Best private bank, use of technology, global
BBVA Private Banking
BBVA Private Banking has shown significant commitment to promoting technology innovation over the years, with the result that the large majority of products and services are now available to clients through digital channels. Technology investments are focused on improving advisory services, on helping clients take better investment decisions, while making their day-to-day operations easier.
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“Digitalisation has helped attract new clients, including the younger generation,” says Jorge Gordo, director of BBVA Private Banking. “However, nowadays all clients are more and more digital, regardless of their age, because they know digital technologies enrich the way their wealth is managed and preserved.”
Among others, a specific app – Mi private client – has been particularly successful in improving operational efficiency. The app offers access to a wide range of data, on clients and their portfolios, enabling private bankers, all equipped with a tablet, to bring their office with them while on the go.
More recently, the digital signature of documents has been a game changer. An app providing a global picture of a client’s wealth, by aggregating all assets including those held with third parties, helps private bankers offer clients more holistic advice.
The introduction of ‘agile working’ in digital departments more than five years ago was part of the bank’s digital transformation model. Today, all employees in BBVA headquarters work according to such methodologies, which helps autonomous teams achieve results faster, supported by technology.
BBVA has invested in several fintechs over the years, leveraging on its Open Innovation initiatives, aimed at boosting networking and collaboration with start-ups, while promoting innovation and investments in pioneers of fintech solutions.
Big data analytics and AI are being deployed by the Spanish institution, in specific sectors including real estate, allowing customers to discover and compare costs, and assess options. Clients can also view properties digitally, through a mobile phone camera using augmented reality. “Banks have lots of data and we have to learn how to take advantage from them to improve client service,” says Mr Gordo. ET
Best private bank, use of technology, Europe
Nykredit Private Banking
Nykredit has been focusing its digitalisation efforts in key business areas, with the aim of covering the entire client journey, from onboarding and attracting new clients, engaging with existing ones and promoting a digital culture internally.
A recently launched app allows client onboarding, previously a highly time consuming task, in a matter of minutes, and has been successful with both clients and private bankers, says Lotte Månsson, managing director of Nykredit Private Wealth Management.
The bank’s digital investment platform, Investor Insights, has enabled it to gain greater exposure to existing clients and prospects, with insights and news delivered through different channels, including podcasts and videos. Selected private bankers have been specifically trained to become ‘ambassadors’ and engage clients through social media. These initiatives helped the bank reach a record number of new clients last year.
Creating a digital culture is the result of cross-organisational initiatives, states Ms Månsson.
“The digitalisation process requires a change of old habits and that is, and has always been, a major challenge. Thus, creating a pro-digital culture is an organisational effort.”
Sometimes, basic or simple changes are essential to support the transformation and create a digital culture, she says. For example, the bank has issued templates suggesting how to communicate with clients digitally, and online workshops have given private bankers deeper insights into new digital tools. “Not everyone in the organisation needs to have the exact same digital skills, but everyone has to reach a certain level.”
The bank, which is one of Denmark’s oldest financial institutions, is currently working on a new digital offering targeting its next generation clients. ET
Best private bank, use of technology, CEE
Komercni banka, a.s.
Komercni banka recently launched a three-year programme aimed at promoting a more “agile” organisation, where individual teams will have greater autonomy, and will be able to respond faster to customer needs, with digitalisation playing a key role.
The appointment of a digital officer has been just “one of the many steps towards building a digital culture within the bank,” says David Barczi, head of Digital Channels Tribe at the Czech institution. “Substantial change management needs to come in place, and the involvement of senior management is crucial to drive it.”
Komercni is developing a multi-channel business model, and mobile banking is the fastest growing channel. Clients are now able to quickly log in to their bank account on their mobile phone, and invest in funds by digitally signing their investment contract and MiFID II questionnaire. It was also among the first financial institutions in the country to launch Apple Pay, enabling customers to make payments and check their account balance through their Apple Watch. Such features drive an increase of cashless transactions, reducing costs for the bank.
KB’s clients can also gain access to a consolidated view of their accounts, also held with third-party banks, through mobile and internet banking. This enables private bankers to gain better insights into their clients’ wealth and personalise services.
Working in partnership with start-up Fakturoid, the bank launched an online invoice tool for entrepreneurs, which is hailed as the “big start-up success” of KB’s in-house Innovation Lab.
“The partnership with start-ups is one of our key strategic activities, which has brought concrete results for our clients and will continue to do so in the future,” says Mr Barczi. The bank is in the process of finalising another partnership with a start-up and is working on making its digital authentication method available to third parties. ET
Best private bank for use of technology, Asia
UBS
Disruption is a reality that every bank needs to address at the top level, believes the management team at UBS. Under Jürg Zeltner, the bank’s long-standing wealth management leader who retired in 2018 after an apparent dispute with his bosses, regular tech teach-ins for both clients and relationship managers were held in key financial centres, including London and Hong Kong, with guest speakers typically from automotive, space or start-up spheres mingling with the audience in intimate settings.
This flexible approach remains central to the bank’s strategy. “Our approach is to innovate both inside the firm and work with external partners to find and integrate new technologies,” says Patrick Steiner, head of omnichannel management at UBS.
The Swiss giant had introduced this strategy well before it became fashionable among competitor banks, recognising it could not remain at the helm of the private banking pyramid unless it took its inspiration for innovation from outside the stultified Swiss private banking industry.
The bank’s wealth management technology platform was launched in the autumn of 2017, with key development hubs in Hong Kong, Singapore, Switzerland and Germany. The idea is that technology can be developed in one location and then shared through the platform with other territories.
The recent merger between teams in Europe and Asia with the previously separate US business has accelerated this co-operation around technology, says the bank, offering the examples of enhanced reporting and analytics tool UBS Asset Wizard and holistic advisory service UBS Wealth Way.
“Whilst we maintain separate core platforms, certain applications, know-how, strategy, innovation and best practice can be effectively shared, yet implemented independently if required,” says Callum Licence, programme director at the bank’s One Wealth Management platform.
Yet there is also a strong belief within UBS that technology alone cannot provide the context, insight and interpretation required to make the best decisions. “Since 2013, we have used automated systems to enhance our investment decisions,” says Martin Hartenstein, head of WM Apac omnichannel, capabilities and platform management at UBS. “However, a lot of qualitative human judgement goes into these systems and are an irreplaceable part of their development.”
The challenges are even more pronounced in Asia, where the bank is keen to recruit new clients from China’s tech-driven entrepreneurial community. It has recently situated an office in Hong Kong’s newly fashionable Kowloon district in order to cater to this clientele.
Much of the technological impetus and direction previously came from Mr Zeltner’s team in Zurich. It has yet to be seen whether the bank’s new leadership will be able to match this inspiration and fast progress. YB
Best private bank for digital culture, global
Best initiative, client-facing tech, global
BNP Paribas
When BNP Paribas Wealth Management announced its new “Client Experience” in 2017, cynical tech watchers may have suspected another box-ticking exercise from a leading private bank.
But those who know the French institution well suspected the truth was far from this. BNP Paribas is one of the few banks to enrol other constituencies into its initiatives, not just internal players.
This means co-opting fintechs and clients into its factories and incubators across Europe and Asia to combine knowledge and experiences and together cook up real innovations.
So far, using this model of working with external as well as internal partners, more than 20 new digital services have been made available to clients, with more projects in the pipeline.
What is also striking about the bank, which many still perceive to have a “French heart”, is that once you exclude the local clients’ operation, just 250 of the wealth management firm’s 7,000 staff are in Paris, with the Asian franchise, centred in Hong Kong, employing 1,300, having grown particularly well. Luxembourg is another hub for technological innovation, housing 350 staff.
“We have developed our innovation labs not just in Paris, but in Luxembourg, Geneva and Singapore, to be even closer to some of our international clients,” says Vincent Lecomte, co-CEO of BNP Paribas Wealth Management. While the chief operating officer resides in Paris, the tech teams developing and maintaining the platforms are based predominantly in India and Singapore.
One of the many innovations painstakingly built in these labs is the Leaders Connection app, which will bring together potential co-investors in a secure network. Mr Lecomte and his management team believe that through instilling this digital culture in the bank, they are vastly improving client engagement.
“This is not a question of age or generation,” he says. “We have increased usage of all digital tools over the last 12 months and this is a key KPI for our success.”
Fresh from the drawing board come a series of new apps, including My Impact, which will help investment-focused clients engage with the UN’s sustainable development goals through digital channels.
They are convinced that the more functionality they enrich the apps with, the greater the digital traffic they generate from the client base across their key target markets of Europe, Asia and the Middle East.
It is vital for the bank to keep responding to global forces which shape the wealth market, believes Mr Lecomte. “Digitalisation and ESG are the two trends which are totally transforming our organisation,” he says. “This remains my conviction.” YB
Best private bank for digital culture, Europe
InsingerGilissen Bankiers N.V.
With the goal of enhancing client experience and process efficiency, Dutch bank InsingerGilissen, whose origins date back to 1779, has adopted an ‘innovation lab’ approach to drive its digital strategy.
Multi-disciplinary teams, including people from business, IT and third-party software providers, work together from off-site locations to design, develop, test and roll-out digital solutions. Embedding continuous client feedback and working on fast delivery development cycles – of around 12 to 16 weeks – allows the teams to deliver a “tangible” output, which is tested with clients and staff before roll-out, creating buy-in from the start.
While senior managers set the vision and digital road map, closely monitoring progress and delivery of solutions, business ambassadors, appointed among private bankers, have the responsibility to build a ‘change platform’ and accelerate the transformation process.
“We aim to build a hybrid client experience, where digital reinforces and enriches the relationship between a client and their private banker,” says Cédric Lebegge, chief operating officer at the Dutch bank, which is part of pan-European private banking group KBL epb.
One of its most successful initiatives has been the development of a ‘dynamic’ wealth planning solution, which enables private bankers to set scenario-based investment goals, tailor goal-based investment solutions and monitor feasibility of goals. Looking forward, the bank aims to increase “client intimacy” by further using data analytics to generate additional insights for bankers and make interaction with clients more relevant. Improving the process efficiency, by leveraging “robotic process automation”, is also a key objective.
“Digitalisation is all about business-driven innovation, about developing new and improved propositions, products and client journeys through a smart use of technologies, and not about technology-driven innovation,” says Marc Baltus, chief financial officer at the bank. ET
Best private bank for digital culture, Asia
KASIKORNBANK PCL
The challenge in building a digital culture is in choosing and adopting technologies “wisely” says Jirawat Supornpaibul, private banking group head at Thailand’s Kasikornbank. The bank serves clients with a minimum of THB50m ($1.6m) of assets, who are assigned a private banker.
During 2018, the bank embarked on the KPB Digitalisation Project, including a new private banking core platform. The project included integrating social media into traditional communication channels and a ‘Digital World Familiarity’ element that aims to shape clients’ behaviour and prompt them to use digital technologies.
Despite the wealth of technologies that are emerging in financial services, private wealth clients continue to rely heavily on the human touch, says Mr Supornpaibul. “Most of the technology we currently adopt is focused on supporting the services of private bankers, rather than replacing them as a virtual branch does.”
The digitalisation project has improved client coverage as private bankers have more time to support sophisticated clients. During the past year there has been a 15 per cent increase in the proportion of more sophisticated funds that clients have adopted.
During 2019, Kasikornbank will focus on enhancing its digital platform by plugging in new technologies to cover more of its clients’ “frontline” needs. “We are also considering new social media platforms to expand our objective of digital communications from information delivery to increasing brand awareness and improving perception,” she adds. “We will also keep searching for new technologies from fintechs around the world to support the service of private bankers and also the back office.” HM
Best private bank, digital client communication, global
CaixaBank
As one of the early movers in the vast consolidation which reshaped Spanish banking after the country suffered a financial crisis deeper than many of its European neighbours, Caixa leapt into the vanguard of fast digitalising financial firms.Private banking, under its genial, innovating boss, Victor Allende, benefited most from this trend, with clients and advisers able to trade, check accounts and assets and network securely, way before these services were available in other countries.
Now the bank faces the ‘first mover’ challenge of keeping up with rivals, many of whom are in an earlier stage of the digitalisation process. It is spurred on by the conviction that only through continuously improving the customer experience – through both ‘human’ and digital channels – will the volume of transactions and profitability grow. “New technology allows our customers to be with us more often,” believes Mr Allende, executive director of CaixaBank Private and Premier Banking. “This changes the way they interact with the bank and consequently, how and when they carry out transactions.”
While Caixa has in recent times launched an omnichannel digital advisory process and a robo-advisory service, its strategic plan for the next two years involves developing artificial intelligence, big data and cognitive technologies to further enhance customer experience. This will include help with succession planning through creating algorithms which identify and analyse family units. The bank hopes this type of service will also help identify sales opportunities and optimise portfolios.
In parallel, other revenue driving and client gathering digital initiatives will continue to be rolled out, such as Ocean, an online broker platform for private clients, allowing purchase of third-party funds, detailing total costs.
Mr Allende recognises that with all these innovations come customer concerns about security, privacy and sharing of data. “This is something that we take very seriously,” he says. Moreover, his strategy in this area is that by using data analytics to monitor customer behaviour, his bank’s technical systems will be able to spot anomalous patterns and looming threats and stop them before they affect clients. YB
Best private bank, digital client communication, Europe
Best private bank, Big Data and AI, Europe
BNL-BNP Paribas Private Banking
BNL-BNP Paribas Private Banking has developed a new onboarding customer journey tool focused on attracting new clients. The Youmanist app offers prospects the opportunity to experience the private bank’s services for a three-month trial period. Importantly, using a proprietary algorithm, powered by machine learning, the app allows the bank to profile and target prospects, enabling private bankers to identify the most suitable services for them and convert them into clients.
Through the app, prospects have access to premium content, covering financial and non-financial solutions, such as lifestyle and work-life balance. They also benefit from personalised advisory services and can gain access to peer-to-peer communities.
“Youmanist has generated a very high number of leads, and it has created a ‘surprise effect’ in the Italian private banking market,” claims Gianpietro Giuffrida, head of BNL-BNP Paribas Private Banking. “It represents a new way of approaching clients, starting from the individual and their lifestyle, and aims at offering holistic wealth management services, beyond the relationship with the banker.”
In December 2018, the Italian bank launched a new app specifically for private banking clients, which allows them to check their portfolio, and digitally sign investment proposals received from their bankers. It also enables them to trade on the bank’s online trading platform, manage their daily banking activities and access Youmanist premium content.
The bank, which relies on a specific division dedicated to the analysis of big data, collaborates with universities specialised in statistical analysis and algorithms. It also partners with start-ups and fintechs, as well as incubators.
“When developing digital solutions, we take inspiration from tech leaders and the luxury industry, to improve user experience, for example,” explains Mr Giuffrida. “But we never forget to involve our clients in the development phase. Their comments and feedback have allowed us to create solutions that meet their needs.” ET
Best private bank, digital client communication, CEE
Akbank Private Banking
Clients’ expectations as well as behaviours are constantly changing due to advances in technology and the private banking and wealth management industries are not immune to these changes, says Alp Keler, executive vice-president at Akbank Private Banking.
Despite advances in technology, the core value proposition of the global wealth management industry is still embedded in the quality of the relationship management, he adds. Akbank’s Next Generation Private Banking model, Akbank Private Banking and Wealth Management Services, is the cornerstone of the bank’s aim to provide the best digital and seamless client journey in Turkey.
Understanding and meeting clients’ needs are at the heart of the model, says the bank. In line with this philosophy of transparency and efficiency, the Turkish bank has launched a “new and accessible” branch environment. This has enabled staff to communicate more directly with clients and work with them. The new branch and service design is “shaping the future of banking”, claims Mr Keler.
The challenge, he adds, has been in getting the best combination of human and technology skills. “We believe human and digital capabilities combined can generate more value than either one alone. To get the balance right, you need to concentrate on understanding your clients in order to prioritise your development phases in your digital projects.”
Akbank has integrated multi-channel digital technologies with in-person interactions to improve client experience. The key to developing the digital communication model at Akbank is to create a work environment that will appeal to Turkey’s “most innovative and visionary youth”, says Mr Keler. HM
Best private bank, digital client communication, Asia
Credit Suisse
What becomes evident from regular discussion with Credit Suisse is that although the bank is technically relatively advanced compared to competitors, functioning as an early pioneer in outsourcing much back-office work to “offshore locations”, the pace of digitalisation varies through the organisation.
This is common in many firms this size, despite their claim to operate as “one bank”. In Asia, Credit Suisse has made a concerted push in recent years to come close if not unseat the long-term undisputed wealth management leader UBS. And the tactics and tools which Credit Suisse has been using come largely, although not exclusively, from the ammunition locker labelled “digital warfare”.
There is a strong belief within the bank, particularly in the top ranks of the Asian division, that technology will remain a key strategic long-term driver and enabler of sustainable business growth.
The overhaul of the private bank’s technology system in the Apac region started in 2012. This included a new client reporting system, a data management platform, and upgrades of core-banking infrastructure, as well as automated trading and pre- and post-trade checks for compliance, suitability and regulatory rules.
The delivery model began to visually change with new apps in 2015, when regional competitors began to take notice, allowing clients round-the-clock access to accounts, market intelligence and trading tools. The purpose of this was not just to improve the so-called “client experience” but to automate extensively and free up relationship managers to deliver higher value, advice-led personal services.
Now the Asian innovation teams have started to collaborate much more closely with European colleagues, whose technological infrastructure was falling behind. Innovations from Apac are being increasingly rolled out in European markets, including the Digital Private Banking app, recently adapted for clients in the UK and Guernsey. “As a firm, we are committed to interact across teams and exchange innovation ideas and we will continue to do so,” says Christian Osvald, head of client channels for Asia Pacific at Credit Suisse.
“Our management team is fully supportive on tech-transformant topics, we have the right business and IT teams to execute it and due to many successes in recent years, we find the front office and clients overwhelmingly supportive of the changes,” he says.
Key recent Asian initiatives include: Credit Suisse Chat, enabling clients to engage with the bank through secure messages on Apple Business Chat; a partnership with fintech company Canopy Ltd, which provides automated account aggregation; and the RM Ecosystem platform to simplify and automate the workload of relationship managers.
This vital role for relationship managers is crucial in the bank’s vision of a partnership between technology and human advice. “We partner closely with our front office to train relationship managers on our new innovations,” says Mr Osvald.
“They are the first point of contact for the clients, so it is paramount that they understand the innovations we are launching.” YB
Best private bank, digital client communication, North America
Northern Trust
Northern Trust is a bank that has always prioritised communication. Recently this has taken on a more digital nature, but it remains a relationship-based bank, which prides itself in the high numbers of bankers it employs across US regions.
The work of these bankers is increasingly being augmented by use of digital channels. Under the stewardship of CEO Steven L. Fradkin, who maintains an office in Silicon Valley in addition to those in Chicago and New York, many ideas are also being sourced from other industrial spheres. He says that in recent years, digital engagement and decision-making have become “essential” to his client base.
The centre-point of the bank’s digitalised advice service is the notion of goals-driven wealth management, now also being developed by many rival banks. At Northern Trust, the GDWM technology was initially developed for institutional clients and has been adapted for wealthy private clients. The next stage of the bank’s strategy will involve deploying these services in new markets across Europe, where the traditionally US-centric wealth manager is now keen to put down markers.
“Northern Trust aligns world-class expertise in managing and optimising wealth and innovative technology to deliver an industry leading goals driven wealth management experience,” says Mr Fradkin. “The power of our technology enables clients and advisers to explore different holistic scenarios in real-time, visualise trade-offs and use data to guide and empower thoughtful planning and decision making.” YB
Best private bank, digital client communication, Africa
Investec
Investec likes to talk about its “high tech, high touch” philosophy, giving clients a choice of logging into Investec Online, using the mobile app, calling the 24-hour client support centre or setting up a meeting with their private banker or investment manager.
The pattern being noticed by management is one of an increased use of digital channels for bread-and-butter business and calls to their banker for more complex, longer-term transactions, such as home loans.
Recent initiatives in the bank’s South African home market include its Ahead of the Curve website, aimed at young professionals, featuring both financial and lifestyle content, curated with what Investec describes as an “often quirky” feel. Focus, a separate thought leadership content portal, features articles on the economy, investments and innovation.
The bank’s attitude to digitalisation and innovation is one of staying in tune with its various client segments and tailoring different approaches appropriate to each one, while never expecting a human conversation to be replaced by a machine-led approach.
“Through regular innovations and strong partnerships with the growing fintech ecosystem, we continue to enhance our digital capability, with a strong emphasis on security,” says Lyndon Subroyen, global head of digital and technology at Investec.
“We remain focused on creating value for our clients and helping them be more efficient and manage their wealth better.” YB
Best private bank, RegTech, global
Pictet Wealth Management
Embedding compliance and regulation into tools and processes has been a key focus of the digital transformation journey at Pictet Wealth Management, particularly in view of MiFID II regulation, which came into effect in the European Union at the beginning of 2018.
In early 2016, the bank started developing a technical platform in-house, meeting pressing regulatory deadlines by focusing on core, basic features, while leaving the “nice to have” ones for later.
“We understood we needed to adopt a holistic view to balance regulation, efficiency and ease of use, and find the best possible combination for users,” says Philippe Turrian, COO and head of marketing and client solutions at Pictet Wealth Management
MiFID II, which puts strong emphasis on product suitability and appropriateness, has not affected the quality or speed of client service, claims Mr Turrian. “We have succeeded in making sure that bankers can transact for clients as quickly as before and still comply with all the necessary regulatory checks.” The platform was launched in Europe in 2018, with the roll out expected in other regions in 2019.
Pictet is now focused on the implementation of the Swiss Financial Services Act, which regulates the provision of financial services and offering of financial instruments, aligning Swiss laws with the corresponding European framework, in particularly MiFID II. Leveraging on its past experience in EU countries, the bank is set to deliver the solution well ahead of the deadline on January 1, 2020.
Regtech technology is an important differentiating factor in private banking. “We strongly believe that banks that succeed in creating ‘convenient compliance’ tools will manage their costs more efficiently and serve their clients better at the same time,” says Laurent Gaillard, chief risk officer at the bank. ET
Best private bank, RegTech, Europe
Barclays Private Bank & Overseas Services
Ensuring regulatory compliance across multiple jurisdictions “is always a challenge”, says Jean-Christophe Gerard, head of investments and interim head of Private Bank Emea, Barclays Private Bank & Overseas Services.
To meet this challenge during the development of its strategic sales and suitability programme, the bank created cross-functional and cross-jurisdictional working groups, which included regional heads of compliance to support development of a policy and guidelines for use across the bank. External representatives were also engaged to ensure the agreed sales and suitability guidelines were in keeping with a good sales process and local regulations.
“The initial challenge to overcome, as with any programme that is complex in nature, was to ensure that it was well-sponsored and the vision was understood,” says Warren McRae, head of business delivery and control at the bank. “It was vital that everyone understood the delivery approach to be agile building on core deliveries in successive phases. Communication and engagement was a key part of the project, with senior stakeholders taking time to explain the vision and context for the project.”
Under the programme, the bank has implemented a single platform (Avaloq) for profiling and running sales and suitability checks and a single risk engine (swissQuant) across the business. Automated document generation has also been rolled-out and CleverSoft, which supports retrieval of required document from Morningstar has been integrated.
Future plans include the extended use of the risk engine, automated investment proposal document generation and a forward-looking stress testing tool.
The bank was also highly commended for its robo-advisory services in Europe. HM
Best private bank, digitally empowering RMs, global;
Best private bank, Big Data and AI, global
Citi Private Bank
Citi Private Bank’s Global Investments Innovation Office, gradually integrating with the bank’s broader innovation network, including the Citi Ventures’ tech portfolio and the experimental projects developed in the Citi Innovation Labs, is only in its second year, yet the digital transformation is far from new.
In fact, Citi was one of the first to begin this digital rebuild back in 2007, when talk first started of a far-reaching ‘InView’ platform which would change the relationship between clients and bankers, by combining both physical and digital communication.
“This was a pre-crisis objective,” remembers the bank’s chief innovation officer Philip Watson, based at Canary Wharf in London. “What this bank did extremely well was to continue investing, when projects were being cancelled elsewhere due to the consolidation which followed the chaos.”
What Citi also did well was to seek external influence and inspiration. “We looked at a catalogue of firms, most of them not within finance,” admits Mr Watson. “You need to look outside and see what others are doing in tech and healthcare.”
More recently, Mr Watson has been spearheading collaboration with firms overseen by the Level 39 incubator, which is situated close by. “This growing community of start-ups is doing things very differently and we actively mentor some of them.”
Projects developed through this collaborative mindset include the bank’s IDEA big data analytics platform for relationship mangers, enabling monitoring of clients’ investment activities to make sure they are properly aligned with the asset allocation calls of the bank’s experts. Citi also works closely with academics and research students at the University of London’s Imperial College, plus educational institutions in the US and Dubai.
“What we have is a terrific opportunity to engage with bright minds, to challenge existing assumptions and collaborate with external partners,” believes Mr Watson. “We are trying to connect with a community of fintech hubs and immerse ourselves in innovation.”
But he is also keen to convince any doubters that this is far from a marketing exercise. “This is not designed for us simply to meet, greet and aspire, but to address pre-identified challenges we have and to make projects actionable from the get-go. There is a time and cost impact on both sides, with cashflow a particular challenge for the start-ups.”
When addressing the conundrum of wrestling with ever-increasing amounts of data and realising its power, Mr Watson says it is vital not to purely look at clients individually, but to aggregate their buying and investing behaviours to determine overarching trends.
“We are part of Citi’s global network, so we want to make sure we get a global perspective.” YB
Best private bank, digitally empowering RMs, Europe
BPI Private
Portugal’s BPI is reshaping its business strategy, taking into account digital transformation in the two distinct areas of customer experience and business support.
The bank says that it faces the challenge not just of transforming its business model, but actually adapting digital tools to the needs and characteristics of each client.
“We want to offer the best of both worlds,” says Antonio Luna Vaz, CEO of private banking at BPI. “This means a digital experience when the client looks for speed and convenience and a human experience when he needs advice for more complex products or has an issue or problem.”
The bank hopes to combine this client-centric approach with the operational side, adopting information systems that use new technologies and promote “agile practices”. In practice, this means trying to boost the bottom line by shaving operational costs and creating efficiencies not just through building digital platforms, but also through the basics of reinforcing data storage and protection capabilities. The next logical step after this is to develop so-called ‘big data’ capacity through analysing and leveraging this data for the benefit of customers.
BPI has been examining the work of external fintechs in this sphere, plus comparing the experiences of banks with players in other industries, such as Uber and Amazon.
Currently, BPI is developing a new private banking app, augmented by regular information updates about financial markets, while recognising the role of the relationship manager in exchanging message with clients, facilitating document updates and authorisations.
Now that BPI is part of Spanish bank Caixa, a technology leader, observers are asking how much of the innovations are being developed internally and how much influence there is from central office in Barcelona. While Caixa has a tradition of allowing its subsidiaries to develop independently, few would bet against the sharing of a technological expertise and mindset across the affiliates. YB
Best private bank, digitally empowering RMs, CEE
UniCredit CEE Private Banking
UniCredit has continued to improve its digital advisory platform for private bankers, Unique, which allows client profiling, portfolio analysis, monitoring and automated rebalancing. The tool, now available in several CEE countries, is gaining popularity.
“We can see rising trends in the usage and overall engagement, in terms of number of logins, viewed clients, generated reports and so on,” says Daniela Croitoru, head of private banking, UniCredit for the CEE region. Bankers spend less time preparing for client meetings and seek relevant information, and can add more value to their clients.
Particularly appreciated by private bankers is the ability to gain access to a consolidate view of their clients’ assets, while the dashboard provides an overall position of all clients in their portfolios. New functionalities recently added to the dashboard include morning briefings, relevant news and product recommendations. The tool is also proactively suggesting client meetings, based on upcoming product maturities or new assets in their accounts.
Private bankers currently access the platform though computers and TV screens from their offices, but will soon be able to access it on mobile and tablet devices. This year, it will also be made available to clients in the bank’s three main markets, Czech Republic, Slovakia and Hungary. Croatia, Bulgaria and Russia will follow in 2020.
In most CEE countries, private bankers are supported by a content management system, offering tailored education material to clients about financial and non-financial matters.
In Czech Republic and Slovakia, a web-based platform enables clients to build bespoke structured products when meeting their banker, by defining parameters such underlying stock, maturity, protection level or yield.
“Future banking roles will be more customer-facing and data-driven. But, even if technology is changing job profiles, the banking industry will remain a people business,” says Ms Croitoru. ET
Best private bank, digitally empowering RMs, Asia
ICBC Private Banking
In an increasingly competitive Asian private banking landscape, where the likes of homegrown Chinese players such as ICBC and China Merchants Bank are giving the Swiss giants a run for their money, the battleground today is very much a digital one.
The rapid growth of China’s fintech industry is coupled with the preference of mass affluent and high net worth individuals for mobile access to their finances. ICBC is particularly astute in highlighting the key role that relationship managers must play in this process.
“Our efforts on digitalisation facilitate RMs to provide clients with more customised and exclusive services,” says a bank spokesperson.
While clients “enjoy” having their wealth serviced “both online and offline”, the bank’s research suggests that customer behaviour is changing, with clients no longer requiring constant face-to-face interaction with their RMs.
Although the bank is planning to strengthen its robo-advisory capacity and its leveraging of big data for asset allocation purposes, it is only in the “primary stage” of its digital transformation plan. This has involved starting up a fintech subsidiary company and opening seven R&D centres, all in 2019.
This will also involve collaborating with “prestige technology companies” including the big techs and other digital firms, situated in China’s Greater Bay Area, specialising in AI, blockchain and cloud computing. YB
Best private bank, digitally empowering RMs, North America
RBC Wealth Management
RBC has continued to make significant investments in its client and adviser-facing digital tools, with a focus on its flagship goals-based digital planning platform, myGPS.
“myGPS has improved the adviser experience immensely by allowing advisers to identify opportunities to build their business and helping them optimise their clients’ current and future financial positions, ” says Terri-Lee Weeks, senior vice president, products and strategy at RBC Wealth Management. This has strengthened relationships with clients, who are able to see a holistic picture of their wealth and can experiment with projection tools and multiple ‘what-if’ scenarios to build their financial future.
The platform can now be launched directly from within the bank’s Adviser Virtual Assistant app, which has been further enhanced since its launch in 2017. From their Android and iOS devices, advisers can access client information, update client profiles and tasks, and review and approve electronic Know Your Client documents.
Overall adoption of both apps has continued to grow across Canada and the US, also because of the strong emphasis placed on training and supporting advisers. In 2018, myGPS was optimised for iPad, driving double digit growth in the number of myGPS projections completed, year over year, while AVA is now used by 2,000 advisers across North America. “We take pride in saying that AVA was ‘built’ by our advisers, who since inception have been actively and continually engaged to provide candid feedback that validates which enhancements will come next.”
Investing in digitalisation has benefited the bank’s revenues and profits, while has also helping attract new talent and assets, states Ms Weeks.
By leveraging data science and big data, the institution has also developed a more holistic view of clients with relationships across multiple businesses within the RBC group. “A richer client profile allows for more elegant solutions, which in turn helps with better prospecting, enhanced client discovery process, and a faster KYC onboarding process,” she adds.
An interesting evolving area in AI for private banking is Natural Language Processing (NLP), where large amounts of text can be analysed and summarised quickly and effectively. “This is an important capability in our data and information saturated times, allowing our advisers to quickly identify what’s important and what the next best action could or should be, so that they can act accordingly in the interest of their clients,” explains Ms Weeks. ET
Best private bank, Big Data and AI, Asia
Taishin Bank
By improving the segmentation of its customer base, big data analytics and AI have enabled Taishin Bank to offer more personalised products and services to its clients. The Taiwanese bank’s ‘customer tagging database’ collects and analyses all available data around each client. It then tags each customer, providing bankers relevant information on their behaviour, preference of communication channel or lifestyle.
The bank recently launched a new “intelligent” investment platform, focused on portfolio forecasting, which analyses clients' investment preferences and suggests targeted investment solutions.
These initiatives have led to a significant increase in the number of interactions with clients, more focused content and higher client management efficiency, explains Christy Shyy, head of segmentation division at Taishin International Bank. As a result, both client satisfaction and assets have increased.
In the bank’s “smart branches”, humans and machines are combined to improve client experience. AI technology powers Taishin’s “smart assistant Rose”, a robot who can answer client questions around credit cards, deposits, loans, as well as wealth management services. Video conference services allow customers to gain remote access to the bank’s professional investment team’s views and advice. During non-office hours, video teller machines provide clients with a variety of services.
Looking forward, the bank aims at improving service customisation leveraging big data analytics and AI, also working in partnership with third-party providers. But there are key challenges ahead, including the rise of personal information protection, which makes it more challenging to collect relevant information. Increased regulatory pressure calls for closer collaboration with regulators, says Ms Shyy. ET
Best digital bank for millennials, Asia
DBS Bank
DBS, Asia’s regional private bank, now making a play to establish itself in the Middle East and Europe, was one of the first institutions to embrace the use of big data and artificial intelligence.
Other, much larger rivals watched from the sidelines as DBS planted lone flags in the more far-flung, unexplored territories of the digitalisation universe.
As well as coming up with these specific initiatives, the bank has done more than most others to actually instil a digital culture, in line with CEO Piyush Gupta’s “innovate or die” mantra.
Aiming services specifically at the millennial generation, Evy Theunis, head of digital wealth at DBS Bank, says this target client base has a much more specific interest in digital services.
“They’re generally more entrepreneurial in nature, have a higher propensity to use digital technology, and are used to instant access to price comparisons, product information and peer reviews,” she says. “When investing, they’re less willing to go with their gut instinct and instead, look at data to determine an investment objective.”
The bank also expects these customers’ social awareness and desire for responsible banking to play into the trend for environmental, social and governance (ESG) investments, especially where these can tap into the new economy and disruptive technologies, offering exposure to companies adapting to the new world order.
Because millennials have been highly influenced by the 2007/8 financial crisis, DBS recognises their caution in financial matters, leading to expectations of increased price transparency, self-directed transactions and reliable technology platforms.
Recent digital service launches include DBS digiPortfolio, a “hybrid” offering, combining “human intuition, insight and experience” from the bank’s investment minds with a robo-advisory platform, allowing portfolio managers to create fund-based portfolios, which can be electronically back-tested, rebalanced and monitored. My Financial GPS is an app, helping clients to achieve long-term financial life goals.
But there is also a realisation at the bank that sometimes you can innovate faster than your clients actually want. “Artificial intelligence…needs to be used and applied with discretion within the wealth management space…as clients are not yet ready for a completely ‘human-less’ experience,” says Ms Theunis.
DBS watchers are also increasingly asking whether private banking is central to the bank’s long-term strategy. “The CEO is very focused on being the world’s digital bank and DBS is becoming a major high street retail player in south-east Asia and China,” says Matthias Schulthess, managing partner of Schulthess Zimmermann & Jauch board advisers and former senior Asian private banker. “But is wealth management really their big thing?” YB
Best digital networking bank for entrepreneurs, Africa
Fidelity Private Banking
Nigerian bank Fidelity has launched digital initiatives specifically targeting entrepreneurs. An online market place, GreenMall, allows buyers and sellers to meet and access their respective target markets, thus facilitating B2B and B2C business transactions. Typically, the platform is a meeting point between large corporates seeking to expand their sales, and SMEs and start-ups looking to distribute new products.
The Fidelity SME Forum, launched a few years ago, is a complimentary radio broadcast, which showcases and helps entrepreneurs advertise their brand to the public.
“Both initiatives represent a business opportunity to strengthen and build new relationships with entrepreneurs in the industry,” states Chioma Nwankwo, head of private banking at Fidelity Private Banking.
Investments in technology and new digital initiatives have had a “significant” positive impact on the private bank’s revenues and profits, while contributing to drive growth in client assets, which have almost doubled since 2014.
In addition to upgrading its core banking application, the Nigerian institution has introduced several other digital solutions, including an online banking app which facilitates portfolio viewing and analytics, using biometric and soft token applications for customer authentication on online/mobile app transactions. The app also allows clients to carry out domestic and international FX fund transfer.
The private bank plans to continue to invest in technology to ensure business sustainability and face increasing competition from fintechs. In Nigeria, more and more people rely on fintechs for their financial needs, including bill payments, cash transfer, airtime purchases, utilities payment or soft loans, explains Ms Nwankwo.
“The level of disruption in the market is significant and private banks are re-evaluating their value propositions to ensure that financial services are offered at a significantly reduced cost for consumers.” ET
Best private bank, robo-advisory, Europe
Société Générale Private Banking
Launched in 2018, Synoé, Société Générale Private Banking’s digital investment advisory offering, is part of a group-wide digital transformation plan at the French banking group. A complete overhaul of the private bank’s technological capabilities and assessment of clients’ evolving needs identified 40 items to be developed, among which was Synoé.
“Synoé is a disruptive and innovative investment advisory offer, combining the human and digital,” says Emilie Chauvet, co-head investment solutions at SGPB France. Algorithms, natural language and a digital interface form the basis of the service.
Designed in collaboration with clients, Synoé offers three benchmark allocations – balanced, dynamic, offensive – adapted to individual clients’ risk profiles. When SGPB experts adopt a new investment strategy, clients receive an advice notice adjusted to their current allocation via email, app and SMS.
The development of the service was driven by five main factors: changing customer behaviour, regulation, diversification, fintech competitors and client satisfaction levels.
“Bankers have a portfolio of nearly 300 clients; some clients think that the frequency of exchange is too rare to give them enough confidence to invest in financial markets. Synoé enables the bank to simultaneously issue advice online to a client group, while adapting that advice for each client,” says Ms Chauvet. The human, or relational element, means that at any time clients can contact a team of experts for further information, expertise, support and guidance.
Currently limited to investment funds, SGPB will broaden the offer to include other asset classes such as equities and bonds, private equity, real estate and structured products. The bank also plans to increase the flexibility of the investment process for the client. HM
Best private bank, robo-advisory, CEE
Tatra Banka
A primary focus of developing the robo-advisory private banking service at Slovakia’s Tatra Banka was fulfilling regulations such as MiFID II. Developing a group-wide solution while adhering to legislative requirements in specific countries was a challenge, says Marek Neckár, head of Tatra Banka’s private banking division.
While regulation was the main focus, the bank also wanted to retain its position as an innovator in Slovakia’s private wealth arena.
During 2018, Tatra Banka added innovative risk monitoring, new investment tools and improved reporting for clients to the robo-advisory service. The risk monitoring and management tools use key risk indicators such as SRI for KIDs under the PRIIP regulation. The portfolio performance element of the service gives the private banker all the information about a client in one platform, including a dashboard that shows transactions, suitability and appropriateness tests, portfolio allocation and performance, advisory protocols and simulations, etc.
“The main achievements of our financial advisory tool are the full implementation of MiFID II legislative rules, model portfolio construction and performance calculation,” says Mr Neckár. “Another accomplishment is the consolidated view of client portfolio, which provides added value not only for the private banker, but also for the private client.”
In the near future, Tatra Banka aims to make the full advisory process as paperless as possible. “We also want to upgrade the client portfolio report and upgrade the facility for electronic/biometric signatures. Another plan is to create a client portal where clients will have their own access to their portfolios.” HM
Best private bank, robo-advisory, asia
The Siam Commercial Bank Public Company Limited
wPlan, Siam Commercial Bank’s hybrid robo digital investment advisory platform, has achieved 100 per cent adoption among the bank’s more than 1,700 relationship managers. Of those, more than 40 per cent use wPlan for trade execution. Within two and a half months of the platform going live, 2,300 transactions, worth more than THB2.8bn ($90m) were executed.
Existing and emerging private wealth customers require more digital services, says Lalitphat Toranavikrai, first executive vice president, private banking, at Siam Commercial Bank. “Digital services can help our relationship managers to provide quicker and better services.”
As customers access securities globally, their portfolio composition becomes more complex and has many dimensions, says Sornchai Suneta, executive vice president investment advisory at the bank. “wPlan is designed to consolidate all assets classes, insurance policies, securities, accounts holdings, including open architecture accounts from SCB Bank brokerage, insurance and asset management subsidiaries.”
Using a secured tablet device, relationship managers can access and present holistic portfolio holdings and risk and return information in real time upon client requests. A workflow function enables the private bankers to manage their daily work more effectively, with overview account planning and customer monitoring tools.
Future development plans for wPlan include the integration of AI and machine learning into parts of the advisory process. “We believe that with a wider range of information and intensive big data and speed capability, AI will help to add a better understanding of customers while increasing efficiency, scalability and offering better customer service with quicker response time,” says Ms Toranavikrai.
Additionally, the bank is researching AI capabilities that will enable searches for new investment ideas and offer investment strategy suggestions on a 24/7 basis. HM
Best private bank, robo-advisory, Latin America
BTG Pactual
BTG Pactual’s wealth management offerings include banking and transaction products, portfolio investment solutions, wealth and succession planning, corporate advisory specialists and a family office.
During 2018, BTG Pactual launched a robo-adviser platform to provide portfolio suggestions to relationship managers and clients. This is offered to the bank’s clients free of charge. A specialised algorithm follows the strategies of the bank’s economist and generates a personalised portfolio, based on the individual client’s risk profile.
For an investor lacking the technical knowledge or experience in fixed and variable income, the algorithms help to find the best yields, always respecting the risk tolerance profile of the user. The maturity, the desired maturity, the initial amount and the tolerance to fluctuations are characteristics considered by the robo-adviser.
During 2018, the bank focused on improving client experience, launching a mobile app and web portal. Tasks available via the portal include client profiling, signing of regulatory documents and updating personal information can be executed by electronic signature and secure authentication. The mobile app will contain every functionality available on the portal. HM
Best initiative, relationship management tech, global
Lombard Odier
Lombard Odier’s technology strategy involves not just providing digital channels for its clients and relationship managers to communicate, but also making these technology platforms available to other banks.
The Geneva-based player says it has been developing banking infrastructure, hardware and software solutions for the last 25 years and that the success of these initiatives has led it to sell the technology on to external partners, including other banks and wealth managers. Currently nine external partners use this technology, which is developed in-house at Lombard Odier by a team of more than 600 people. Similar solutions are also offered for single and multi-family offices and independent wealth managers, via the bank’s External Asset Managers (EAM) business, which boasts around 300 partnerships.
So why are other banks so interested in what happens at this apparently old-school Swiss private bank? Lombard Odier’s secure, global technology G2 platform reconciles the work of relationship managers and investment teams across multiple jurisdictions into a single view. It helps clients with portfolio construction, advises on investment strategies and takes care of administrative and regulatory burdens.
The plan is now to replace this platform, as part of a long-term strategy, with a more mobile-friendly, real-time portal.
Lombard Odier acknowledges that few banks today have the commercial power to create such technology systems from scratch, expecting more smaller banks to enter such technology partnership arrangements.
“Private banks in Switzerland and Europe face challenging conditions, with pressure on margins and profits, as well as more complex regulatory burdens,” says Arash Sorouchyari, head of technology platform strategy and design at Lombard Odier.
“As a result, such banks are becoming more open to purchasing third-party infrastructure solutions, as they look to streamline their processes.” YB
Best initiative, relationship management tech, Europe
ING Luxembourg Private Banking
As clients increasingly use smartphones for their business and daily life, the development of a mobile private banking application was a logical step in ING Luxembourg Private Banking’s omnichannel strategy. The My ING Private Banking mobile application enables clients to view, from a single screen, their investment products, review and download details of their portfolios, and access the Market Watch newsletter.
“With an international customer base and today’s progress towards a digital world, being present on the mobile market is fundamental,” says Sandrine De Vuyst, head of private banking and member of the executive committee, ING Luxembourg Private Banking.
The bank’s aim is to offer services to clients “any time and anywhere”. The emphasis is on convenience and 24/7 availability.
While the bank has made substantial investments in keeping up with technological developments, Ms De Vuyst says digital channels are not the sole ways by which the bank interacts with clients but are an integral part of the client experience.
“Technology and personal contact are complementary, which is why we aim to associate the two. Clients using My Private Banking can not only contact their relationship manager live through the app, they can also call them or meet them face-to-face and still be sure to address an expert fully aware of their personal situation and needs.” HM
Best initiative, relationship management tech, CEE
Yapı Kredi Private Banking
Turkey’s Yapı Kredi Private Banking has developed a customised customer relationship management (CRM) tool for private banking and wealth management clients. The project, dubbed DNA, enables users to manage their portfolios and individual customers effectively, providing them with automatically generated alerts and KPIs through customised content, simplified processes and one-click solutions under one menu.
The previous CRM took involved numerous manual workloads, such as making requests via emails, initiating and following-up new clients’ onboarding processes and tracking wealth. “With the DNA system, it has become easier for all parties to track all of their activities easily and systematically,” says a spokesman.
The main challenges in customising the tool was the fragmented CRM infrastructure, which required six different sub-projects to be created within a limited timeline. There were overlapping analysis, development and control phases throughout the development lifecycle and some projects included the use of outsourced third parties.
The spokesman claims the involvement of staff from the beginning of the project resulted in positive feedback and early adoption by relationship managers. Training sessions were held in branches and enabled one-to-one interaction. “Digitalisation of everyday business and one-click solutions for time-consuming tasks also received positive reactions, leading to better customer management. Customer visits and satisfaction scores increased accordingly.”
Future plans for DNA include further digitalisation of the workforce through the deployment of tablet devices. Some modifications of the DNA system is in progress in line with these efforts, including identifying potential private banking customers to relationship managers with a location-based service. HM
Best initiative, relationship management tech, Asia
Standard Chartered Bank
Standard Chartered recently launched an FX derivatives platform as part of its digitalisation journey. The platform, FXDConnect, has been popular among sophisticated investors, especially next generation clients, looking to invest in an ‘all-weather’ asset class such as FX, who invest regularly on a rolling basis and expect the most competitive and transparent pricing.
“We recognise that clients are increasingly sophisticated; they are looking for price transparency, speed and convenience,” says Alex Welch, global head of wealth markets products sales at Standard Chartered Bank.
“Our Connect platforms for equity derivatives, fixed income and FX derivations, offer clients the suite of digital solutions across asset classes. FXDConnect allows us to achieve the next level of scalability via best execution in our product offering,” he adds.
Using an open architecture approach on a digital multi-dealer platform, the platform opens the full market liquidity to the bank’s relationship managers across the whole range of the FX derivative product class. While ensuring scalability, this helps RMs always execute on the best price sourced from a pool of liquidity providers, which is in the best interest of their clients, claims Mr Welch.
Developing different platforms present different sets of challenges. For FXDConnect, the most crucial part is selecting the right mix of product partners and liquidity providers and aligning the objectives and requirements with those of the bank’s internal risk and infrastructure teams to deliver the desired final product.
FXDConnect is currently servicing the bank’s clients globally, via its key booking centres across Singapore, Hong Kong, Dubai and London. While the platform is now accessible by RMs, the plan is to make it directly available to clients. ET
Best initiative, relationship management tech, North America
Morgan Stanley
In creating its advisory platform WealthDesk, Morgan Stanley has integrated planning, advice and risk, providing financial advisers with a consolidated view of client relationships and portfolios on one dashboard. Launched in November 2018, the platform provides a holistic review of the needs and investment objectives of clients across the entirety of their financial lives.
Developed in-house, WealthDesk brings together more than 10 applications available to advisers, including Morgan Stanley’s Goals Planning System and Portfolio Risk Platform. Cross-functional teams were created across the bank’s adviser and client teams. Consolidated applications and data technology were set up to enable an integrated view and strong governance was established.
The four main areas of the platform are portfolio advice (including integrated goal planning, portfolio construction and implementation) portfolio risk (a full suite of risk analytics to analyse clients’ portfolios and assess the potential impact of hypothetical portfolio changes before they are made), relationship fee implementation (tools to help advisers establish a more consistent pricing strategy) and client playback (a consolidated summary for clients that streamlines communications and advice across the client relationship).
Advances in fintech have enabled Morgan Stanley to create whole, integrated platforms instead of individual account numbers and siloed data, says the bank. In addition, partnerships with vendors, such as BlackRock and LifeYield have enabled the bank to more deeply integrate features into the platform. HM
Best initiative, relationship management tech, Latin America;
Best initiative, client-facing tech, Latin America
Santander Private Banking
A key achievement in the digitalisation journey of Santander Private Banking was the launch of a multi-device, multilingual, modular and integrated tool, called Spirit, which has been developed and implemented in several countries in Latin America.
The tool meets private bankers’ need to hold more dynamic conversations with clients, supported by free-flowing information, allowing them to go deeper into areas clients wish to explore, explains James Dunne, global head of digital investing for wealth management and insurance at Santander Group. It also allows them to meet with clients at their workplace or at their home, as they can “take the bank along” with them, on their tablet.
“Of all the available features, bankers are really enjoying the advisory capability within Spirit which leverages a proprietary algorithm,” says Mr Dunne. This delivers personalised recommendations, specific to individual client needs. The ability to sign documents and execute proposals while with the clients is also highly appreciated.
Earlier this year Santander launched an e-banking solution (web and app), a platform where clients can check product performance, receive portfolio valuations, chat with their banker and receive market news and updates, freeing up bankers’ time.
“In matter of months, we’ve jumped forward from a traditional online relationship with our clients to a much richer engagement method.”
In view of such digital initiatives, customer satisfaction has increased, driving growth in both client asset retention and new business.
Speed of delivery is one of the biggest challenges in driving forward the digitalisation process, believes Mr Dunne. When bankers need a technological solution that could help them improve their performance, they can be “very demanding” until that solution is in their hands. Security is also crucial when it comes to digital developments.
“A priority for us in our decision making is to protect our client assets and their information,” he says.
Santander Group is planning to invest more than €20bn ($22.5bn) in digital and technology over the next four years, aimed at improving and personalising customer experience to further increase loyalty. ET
Best initiative, client-facing tech, Europe
KBC Private Banking Belgium
KBC Private Banking’s digital business model focuses on an ‘all in one’ approach, whereby clients are provided with a single mobile app, KBC Mobile, for all of their payment, insurance, loan and investment needs. In addition, the bank recently launched a number of new features to include relevant, non-traditional banking services.
These services are supplied through third-party providers and are plugged into the KBC Mobile app. KBC focuses on services it believes will make life easier for its clients.
Regine Debeuckelaere, general manager at KBC Private Banking, says by using third parties the bank can offer clients a broad range of services through the single app. “At the same time, these services allow private banks and clients to have more time available for the human touch,” she says.
Among the most popular applications of KBC Mobile has been the recent addition of a facility that enables users to pay for parking in Q-Park car parks; the app uses number plate recognition and payment is made via KBC Mobile. Other apps include one for bike rental and another enabling public transport tickets to be purchased; all of the purchases are made via the KBC Mobile app.
The bank plans to continue investing in the all in one approach by extending third-party services. “It was challenging to find large third-party providers and to develop a seamless service for KBC clients but we found a mutual benefit for all parties involved,” says Debeuckelaere. HM
Best initiative, client-facing tech, CEE
Raiffeisen Bank International
In 2016, Friedrich Wilhelm Raiffeisen (FWR) Private Banking (a subsidiary of Raiffeisen Bank International) started a group-wide project to digitalise its private banking holistic advisory approach. The result is the Wealth Management Platform, which offers a single, digital solution.
The main challenge in developing the platform, says Markus Plank, head of international affluent and private banking division, RBI, was to incorporate the bank’s existing three-tier advisory offer (discretionary portfolio management, model portfolios and non-advisory services). A cross-functional, international team defined the characteristics and requirements of the platform. The result, says Mr Plank, is a tailormade platform for private banking.
Clients are presented with a holistic picture of their investment portfolios along with the degree of deviation from the advice given by the bank, portfolio risk figures and calculated performance. In addition, the platform provides reporting capabilities. “More interested customers can also deep dive into transactions and portfolios to scrutinise their impact,” he says.
The bank plans to connect the platform to clients’ mobile devices to deliver investment and portfolio information. “By doing this, we will be able to combine traditional face-to-face financial advice with the digital solution, enabling customers to view their portfolios, investment proposals and transactions any time of the day.”
The comparison of “as-is” with “to be” situations will also be visible as well as central market research materials and videos to support the investment proposals of the bank. “We see this development as a crucial step to retain and attract the millennials, and also to create a more convenient service for our elderly customers,” says Mr Plank. HM
Best digital leader
Kelli Keough, Global Head of Digital Wealth Management, J.P. Morgan Wealth Management
Kelli Keough, global head of digital wealth management at JP Morgan, widely seen as one of the bank’s key transformers, has no plans to rest on her laurels.
“We have established a good digital foundation for our clients in the US and around the world,” says Ms Keough, known by those close to her for her “steely determination” and her abilities as an “energetic digital leader”, keen to keep adapting her business lines to the fast-paced technological innovations reshaping wealth management markets. The constant change she is witnessing reminds her the digitalisation journey is far from over. “We still have work to do,” she adds.
JP Morgan’s reputation in the private banking industry is one with two sides, well appreciated by Ms Keough. The bank is seen as a product-centric firm, where the latest investment strategies are ruthlessly pushed through an efficient distribution channel of advisers to meet targets. Yet the quality of staff in an organisation seen in the US as the “university of finance” is second to none. Many bank insiders and observers believe these factors can be turned more to the bank’s advantage to deliver customer loyalty. The digital channel, according to Ms Keough’s assessment, provides the opportunity for this change and client satisfaction surveys back her supposition.
“Digital is our strongest lever for impacting client satisfaction,” she believes, promising to enhance the user experience of all private banking clients, improving their loyalty and stickiness of assets. Friends of Ms Keough, credited as architect of You Invest, JP Morgan Chase’s zero-fee brokerage platform, say she feels a strong sense of loyalty not only to the organisations she serves, but to the millions of clients whose financial futures depend on the bank. She has described this bond and her privileged position as conferring on her an almost “holy” responsibility.
Ms Keough’s quest to understanding clients’ emotions about money and what stops them from taking the next steps in their banking relationship borrows heavily from behavioural science, combining psychology – in which she has a PhD – with data-driven processes to help personalise messages to individuals.
She also takes much inspiration from the deployment of AI and machine learning in quality control, marketing and vehicle testing within the automotive industry, plus the shift from physical to online sales in the retail sector.
Despite her focus on process, teamwork and collaboration, Ms Keough acknowledges what many firms fail to take onboard, that widescale digitalisation and innovation must be driven by top management, who set the “North Star” for the rest of the bank’s employees.
“We also have to have the fortitude to set the path for all of us to follow,” she says. “Transformation isn’t easy, but we embrace the role digital can play in transformation and we carry its torch every day.”
Ms Keough brings academic learning as well as business experience to the job. She studied at both Stanford in the US and the LSE in London and had a long stint at Charles Schwab before joining JP Morgan in 2015.
“Kelli has deep experience about how to engage clients digitally, a skill honed at Charles Schwab, where she was the GM of Trading Services, a firm and a business line whose success has been tightly linked to perfecting client engagement,” says Alois Pirker, research director at the Aite Group in Boston.
But she is not yet at the pinnacle of her career and still has ambitions to climb higher in the banking industry, according to others in the financial community. “She has taken risks in her career to get to this role,” suggests a consultant who has worked closely with her. “No doubt she will take more as she surges further up the leadership ranks.” YB
