The Winning Wealth Management Strategy by jolinmilioncherie

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									       The Winning
Wealth Management
           Strategy


            Rickie Fung
       Excel Technology


                          1
                          Evolution of Retail Banking

Transactions    Convenience    Investment      Consulting



    Loans,           ATM,           Funds,         Financial
    deposits,        phone        insurance,        advice,
    cards, …        banking,      stocks, …        planning,
    …               payment,         …..             ……
                      ……



     70's          80's           90's           2000
                                                               2
               The Wealth Management Business


Market Growth Rate Forecast 2003 to 2005
                                AUM                Revenue
    Asia Pacific                15%                15%
    Australia                   23%                18%
    Hong Kong                   14%                13%
    Singapore                   12%                15%

Source : PwC Asia Pacific Private Banking/Wealth Management Survey 2003


Mutual Fund (Unit Trust) subscription rate in HK
    2001                        $9.47 billion
    2002                        $12.65 billion
    2003                        $19.51 billion
                                                                          3
                    The Lucrative Customer Base


                     The
                     Rich         Target Market for
US$ 10 million                    most retail banks
                                  and finance
                   High Net       companies in Asia
                    Worth
US$ 1 million
                                  A customer
                                  segment growing
                 Mass Affluent    in size due to
US$ 100,000
                                  economic growth
                                  in Asian countries
                 Mass Retail
                                                       4
            The Value of the WM Business


Increase of product sales
Mutual funds, structured deposits, ELI etc
.

       Increase customer loyalty
       Value-add investment services
       Maximize personal touch effect


          Retain high net worth customers
           Better margin per customer
                                             5
                A Competitive Market


    The            Private Banks
    Rich
                      Investment
  High Net
                        Banks
   Worth
                               IFA

Mass Affluent
                            Insurance


Mass Retail         Retail Banks
                                        6
                                  Potential Differentiators


According to a survey done in 2003 on wealth management, the
perceived key differentiation factors are:


   Breadth of Product

    Quality of Advice

      Quality of Staff

    Quality of Service

Market Image & Brand

Personal Relationship

                         0   1     2      3      4       5     6
                                                                   7
                                            Customer Needs


Mass Retail                                                     The Rich


        Product Information

              Product Recommendation

                      Needs Analysis & Planning

                              Personalized Financial Planning

                                        Portfolio Management


Clearly, the needs of different customer segments
are different, with certain overlaps
                                                                           8
                                   Different Approaches

  Mass
 Marketing



                                                               ion
                                                     phisticat        Personal
                                       ro   d uct So                  Service
                           Qua lity / P
                     ice
            me r Serv
       Custo


Mass Retail                                                          The Rich
                      Customer Net Worth

Service approaches are also different in serving
different segments of the customers as well.
                                                                                 9
                                                      The Strategy

                                              • Segment your customers
                                                and prospects
                                   Target    • Identify their investment
                                 appropriate   behaviour
                                  customer
                                 segment(s)

• Analyse products and
  services preference              The                    • Consistent delivery
• Design and revamp              Winning                    mechanism
  products as needs              Strategy                 • Take advantage of
  change                                                    technologies
                    Develop the                Deliver the
                  fitting products             product or
                     or services            service efficiently
                                                                             10
                     Customer Segmentation

Segmentation by Age
  20 – 30 years old – building wealth
  30 – 50 years old – cumulating wealth
  50 – 70 years old – preserving wealth
Segmentation by Investment Style
  Self directed
  Receptive to service
  Total reliance on experts
Segmentation by Amount of Wealth, Education
Level, Job Capacity etc.
                                              11
                   Product & Service Design

Choice of Investment Products
  Mutual funds
  Fixed income (bonds, CD, deposits)
  Foreign currencies
  Structured products (ELN, CLN, ELD etc.)
  Insurance
Build portfolio models for different risk appetite
Product offering
  Boutique or supermarket
  Best-of-breed vs choice

                                                     12
                            Delivery Efficiency

Qualified Staff
  Regulatory requirements
  Able to communicate on value propositions
  Training is important

Use of technologies
  CRM
  Financial planner
  Portfolio Management
  Sales Support Tools
  Mass Marketing / Call Center Tools
                                                  13
                       Excel Wealth Manager

Design Philosophy
  As a mass marketing tool
  As a personal selling tool
  As an analytic and planning tool
  As a servicing tool
Cater to different needs of customers
  Information-only
  Product recommendation
  Modular planning / comprehensive planning
  Portfolio management / tracking
                                              14
                  Excel Wealth Manager


The All-in-1 Desktop
Campaign & Leads Management
Sales Support Tools - Calculators, Forms
Financial Planning Tools
Portfolio Management / Tracking
Integration to other systems


                                           15
                       The All-in-1 Desktop


Designed for customer service / sales staff
Highly functional
Can be configured with
  Customer Information
  Account / Planning / Contact Details
  Promotion Information
  Result Response Capture
  Reminder / Schedule / Notepad etc.
                                              16
                  Campaign Management


Campaign Definition
  Define products to be promoted
  Define target group of prospect
Setting of measurable targets
  By amount of revenue
  By number of transactions
Can have multiple campaign in effect


                                        17
                         Leads Management


Leads generation
  Internal and external lead sources
  Flexible filtering to select prospect groups
  Duplicate and opt-out consideration
Prospecting Activity Reporting
  By business units
  By campaign
Interfaces with existing CRM database
                                                 18
                                          Leads Distribution

            CRM             External        Internet             Other
           Call Lists       Call Lists       Leads               Leads




                               Lead Distribution
The CRM                    Auto              Manual
Database                Distribution       Distribution




                 Branches
                  Branches
                   Branches                        Call Center
                    Branches




                                                                         19
                      Sales Support Tools


Product Information
Business News / White Papers
  Self definable
Promotion Information
Sales Fulfillment
  Online forms, paper forms or STP
Calculators, schedulers, alerts

                                            20
                    Content Management

Manages all user definable items
Allow user to define static information
Format supported:
  HTML, Acrobat
Information supported :
  Product information
  Application forms
  Business news and white papers
  Promotional materials
                                          21
                        Financial Planning


Enable personalized service
Complete set of financial planning tools :
  Customer profiling
  Financial Planner
  Performance Tracker
  Benchmarking
  Portfolio optimizer
  Compliance checks

                                             22
                         Financial Planner


Flexible design catering for different
customer segments
More personalized service
Methodology:
  Risk tolerance analysis
  Need requirements
  Financial gap analysis
  Provide product recommendations

                                             23
                       Performance Tracker


Track performance of individual portfolio
  Market Value
  Cashflow
  RoR (rate of return) etc.
Benchmark against selected metrics
  Dow / Nasqad index
  S&P 500 etc.


                                             24
                       Portfolio Optimizer


Return of portfolio could be improved by
using optimizer
Optimize tools and models
  Markowitz Model
  Efficient Frontier
  Monte Carlo Simulation
  Sharpe Ratio


                                             25
                         System Integration


Connect to other Excel systems:
  UTS – mutual funds
  InterTrade – stock trading
  LOS – loan application
  @Surance – insurance
Connect to IBM host & other systems thru
  MQ Series or SNA LU6.2
  TCP/IP

                                              26
                                               The Total WM Tool




      Leads Management / Content Management / Sales Management

Product Information             Sales Leads                    Calculators

                                                               Reminders
Promotion Materials
                                 The CRM                        Note Pad
      Alerts                     Database
                                                                Calendar

 Electronic Forms              Sales Results               Financial Planners

           Integration with other system for status / order capture
                                                                                27
                       Technical Platform

Support both Intranet & Internet connection
Browser based operations
Web / Application Server
  IBM Websphere
Programming Language
  JSP and Java
Database
  IBM DB2
                                              28
Thank You


            29

								
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