Presentation on theme: "From Secret To Service: How To Turn Compliance Into Business Opportunities March 19 th 2015 PrivateBanker Conference Luxembourg."— Presentation transcript:
From Secret To Service: How To Turn Compliance Into Business Opportunities March 19 th 2015 PrivateBanker Conference Luxembourg
From Secret To Service 3 reasons why Private Banking business in Luxembourg is going to adopt a new model Younger generations enter the Affluents segment with new requirements End of bank secrecy and MiFID Technology innovation is disrupting the industry structure 3 Gambit Financial Solutions
Affluents Clients’ New Requirements 4 Expect a tailored service more than a product Increasingly aware of finance world and ask for transparency Mobility: demand for banking anywhere, anytime, anyhow Loyalty is less important (trust is more widely shared) Proximity and convenience Gambit Financial Solutions Invest with a sense of purpose
Affluents Clients’ New Requirements 5 Gambit Financial Solutions
5 Alternative Finance What the 2014 figures tell Investors are increasingly interested by the real impact of their investments …And increasingly ready to go outside the traditional financial industry channels Gambit Financial Solutions
6 Regulation Pushes Clients profiling (purpose more important than process) On-going follow-up of investment fit with investors’ profile Fees transparency End of inducements will have an substantial impact on Private Banks’ revenue model. Gambit Financial Solutions
Consumers don’t want new technologies. But technology is an enabler to new ways to service clients Digital used to be nice. 7 Technology Innovation Gambit Financial Solutions If banks (in Luxembourg) do not embrace this enabling technology, others will do. Today, it has turned dangerous and nasty. 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 Innovation Technology innovation requires more than technologists Gambit Financial Solutions 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.
9 Some Concrete Ways Forward Gambit Financial Solutions 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
10 Some Concrete Ways Forward Some questions Gambit Financial Solutions Where is the future of value creation? In the production of financial solutions? In their distribution? In the combination of different expertises? What are clients ready to pay for?
11 Some Concrete Ways Forward The needed evolutions Gambit Financial Solutions From a product push to a client centric architecture From performance management to client satisfaction focus (technology solution that encourages interactivity)
12 Some Concrete Ways Forward The focus to have Gambit Financial Solutions 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
13 A Client Centric Investment Advisory Platform Profitable Investment Advisory is a teamwork that starts with the client Gambit Financial Solutions Investment Advisory Optimization Risk Mgmt & Compliance
14 Gambit For Private Banking And Wealth Management Provess Overview I. INVESTMENT ADVISORY II. PORTFOLIO MANAGEMENT III. RISK & COMPLIANCE Portfolio Rebalancing Risk & Perf. Diagnostics Report Generation Compliance Checks Gambit Financial Solutions
15 Case Study Cross Border Private Bank in Luxembourg How to switch from a ‘bank-secrecy’ positioning to a ‘service’ positioning? Gambit Financial Solutions 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.
16 Case Study Cross Border Private Bank in Luxembourg Gambit Financial Solutions Gambit’s proposition: A one-stop-shopping solution An end-to-end Investment Advisory solution including: A complete Profiling tool Taking into account Risk Aversion and Risk Perception A Compliance tool Automatic alerts before any infringement A Portfolio Recommendation tool Aligning recommendations and risk profile
17 Uniqueness and Advantages of Gambit One single platform for all teams involved in the process: enable teamwork and ensure maximum efficiency in workflow and communication CLIENT CENTRICITY Close 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 COMPLIANCE INNOVATION Gambit Financial Solutions
Private Banking and Wealth Management An integrated platform to cover the entire investment advisory process Mass Affluent Banking – incl. pure web Asset Management Asset- Liabilities Management Family Office 18 Who We Serve Gambit Financial Solutions 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
19 Annexes Gambit Financial Solutions
Partnership with prominent academics : 20+ years of combined research 20 Gambit: From Research to Execution Gambit Financial Solutions 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
21 Gambit: Key Figures Gambit Financial Solutions % in recurring income & 35% operating revenues on recent projects
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