From Secret To Service: How To Turn Compliance Into Business Opportunities (PrivateBanker 2015)

From Secret To Service: How To Turn Compliance Into Business Opportunities

March 19th 2015

P r i v a t e B a n k e r C o n f e r e n c e L u x e m b o u r g

From Secret To Service

3 r e a s o n s w h y P r i v a t e B a n k i n g b u s i n e s s i n L u x e m b o u r g i s g o i n g t o a d o p t a n e w m o d e l

Y o u n g e r g e n e r a ti o n s e n t e r

t h e A ffl u e n t s s e g m e n t w i t h n e w

r e q u i r e m e n t s

E n d o f b a n k s e c r e c y a n d

M i F I D

T e c h n o l o g y i n n o v a ti o n i s

d i s r u p ti n g t h e i n d u s t r y s t r u c t u r e

3

Gambit Financial Solutions - 2015

Affluents Clients’ New Requirements4

E x p e c t a t a i l o r e d s e r v i c e m o r e t h a n a p r o d u c t

I n c r e a s i n g l y a w a r e o f fi n a n c e w o r l d a n d a s k f o r t r a n s p a r e n c y

M o b i l i t y : d e m a n d f o r b a n k i n g a n y w h e r e , a n y ti m e , a n y h o w

L o y a l t y i s l e s s i m p o r t a n t ( t r u s t i s m o r e w i d e l y s h a r e d )

P r o x i m i t y a n d c o n v e n i e n c e


I n v e s t w i t h a s e n s e o f p u r p o s e

Affluents Clients’ New Requirements5


5

Alternative FinanceW h a t t h e 2 0 1 4 fi g u r e s t e l l

Investors are increasingly interested by the real impact of their investments

…And increasingly ready to go outside the traditional financial industry channels


6

Regulation Pushes

C l i e n t s p r o fi l i n g ( p u r p o s e m o r e i m p o r t a n t t h a n p r o c e s s )

O n - g o i n g f o l l o w - u p o f i n v e s t m e n t fi t w i t h i n v e s t o r s ’ p r o fi l e

F e e s t r a n s p a r e n c y

E n d o f i n d u c e m e n t s w i l l h a v e a n s u b s t a n ti a l i m p a c t o n P r i v a t e B a n k s ’ r e v e n u e m o d e l .


C o n s u m e r s d o n ’ t w a n t n e w

t e c h n o l o g i e s .

But technology is an enabler to new ways to service clients

D i g i t a l u s e d t o b e n i c e .

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Innovation Technologique


I f b a n k s ( i n L u x e m b o u r g )

d o n o t e m b r a c e t h i s e n a b l i n g

t e c h n o l o g y , o t h e r s w i l l d o .

T o d a y , i t h a s t u r n e d

d a n g e r o u s a n d n a s t y .

Once upon a time, it was there to help us work more efficiently and flawlessly.

It has become a weapon in the hands of the brilliant kids who grew up with it.

Others like banks abroad and new technology-intensive entrants

8

Technology InnovationT e c h n o l o g y i n n o v a ti o n r e q u i r e s m o r e t h a n t e c h n o l o g i s t s


Incremental or sustainable innovation

alone is a slow but virulent

poison.

Disruptive innovations, on top of sustainable ones, as a corporate culture.

But what is the proportion of your private bankers (and Board members) who, on the other hand, are truly terrified of anything unconventional.

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Some Concrete Ways Forward


Portfolio Performance is necessary but not sufficient

So much information available on the Internet that there is

always someone who can claim to do better

Technical financial competence has spread across competitors

(to boutiques and large institutions as well) and also to

clients

Past performance has been so uneven that trust on future performance is weaker than

before

The differentiating value that will make investors stay or come to Luxembourg is not in portfolio performance

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Some Concrete Ways ForwardS o m e q u e s ti o n s


W h e r e i s t h e f u t u r e o f v a l u e c r e a ti o n ?

In the production of financial solutions?

In their distribution?

In the combination of different expertises?

W h a t a r e c l i e n t s r e a d y t o p a y f o r ?

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Some Concrete Ways ForwardT h e n e e d e d e v o l u ti o n s


From a product push to a client centric architecture

From performance management to

client satisfaction focus

(technology solution that encourages interactivity)

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Some Concrete Ways ForwardT h e f o c u s t o h a v e


Multi-channel approach

In-person interaction complemented with digital

services (anywhere-anytime experience)

Focus on new value-added services

(e.g. pension & life schemes, tax optimisation, assisted self-

management, etc.)

Focus on relationships

Training managers to handle more complex requests and

improve versatility with digital tools for better proximity and

convenience

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A Client Centric Investment Advisory Platform

Profitable Investment Advisory is a teamwork that starts with the client


Investment Advisory Optimization Risk Mgmt & Compliance

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Gambit For Private Banking And Wealth ManagementP r o v e s s O v e r v i e w

I . I N V E S T M E N T A D V I S O R Y

I I . P O R T F O L I O M A N A G E M E N T

Financial Planning Profiling

Diagnostics and validation

Recommen-dation

I I I . R I S K & C O M P L I A N C E

Client Constraints Institutional Constraints

Regulatory Constraints

Asset Selection

Model Portfolio Construction

Analysis and Comparison

Model Portfolio Management

Portfolio Rebalancing

Risk & Perf. Diagnostics

Report Generation

Compliance Checks


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Case StudyC r o s s B o r d e r P r i v a t e B a n k i n L u x e m b o u r g

H o w t o s w i t c h f r o m a ‘ b a n k - s e c r e c y ’ p o s i ti o n i n g t o a ‘ s e r v i c e ’ p o s i ti o n i n g ?


The challenges one of the major Private Banks in Luxembourg is facing: Improving its (pre- and post-) compliance process, to enhance its risk analysis and to automatize its risk

profiling (impact for compliance team);

Improving its investment advisory process for MA and PB clients and extending its compliance and risk offering to Corporate Banking.

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Case StudyC r o s s B o r d e r P r i v a t e B a n k i n L u x e m b o u r g


Gambit’s proposition:

A one-stop-shopping solution An end-to-end Investment Advisory solution including:

A complete Profiling toolTaking into account Risk Aversion and

Risk Perception

A Compliance toolAutomatic alerts before any

infringement

A Portfolio Recommendation toolAligning recommendations and risk

profile

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Uniqueness and Advantages of GambitOne single platform for all teams involved in the process: enable teamwork and ensure maximum efficiency in workflow and communication

CLIENT CENTRICITYClose ties with the

scientific world constant creation of

better solutions

Innovation investors’ profiling and portfolio

optimization

Front-to-back and back-to-front capabilities: give your client a unique investment advisory experience

Our experts closely follow the evolution of regulatory

environment and developments in financial

markets

Fully automated platform: focus on expertise and on clients’ servicing

EFFICIENCY

AUTOMATION

COMPLIANCEINNOVATION


P r i v a t e B a n k i n g and

W e a l t h M a n a g e m e n t

An integrated platform to cover the entire investment advisory process

M a s s A ffl u e n t

B a n k i n g – incl. p u r e w e b

A s s e t M a n a g e m e n t

A s s e t -L i a b i l i ti e s

M a n a g e m e n t

F a m i l y O ffi c e

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Who We Serve


Highly automated solutions to serve a large basis of clients efficiently and rapidly

A single platform to unite asset managers, risk managers and actuaries

Cutting-edge quantitative analysis with compliance monitoring capacities

Seamlessly consolidate information from multiple data sources and monitor portfolios

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Annexes


20Partnership with

prominent academics :

20+ years of combined research

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Gambit: From Research to Execution


Born as a spin-off of HEC of University of

Liege

Incorporated in 2007

Private banking & Wealth Management

Mass-Affluent Banking

Asset Management

ALM

Family Office

Development of solutions for 5 main sectors

Leveraging permanent

innovation from markets and

academic research in:

Investor’s profiling

Asset & portfolio analysis

Compliance management

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Gambit: Key Figures


Offices in

4cities:

B r u s s e l s - L i e g e P a r i s

L u x e m b o u r g

25+clients since 2010

(B, CH, F, L)

30+Employees

60%in recurring income

&

35%operating revenues on

recent projects

Feel free to contact us!

@GambitFinance GambitFinance [email protected]

Gambit Financial Solutions2, place de Paris BP80L-2010 Luxembourg

+352 28 488 831

From Secret To Service: How To Turn Compliance Into Business Opportunities (PrivateBanker 2015)

Economy & Finance

Transcript of From Secret To Service: How To Turn Compliance Into Business Opportunities (PrivateBanker 2015)