpactTM Services

Hundreds of successful engagements over 30+ years in 30+ countries
• About half in the U.S
• Argentina
• Australia
• Bahamas
• Barbados
• Belgium
• Bermuda
• Brazil
• Canada
• Chile
• Colombia
• Dominican Republic
• Dubai
• El Salvador
• France
• Germany
• Hong Kong
• Indonesia
• Italy
• Jamaica
• Malaysia
• Mexico
• Panama
• Peru
• Puerto Rico
• Saudi Arabia
• Singapore
• Spain
• Thailand
• United Kingdom
• United States

Just a few of the hundreds of clients we have served

Our Partners are at the top of their game – seasoned practitioners with successful
consulting backgrounds
Ann S. Taylor
Partner
ann.taylor@banksg.com
Mark Grossman
Partner
mark.grossman@banksg.com
Kim Andres
Partner
kim.andres@banksg.com
Rob Stansfield
Partner
rob.stansfield@banksg.com
Russ Drummond
Partner
russ.drummond@banksg.com
Charles Albano
Partner
charles.albano@banksg.com
Craig Page
Partner
craig.page@banksg.com
Wilton Dolloff
Partner
wilton.dolloff@banksg.com
Robert Hughes
Managing Partner
bob.hughes@banksg.com
Steven Warner
Partner
steven.warner@banksg.com
Gregory Noonan
Partner
greg.noonan@banksg.com
Michael Bradley
Partner
mike.bradley@banksg.com
Peter Hetzler
Managing Partner
peter.hetzler@banksg.com
Alan Thompson
Partner
alan.thompson@banksg.com
John Muell
Partner
john.muell@banksg.com
Steven Appenzeller
Partner
steven.appenzeller@banksg.com
John Taylor
Partner
john.taylor@banksg.com
Les Riedl
Senior Managing Partner
les.riedl@banksg.com
Darryl McGee
Partner
darryl.mcgee@banksg.com
JP Nicols
Partner
jp.nicols@banksg.com

With teams in 11 countries, we gain advantage from a global perspective, leveraging
fresh ideas and new approaches from colleagues in different markets
 Atlanta (Headquarters)
 Canada
 Mexico
 United Kingdom
 Belgium
 Colombia
 Peru
 Australia
 Hong Kong
 Thailand
 Puerto Rico
Los Angeles

 Miami
 New York
 Dallas
 Seattle

What our clients say
“I bring BSG’s expert consultants back every time we need fast recommendations
that I know will stand up during the implementation. They have never let me down.”
EVP of Top 50 bank
“These days we don’t have time for consulting project oversight like we used to.
BSG’s consultants can work independently.”
CEO of Community Bank
“We don’t worry about scope-creep with BSG. They stay focused on results and
timelines.”
CTO of Regional Bank
“So far I haven’t come across a problem that stumps BSG ‘s veteran consultants.
They’ve been around, they’ve seen it all, and nothing fazes them.”
CBO of International Bank

Six core principles define our culture and our conduct
1. Act with Integrity
2. Work with Passion
3. Deliver Value
4. Commit to Service
5. Value Relationships
6. Be Accountable

235 Peachtree Street NE, Suite 400 | Atlanta, GA 30303, USA
Tel: 404-855-4604 | www.banksolutionsgroup.com

A moneyball approach to wealth management

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