Best private bank for client acquisition (global);
Best private bank for digitally empowering RMs (global)
JP Morgan Private Bank
To enhance advisers’ productivity, JP Morgan Private Bank created PB-IQ, a suite of “cutting-edge business intelligence tools” which include Profile Data Append, PB-IQ Leads, and PB-IQ Insights. These tools sit within the bank’s global Connect environment, the firm’s integrated desktop platform also housing the customer relationship management ecosystem.
“Overall, these tools are helping our advisers identify and target their prospecting universe and get insights on potential opportunities to deepen existing client relationships,” says Rosa Rita, JP Morgan Private Bank’s global chief marketing officer and head of business intelligence.
Technology is helping the private bank drive “digital acquisition at scale”, as well as helping advisers engage the target audience to consider the bank and reach out.
Through a data-driven targeted investment in paid media across the US and in selected international markets in Europe and Asia-Pacific, the bank is investing across display, select social media channels, and paid search to target an ultra-high net worth audience. The aim is to build brand awareness and showcase “the breadth and depth” of the private bank platform.
By personalising landing page content and continued development of the landing page experience, the bank is working to ensure its target audience receives “relevant, actionable information” that compels them to contact the bank. The information provided by the prospect, coupled with third-party data, allows the bank’s new client development team to have “meaningful solution-based conversations with prospects”.
Technology also helps advisers connect and speak with more interested clients. Leads Connect, the bank’s proprietary lead management application, focuses on delivering a greater number of qualified leads to advisers, and at high speed, which is especially useful with recent firm acquisitions, says Ms Rita.
A key focus area for the bank is to expand the universe of external data available to advisers about the clients, through The Profile Data Append tool. This allows advisers to understand more deeply clients and prospects, by appending internal and external data to client and prospect profiles directly, further saving advisers the time previously spent “Googling” multiple data sources to understand key information about employment, education and interests. It also allows advisers to understand the potential share of wallet and opportunities for growing the relationship. ET
Best private bank for technology for ESG reporting (global);
Best digital leader in private banking (Nic Dreckmann, COO, Julius Baer)
Julius Baer
Julius Baer’s clients have had access to sustainable investment solutions for more than a decade, but a new thematic framework, developed by the Swiss bank in 2022, allows them to customise their portfolios according to their values and interests, while integrating environmental, social, and governance (ESG) factors into investments.
“Through our proprietary thematic JB ESG Scores, we can steer client portfolios towards sustainable topics or themes that are of particular importance to them, such as climate, governance, or natural capital, while ensuring a minimum level of overall ESG quality at all times,” says Isak Ahlbom, head ESG methodology and products at Julius Baer.
The bank’s ESG specialists are encouraged to only use data that can be traced back to specific sources, avoiding data attributes that “rely too heavily” on estimations and assumptions. “ESG models should not be a black box for end users, but only through transparency can they gain credibility,” says Mr Ahlbom.
Data provided by third-party providers is scrutinised against in-house proprietary thematic research, which identifies future trends and transition in sustainable themes. This allows the Swiss bank to build a “forward-looking transition element” into its ESG model, covering both the track record of a company and its expected sustainable development in the future. Too often ESG frameworks rely on data points that offer a snapshot of the status quo, and sometimes are backward looking, says Ms Ahlbom.
Building a narrative based on “data points of varying quality, frequency and type is more challenging than only working with traditional financial data”. But this does not mean ESG solutions should be more expensive than traditional investments, he says, despite the ongoing war for ESG talent. “ESG solutions just require time and thorough analysis and design, like any new investment framework being created.”
The bank’s ESG methodology and reporting is still “quite new and in early stages”, acknowledges Mr Ahlbom, expecting a “gradual steady growth” towards sustainability as wealth shifts between generations. Improvement of data quality and the emergence of new types of ESG providers and data, such as satellite data, will allow the fine tuning and extension of the ESG framework, and may lead to a “rethink” of the way certain ESG aspects are measured, he says. ET
Best private bank for use of RegTech (global)
Deutsche Bank International Private Bank
Since 2019, Deutsche Bank International Private Bank has developed an internal tool that covers the entire ‘know your customer’ (KYC) process, automating a number of manual tasks and reducing paperwork by up to 30 per cent. eKYC provides client advisers in wealth management with a function that documents the risk assessment process of the customer and enables the electronic signature at all levels of approval.
eKYC is active in Germany — with more than five hundred users — and is planned to go live in the UK, Luxembourg and Switzerland shortly. Although it is an internally-built solution, the tool employs “state-of-the-art technology”, recorded zero outages in 2022, claims Deutsche, and saves expenditure on external vendor fees.
Furthermore, the bank’s digital portfolio management technology allows its portfolio managers and client advisers to benefit from real-time portfolio risk metrics and performance calculations, enabling them to make better informed investment decisions. Advanced data points — including stress test results on both actual and simulated portfolios — can be obtained within seconds, providing additional input into the risk assessment process.
“In the International Private Bank, we see ourselves as the house of choice for entrepreneurs, wealthy and affluent clients,” says Sandra Wirfs, the bank’s chief operating officer. “Our clients’ needs and behaviours vary and have changed rapidly in recent years. We set out to get closer to our clients, to be faster and more nimble in delivering to their needs and, above all, to stay ahead as the banking industry evolves. This means re-imagining how our clients bank with us, as well as simplifying and digitalising our product offering and services.”
She adds that the bank has mitigated many of the traditional challenges to innovation, including long development cycles and slow time-to-market. However, it still has a wide suite of internal applications and infrastructure, which are on different development paths and must accommodated within its digitalisation programmes. Normally, it does this by using application programming interfaces and data marts to isolate application development. JM
Best private bank for cyber security (global);
Best private bank for digital portfolio management in Europe
Santander Private Banking
Recognising that cyber security is a growing concern for clients, and one of the biggest global risks today, Santander has taken stringent measures to protect digital tools and platforms that are critical to its wealth management business, while also introducing initiatives to raise cyber security awareness, providing tools to help all stakeholders, including clients, employees and partners, promptly detect and report cyber attacks.
These include internal and external cyber communication campaigns, such as one featuring tennis champion Rafa Nadal, cyber security training, which is compulsory for employees, as well as ethical phishing exercises, conducted every year and customised for different functions depending on risk level.
To improve cyber security, the Spanish bank also strengthened the analysis of steps taken by cyber criminals in their attacks and implemented specific controls at every stage. “It is important to drive innovation through the implementation of advanced technical capabilities across all entities in Santander, working as one big cyber team,” says Guillermo Veiga, chief technology and operations officer for wealth management and insurance at Banco Santander. “Cyber security is a global problem that needs to be faced with the same approach in a global business such as Santander Private Banking.”
The rise of digitalisation opens new opportunities for cyber criminals, growing in number and sophistication. “Cyber security is a never-ending race. There are always new challenges to face, and we have to improve and mitigate risks faster than they’re growing.”
And it is an unfair battle, he adds. “Cyber criminals only need to exploit one vulnerability in a moment to achieve their goals, while cyber defenders need to defend against all vulnerabilities all the time.”
Among other digital initiatives, last year in Spain and Portugal the private bank launched a new discretionary management service to help bankers generate investment proposals aligned with the client profiles, while allowing clients to select their preferred investment themes.
In Poland, in the investment advisory service, the banker application has introduced the automatic rebalancing of clients’ portfolios, to align them with the bank’s recommendation.
In Spain, Santander also launched its first robo-advisory service to cater to self-directed clients, while progress was also made in the area of environmental, social and governance reporting, using natural language processing and machine learning. ET
Best private bank for big data analytics and AI (global);
Best private bank for use of technology (global)
Citi Global Wealth
Citi Global Wealth prides itself in placing innovation “at the heart of its business model and strategy” to support advisers and improve the client experience, recognising technology increasingly represents an important selection criterion for wealthy families.
While no wealthy family or family office would prioritise capability over performance, the lack of digital capability would be “the rock in their shoe, a constant and nagging issue”, says Phil Watson, Emea chief innovation officer, head of platform development and innovation at Citi Global Wealth.
Moreover, given the constantly advancing state of technology, “wealth managers not adopting a state of constant and persistent ‘levelling up’ will struggle to compete against peers,” he adds. “Lack of digital capabilities and technology would not just lead to subpar user experiences, but also to struggles with performance, range of products and services, ultimately weeding out those providers as key players anyway.”
Through the platform development and innovation team, the bank leverages digital and data capabilities, which complement its low client-to-banker ratio, increasing the quality of engagement with clients. The team’s purpose is “to support and accelerate transformative change” to improve investment experience for clients and advisers.
The integration of systems and data sources aims at providing “simple and seamless functionality” for bankers and advisers, allowing the identification, management, and delivery of investment ideas to clients.
The bank has continued the integration of the customer relationship management tool Salesforce and its proprietary decision management platform, Idea, which provides portfolio risk management, client management advice and data-driven insights using big data and artificial intelligence tools for clients globally.
Within Salesforce, the global bank has implemented new capabilities, including the use of dashboards, which allow bankers to see real-time updates on client relationship management in a consolidated way. More than 10,000 investment opportunities have been made available to help bankers manage opportunities for clients, helping them anticipate and respond to their most pressing needs, such as a large liquidity event.
Among other initiatives, Citi has rolled out order management systems globally and implemented yield enhancement strategies, while introducing a functionality in client systems to allow clients to share their pain points.
The bank also further enhanced the digital client prospecting tool, delivering many new features to support business insight and lead and prospect generation.
While appreciating the critical importance of partnerships, collaboration and diversity of opinion, Citi claims to have created a culture of innovation including several programmes to encourage innovative thinking, such as client councils and a growth board that reviews new ideas to address pain points and client experience.
“Our clients expect us to be on top of the various trends, and to help position them appropriately, for their investment portfolios and businesses,” says Mr Watson. Citi has been spending significant time on understanding the applications of AI and ways to invest in it. “This is a multi-year theme with plentiful opportunities.” ET
Best private bank for culture and vision (global)
BNP Paribas Wealth Management
Since the launch of its customer experience programme in 2017, BNP Paribas Wealth Management’s vision on innovation has been based on co-designing digital products with clients, with a strong focus on client feedback. Local incubators, or design factories, create an ideal environment for staff members and experts from fintechs to work together to improve the client experience. The innovation culture is also encouraged by ‘agile ways of working’ fostering collaboration, and empowerment of small teams.
The French institution relies on three factories in Singapore, Switzerland and Luxembourg for its international sites. Also, ‘agile tribes’ cover all domestic markets “as it is important to have local innovation teams close to private bankers and clients,” says BNP Paribas Wealth Management chief digital and data officer Mariam Rassai.
“The partnership with fintechs is part of our programme’s DNA,” she adds, with partners including big vendors like Docusign for electronic signature, but also start-ups like Raise Partner for strategic asset allocation.
The drive towards digitalisation comes both from top management and digital teams. “It is this joint impulse that creates momentum and leads to concrete innovation projects,” explains Ms Rassai.
While digitalisation is promoted to clients through various channels, the bank has appointed ‘digital champions’ among employees to spread the digital culture and introduced new digital training sessions for relationship managers.
“The most underestimated factor when it comes to spreading a digital culture within a private bank is probably private bankers’ engagement,” admits Ms Rassai. “Starting from private bankers’ pain points is a good way to onboard them.”
But failure is a necessary part of the innovation process. “Our motto is ‘play to win’, and if you fail, fail fast,” she says. Product ideas are tested first through proof of concepts and minimum viable products and, for each new feature launched, a pilot phase is used to collect feedback and adapt, if needed.
“The biggest challenge towards digitalisation is to continue innovating and leveraging on latest technologies, while keeping standards of security and data privacy at the top of our requirements,” says Ms Rassai. It is also key to anticipate future developments.
“Technology is evolving constantly, and tomorrow’s innovation will transform the way we work and interact, and our vision needs to take these future changes into account.” ET
Best digital innovator of the year in Australasia
Westpac private bank
Digital innovation sits at the heart of Westpac Private Bank’s approach to doing business. From investments in hard infrastructure to the rollout of new products and services, the pursuit of digital excellence has underscored much of the private banking division’s growth in recent times.
The success of a fresh digital onboarding process, which offers new private banking clients an efficient and tailored service experience, is a case in point. By cutting out manual processes and paperwork, Westpac has slashed its client onboarding time by a considerable margin.
Beyond this, investments to digitalise lending processes have improved clients’ ability to self-service, while accelerating times to decision for specific loans.
Westpac is keen to sing the praises of its Global Investment Services (GIS) offering. Billed as a “complete digital investment ecosystem for self-directed high net worth clients”, GIS offers a range of domestic and global investment opportunities, including wholesale bonds, fixed income, domestic and global equities, as well as venture capital and structured and alternative
products.
“Our clients need to be able to do business with us simply and efficiently, while still experiencing the personalised service our private banking team excels at,” says Ashley Stewart, managing director, Westpac Private Wealth.
“Over the last year, we’ve delivered a range of new technologies to enhance our clients’ experience, including digitising lending processes and our self-directed investment offerings. This means clients can enjoy a more efficient lending experience and invest on-line directly with us - where, when and how it suits them,” he adds. JK
Best client reporting platform in Asia;
Best private bank for digitally empowering RMs in Asia
Bank of Singapore
Bank of Singapore’s client reporting platform (CRP) offers clients a “complete solution” to help them make decisions about their wealth, irrespective of time or location.
An “agile development approach” is used to fulfil the core design tenets of the platform which brings together expertise from across the organisation, including the user research, product, business and technology teams. This has helped Bank of Singapore to unveil a series of enhancements to its CRP over 2022 to augment the client experience and minimise manual input from the bank.
Issuance of client statements has been automated. “Our digital transformation journey is about getting the basics right and building for the future,” says Sonjoy Phukan, global chief operating officer, Bank of Singapore. “The biggest challenge for us is to balance clients’ desire for a seamless digital experience while maintaining the exclusive personal touch.”
In addition, better portfolio visualisation to help track performance in the client front-end has gone hand in hand with highly tailored insights that alert clients to events impacting their portfolios. “We must place client experience at the heart of our transformation strategy, and continually embed it in our organisation’s DNA,” adds Mr Phukan.
The Asian market is no picnic when it comes to innovation. Bank of Singapore is pushed by local rival DBS in Singapore, plus global players UBS and JP Morgan, all prioritising digital channels. JK
Best CRM for private banking in China
Industrial Bank co, ltd
The evolution of the Chinese economy, including growth of high technology sectors, is contributing to the rise of new types of high net worth private banking customers. Industrial Bank Private Banking has responded by implementing an updated relationship management system that incorporates a mixed public-private strategy.
This includes provision of services for traditional clients, such as credit, asset management and inheritance offerings, while also engaging specific requirements of new private banking-associated enterprise clients. In 2022, Industrial Bank Private Banking initiated a complete upgrade of its business management system to reflect these changes, including creation of a blended public-private database by gathering relevant corporate finance and retail data.
Through use of artificial intelligence and big data analytics, “diverse and sophisticated” profiles for customer positioning were established in the new business management system. Yet Industrial Bank Private Banking’s progress has not come easily. The complexity of the task invited a number of difficulties related to the integration of retail and corporate finance data.
“The biggest challenge is to get through the customer and business data of the corporate finance and retail business lines,” says Xuxian Dai, general manager of Industrial Bank Private Banking. “In order to solve the problem of data isolation, the private banking department actively introduced the data of corporate finance businesses from the perspective of a mixed public-private strategy and cooperated with the data analysis laboratory to conduct underlying data governance.” JK
Best CRM for private banking in Asia;
Best private bank for use of technology in Asia
DBS Bank
By integrating a client 360 degree view of data and incorporating AI/machine learning into every aspect of relationship management, DBS Bank’s digital platform has achieved “hyper-personalisation at scale”, generating “invaluable insights that empower relationship managers to have meaningful client conversations,” explains Royce Teo, DBS Bank’s group head of cognitive banking and martech.
The design of the in-house customer relationship management (CRM) system, Client Connect, is based on the active participation and feedback of relationship managers (RMs), which is automatically analysed, summarised and integrated back into the bank’s decision engine. This continuous refinement process allows generating more relevant and personalised insights. “This collaborative approach enables us to address the actual pain-points effectively, ensuring optimal functionality,” says Mr Teo.
Insights provided to RMs, though, are not meant to encourage “a tactical product push” and are generated from the client perspective, with the emphasis on “fostering long-term, sustainable relationships”.
An important capability of the CRM platform is the Next Best Conversation (NBC), proactively triggering customer engagement.
Leveraging AI/ML capabilities, the bank utilises 16,000 data points and has launched more than 150 distinct use cases across markets. “With NBCs, RMs are equipped with meaningful talking points, reducing time and effort in determining which customers to contact and what topics to discuss,” says Mr Teo.
Moreover, introduction of NBCs has driven significant increase in client engagements conducted by RMs, enabling them to reach out to those they may not have previously interacted with.
The biggest challenge in implementing the platform, seen as the primary workbench for all the bank’s frontliners across segments and markets, has been diversity of expectations and needs for different departments onboarded onto the platform.
“Making sure our modules and functionalities were broad enough to cater to everyone’s needs and yet specific enough to improve productivity over existing processes, has been a constant challenge as we scaled,” acknowledges Mr Teo.
The Singaporean bank emphasises continuous online-to-offline journeys for clients, to drive satisfaction. “By leveraging innovative technologies, we aim to provide an omni-channel banking experience that is consistent, harmonious, and highly responsive,” says Mr Teo.
This is an interesting time for DBS, which is adding expertise in generational transfers to its traditional technology and trading menu. Analysts say this is to attract customers affected by the Credit Suisse implosion. ET
Best private bank for digital marketing & communication in Asia
Axis Bank
In December last year, Burgundy Private, Axis Bank’s private banking arm, launched the 2022 Burgundy Private Hurun India 500, which acknowledges India’s 500 most valuable companies.
The bank launched the ranking in partnership with the Hurun India research group, ranking companies according to their market value. In this second edition of the report, companies both from the traditional economy and India’s vibrant new age start-up space made the list. While most reports on wealth creation in India focus on the entrepreneur, the India 500 report emphasises these companies’ value creation journey.
Burgundy Private is also using the LinkedIn Sales Navigator platform to execute its online strategy and build on the India 500 report in order to acquire new clients. The platform enables virtual selling by allowing sales professionals to build and maintain relationships with their buyers at scale.
The private bank’s client acquisition strategy involves leveraging Axis Bank’s vast “internal ecosystem” across its investment banking, corporate banking and retail lending businesses and across geographies. The internal client ecosystem includes more than 4,000 ultra-high net worth and high net worth families.
“Right from the start of its journey, Burgundy Private had to adopt a digital strategy in client outreach and acquisition strategy,” says Anoop Manohar, the bank’s chief marketing officer.
Satheesh Krishnamurthy, president and head, affluent business at Axis Bank, adds: “Burgundy Private has seen exponential growth and is well poised to capture the growth projected in the UHNW segment in India. As a bank, we continue to make significant investments in our private banking business in terms of people, systems and infrastructure.”
One of Axis Bank’s biggest current challenges is integrating Citibank India’s former consumer business. Axis completed its acquisition of the business in March 2023 and 3,200 employees in Citibank’s former consumer business have now been transferred to Axis. JM
Best private bank for building client communities in Asia
Kasikornbank PCL
During 2022, Kasikornbank PCL was not so much focused on fresh innovation but on converging all the innovation it has carried out over recent years into a more “integrated space”. All content, messages and style need aligning across platforms. Content ‘squads’ made up of staff from various areas of the bank played a crucial role in achieving this and were the key to successfully building a digital client community.
Jirawat Supornpaibul, executive chairman, private banking group at Kasikornbank PCL, says a number of factors are important to building a successful client community. “First, you need to have insights into the digital needs and lifestyle of clients. What digital channels are they familiar with? What is the purpose of using the platform? Any pain points or key benefits? This is all localising knowledge which differs by country. So, each company needs to understand and accumulate its local insights,” he explains.
“Second, you need to truly understand the nature of each digital platform. What are the key strengths and limitations? A popular social media [platform] might not fit with all kinds of information especially sophisticated information such as financial knowledge.”
Kasikornbank Private Banking “gently” integrates itself into a client’s digital lifestyle, claims Mr Supornpaibul, changing its offering to match their digital lifestyle. Technology must help clients to achieve their goals more easily and more quickly.
He adds that one of the bank’s challenges is making its message stand out from competitors, since there are many players — not only financial institutions — in the digital market . Clients also have a limited attention span. “It is a fast-shifting digital world. Therefore, it is necessary to stand out in digital performance. We plan to create more dynamic but manageable digital communities,” he says. JM
Best private bank for big data analytics and AI in China;
Best private bank for client acquisition in Asia
ICBC Private Banking
Harnessing client data held at the bank, as well as publicly available information, ICBC Private Banking has identified relationships between private banking and corporate clients, to help advisers target customers (and prospects) more effectively and holistically, leveraging synergies between the group’s corporate and private banking divisions.
Around 70 per cent of ICBC’s private banking clients are entrepreneurs, and ICBC claims it is one of the banks with the largest number of corporate clients in China.
The exercise was carried out through “a cutting-edge graph database technology” aimed at discovering “explicit and implicit relationships in big data”, says a spokesperson from the bank’s tech team.
The project has helped bankers acquire new private clients among corporate customers, while also allowing them to understand private banking clients’ needs for corporate banking services, such as financing.
The biggest challenge “is data governance and customer information integration”. How to clean and manage client data, integrate customer information in different systems, and effectively associate internal and external customer information are all key factors that determine the effectiveness of the model.
The launch of a private banking passport, the Junzi Passport, has helped the Chinese bank enhance client loyalty and satisfaction.
The virtual card verifies and protects the online identity of clients and is designed to attract a new generation of customers. Clients can obtain a personal non-fungible token to prove their identify and enjoy a broad range of services offered by the bank. Through partnerships with merchants, the tool gives access to offline activities, such as lectures by experts, forums for entrepreneurs and movie premieres.
Artificial intelligence (AI) and machine learning (ML) are both used to enhance portfolio management. Given client risk return profiles, which determine asset allocation in portfolios, ML matches Know Your Customer with Know Your Product information, while AI recommends suitable investment products based on data around customer interests. The biggest risk, says the spokesperson, is the “black-box nature of AI calculation” and bad interpretation of model calculation. ET
Best private bank for digital customer service in Asia;
Best private bank for self-directed investments in Asia
HSBC Global Private Banking
In Asia, HSBC Global Private Banking (GPB) has invested more than $100m in core private banking and digital platforms over 2021 and 2022, with more funding allocated to continue the journey this year. The bank has further enhanced and connected its core digital capabilities to create “a seamless client journey”, including extending HSBC GPB eSignature to new-to-bank clients and enabling personalised investment insights sharing via HSBC GPB Chat. This is a client messaging platform allowing customers to interact with relationship managers and investment counsellors through the channel of their choice, including WhatsApp and WeChat.
The bank has also expanded the product shelf of its online trading platform, allowing clients to structure their own fixed coupon note and equity linked note. This year, it has launched a discretionary digital platform, the first institution in Asia to offer discretionary portfolio management on a mobile app. Its goal is to target the fast-growing segment of the underserved affluent-to-high net worth investors, especially next generation clients who are more hands-on in portfolio construction.
In Asia, more than two-thirds of HSBC Global Private Banking’s clients are digitally engaged, while more than 40 per cent of equity execution-only trades in Asia are completed online.
“The availability of digital capabilities has allowed our relationship managers and advisers to spend more of their time deepening their understanding of their clients, proactively propose investment ideas, and provide more frequent updates to our clients, which is crucial and highly valued, especially during current turbulent market conditions,” says June Yong, regional head of client service executive at HSBC GPB.
Digital capabilities are enablers of better client experience, but they do not change clients’ needs for bespoke solutions and advice, she adds. “Client preferences remain deeply personal. Many want to interact with us in an entirely digital way that is customisable to their needs, others value the deeply personal connection that can only be delivered by a relationship manager.” Bankers leverage client data to help them understand the distinctive personas within the client base, as well as their unique needs.
“Our client experience vision is to provide hybrid and personalised journeys based on our clients’ individual needs,” adds Ms Yong. ET
Best private bank for digital portfolio management in Asia
CTBC Bank
As a new age of artificial intelligence (AI) dawns for the global economy, CTBC Bank stands apart as an early adopter of the technology. Having recognised the benefits of AI for its customers, the organisation has developed an AI-driven robo-adviser, known as an iMAP, that offers high quality and personalised wealth management service for its clients.
iMAP’s numerous capabilities include simulating the decision-making functions of professional investment analysts, executing self-generated investment strategies, understanding and framing market risk, the optimisation of asset allocation and data analysis, including key customer data and financial market data. The outcome is an offering that can propose and execute a client-specific portfolio management service in minutes.
CTBC Bank’s iMAP can be deployed to support the mass affluent and wider customer markets through a robo-managed account and robo-advisory, while a “digital with a human touch” offering can help wealth management team members support customers by increasing their access to key financial information.
Nevertheless, as with all new and evolving technologies, risks and challenges are emerging in AI that CTBC bank will have to navigate over the coming years. It therefore helps that iMAP has been fully developed in-house.
“Our mission is to let customers have a good investment experience,” says Amy Yang, chief executive officer of retail banking at CTBC Bank.
“[Our] three pillars are knowing customers better than him/herself, being more forward-looking and providing useful information at the right time. Our AI algorithm analyses different aspects of customers, market, and product data to achieve a personalised portfolio management service.” JK
Best digital innovator of the year in China
China Merchants Bank
China Merchants Bank’s digital innovation ambitions are extensive: in the first half of 2022 alone RMB5.36bn ($760m) was spent on financial technology to help develop digital operating models within the business. These ongoing investments sit alongside a financial technology innovation project fund which has, over time, emerged as something of an in-house tech incubator.
This commitment to innovation has delivered benefits for China Merchants Bank’s private banking clients, including improved customer experience and enhanced wealth management options. The provision of a digital platform for asset allocation, for example, ticks both of these boxes by offering customers intelligent analysis of market data, while helping to locate new investment opportunities and generate investment advice.
Yet, being at the forefront of digital innovation comes with a unique set of difficulties. As the organisation executes its ongoing digital transformation against a backdrop of accelerating technological change, the pressure to keep up with – and ultimately harness – new digital innovations is growing.
“China Merchants Bank’s private banking division is confronted with several key challenges in its digital transformation journey. Firstly, how to keep pace with the advancements of large language models and leverage them to enhance the efficiency and innovation in investment research,” says Wang Yanrong, general manager of China Merchants Bank’s private banking division.
Other digital growing pains include developing a truly digital experience across the entire customer investment journey, as well as working towards end-to-end digitisation for internal operations, according to Ms Yanrong. Despite this, China Merchants Bank private banking division’s track record of digital innovation means it is well positioned to face these, and other challenges, in the future. JK
Best digital innovator of the year in Asia
Taipei Fubon Bank
A good example of Taipei Fubon Bank’s innovative digital approach is its trailblazing use of artificial intelligence (AI) technologies in fraud prevention, the first private financial institution in Taiwan to do so. Following six months of integration of back- and front-end systems, the bank has successfully developed an AI-driven fraud prevention model. It has significantly streamlined and improved its fraud prevention process, eliminating need for branch clerks to manually review thousands of suspicious transactions.
“Digitalisation is transforming Taipei Fubon Bank’s business model by improving various aspects of its operations, from fraud detection to transaction monitoring and financial product risk assessment,” says Pei-Ling Tsai, the bank’s executive vice-president and head of anti-money laundering department. “This transformation supports the bank’s growth and aids financial/professional advisers by offering faster and more secure services to clients, ensuring a positive customer experience.”
The bank plans to continue innovating digitally by rolling out more digital technologies and leveraging ‘scenarios’ to improve the breadth and depth of its financial services offering. Scenario finance aims to provide customers with the right services at the right time and place, integrating financial services into consumers’ daily lives. The bank plans to use a 360-degree view of customers’ behavioural data to launch AI banking services, offering a customised interface and a personalised financial service.
One of the biggest challenges relates to fraudulent schemes, says Ms Tsai, which are constantly evolving and make it difficult to distinguish financial transaction patterns of normal customers from fraudsters. Scammers often withdraw large amounts of cash at ATMs after the victims transferred the money. However, small and medium-sized enterprises, wholesalers, or young professionals who live from pay cheque to pay cheque often share similar transaction characteristics, making it hard to know if the transaction is legitimate. JM
Best private bank for big data analytics and AI in Asia
Taishin International Bank
Big data analytics and artificial intelligence in the wealth management sector are opening the door to new growth opportunities for a range of service providers.
In the case of Taishin International Bank, deep learning algorithms and data are harnessed to boost personalisation of customer offerings and experience journeys. This is helping marry specific customer needs with the suite of products and services that Taishin offers through a convenient “financial ecosystem”.
But deploying high-end technology across the business is not without its challenges; in particular, the need to embed a culture of innovation across all departments is paramount. “The application of cutting-edge technology is one of the key strategies of digital transformation that Taishin attaches great importance to,” says Jocelyn Chiang, senior vice-president, segmentation division, Taishin International Bank. “Continuous innovation that leads the market is in our DNA and is a core value of Taishin.”
To ensure complex new product offerings and underlying strategic approaches to doing business are integrated across Taishin International Bank, unique organisational strategies are used including cross-departmental co-operation. “According to the different phased tasks of the project, [we] select suitable skilled members from various departments to collaborate, reduce the time cost of cross-departmental operations, accelerate overall efficiency and improve quality,” says Ms Chiang.
In addition, Taishin International Bank employs an agile development approach for new products and services. “We establish a short development cycle, carry out project development in a gradual manner, and then gradually adjust and back-test according to customer feedback,” she says. JK
Best private bank for digital customer service in the Middle East
Mashreq
The United Arab Emirates’ private banking market is experiencing rapid change, as a new generation of digitally native wealth management clients accelerate the industry’s ongoing digital evolution. Yet Mashreq Private Banking is ahead of the curve in this respect, having invested heavily and consistently in its digital customer service offerings for some time.
Today, clients can easily open multiple accounts to meet a range of objectives, from trading and investment, to money transfer and lending. This can be achieved through a single channel and with minimal administrative pain-points. Mashreq Private Banking hosts a ‘document vault’ for all customers, meaning this information does not need to be gathered and resupplied each time an account or other facility is opened. In addition, Know Your Customer requirements are fully digitalised.
The bank has also revamped client-facing channels for a superior “digital experience”. In the competitive UAE market, characterised by savvy and discerning customers, these measures are vital to maintaining market share and forward growth momentum.
“Mashreq private banking maintains its market-leading and future-ready approach to digital innovation in a highly competitive market through several key strategies. Firstly, the bank consistently invests in cutting-edge technology and infrastructure, ensuring it stays at the forefront of digital advancements,” claims Vipul Kapur, head of private banking at Mashreq.
“Secondly, it prioritises a customer-centric approach, leveraging data analytics to deliver personalised services and experiences. Thirdly, it actively collaborates with industry experts to identify emerging trends and opportunities.” JK
Best private bank for use of technology in Africa
Investec
Investec is implementing a “deliberate application programming interface strategy” that allows for the secure exchange of information and integration of business capabilities, both internally and externally.
It allows business clients to use universal plug-ins — for example, enterprise resources planning solutions — while its private clients can access bank features in real time, through direct integration into their own systems. This approach not only improves their operational efficiencies but enables programmable banking functionality, allowing them to personalise rules on items like bank cards, for instance.
“We’ve introduced a number of new capabilities to our clients during the past year and our intention is to continue doing so,” says Lyndon Subroyen, Investec’s global head of digital and technology.
“Some of the most exciting enhancements include a further iteration on our best-in-class client digital experience with a new data-driven set of dashboards and user journeys on both our browser and mobile app suites, enhanced external aggregation capabilities, leveraging ‘open banking’ to allow clients to see their full financial position all in one place, and further product launches through our self-directed digital investment capability.”
He adds that Investec is focused on “getting our head in the clouds”, by developing a cloud-first strategy that enables a scalable business model, which provides a better client experience and improves time to market. It increases economies of scale and helps clients to drive their business growth objectives with ease.
“The rapid pace of technology advancement often means we have to be very selective on what we invest in,” says Mr Subroyen. “This is both to manage risk but more importantly to ensure we deliver the right innovation for our clients. After more than a decade of a fintech/digital arms race, one can easily be seduced by the next big thing, so it’s incredibly important to focus on the needs of your clients, aligned with the proposition they would expect.”
Many commentators feel the regulatory environment can pose challenges but Mr Subroyen is equally of the belief that it has created opportunities for innovation by catalysing innovation through progressive policies. JM
Best private bank for digital customer service in Central and Eastern Europe
Akbank Private Banking
In 2022, Akbank Private Banking implemented new investment products and applications that enable its clients in Turkey to invest in equities and companies which have just listed on the stockmarket.
Its clients can execute foreign equity and warrant transactions through Akbank Mobile. Clients can follow the markets with real time data through its Yatırımcı mobile app and, at the same time, can easily manage their investments by viewing technical analysis and research reports.
Akbank’s account statement and portfolio performance reports enable clients to have a clear picture of portfolio balances and performance details. These reports are available in Turkish and English on Akbank Mobile.
Ak Asset Management, affiliated to Akbank Private Banking, has designed and launched a capital protected, foreign currency-based portfolio management product, Döviz Plus, an important innovation in the Turkish market. It aims to fix the foreign exchange-based return while allowing investors to take advantage of extra returns in line with any appreciation in the Turkish lira.
“Digital Leadership in wealth management has been one of the main focus areas with the aim to respond to clients’ changing behaviour and expectations and offer a premium client experience with the products and services of the future,” says Dalya Kohen, executive vice-president at Akbank Private Banking and Wealth Management.
However, Fitch Ratings says Akbank is exposed to significant operating environment pressures, reflecting heightened risks to macroeconomic and financial stability in Turkey, amid policy uncertainty, very high inflation and external vulnerabilities. Further uncertainty stems from the impact of the recent earthquake. An array of macroprudential regulations imposed by the government on banks further add to the challenges of operating in the Turkish market. JM
Best private bank for digitally empowering RMs in Central and Eastern Europe
Yapi Kredi
Yapi Kredi Private Banking’s strong position in Turkey’s wealth management market is mirrored in its growing customer base, as well as the value of its assets under management. This ongoing success is, in part, attributable to the professionalism of its relationship managers (RMs) that the business describes as the “backbone” of its growth story.
In recent years, a full suite of digital channels and devices have been given to RMs to empower their customer engagement. This includes iPads, video conferencing tools and digital mobile propositions designed to assist customer visits by permitting the signing of documents and new account openings.
Upgrades to private banking branches have also seen new digital tools, including flatscreens and digital onboarding capabilities, rolled out across the physical network to support relationship managers and improve the customer experience.
Moreover, Yapi Kredi Private Banking has launched a training and development programme known as “Relationship Managers 2.0”, in which RMs are offered a standalone technology module, equipping them with new digital expertise and knowledge linked to investment topics.
“We continuously invest in empowering our relationship managers by introducing new functionalities, offerings, and infrastructure as well as by undertaking custom RM development programmes that aim to provide RMs with new skills in order to help them meet the requirements of the changing world/customer needs, new technologies and feel comfortable with new social dynamics while engaging with the next-generation customers,” says Seda İkizler, executive vice-president, private banking and wealth management at Yapi Kredi. JK
Best digital innovator of the year in Central and Eastern Europe
Bank Pekao
Bank Pekao — one of the biggest financial institutions in central and eastern Europe and the second largest universal bank in Poland — has been trailblazing an array of new technologies and claims to be the world’s first financial institution to tokenise works of art.
Its product, UNIQUE, combines tokenised art with a credit card. The cards are in a ‘limited edition’ format and only 440 have been offered, each with a distinctive, individual design. Cards are delivered to clients in a special, custom-made frame and a tokenised version of the painting is available virtually.
The bank has also introduced the PeoPay app, constantly updated to respond to needs of users. Customers can manage bills and cards on the app, pay for purchases, take out a loan or exchange currency. In 2022, additional personalisation options were added to PeoPay, including new widgets for investment products and the Mastercard Priceless Specials loyalty programme.
“We are excited to offer personalisation options that allow our customers to tailor their banking experience to their unique preferences,” says Michał Walęczak, the bank’s chief operating officer and strategy and development director, private banking strategy and development department.
“With the ability to customise profiles, choose themes and set up customised shortcuts, our customers can easily access the features that are most important to them. This level of personalisation ensures that our customers feel in control of their banking or investing experience and can easily navigate the services we offer.”
He adds that the bank must overcome challenges relating to security, privacy, integration with legacy systems, user adoption, regulatory compliance, technical expertise and cost. The best way to achieve this is through careful planning and collaboration and a commitment to innovation, says Mr Walęczak. JM
Best private bank for digital marketing & communication in Europe
CaixaBank
The development of capabilities to improve the identification of customers, as they are impacted by external media campaigns and subsequently navigate cross-channel, allowed CaixaBank to reach a larger client base than through traditional methods and target prospects more effectively.
Activation of commercial landing pages within the CaixaBank mobile app improved the customer navigation experience and increased sales generated by the mobile channel, explains Victor Allende, head of CaixaBank Private Banking.
Implementation of a demand-site-platform to automate media buying and then, last year, for managed portfolios, enabled optimisation of campaigns and investment costs.
Using new channels such as Amazon, where CaixaBank customers are identified thanks to Amazon data on CaixaBank cardholders, has produced positive response rates. Sales generated through campaigns on digital channels increased 11 per cent year on year, with those of funds and managed portfolios rising 63 per cent.
The bank leverages big data to identify potential customers and segment the client base. Current client segmentation into three groups, according to their current and future potential, “helps focus customer service better and allows us to offer a value proposition and level of service more suited to their characteristics,” says Mr Allende.
It also supports the business in directing its commercial efforts.
But issues arise when gathering and using data for marketing, reporting and communication. “AI is usually biased, and this can be a challenge when using data for communication,” says Mr Allende. Together with other firms, CaixaBank recently launched the Green.Dat.AI European Project, aimed at improving energy sustainability of AI, including a proposal to avoid potential biases when using AI in fraud detection.
Also, in 2022, CaixaBank reinforced prevention, detection, and response controls to prevent cyber-attacks.
The bank has profiles on LinkedIn, Instagram, Twitter, Spotify and YouTube, with a community of 10,000 followers. One in three CaixaBank digital customers use its AI chatbot to communicate with the bank, with an average of more than 50,000 questions per day. “This improves not only communication with clients, but also our employees’ knowledge and capabilities, helping them in their daily tasks,” says Mr Allende. ET
Best CRM for private banking in Europe
BPI
During recent years, BPI has made significant investments in improving digital tools, which has paid off in terms of enhancing digital customer service.
Its customer relationship management (CRM) system is based on BPI GoBanking apps, its state-of-the-art platform which allows relationship managers (RMs) to access resources needed for client activity on a daily basis. The information is organised on four different apps. Two apps aggregate information at a client level, providing a comprehensive overview, including total assets and accounts, sales opportunities, digital channel access, business potential and relationships with other clients.
The apps enable RMs to register interactions with clients, access background details of the entire relationship and track open and closed opportunities.
The other two apps allow RMs to have information at a portfolio level, reflecting evolution in terms of number of clients, assets under management and type of products. These tools identify opportunities — not only by looking at clients’ interests but also by using models to identify clients likely to buy certain types of financial products based on past expenditure profiles.
“BPI’s business model has been significantly transformed by digitalisation, as it has allowed the bank to operate more efficiently and effectively, while also providing a better experience for clients,” says António Luna Vaz, BPI’s private banking executive manager. “Digitalisation has enabled BPI to restructure processes and systems, resulting in improved accuracy, increased speed and productivity and cost reduction. These improvements have created new business opportunities and allowed BPI to expand services and reach new markets.”
He adds that the financial industry has been traditionally slow to adopt new technologies, owing to stringent regulations and data privacy concerns. One of the biggest barriers to developing new apps and CRM technologies is ensuring compliance with regulatory requirements.
Another challenge relates to developing digital tools and technologies that appeal to different generations of clients, explains Mr Luna Vaz. In the private banking sector, the client base tends to be older and less frequent adopters of new technologies. JM
Best private bank for self-directed investments in Europe
Millennium Private Banking
Millennium Private Banking’s proposition for self-directed investors, known as MTrader, is compelling; clients have real time access to tradeable financial instruments, including shares, certificates and warrants, in some of the world’s leading markets. The platform has been developed to be easily navigable and offers, among other things, a heatmap visualisation of investment positions and profitability.
MTrader also incorporates a number of innovative technology offerings, including the use of streaming data for the use of stock quotes and orderbook information. As a result, it has been a hit with customers. “The MTrader platform has become highly popular among our customers, accounting for 90 per cent of all orders,” says Rui Coimbra, private banking general manager at Millennium Private Banking.
Though MTrader is an omni-channel offering, private banking clients have taken a shine to the mobile banking application; the overwhelming majority of orders executed by customers take place through this medium.
“To us, the fact that, within the platform, the mobile app is the key driver of this popularity demonstrates that customer time is a scarce resource: although willing to allocate time to discuss investment possibilities, ‘execution customers’ are not keen on spending time to implement them,” says Mr Coimbra.
Since its launch, MTrader has demonstrated sustained growth in terms of its number of active users. Nevertheless, the use of self-directed investment platforms come with a specific set of challenges for any wealth management provider; ensuring that an underlying technology stack can handle an increase in customers using the service offering is chief among them. JK
Best private bank for digital wealth planning in Europe
BNP Paribas Fortis Private Banking & Wealth Management
BNP Paribas Fortis says that a digital wealth planning approach is central to its ‘one bank principle’. It ensures clients can benefit from a full range of internal services and strong external partnerships, without need to turn to other parties for matters related to assets and their management.
It is adapting to regulatory changes that might affect estate structuring of clients. A team of 31 estate planners are at the service of private banking clients, with specialisations within tax fields, including family law and corporate law. Relationship managers are trained and skilled in estate planning and can support clients in common cases and questions.
Depending on the client, appointments with estate planners take place through Microsoft Teams, but the bank is also committed to meeting clients at home or at work.
GuiSquare, a Belgian fintech partly owned by BNP Paribas Fortis, has developed the PaxFamilia platform for the bank. It provides an accurate overview of clients’ personal situations, full assets, expectations, projects and wishes. Its key differentiators include a structured dashboard of their assets under management and an overview of managing, changing or completing assets and liabilities, with documents (in other words, a secured digital vault).
“This award confirms the success of our estate planning approach, based on a long-term vision and a profound relationship with our clients,” says Stéphane Vermeire, head of affluent and private banking at BNP Paribas Fortis. “Clients explicitly appreciate our expertise, especially for complex patrimonial structures. Our bank has a high-standard, global patrimonial approach allowing us to accompany our clients in each key moment of their life, both from a private as from a professional perspective.”
In today’s market it is challenging to remain the frontrunner and to keep innovating, he explains. “Customer needs are always increasing, not least due to an ever-more complex world under regulatory pressures,” says Mr Vermeire.
“Clients need a partner that continuously invests in expertise and hyper-performant up-to-date digital tools along with it. That requires significant commitments and capacity over the long term.” JM
Best private bank for digitally empowering RMs in Europe
Nykredit Private Banking
The business of wealth management in Denmark is changing quickly. In particular, client preferences are evolving in response to a shifting social and economic environment that is characterised by growing levels of digitisation. But Nykredit Private Banking is adapting in response to these changes, by providing its relationship managers with the digital tools to succeed in a more uncertain world.
This includes the introduction of new robots, known as Poul, Ida and Anders, that are designed to assist the wider team across a range of different tasks. Poul helps with the creation of new, standardised products for clients including accounts and cards, while Ida can track and procure documentation. Finally, Anders procures relevant information about specific customers to help team members generate a personalised overview of their situation prior to any meeting. Tools of this kind help Nykredit Private Banking’s relationship managers to advise their clients more effectively, while minimising the time spent on administrative tasks.
Meanwhile, in a move that is helping to deepen contact between the client and their relationship manager, Nykredit Private Banking has introduced new software that allows customers to view the work schedule of their banker and book meetings according to their availability. This approach lifts customer satisfaction while also digitally empowering relationship managers by easing the process of client engagement.
Private bankers are also given the opportunity to join an internal book club in which various topics, including those linked to the digital economy, are covered. This helps to upskill team members and improve their understanding of important subjects. JK
Best digital innovator of the year in Europe;
Best private bank for use of technology in Europe
BBVA Private Banking
BBVA Private Banking is employing digital innovation to drive growth, improve customer service and generate operating efficiencies across its business. It is among the vanguard of organisations using big data analytics and artificial intelligence in transformative ways. As a result, BBVA Private Banking’s growth trajectory has taken on a disruptive quality that continues to evolve in response to new operational and customer demands.
“BBVA continues to focus on new technologies such as cloud computing, big data, artificial intelligence and biometrics, which are disrupting the way we provide financial services to our clients: we are offering more personalised services, an edge that ensures our continued competitiveness,” says Fernando Ruiz Estébanez, head of BBVA private banking.
BBVA has harnessed data analytics to assess its wider customer base to uncover accounts with the potential to join the private banking business. Following the analysis, it was determined that a range of customers had the potential to become fully-fledged private banking clients: they have since joined the unit and are managed by BBVA Private Banking’s wealth advisers.
Meanwhile, BBVA Private Banking has extended its client relationship model beyond face-to-face encounters, by providing relationship managers with new remote meeting technology. This includes options for video conferences and secure digital channels for exchanging documentation and digital signing. In all cases, high levels of digital security are facilitated by BBVA Private Banking’s underlying technology infrastructure. JK
Best private bank for digital customer service in Europe
Lombard Odier
Lombard Odier has set up a digital ecosystem based on two apps, My LO, the mobile banking platform offering clients a broad range of features to manage their portfolio, and My LO Sign. The latter enables a secure client connection to the bank’s online platform, through two factor authentication, and then allows digital signature of legal documents, as well as validation of processes and transactions.
“Through the introduction of My LO Sign, we have been able to digitise several administrative processes, enhancing the client experience and improving efficiency for the banker and the back-office teams,” says Geoffroy De Ridder, head of technology and operations at Lombard Odier Group.
While meeting client expectations for a seamless digital experience is an important driver of innovation, regulation also leads to digitalisation to automate processes as much as possible, says Mr De Ridder.
US regulation Fatca, which requires foreign financial institutions to identify and disclose information on US accounts to US tax authorities, implies a “heavily administrative process” and was the “perfect candidate for digitalisation”, says Mr De Ridder. “Our clients can now confirm their details and answer the required questions through a conversational interface developed in My LO.”
The bank is now looking to digitalise key processes, such as client onboarding, and improve its online advisory offering, while also focusing on building its “next generation” IT-platform GX!.
But the journey to digitalisation is not straighforward. “One challenge is the need to balance desire for innovation and agility with need for security and compliance,” explains Mr De Ridder. “We must ensure our digital systems and processes meet the highest security standards to protect customer data and comply with the large amount of new local and international regulations.”
Lombard Odier offers its proprietary, front-office wealth management platform G2 to other financial institutions, with a focus on small and medium-sized private banks, primarily in Switzerland, and potentially in Europe. Today around 10 banking and financial groups across different countries operate on it. “By offering a platform built by wealth managers, for wealth managers, we share the benefits of the expertise and technologies we use in our own business activities,” says Mr De Ridder. ET
Best client reporting platform in Latin America
BTG Pactual
BTG Pactual launched a portfolio management tool during 2022, allowing bankers to compare in a single view fundamental data, including performance, volatility and risk. It also includes liquidity indicators relating to a client’s current portfolio, a suggested indicator created by its experienced portfolio managers and a customised recommendation, which aims to achieve better returns in line with the customer’s financial objectives and risk profile.
The bank invested in new customer relationship management (CRM) and business intelligence (BI) platforms to consolidate relevant information and analyse it better, in particular on the sales front.
“Providing clients with a complete and unique experience in financial services is a value, an essential part of our DNA,” says Rogério Pessoa, BTG Pactual’s global head of wealth management. “Our corporate culture — centred on a meritocratic partnership — combines customer focus, agility, excellence, autonomy and long-term vision.
“Our client reporting platform is a web-based solution fully developed by BTG Pactual specialists — from markets and back office teams to IT squads, in a customer-oriented and collaborative effort — aiming to offer clients the most innovative, complete and customisable reporting tool available in the market.”
One of the main challenges to developing new digital solutions is identifying and understanding the whole spectrum of clients’ preferences and expectations, he adds. It depends on financial profiles, requirements and medium- to long-term objectives in both the ultra-high net worth and high net worth segments. The main challenge is to put in place cutting-edge technology and reliable analytical information, in a single and ready-to-use platform, to support the clients’ investment decisions. JM
Best private bank for digital customer service in Latin America;
Best private bank for use of technology in Latin America
Itaú Private Bank
Itaú Private Bank has invested in several tools to enhance client autonomy and security. One of these is the ‘ion app’ offering a “complete, interactive investment experience” supported by a broad platform of investment products at a competitive price, says Itaú Private Bank’s global head Fernando Beyruti. The app takes inspiration from Netflix, Instagram and e-commerce apps.
The client’s investment journey has also become more secure, allowing them to restrict access to investment information.
“Our self-service option is a more practical tool in the client’s daily life, but by reducing operational work for our commercial team, it also allows us to focus our time and energy on engaging with clients about substantial issues such as portfolio and wealth planning,” says Mr Beyruti.
Bankers use a dedicated platform to record daily contacts with clients and are empowered by an algorithm that suggests personalised trading opportunities. Analysis of big data has enabled creation of a list of potential customers who have a relationship with other segments of the bank, which has helped private bankers expand their client base.
Itau’s technical team is organised into ‘squads’ to leverage multidisciplinary teams to streamline processes and decision-making, “contributing to a more complete integration of technology, design and business,” says Mr Beyruti.
He adds, though, that “it is always a challenge to provide an incredible digital experience for the customer while at the same time meeting regulatory requirements,” which often impose bureaucratic processes hampering the innovation process.
The private bank has a partnership with a software house to implement a platform to consolidate client assets across Itaú and other financial institutions. Since 2015, Itaú Unibanco has partnered with Cubo Itaú to foster technological entrepreneurship.
“We want people to see Itaú as an innovative technology company, like Google, Apple or Amazon, but we know we can’t change people’s view of Itaú overnight,” says Mr Beyruti. ET
Best private bank for digital wealth planning in North America;
Best digital innovator of the year in North America
Northern Trust
Drawing on its 130-year history, pulling relevant client data points from both internal and external sources, last year Northern Trust developed and launched a data-driven tool, which aims at providing “actionable” insights to both advisers and customers.
The tool helps clients and prospects make more confident financial decisions by offering information on what other clients in similar circumstances do.
In the past, information about clients existed in silos and data warehouses, but today advisers can see a panoramic view of how comparable clients have acted when faced with similar stages or events.
This data is combined with advice and recommendations from the Northern Trust Institute, comprised of more than 175 experts that analyse behavioural patterns and identify strategies that have been most effective for clients.
Its inputs flow into the bankers’ digital dashboard and represent actionable items, such as checklists for life events, analysis of investment strategies or best practices for estate planning, to help guide advisers developing client strategies.
“A critically important benefit of our data-driven tools and capabilities is that they ensure we provide seamless and consistent advice to each of our clients, wherever they may be,” says Steve Fradkin, president of the wealth management business at Northern Trust.
“Our digital ecosystem and tools enhance relationships by ensuring all of our associates have the right information, at the right time, to provide the best counsel to clients.”
The process is always in evolution, though. The bank acknowledges that as more data is added to its machine-learning programmes, the advice will become more targeted and precise, also through collecting direct adviser feedback on what works and what is needed.
In the past year, Northern Trust’s pioneering goal-driven wealth management approach was updated to allow for more effective portfolio modelling, with an emphasis on risk management. The new functionality allows for dynamic ‘Monte Carlo’ modelling of portfolios to better assess the trade-offs associated with funding a lifetime of goals, based on a client’s preference to take risk. ET
Best private bank for digitally empowering RMs in North America
RBC Wealth Management
In recent years, RBC Wealth Management (RBC WM) has executed a series of strategic investments to advance its digital innovation agenda. This process has catapulted the firm to a more competitive market position in the digital technology stakes, by contributing to operational and service efficiencies and the launch of new online platforms. It has also fed into a wider cultural shift across RBC WM, as digitally enabled ways of doing business drive the institution’s growth story.
For RBC WM’s relationship managers (RMs) and clients alike, these changes have delivered a range of benefits. The success of the digitally enabled account opening service, which has slashed the onboarding time for new clients by cutting out time-consuming manual processes, has eased the burden on relationship managers in an increasingly digital-first marketplace.
Moreover, RBC WM has streamlined the onboarding process for new relationship managers by capitalising on digital solutions to ensure their professional transition is quick and seamless.
RBC WM’s re-imagined digital portal, known as Wealth Management Online, has deepened the possibilities for collaboration between the client and their wealth adviser. As a secure platform, clients have full access to their portfolio along with the necessary tools to manage their finances and access in-depth research and analysis, among other propositions.
Notably, RBC WM’s wealth advisers can securely collaborate with customers on their wealth plan, opening up new opportunities to enhance the client relationship by empowering RMs with the tools required to flourish in a new digital marketplace. JK
Best private bank for digital customer service in North America
Bank of America Private Bank
When it comes to effective digital customer service, Bank of America Private Bank is not resting on its laurels. Positive customer feedback has driven further improvements to its digital platforms, as well as large investments across a range of different technology initiatives. As a result, the business boasts a record high number of digitally engaged core clients.
In a sign of how far Bank of America Private Bank’s ambitions extend, the use of an artificial intelligence-based virtual financial assistant, called Erica, is being rolled out across a wider range of private banking functions. Erica’s success in dealing with customer queries has seen a number of upgrades implemented across 2022, including voice response integration on the mobile banking application.
Bank of America’s ongoing improvements to its key client relationship management tools also ensure its customers receive the highest possible service, and quality relationships, with the wider private banking team. The use of digital communications tools also helps the organisation to build and maintain contact with clients that offer tailored information on specific products and services.
In addition, the provision of a preferred rewards programme that offers exclusive, curated experiences to clients has been supplemented by a range of new lifestyle benefits and offers. This programme has been made fully available across client-facing digital channels.
As Bank of America Private Bank looks to an increasingly digital future, its commitment to both high-end customer service and innovation will be crucial in a highly competitive US wealth management market. JK
Best private bank for use of technology in North America
Merrill and Bank of America Private Bank
The digital strategy at Merrill and Bank of America Private Bank is a core part of the client experience, reflecting its “high-tech and high-touch approach”, says Casey Franz, Merrill’s head of platforms and capabilities.
More than 80 per cent of clients are digitally active at Bank of America’s wealth management businesses, comprising Merrill and Bank of America Private Bank. Digital engagement across client-facing platforms is “largely consistent” across all age segments, with the fastest growth coming from the 60 plus cohort over the past five years. Internal data shows that clients that engage the bank’s digital ecosystem generally have “deeper and stickier relationships”, says Ms Franz.
With around $11bn spent annually on technology, including $3.6bn on new development, the bank’s digital offering addresses every stage of the client-adviser relationship. Merrill Advisor Match allows for an algorithmic matching of prospects with advisers, based on personal preferences and data collected from a questionnaire, giving advisers access to “thousands of leads”.
The Collaborative Onboarding (COBE) platform has reduced time to open accounts from more than seven days to an average of two, while also becoming a gateway to the bank’s digital platforms via online enrolment.
The Mobile Advisor Experience (MAX), launched in 2021, provides advisers with “a workstation in the pocket” and is “the fastest adopted adviser-facing platform that we have ever launched, ever, with 1.5m plus annual logins”.
Clients and advisers are collaborating “more than ever” with the bank’s Personal Wealth Analysis tool, “giving clients peace of mind that despite market fluctuations, there is still a plan to navigate personalised goals and objectives”.
But introducing innovation is never easy. “The biggest challenge, particularly as it relates to new products, is driving awareness and generating a sense of comfort,” explains Ms Franz. “When it comes to functionalities offered with the intent of sunsetting an existing legacy capability, it is about showcasing the enhancements and educating the benefits.”
It is also important to “deeply understand” advisers and clients to prioritise the right sequence of features and functionality in a multi-year transformation effort, while making the right decisions within time and resource constraints, acting on the feedback received, she says.
“Changing behaviours is never easy, but that is why we have a dedicated team of digital specialists located throughout the country, who help advisers and client associates navigate tools or general inquiries, whether through proactive or reactive training.” ET
Profiles written by James King, Jason Mitchell and Elisa Trovato
