12 FEBRUARY 2018

Fahad Al-Bader, SmartWealth - NBK Capital

Innovations in Investment Management: The Use of Technology to Drive Best-In-Class Solutions

22

INTRODUCTION TO NBK CAPITAL SMARTWEALTH

§ Digital Investment Service by NBK Capital

§ Digital investment service that offers investors

solutions for long-term investment savings

§ Third Party Partners:

§ Investment Advisor: Deutsche Asset Management

§ Risk Advisor: Oxford Risk

§ Global, Liquid, Multi Assets Model Portfolios

§ Based on diversified portfolios of global equities,

fixed income, commodities and real estate baskets

1) Technology and The Second Machine Age

44

WHAT ARE THE DRIVERS TO HUMAN DEVELOPMENT?

Source: Ian Moris.

55

THE SECOND MACHINE AGE

Source: The Second Machine Age; Amazon.

Industrial Revolution Digital Revolution

Steam Engine Mechanical Innovation

Electrical Innovation Chemical Innovation

Storage Networks

Automation Analytics

The First Machine Age The Second Machine Age

2) Innovation Applications in Financial Services

77

FINANCIAL SERVICES INNOVATION CLUSTERS

Source: WEF.

88

THE EVOLUTION OF PAYMENTS

Before After

99

THE EVOLUTION OF BANKING

Before After

After

1010

FINTECH COMPANIES TRANSFORMING FINANCIAL SERVICES

Source: Morgan Stanley.

Technology

1111

FINTECH’S VALUE PROPOSITION TO CUSTOMERS

Availability Efficiency

Accessibility Efficacy

3) Solutions for Investors and Investment Management

1313

THE EVOLUTION OF TRANSACTIONS AND TRADING

Before After

1414

THE HISTORY & EVOLUTION OF FINANCIAL INNOVATION

Source: SEI.

1515

THE HISTORY & EVOLUTION OF FINANCIAL INNOVATION

Source: SEI.

1616

WHAT ARE TODAY’S PAIN POINTS FOR INVESTORS?

DiversificationAccessibility /

Advice / BrokerageTransparency

Predictability of Performance

Efficiency Control

1717

WHAT ARE INVESTORS LOOKING FOR TODAY?

Source: Casey Quirk, Booz&Co.

Investors Demand Custom Solutions

2017E

4.2

0.8

1.2

0.6

2012

2.8

0.6

0.6

0.3

Outsourced CIO

Target-date retirement funds

Liability-driven investing

Multi-asset class solutions

+50%

Global solutions revenue, In EUR tn

1.31.6

Technology Evolves Client Interaction and Advice DeliveryHNW client user of mobile devices

Access Account Info

56%

76%

Conduct Research

45%

70%

Pay Bills

35%

56%

Conduct Trades

26%

42%

SmartphoneTablet

1818

THE EMERGENCE OF DIGITAL INVESTMENT SERVICES

Modern Servicing

Execution

Advice

1919

WHY INVESTORS ARE RESORTING TO DIGITAL INVESTMENT SOLUTIONS

Convenience• Digital portals for monitoring

and management• Paperless onboarding• Limited investor engagement

Effective Savings Solution• Diversified investment

portfolios• Efficient and effective

structures• Accessible investment

solutions

Platform Architecture•Integration with independent

advisors•Enables tailored solutions•Leading technology and

security

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