The document discusses various business models in private banking, detailing strategies employed by institutions like UBS, Investec, and Mirabaud to adapt to changing client needs and market dynamics. It outlines the importance of integrated services and relationship management, driven by a new breed of clients who require holistic approaches to wealth management. Additionally, it emphasizes the necessity for private banks to innovate their business models through structured assessments and strategic planning.

1. Business Models in Private Banking discover, understand and define © Arvetica 7th of February 2008

2. (Innovative) Business Models in Private Banking

4. UBS

5. UBS one bank strategy: close cooperation between wealth management, asset management and investment banking

6. UBS one bank strategy: close cooperation between wealth management, asset management and investment banking jointly explore business opportunities, create synergies and propose integrated offer

7. UBS one bank strategy: close cooperation between wealth management, asset management and investment banking jointly explore business opportunities, create synergies and propose integrated offer investment banking business can have a negative impact on private banking

8. Geneva Private Banks

9. Geneva Private Banks historically successful based on relationship and brand equity focused

10. Geneva Private Banks historically successful based on relationship and brand equity focused challenged to adapt to a shift in client needs towards a new breed of global entrepreneur clients

11. Geneva Private Banks historically successful based on relationship and brand equity focused challenged to adapt to a shift in client needs towards a new breed of global entrepreneur clients today’s newly wealthy often require a holistic and integrated offer

12. Investec

13. Investec specifically targets C-level executives of public companies with tied wealth

14. Investec specifically targets C-level executives of public companies with tied wealth offers them credit against their company shares to allow them to diversify risk

15. Banque Syz

16. Banque Syz differentiation through performance based brand

17. Banque Syz differentiation through performance based brand strong competencies in the field of alternative assets

18. Banque Syz differentiation through performance based brand strong competencies in the field of alternative assets substantial investments in human resources with knowledge at the forefront of alternative assets

19. Independant Asset Managers

20. Independent Asset Managers rise based on better informed clients who seek objective and independent advice

21. Independent Asset Managers rise based on better informed clients who seek objective and independent advice rise based on advisors who seek independence from large structures to give their clients neutral advice

22. Independent Asset Managers rise based on better informed clients who seek objective and independent advice rise based on advisors who seek independence from large structures to give their clients neutral advice focus on advisory services and client relationship

23. Sodi

24. Sodi offers independent asset managers (IAMs) a physical and administrative platform

25. Sodi offers independent asset managers (IAMs) a physical and administrative platform IAMs can draw on professional services offered by Sodi

26. Sodi offers independent asset managers (IAMs) a physical and administrative platform IAMs can draw on professional services offered by Sodi gives IAMs the advantages of scale, while allowing them to retain independence

27. Mirabaud Private Bank

28. Mirabaud Asset Management gives bankers the security, brand and platform

29. Mirabaud Asset Management gives bankers the security, brand and platform leaves them the flexibility and entrepreneurial context of independent asset managers

30. Mirabaud Asset Management gives bankers the security, brand and platform leaves them the flexibility and entrepreneurial context of independent asset managers combines the best of “both worlds”

31. EFG

32. EFG A bank built for and around “Client Relationship Officers” (CROs)

33. EFG A bank built for and around “Client Relationship Officers” (CROs) Aims at liberating CROs from any work that restrains them from focusing on client relationships

34. EFG A bank built for and around “Client Relationship Officers” (CROs) Aims at liberating CROs from any work that restrains them from focusing on client relationships Clients “belong to” the CRO not the bank

35. Swissquote

36. Swissquote Emergence of a new breed of clients that plays with online trading, while delegating the management of the core part of their wealth

37. Swissquote Emergence of a new breed of clients that plays with online trading, while delegating the management of the core part of their wealth These clients are very likely to question the added value and cost of their bankers, based on their trading experience

38. TIGER21

39. TIGER21 peer network of (U)HNWIs with confidential groups of 12 members, who meet once a month

40. TIGER21 peer network of (U)HNWIs with confidential groups of 12 members, who meet once a month every month a different member performs a “portfolio defense” in front of the other group members

41. TIGER21 peer network of (U)HNWIs with confidential groups of 12 members, who meet once a month every month a different member performs a “portfolio defense” in front of the other group members TIGER21’s peer network complements bankers and leads to better informed clients

42. CONCLUSION multiple business models are competing in private banking

44. WHICH … path should I choose? How can I make the right decision?

45. WHAT … actually is a business model?

46. Practice Shows: Understandings Diverge

47. a business model is the blueprint of how a business intends to generate profits and it can be described by a number of components

48. what do we offer? WHAT?

49. whom do we offer it to? WHAT? WHO?

50. how do we do it? WHAT? WHO? HOW?

51. what‘s in it for us? WHAT? WHO? HOW? $? € ?

52. 9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS

53. 9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS

54. 9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT SEGMENTS

55. 9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT SEGMENTS ACQUISITION CHANNELS

56. 9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT RELATIONSHIPS CLIENT SEGMENTS ACQUISITION CHANNELS

57. 9 Bricks to Describe your Business Model WHAT? WHO? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT RELATIONSHIPS CLIENT SEGMENTS REVENUE FLOWS ACQUISITION CHANNELS HOW? $?

58. 9 Bricks to Describe your Business Model WHAT? WHO? HOW? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT RELATIONSHIPS CLIENT SEGMENTS REVENUE FLOWS ACQUISITION CHANNELS KEY RESOURCES $?

59. 9 Bricks to Describe your Business Model WHAT? WHO? HOW? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT RELATIONSHIPS CLIENT SEGMENTS REVENUE FLOWS ACQUISITION CHANNELS KEY RESOURCES $? CLIENT SEGMENTS CLIENT SEGMENTS KEY ACTIVITIES

60. 9 Bricks to Describe your Business Model WHAT? WHO? HOW? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CLIENT RELATIONSHIPS CLIENT SEGMENTS REVENUE FLOWS ACQUISITION CHANNELS KEY RESOURCES $? CLIENT SEGMENTS CLIENT SEGMENTS KEY ACTIVITIES CLIENT SEGMENTS CLIENT SEGMENTS PARTNER NETWORK

61. 9 Bricks to Describe your Business Model WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER COST STRUCTURE CLIENT RELATIONSHIPS CLIENT SEGMENTS KEY ACTIVITIES PARTNER NETWORK REVENUE FLOWS ACQUISITION CHANNELS KEY RESOURCES

62. HOW … can we sharpen our business model and achieve innovation?

63. eric calling

64. The 5 steps of business model design & innovation describe existing business model assess strengths and weaknesses brainstorm on improvements & opportunities turn new model into a project roadmap 1 2 4 3 VISUALIZE ASSESS INNOVATE PLAN 5 IMPLEMENT communicate & implement

65. VISUALIZE: co-create to draw your business model

66. The 5 steps of business model design & innovation describe existing business model assess strengths and weaknesses brainstorm on improvements & opportunities turn new model into a project roadmap 1 2 4 3 VISUALIZE ASSESS INNOVATE PLAN 5 IMPLEMENT communicate & implement

67. ASSESS: question your business model acquisition and distribution channel assessment strengths (+) (-) weaknesses our channels have a strong reach among our target clients our channels only reach a fraction of our target clients we know how effective each of our channels is we don’t know how successful our channels are we know how cost efficient each of our channels is we don’t know how costly our channels are we use our most costly channels for our most profitable clients unprofitable clients regularly use our most expensive channels … …

68. The 5 steps of business model design & innovation describe existing business model assess strengths and weaknesses brainstorm on improvements & opportunities turn new model into a project roadmap 1 2 4 3 VISUALIZE ASSESS INNOVATE PLAN 5 IMPLEMENT communicate & implement

69. INNOVATE: ideate, prototype, iterate, decide

70. INNOVATE: ideate, prototype, iterate, decide WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER COST STRUCTURE CLIENT RELATIONSHIPS CLIENT SEGMENTS KEY ACTIVITIES PARTNER NETWORK REVENUE FLOWS ACQUISITION CHANNELS KEY RESOURCES

71. The 5 steps of business model design & innovation describe existing business model assess strengths and weaknesses brainstorm on improvements & opportunities turn new model into a project roadmap 1 2 4 3 VISUALIZE ASSESS INNOVATE PLAN 5 IMPLEMENT communicate & implement

72. PLAN: draw a project roadmap and align your enterprise Strategy direction new business model [Galbraith 2001]

73. PLAN: draw a project roadmap and align your enterprise Strategy Structure power direction new business model [Galbraith 2001]

74. PLAN: draw a project roadmap and align your enterprise Strategy Structure Processes power direction information new business model [Galbraith 2001]

75. PLAN: draw a project roadmap and align your enterprise Strategy Structure Processes Rewards power direction motivation information new business model [Galbraith 2001]

76. PLAN: draw a project roadmap and align your enterprise Strategy Structure Processes Rewards People power direction skills/mind-set motivation information new business model [Galbraith 2001]

77. The 5 steps of business model design & innovation describe existing business model assess strengths and weaknesses brainstorm on improvements & opportunities turn new model into a project roadmap 1 2 4 3 VISUALIZE ASSESS INNOVATE PLAN 5 IMPLEMENT communicate & implement

78. IMPLEMENT: just do it…

79. smoking gun

80. Thank you.

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