Development & Marketing New Products & Services in the Caribbean Financial Services Sector

Outline of Presentation Economic Backdrop Core Product Offering Financial Product Evolution The Future of Caribbean Financial Services

Economic Backdrop Phase 1: Development Phase 2: Liberalisation & Trinidad & Tobago Financial Crisis Privatization of Jamaica’s Banking sector 1980s Change of Government and Economic policy in Barbados Phase 2: Liberalisation & Restructuring Recovery Trinidad &Tobago Financial System Trinidad and Tobago Financial Liberalization 1990s Jamaica’s Financial Crisis Recovery from Jamaica’s Financial Crisis Phase 3: Growth Technological advancement help create Dynamic financial product changes, re-shaping The regional financial landscape 2000

Core Product Offering Commercial/Retail Banks Merchant Banks

Evolving Financial Products Reflecting: Increasing customer sophistication Global competition – No time lag in information flow between markets Commercial/Retail Banks Merchant Banks

Financial Landscape Phase 1 Phase 2 Phase 3 Phase 4 So this is what the market looks like now…where each institution provides a separate service to each distinguished segment of the market. Phase 1 Phase 2 Phase 3 Phase 4

Drivers of the Evolutionary Process Internal Factors Cost reduction Channel development Risk management External Factors Globalization Financial liberalization Technology Growing Client Sophistication

Next Evolutionary Phase LOW-COST TECHNOLOGY So this is what the market looks like now…where each institution provides a separate service to each distinguished segment of the market. WEALTH MANAGEMENT SERVICES

Competing Imperatives In the evolving wealth management era a Strong Brand is crucial to attracting and retaining long-term customers A one-stop shop – to fulfil all customer needs under one roof Growing product sophistication requires an internal focus on Risk Management Implication: A collaborative approach amongst niche providers. International and regional partnerships to complete product offering

Marketing and Distributing Financial Products

Marketing & Technology Phase 1 Product homogeneity Technology Impact From Branch marketing to Remote marketing Phase 2 Differentiated products, made to fit clients Face to face marketing, but with more intense competitive forces Phase 3 BankAssurance Products Combining product development with insurance distribution channels Key niche - HNWIs

Competition vs Collaboration PRODUCT COLLABORATION HIGH Core Funded Products LOW MODERATE Core Non-Funded Products Knowledge-Based Products Wealth management

Resourcing Evolution Knowledge based resources Integrated IT to for customer information capture Systems for high level service delivery and follow up Constant Learning and Growth