BINCKBANK · Immediately BinckBank (‘Binck’) has performed a strategic review and developed a...
Transcript of BINCKBANK · Immediately BinckBank (‘Binck’) has performed a strategic review and developed a...
BINCKBANK
SUBJECT: ANALYST & INVESTOR CONFERENCE CALL – 16Q1 RESULTS1
Update on strategy
Financial position
INTRO OUTROResults16Q1
Q&A
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Setting the scene In June 2015 the new CEO was appointed
Immediately BinckBank (‘Binck’) has performed a strategic review and developed a new vision and growth strategy (Rethink Binck)
Ambition Binck’s ambition is to become a leading brand in the area of Trading, Investing (Digital Wealth Management) and Saving
The aim is to develop new products and services in a quick and efficient manner, while maintaining quality
Deep Dive
Last years strategic review & quantitative analysis (Deep Dive) revealed unlocked market potential within existing geographic
footprint
Conclusions were:
• Broaden scope of the current business model and bring more stability in the revenues
• Enlarge target group and product portfolio
• Reengage existing sleeper-base
Result
Based on above conclusions a strategic roadmap was developed with three propositions which will be implemented during the
second phase of the project (Redesign Binck). Implementation of these propositions need to ‘Relaunch Binck’ as from 2018
onwards
Summary
In the next slides a qualitative summary of the three new propositions will be provided
If we can roll out the tracks as planned, then equalling the historic profit levels within a period of approximately 5 years is possible
INTRODUCTION
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2. The new Binck propositions
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Navigator role
STRATEGIC ROADMAP
A 9-grid animated cube shows the areas in which Binck is active and where we want to become active (propositions)
The strategic roadmap shows the growth strategy for the coming years in the form of 3 concept-propositions
These propositions include various product-lines across trading, investing and saving
In addition, Binck started optimising the User Experience (UX) in 2016 via an improved UX-methodology (design sprints, prototyping and
testing) and internal process
Do-it-yourself Help-me-do-it Do-it-for-me
Trading
Investment
SavingP
rop
osi
tio
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PropositionExpected
implementation
1)
‘Trade it with Color’
easy-to-use trading platform
aimed at Mass Retail
End 2017
2)
‘Track it Easy’
digital investment solution
for accessible wealth
management
2017
3)
‘Save it Smarter’
providing easy access to the
EU savings market
2016
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Navigator The upswing of FinTech and the unbundling of bank services will make financial decision
making more difficult for clients
In this new financial landscape Binck will position itself as Navigator for (new) the autonomous,
financially independent clients by:
• Making clients conscious, active and autonomous when it comes to accumulating or
investing personal capital
• Listing to the various financial motives and attitudes
• Empowering clients with all required tools and services
• Employing data as driver for decisions
Within the new Binck clients and user experience are core values supported by growth instead
of value creation
Currently Binck has an optimal position to, once again, become a trendsetter in the financial
markets and act as a Navigator to our clients to find the most suitable products available
BINCK AS NAVIGATOR “DEVELOP CAPITAL, TRUST YOURSELF, COUNT ON BINCK
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Exciting Inventive Easy
TRENDING TRADES
TRADE IT WITH COLORBinck makes Trading – Exciting, Inventive and Easy
COLLECTIVE BRAIN
THEMATIC TRADING
SOCIAL TRADING & MOTIF INVESTING
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Value proposition
Binck’s services are provided in a manner that suits experienced Day Traders and Semi-professional investors
• Less experienced investors sometimes find the offered products & services complicated
’Trade it with Color’ will make investing more accessible, attractive and easy for all investors
• It will incorporate a socially-driven community-embedded trading platform
• Amongst others; co-investors, experts and opinion leaders share content
Client focus
This proposition will focus on retail investors (Mass Retail)
Binck will engage in dialogues with the group via a community platform
• To a large degree the community will be formed and maintained by investors
• The integral digital platform will be accessible through all digital channels
PROPOSITION 1: ‘TRADE IT WITH COLOR’ (1/2)
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Resources & activities
The goal of ‘Trade it with Color’ is to continuously offer inspiration
• Offering trading ideas and interesting baskets, financial content, a vision on investing and a modern
digital platform with the latest UX gadgets
This will require:
• Development/purchase of content, attracting the best UX and Visual Design (VD) professionals, a
solid financial curator team and a direct marketing & sales approach
Costs & benefits Costs for Binck:
• Development, extension and management of the platform and community
• Marketing expense
Benefits for Binck:
• A special hybrid earnings model that is asset and transaction based over their portfolios and
possible separate trades
• Reallocation and rebalancing-model generating extra trades
• Interest earned on margin accounts and debt positions
PROPOSITION 1: ‘TRADE IT WITH COLOR’ (2/2)
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TRACK IT EASY
• Great user experience
• Best digital service
• Easy & forward looking
• Pre-selected portfolio’s
• Automatic rebalancing
BINCK ROBO INVESTING
Easy Inventive Digital 10
Value proposition Wealth management is often associated with private banking, not accessible for everyone
• It can be more efficiently/effectively managed digitally: by the so called Robo-investing or Digital
Wealth Management (‘DWM’)
‘Track it Easy’ will be accessible for all clients in terms of ease, simplicity, capital and price
• Offering clients diversification of risk via various securities, based on Exchange Traded Funds (ETFs)
or other low cost instruments
• DWM differs from traditional wealth management as it is based on passive management, which
makes it more cost effective
• A select number of professionally assembled portfolios will be offered
• Portfolios will vary according to risk and return
• Binck will collaborate among others with world leading ETF-issuers
Client focus Two type of clients:
• (1) Investors looking for growth of their capital and
• (2) Investors looking for income from their capital
The relationship with the clients will be digital
• It will be functional but in an intimate, frequent, personal and interesting manner
• There will be periodic and contextual updates on the clients portfolios potentially reslting in
rebalancing
• The service will be offered through all digital channels
PROPOSITION 2: ’TRACK IT EASY’ (1/2)
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Resources & activities
The goal of ‘Track it Easy’ is to offer ease and accessibility
Ease when it comes to:
• Choosing the right portfolio based on risk/return requirements, the method of wealth management
(i.e. through rebalancing), information requirements, professionality of the client and costs
This will require partnerships with high-end ETF-issuers, development of algorithms and credibility and
authority in the field of DWM
Costs & benefits
Costs for Binck:
• Optimisation of the platform and marketing expenses
• Costs for the assembly of portfolios and transaction costs related to portfolios supplied by ETF-
issuers
Benefits for Binck:
• Income will be asset-based on the basis of a gradual pricing model based on portfolio value
PROPOSITION 2: ’TRACK IT EASY’ (2/2)
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Safe Low cost Easy
SAVE IT SMARTER
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Value proposition
‘Save it Smarter’ assists in diversifying savings risks and obtaining higher returns in an easy manner
Binck will offer access to Western European banks with Deposit Guarantee System (up to EUR 100K)
A broad range of savings account providers with attractive rates
This will be attractive for investors seeking:
• Risk spreading through deposit guarantees based on a wider range of (international) savings
account providers
• A higher on average interest rate
Client focus Client focus:
• Investors who want a better spreading of the risk of their capital (e.g. High Net Worth)
• Investors who seek higher interest rates (Mass Retail)
The relationship with the client will be based on an automated service
An application will facilitate this service
• The application will allow the client to transfer their savings to their desired EU bank
• Clients will be able to manage their accounts from everywhere and at any time
PROPOSITION 3: ‘SAVE IT SMARTER’ (1/2)
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Resources & activities
The goal of ‘Save it Smarter’ is to provide clients with access to the EU savings market
Binck will seek collaboration with various Western European partner banks and back-end service providers
• To ensure the attractive rates whilst looking for safety
It will require:
• A sound digital platform which is continuously optimised
• Exclusive partnerships with EU banks that fulfil the requirements
• Full compliance with EU laws
Costs & benefits
Costs for Binck:
• Revenue share for use of the back-end partner
• Marketing and management of the digital platform
Benefits for Binck:
• Interest revenue
• Cross border fee (fee for opening a savings account or deposit abroad)
PROPOSITION 3: ‘SAVE IT SMARTER’ (2/2)
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3 PHASES TO THE RELAUNCH OF BINCK FOCUS ON LONG TERM VALUE CREATION
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Rethink - Binck
2015
Redesign – Binck
2016 – 2017
Relaunch – Binck
2018 – 2020
Set new strategic direction(Done)
Invest in the development of new product & services
Start profit growth
Relaunch
As from 2018
2-3 YEARS!16
Update on strategy
Financial position
INTRO OUTROHighlights Results16Q1
Q&A
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AUM 1/1 2016 Inflow Outflow Market Other AUM 31/3/2016
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AuM (Eur million)
16Q1 net-outflow € 55m
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* Each Alex Asset Management customer gets a personalised portfolio. The client portfolio for Alex Asset Management is compiled based on individual customer data and falls within the bandwidth of the investment profile chosen by the customer. The moment the customer starts investing as well as the size of the invested capital are relevant factors that both affect the composition of the portfolio and hence the return achieved. Therefore, the individual performance of a client portfolio may deviate from the return of the sample portfolio.
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Income from operating activities
Update on strategy
Financial position
INTRO OUTROHighlightsResults16Q1
Q&A
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16Q1 15Q4 15Q1Net interest income 6,403 6,153 6,424
Net fee and commission income 27,786 30,608 38,439
20,467 20,309 30,516
3,626 7,064 4,204
3,693 3,235 3,719
Other income 2,219 2,685 2,865
Result from financial instruments 337 455 503
Impairment of financial assets 4 (20) (23)
Total income from operating activities 36,749 39,881 48,208Employee expenses 13,468 12,707 14,032
Depreciation and amortisation 6,708 6,989 6,722
Other operating income 13,575 12,493 14,371
Total operating expenses 33,751 32,189 35,125
Result from operating activities 2,998 7,692 13,083Tax (832) (2,225) (3,034)
Share in profit/ (loss) of associates and joint ventures (85) (316) (187)
Net result 2,081 5,151 9,862Result attributable to non-controlling interests (53) (66) 89
Net result attributable to shareholders BinckBank 2,028 5,085 9,951IFRS amortisation 5,379 5,379 5,379
Tax goodwill amortisation 1,102 1,102 1,102
Adjusted net result 8,509 11,566 16,432
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Cash
Deposits
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AA+
AA
AA-
A+
A
A-
NR
BBB+
BBB
Coll Lending
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Leverage ratio’s:
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start sharebuy backprogram
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Update on strategy
Financial position
INTRO OUTROHighlights Results16Q1
Q&A
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This presentation may contain forward-looking statements. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Any statement in this document that expresses or implies our intentions, beliefs, expectations, forecasts, estimates or predictions (and the assumptions underlying them) is a forward-looking statement. These statements are based on plans, estimates and projections, as they are currently available to the management of BinckBank N.V. Forward-looking statements therefore speak only as of the date they are made, and we take no obligation to update publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could therefore cause actual future results to differ materially from those expressed or implied in any forward-looking statement. Such factors include, without limitation, the conditions in the financial markets, the reliability of our risk management policies, procedures, systems and methods.
The forward-looking statements contained in this announcement are made as of the date hereof, and we assume no obligation to update any of the forward-looking statements contained in this document.