PRIVATE BANKER
May 2017 Issue 344 www.privatebankerinternational.com
OK computer Artificial intelligence tightens its grip on the US
• Interview: Hampden and Co. • Chatbots in Canada • Country surveys: Russia and Australia • Comment: UK general election 2017 Intelligent Environments, the international provider of digital nancial services solutions in association with Retail Banker International, Cards International, Electronic Payments International, Private Banker International, and Motor Finance publications
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Contents
NEWS An analogue bank in a 2 & 10: NEWS DIGEST digital world? 3: news analysis
12: technology round-up s an industry that stayed away from two years private banking giants such as UBS 13: regulation round-up the digital revolution for years, and Coutts have launched robo-advice-like 15: people moves wealth managers are now increas- capabilities, which is a departure from their ingly investing in new technology traditional approach but a sign of evolving 16: PBI greater china awards: A with the times. But for Hampden & Co., the preview and talking about it. In the last two years, there has been a mindset shift – safe to say – priority has been to grow its business organi- Analysis where CEOs of the oldest private banks have cally – through word of mouth and high openly spoken about the importance of going quality of service (more about that in the 14: research wire: GLOBALDATA digital for their organisations. Robo-advice interview on pg. 7). FINANCIAL SERVICES has become more commonplace and the Perhaps for Hampden & Co. being strong advent of artificial intelligence (more about on ‘digital’ has meant having a stable and Country survey that in our cover story – pages 4 and 5) is scalable core banking system. A lot of ‘going 8: Russia creating unforeseen opportunities. digital’ is actually what goes on in the bank’s Despite having a younger HNW population I am certain there was a lot going on middle and back offices. How secure, fast than the rest of Europe, many challenges behind the scenes on the technology front and efficient those processes are significantly face Russia’s wealth sector. However, they that many private banks didn’t openly talk dictate a majority of what goes on in the are not dimming the market participants’ optimism, writes Vania Goncalves about, unlike their retail banking counter- front end. Hampden & Co.’s decision has parts, but even the most stoic traditionalist been to use Oracle’s cloud based core bank- 9: australia private banker, perhaps, has been converted, ing platform to give it adequate ‘future proof- Australia’s buoyant HNW population is or at least convinced, into thinking that there ing’ and an edge against its competitors who dominated by men. However, more women entrepreneurs are expected to join the ranks, is no ignoring the digital wave. have decades-old legacy IT infrastructures. creating shifts in the industry dynamics. At a time like this a new bank that decides On the retail banking front, most chal- Vania Goncalves find out more to launch without any digital channels and lenger banks are digital-only (think Atom not much of a marketing push stands out. Bank, Starling Bank, Monzo...) but on the Feature That is exactly what Hampden & Co. – the private banking side this challenger bank is Scotland-headquartered private bank that taking the opposite approach. It isn’t prom- 4,5: artificial intelligence in US A was the only new entrant in the UK private ising revolutionary capabilities, it isn’t stick- Artificial intelligence (AI) is emerging as a key technology in North American wealth banking market in over 30 years – did when ing its name and logo on every advertising management, where it is used in digital it launched in 2015. No fancy gimmicks, no space available, it isn’t launching branches advisory platforms and to assist advisors in nifty digital propositions – purely relation- across the country. It is banking on what managing clients. Robin Arnfield speaks to ship-based private banking. has worked all this time – strong relation- key players to gain an insight The private bank has since launched ships and sheer quality of service. So far so 6: chatbots in canada internet banking facilities, but I had thought good but only time will tell if this approach Originally developed for retail banking, that in these two years it would have also is refreshing or irrelevant. chatbots are beginning to be adopted in the had a mobile banking app (even though it is wealth management market. Robin Arnfield Meghna Mukerjee talks to key developers and banks in Canada in the offing), some in-depth analytics tools [email protected] to find out their unique plans and more. Thinking about it, in these last
7: INTERVIEW: hampden and co. Having launched in 2015 as the first new entrant into the UK private banking industry in over 30 years, Hampden & Co. garnered interest from private banks, wealth managers and investors alike. Meghna Mukerjee speaks to CEO Graeme Hartop to find out how the challenger bank is performing two years on
Comment
11: UK general election Investors are increasingly asking about the outlook for the UK economy, both in the Follow Private Banker International immediate aftermath of the general election and over a longer-term horizon, writes UBS Wealth Management’s Dean Turner
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www.privatebankerinternational.com May 2017 y 1 Private Banker International News digest
SMP Partners closes acquisition The companies also gave details of the HNA, which is led by billionaire Chen of RBC’s Caribbean operations composition of Standard Life Aberdeen’s Feng, also holds shares in Hainan airlines, board, which will include an equal represen- hotel operator Hilton Worldwide and Singa- Isle of Man-based SMP Partners Group has tation of 16 members from each company. porean logistics company CWT. concluded the acquisition of the Caribbean Aberdeen’s Martin Gilbert and Standard trust, fund administration and custodian Life’s Keith Skeoch will lead the new entity PrivateBancorp shareholders business of Royal Bank of Canada (RBC). as co-CEOs, and Standard Life’s Gerry Grim- approve acquisition by CIBC The deal was closed following receipt of stone will serve as chair. Shareholders of Chicago-based PrivateBan- standard regulatory approvals and fulfilment corp have given the go-ahead to the acquisi- of customary closing conditions. UBS Financial Services to extend tion of the company by Canadian Imperial SMP picked up its first Caribbean office partnership with Solium Capital Bank of Commerce (CIBC). from RBC in the Bahamas at the end of 2016. UBS Financial Services has agreed to extend In June 2016, CIBC agreed to acquire Pri- It later bought additional offices in the Cayman its partnership with Solium Capital, a Can- vateBancorp, a middle-market commercial, Islands and Barbados. The Caribbean team is ada-based provider of software-as-a-service private banking and wealth management headed by Stephen Turner. for equity administration, financial reporting business, for $3.8bn. Earlier this month, “The acquisition was carefully managed to and compliance. CIBC raised its bid for the PrivateBancorp ensure a smooth transition, and we are now The extended partnership will upgrade UBS acquisition, taking the transaction value to not only offering enhanced services to exist- clients to a UBS-branded version of the Share- nearly $4.9bn. ing clients but are also intent on growing our works stock plan administration platform, Under the new arrangement, PrivateBan- regional presence through business develop- which will help administrators to increase corp stockholders will receive $27.20 in cash ment activities and cross-selling opportuni- automated administration functionality, such and 0.4176 of a CIBC share for each of their ties across our wider international business,” as superior capabilities around reporting and shares. Turner noted. expense accounting. The deal is expected to be completed in SMP currently offers corporate and trust The Swiss financial services business will June 2017, subject to approvals by federal services from offices in the Isle of Man, Jersey, continue to provide service and support func- banking regulators in the US and Canada. Switzerland, Hong Kong and the Caribbean. tions to corporate customers and associated employee participants, including its wealth OCBC to acquire NAB’s Asian Standard Life-Aberdeen merger management services and digital employee private wealth operations to lead to 800 job cuts experience. Singapore-based OCBC Bank has agreed to Standard Life and Aberdeen Asset Manage- Services involved include UBS’s employee buy the private wealth operations of Nation- ment are set to axe 800 jobs as part of their participant platform, and relationship man- al Australia Bank (NAB) in Singapore and proposed merger. The layoffs, which consti- agement, plan administration, wealth manage- Hong Kong. tute around 10% of their combined work- ment, trade execution, workplace education The deal will add a mortgage portfolio force, are expected to help the businesses save and executive services. of around $1.7bn and deposits of around £200m ($259m) in costs annually, Standard Solium said it will provide technology infra- $3.05bn to OCBC’s books, and offer OCBC Life said in a merger prospectus. The job cuts structure and services for plan administrators, access to approximately 11,000 customers will be carried out over three years. support UBS’s use of the software, and deliver in the two markets. OCBC said the addition The prospectus said: “At this time it is industry-leading online training systems and of mortgage loans will boost the size of its estimated that the integration and restruc- technical support. mortgage portfolio by around 4%. turing will result in a phased reduction of The value of the deal will depend on the approximately 800 roles from the total glob- China’s HNA becomes biggest book value of the acquired businesses at al headcount of the combined group as at 31 stakeholder in Deutsche Bank the time of the deal’s completion, which is December 2016 of approximately 9,000 over Chinese conglomerate HNA Group has expected by the end of 2017, subject to regu- the three-year integration period. raised its stake in German banking giant latory approval. Both companies indicated “Other appropriate steps will be taken to Deutsche Bank to 9.9%, becoming the lend- that the transaction will not have a material minimise the number of compulsory redun- er’s biggest shareholder. impact on them. dancies, including the active management of The Chinese firm acquired the stakes OCBC Bank COO, Ching Wei Hong, said: Standard Life’s and Aberdeen’s recruitment through Austrian asset management firm “This deal makes financial and strategic sense and vacancies.” C-Quadrat. to us. A mortgage loans book of more than The prospectus revealed that the name of HNA took a 3.04% stake in Deutsche S$2bn ($1.4bn) is not small. the merged entity, which will be based in Bank in February 2017, and announced “It would have taken us time and money Scotland, will be Standard Life Aberdeen. plans to acquire further stakes, adding that to grow our mortgage loans organically by The all-share merger, which was originally its holding would be less than 10%. that amount.” announced in March 2017, is expected to Deutsche Bank has been looking to raise NAB executive general manager for inter- lead to the creation of the UK’s largest active funds after it incurred losses as a result of national branches Peter Coad said the deal asset manager with £660bn in assets under various legal investigations and misconduct simplifies the bank’s operations in Asia and administration. charges. The bank was recently fined a com- allows it to focus on business, corporate and Standard Life shareholders will own bined $156.6m by the Federal Reserve for institutional customers. 66.7% of the new company while Aberdeen violating foreign exchange standards and OCBC has been strengthening its wealth shareholders will hold the remaining stake. failing to comply with the Volcker Rule. operations in recent times. In 2016, the bank The companies stated that the deal, expected Earlier this year the bank also abandoned bought Barclays Bank’s wealth and invest- to close in August 2017, will cost around plans to sell its Postbank business, and ment management operations in Singapore £320m in integration outlays. instead sold €8.0bn ($9.0bn) in shares. and Hong Kong. <
2 y May 2017 www.privatebankerinternational.com Private Banker International analysis News
Millionaires believe current times to be most unpredictable in history Amid political and economic certainties, such believed that elected governments could only scape, with 82% believing cash to be a safe as Brexit, presidential elections in the US and respond to short-term dangers. option, despite the risks of holding this asset. France, and tensions in North Korea, a large However, millionaires were found to be A minority of the sample believed that majority of millionaires across the world optimistic about the future in terms of their modern technology such as artificial intel- see current times as the most unpredictable personal financial situation and the wider ligence and big data could make the world in history, but believe they can steer clear economy, with 77% indicating that they can more predictable. of problems, according to a report by UBS accurately assess financial risks arising from UBS Wealth Management’s UK head of Wealth Management. the volatile environment. Also, 51% of mil- domestic business, Nick Tucker, said: In the UK, the percentage of millionaires lionaires expected their finances to improve “After a year of Brexit, high-profile shocks believing current times to be the most unpre- in the next 12 months, compared to 13% and global tensions, most believe we live in dictable was a staggering 82%. who thought otherwise. a very unpredictable age. Political, economic, The study, which surveyed 2,842 mil- Similarly, 57% of millionaires were found societal and financial risks are all prominent lionaires in seven countries, found 68% of to be optimistic about achieving their long- in people’s minds. millionaires struggling with information term financial goals, as against 11% who “In response, we see evidence of short- overload, and 72% being distracted by held contrasting views. In the current volatile termism creeping in, people reacting to each short-term risks. Also, 71% of millionaires landscape, three-quarters of millionaires still event as uncertainty grows. Investing on your held the view that elected governments can believed cash to be a safe option. own doorstep can be tempting in this climate. only respond to short-term dangers. Even In the UK, 54% of millionaires were found Holding onto cash can feel safer, even as it more thought the public votes on emotions, to be optimistic and confident about the erodes your wealth in real terms. not facts. future, compared to just 12% who thought “Although confidence remains high, neither In the UK alone, almost three-quarters of otherwise. Also, 85% of millionaires said approach is likely to work well in the long the affluent said they are distracted by these that are confident in their own ability to term. short-term risks and unforeseen events, and assess financial risk. “In an unpredictable world, it remains best 66% said they are suffering from informa- The majority of UK millionaires were also to look to the long term, focus on your goals tion overload as they look to navigate the found to be confident about finding safe and invest in a balanced portfolio across a unpredictability. Moreover, 79% in the UK places to invest in the current volatile land- range of assets and locations.” < RBC: 49% of business owners do not have a will Many business owners are unprepared for $10m is three times more likely to have a full the report. Around 68% of them conduct dealing with wealth transfer, with 49% not wealth transfer plan in place than those with their own research to build financial knowl- yet having a will, according to a recent report asset values of less than $1m.” edge, and 45% plan to give their children by RBC Wealth Management and Scorpio Business owners have difficul- more guidance on inheriting wealth Partnership. ties differentiating their business than they received. In addition, The Business owners and wealth trans- from their personal wealth, 51% of business owners rely fer: Applying lessons learned in business to according to the report. on family members to educate wealth transfer report, which looks at wealth John Younger, MD of busi- their children, while 29% rely transfer trends among business owners, con- ness owners and entrepreneurs on financial advisors and pri- cluded that 51% of business owners have a at RBC Wealth Management, vate bankers. will in place, while 22% have not started any added: “One of the things we’ve “The wealthier the business formal preparations for one. seen with some families is that the owner, the more likely they are to However, business owners are better pre- patriarch or matriarch that is running rely less on family members and focus pared for wealth transfer than employed the business has some really tough decisions more in external advisors, which is good professionals or any other group surveyed to make in terms of passing on the business news for us,” said Huntrods. for the research. Around 39% of business or wealth. In terms of topics that business own- owners have a full wealth transfer plan in “In many cases they think to themselves, ers want to teach children, wealth transfer place, in comparison to 26% of employed ‘well I want to be completely fair with all of comes first with 36%, followed by invest- professionals. According to the research, the my family, but at the same time they have ment strategy (35%) and budgeting (33%). reasons for this are the self-directed spirit to recognise that maybe one son or daughter The report also reveals that 40% of busi- and preparedness of entrepreneurs. is particularly responsible with money, and ness owners plan on “giving while living”, Guy Huntrods, MD and head of invest- maybe one son or daughter has other ideas’. as they want to help inheritors achieve ment counsellors for RBC Wealth Manage- They have to be careful and responsible in their ambitions (21%) and mentor them on ment in the British Isles, said at a briefing in the way they deal with it.” responsible wealth management (20%). London: “The level of preparedness of busi- Other topics covered in the report include The report’s findings are based on data ness owners is heavily correlated with the education and “giving while living”. from 384 high net worth business owners actual amount of their net worth. A business Business owners, most of whom are self- living in Canada, the UK and US, with an owner with investable assets greater than starters, tend to self-educate, according to average net worth of $6.4m. < www.privatebankerinternational.com May 2017 y 3 e atur e Private Banker International F artificial intelligence How AI is reshaping North America’s wealth management industry
Artificial intelligence (AI) is emerging as a key technology in North American wealth management. With the rise of chatbots, AI is being used in digital advisory platforms (robo-advisors) and in systems assisting advisors in managing clients. Robin Arnfield interviews key players to get an insight into top use cases
t is no longer early days for AI in wealth “Intelligent Advisory is designed for mass- integrator NTT Data, says: “What banks management. Indeed, what was an area affluent investors without a complex person- are mostly doing is deploying AI in the back to watch a few years ago has become al financial situation. The target audience is office to equip their human advisors, instead one of active engagement, and most pri- digital-first, and is self-directed or wants to of offering AI-based direct customer apps. I maintain control of their finances with the “Several banks that are our clients are pilot- vate banks and wealth managers are finding different uses for AI in their organisations. ability to engage with financial professionals ing AI for back-office-enabling applications The uses are varied. According to Rajesh when needed.” like tracking stock movements or correlating Kamath, head of financial services solutions Several fintechs offer consumer-facing social media activity with stock movements.” and incubation at US-based IT consultancy robo-advisory platforms, including US- Incedo, AI allows firms to scale in a way that based Betterment and BlackRock subsidiary Chatbots and beyond is not linearly related with their size, so they FutureAdvisor, and Canada’s Responsive.AI, Chatbots use Natural Language Process- can do more with the same employee base. Wealthsimple, and Nest Wealth. ing (NLP) to answer customer queries and “AI will affect wealth management firms’ As of April 2017, Wealthsimple had action transaction requests, running on digi- front, middle and back offices. Using AI around 25,000 clients and C$750m ($557m) tal banking channels and messaging plat - can help drive down a company’s total cost in AUM, a spokesperson says. “These figures forms such as Facebook Messenger. Vendors of operation in the mid to long term, and include US clients, as we entered the US mar- include Israel’s Personetics, and US-based improve advisor productivity by deploy- ket in January 2017,” she adds. Abe, Gupshup and Kore. ing chatbots as self-service channels,” says Randy Cass, Nest Wealth’s CEO, says: Natural Language Generation (NLG), a Kamath. “Our technology satisfies the criteria for a technology generating natural-language nar- In North America in particular, AI is robo-advisor as it’s a completely automated ratives from computational inputs, is used already deployed in multiple business lines. digital advisor platform. It handles every- to assist advisors in briefing clients. Vendors Here are the current top proof-of-concept thing from onboarding to digitisation of include Narrative Science and Yseop. use cases for AI in wealth management. paper documents to digital KYC and online “NLG has great potential in wealth man- portfolio allocation.” agement as a time-saver,” says Celent analyst Robo-advisory Canadian wealth management businesses Kelley Byrnes. “Using NLG, advisors auto- A growing number of North American Credential Financial and National Bank matically generate natural-language fund wealth management firms offer hybrid robo- of Canada have agreed to deploy the Nest or stock insights for clients that are derived advice platforms combining automation, AI Wealth Pro platform. from raw computational data, without doing and human expertise. “Nest Wealth Pro will be rolled out over the analysis themselves.” These include Bank of Montreal (BMO) next few months,” a National Bank spokes- Cass explains that AI’s role in digital with SmartFolio, Charles Schwab with Intel- person says. “Our objective is two-fold: pro- advice at Nest Wealth is more on the NLP ligent Advisory, Merrill Lynch with Merrill vide our advisors with an additional work- side than on portfolio construction. “AI’s Edge Guided Investing, and Wells Fargo ing tool and our clients with a better digital initial application in wealth management is Advisors with Intuitive Investor, which was experience.” to provide an easier way for clients to have developed in partnership with US fintech US Bank Wealth Management is working their questions answered and understand SigFig. with FutureAdvisor to offer a hybrid advisor how products work.” “Intuitive Investor is currently in a small platform, which is due to launch this year. He adds: “We are currently working on employee pilot, with an expanded customer Canada-based Responsive.AI, which NLP with IBM Watson, so we can offer a pilot coming this summer, leading up to an white-labels its digital advisor and research chatbot in the fourth quarter of 2017. We’ll official launch later in 2017,” a Wells Fargo technology for FIs, uses a model driven by be able to feed the thousands of digital con- spokesperson says. “statistical learning” to examine patterns. versations we have with clients into this NLP A spokesperson from Charles Schwab “By breaking the model into independent solution.” says: “Schwab doesn’t use the term ‘robo- choices that make diverse decisions, using IBM Watson offers a cognitive agent – a advisor’. We describe Intelligent Advisory diverse data, we mitigate the potential for chatbot that can be used to automate some as a hybrid advisory service combining the total model failure – which is what happens aspects of advisors’ day-to-day tasks without best of human and machine. It combines live with the static co-linearity of passive invest- calling their advisor, says IBM’s senior offer- credentialled professionals and AI to provide ing,” says Davyde Wachell, CEO of Respon- ing associate – financial markets and wealth investors with a personalised financial plan, sive.AI. management, Alex Baghdijan. ongoing guidance, and an automated and According to Arushi Srivastava, senior AI can change the way advisors interact diversified portfolio. director, digital and cloud services at systems with clients, and advisors and clients inter-
4 y May 2017 www.privatebankerinternational.com Private Banker International artificial intelligence Feature
act with wealth management providers, says using this information in buy-side processes see how public media content, such as blogs Incedo’s Kamath. can be offloaded to AI, with humans only frequented by advisors, can be used to model “A wealth management client of ours is required for complex cases. advisor behaviour. piloting advanced facial analytics to see if “Additionally, fulfilment processes involv- IBM’s Client Insight for Wealth Manage- customers’ stated investment goals are really ing low human discretion, which are high- ment solution uses the cloud-based Watson the goals they’re interested in. This will be volume and repetitive, are already being dis- AI system to process vast amounts of infor- used at the point of sale in goal-setting exer- rupted by AI-based process automation. This mation and learn from each interaction. cises between clients and advisors, as well as scope will soon be extended to processes that “This is designed to augment advisors, for investor education. require some human discretion. changing the way they manage their day-to- “In our Incubation Lab, we’re implement- “For example, complex data reconciliation day business and making them less reactive,” ing a system that lets advisors and clients between multiple statements from invest- says IBM’s Baghdijan. “It lets advisors pre- access their financial, product and other ment process participants like hedge funds dict client attrition and know ahead of time information via voice conversations with a and prime brokers is an area where AI can that clients may be leaving so they can try to chatbot. The bot uses AI to understand natu- help in the near term. retain them. ral human speech, and accesses the appro- “This is especially true in private banking, “We have some Watson proofs-of-concept priate information from the organisation to where investment vehicles can get really com- with advisors, and are moving forward into fulfil the client’s investment intentions,” he plex with multiple regular and exotic asset production with these clients,” says Baghdi- explains. classes and hierarchy structures,” explains jan. He adds that there will continue to be a Eran Livneh, Personetics’ VP of marketing, Kamath. demand for human advisors, but IBM’s role says the company is focusing on using AI to According to Wachell, all banks are try- is to use technology so advisors can go from provide “actionable insights and advice”, ing to work out how “turn AI from a sci- managing 100-200 clients to managing thou- whether directly to customers or to advisors, ence project into profit for the bottom line”. sands while still offering personalised advice. to assist clients. Responsive.AI is currently developing high- “In the future, as so many processes will be “Our applications are about the customer resolution KYC technology using AI to automated, advisors will be more like quar- engagement, ranging from onboarding and detect personality traits that a regular KYC terbacks who have advanced tools and can running customers through compliance ques- process would not spot, says Wachell. call on experts to help clients in niche situa- tions to enabling them to select funds and “Our future focus is to use AI tools to get tions,” he adds. move money between funds. a deeper understanding of clients. Someone IBM has also partnered with SalesForce to “Personetics has developed a cognitive can state in a questionnaire that they make develop a Watson-based customer relation- banking framework, which offers not just a C$200,000 ($148,588) a year and seem sta- ship management solution for wealth man- chatbot conversational capability but also an ble. But, if you examine their bank account agement. underlying analytics layer that connects to you may see they have erratic spending hab- “We’re training Watson to provide advisors the bank’s transactional systems and under- its. Having higher-resolution knowledge of with a unified dashboard so they can man- stands who the client is, what they are trying clients would change the services you offer age their clients. Typically, advisors have cli- to do and what information would be most them.” ent data in many different systems, so our useful to them right now. answer is to put all this in a single dashboard. “Our NLP and contextual analysis technol- Advanced analytics We also offer a segmentation tool so advisors ogy examines what the client is saying, and AI allows firms to gain new insights into can segment their clients based on their dif- also what their transaction data is based on their business, beyond traditional analytics. ferent financial behaviour attributes, such as to get an understanding of their entire finan- Kamath says Incedo is talking to a client to people who typically call when the market cial situation,” explains Livneh. falls,” says Baghdijan. Incedo’s examples of AI use Reporting activities and AML detection Customer-facing AI Challenges to overcome AI plays to its strengths in the middle office, Every wealth management firm has different where human discretion is in maximum use • Wealth managers using facial analytics to challenges and opportunities around where in wealth management organisations. determine if the client or prospect’s stated AI can lead to maximum benefits. Some hedge funds acting as investment investment goals are in line with their real “It needs someone with a vision of how AI providers to the wealth industry already goals can help to analyse organisational factors use AI techniques where portfolio tracking, • Brokers or dealers using Amazon Alexa to and build an AI strategy. In our experience, rebalancing and investment selections and enable voice-based access to account and this is currently lacking in most firms,” says trade decisions are automated. financial data for financial advisors and Kamath. According to Kamath, one of Incedo’s investors He explains that a near-term cost spike can clients is talking to an anti-money launder- Non-customer-facing AI be expected during the wealth management ing (AML) solution provider for its client • Private bank’s use of AI to detect error firm’s AI implementation, as “there’s typi- onboarding process. This product uses AI patterns in financial entries, helping cally a stabilisation period for AI”, where the to determine the probability that clients are automate financial adjustments to general deployment is iteratively refined in a sand- facing money-laundering risks, using public- ledger entries box before being brought into full operation. domain data such as news items and court “In this phase, the organisation incurs both records. • Wealth managers using machine learning AI and human [operations team] costs. Both Currently, reading and extracting action- – a form of AI that gives computers costs are likely to fall after this phase, and able intelligence from documents such as the ability to learn without explicit reach a lower steady state. Also, obtaining contracts or investment management com- programming – to improve enterprise data good AI skill sets in programmers is difficult mentaries require human action. However, quality, with minimal human involvement and expensive,” adds Kamath. < www.privatebankerinternational.com May 2017 y 5 Private Banker International Feature chatbots in canada
Wealth management chatbots gain popularity in Canada
Originally developed for retail banking, chatbots are beginning to be adopted in wealth management. Robin Arnfield talks to key developers that are testing chatbots for wealth management in Canada to find out their unique plans
hatbots are increasingly being seen and rebalancing. “Investors can use chatbots to “It also needs to connect to the bank’s core sys- heard in private banking. The virtual track news, discover investments, track prices tems so the customer can perform transactions. agents use chat-based AI software to and execute transactions, managing the infor- We index a bank’s entire FAQs and website arti- Csimulate human conversation, help- mation overload by escalating only information cles so we can deliver this to customers via the ing consumers complete tasks and answer- they want to see,” he says. chatbot when they ask questions.” ing their questions. They can run on digital “To automate the advisory element, chatbots Livneh says Personetics’ chatbot is the front- banking channels, and common platforms mimic the human elements of financial interac- end user interface which interacts with a bank’s such as Facebook Messenger and WhatsApp. tions and can leverage cues from the best fund transaction systems. “Our open API layer can Daniel Latimore, senior vice-president, bank- managers and analysts to create customised connect to any bank system,” he explains. ing practice, Celent, says it is still early days for strategies for individual clients.” “Asia is a good market for chatbots, as mes- chatbots. “They’ll start out by performing basic saging applications are prominent there,” tasks – such as balance enquiries or status of IBM Watson – cloud-based AI technology Livneh adds. holdings – and, as they demonstrate proficiency, IBM Watson, the cloud-based AI technology will expand to more complicated endeavours that processes vast amounts of information and Polly Portfolio such as moving money, rebalancing portfolios learns from each interaction, is popular in the Personalised interactive investment technology and executing orders.” bot space. It allows banks to more profitably provider Polly Portfolio’s core market is invest- Chatbots can save advisers time by acting as serve customer segments with lower amounts ment managers, but it offers a chatbot for use digital assistants, and provide a streamlined user of assets under management, where personal on Facebook Messenger. experience. PBI looks at vendors in Canada fact-finding interviews with relationship man- “Polly Portfolio’s chatbot allows you to tap that are using chatbots for multiple purposes. agers might not be profitable. into our knowledge engine that combines finan- In addition, “Watson can be used to capture cial data, expert views and your own opinions Abe a customer’s transaction requests, such as buy- to create custom trade ideas,” says Jasen Yang, Abe’s chatbot is available for free download, ing or selling stocks, and execute them on the Polly Portfolio’s CEO. and tracks all of a user’s financial accounts, bank’s core wealth management platform,” “Currently, chatbots are most relevant when including retirement plans and investments says David Robson, IBM’s European director deployed on existing platforms like Facebook “to help them grow their net worth”, says Abe for Watson Financial Services. Messenger. One reason is that user registration COO Keith Armstrong. “Watson can also be used as a virtual assistant and identification is effortlessly handled by “We offer integration with 15,000 financial by a bank’s call centre agents or relationship Facebook Messenger, and the lower barrier to institutions (FIs), including a wide range of managers, helping them when clients ask ques- engagement is a massive advantage for chatbots. investment firms. Abe helps users budget for tions. Also, it offers robo-advisory capabilities “But it will rapidly make sense for the same and plan wealth-management targets. For com- such as balancing the client’s portfolio.” chatbot interface to be accessible via a bank’s plicated requests, it can put users in touch with website or mobile app, as well as via voice-acti- a Certified Financial Planner.” Personetics – analytics and compliance vated systems like Amazon Alexa,” adds Yang. Several FIs have approached Abe about its Personetics uses predictive analytics based on services. “We’re currently in talks to implement data streams including real-time transactions, Kore pilot projects with these FIs in the next three to location, and customer profile data to generate Solution provider Kore currently works with six months,” Armstrong says. timely, relevant recommendations or offers for two of the top four US banks to provide solu- banking customers. tions for customer support, transaction and Gupshup “Our predictive analytics platform on the account information, fraud alerts and transfers. Beerud Sheth, CEO of Silicon Valley bot-build- back end analyses customer transaction data in A Kore spokesperson says: “We’re person- ing platform Gupshup, says chatbots require no real time, and, based on this data, the chatbot alising any service that banks extend to their download, and their conversational interface gives them the personalised information they customers via an AI-powered chatbot that makes communication by text or voice easy. want – such as information about transactions,” uses natural language processing.” “They can automate many tasks requiring says Eran Livneh, Personetics’ VP of marketing. As AI capabilities develop, more use cases little human supervision. This will have a sub- Chatbots make compliance easier, Livneh built on making unstructured data instantly stantial impact on the investment industry, as says, as it is “easier to train a chatbot to be useful or actionable will emerge, according chatbots will dramatically improve the deci- compliant than a human being, and everything to the Kore spokesperson. sion-making and advisory processes,” he says. is recorded in a format that is easy to analyse.” The other obvious chatbot use cases Sheth adds that chatbots will impact most Personetics’ chatbot works with any messag- involve buying, selling, and trading, along decision-making elements of investing, such ing platform, along with Amazon Alexa and with providing instant market and portfolio as trading decisions, portfolio allocation and banks’ digital channels. updates, insights, and personalised alerts. <
6 y May 2017 www.privatebankerinternational.com Private Banker International hampden and co. Feature
Staying true to the traditional approach: Hampden & Co.
Having launched in 2015 as the first new entrant into the UK private banking industry in over 30 years, Hampden & Co. garnered interest from private banks, wealth managers and investors alike. Meghna Mukerjee speaks to CEO Graeme Hartop to find out how the challenger bank is performing two years on ew entrants in UK’s private banking account to lending, mortgages and foreign digital channel propositions, and has made industry are few and extremely far exchange capabilities. no noises either about wanting to compete between. So, when Hampden & Co. The bank started with a small number with low-cost fintech players. In fact, it launched in 2015, it piqued the inter- of experienced private bankers who would offers an internet banking proposition, with N bring their experience and connections to no bells and whistles, and is planning to est of other private banks, wealth managers and investors alike. the company. The bank’s client base has launch a mobile banking service. Founded by Ray Entwisle, former chair of risen steadily since, “approaching 2,000 cus- “There has been a lot of change and entre- wealth management firm Adam & Compa- tomers and growing well”, informs Hartop. preneurship, particularly in the digital world, ny, the Edinburgh-headquartered bank was “The client base covers a wide demographic, and some marked successes in the fintech sec- backed by 250 shareholders with over £60m from the late 30s, or younger, with family tor. Technology has also produced a lot of in capital raised for its launch. linkages, to the mature end of the spectrum,” wealthy clients in the UK. It was a bold move, in retrospect, to enter he adds. “There is a threat that automated advisory the UK wealth management market at a time Hampden & Co. has grown to a 70-peo- service providers will pick up business see- when private banks’ profit margins were – ple-strong staff, currently, with around 60 ing the way clients are transacting now. But and are – being continuously squeezed by an based in Edinburgh and 10 in London. “One there is still high demand for traditional, ever-stricter regulatory environment. of the pleasing factors for me is that now we relationship-based private banking offering. The only new players bursting onto the receive CVs from bankers who come to us, Clients really appreciate a personal service, scene were automated advisory service pro- wanting to join the Hampden & Co. team,” which we provide,” says Hartop. viders. However, despite the threat of digital Hartop notes. At the time of launch, Hampden & Co. disruption and traditional private banks try- Hartop considers Hampden & Co.’s flex- partnered with Oracle for its technology ing to get digital makeovers, Hampden & Co. ibility around its lending propositions and infrastructure, using Flexcube – Oracle’s chose a quiet entry – going back to the basics ability to deal with “more complex lending” cloud-based core banking platform. of relationship-driven private banking. to be an advantage. The bank also ensures “We do have digital upgrades underway, as Almost two years after its launch, CEO strong connections in the professional com- technology is extremely important, and we Graeme Hartop still seems steadfast on that munity, with solicitors, accountants, wealth are continuing our series of enhancements,” objective. “We recognise we need to provide managers and other advisors to provide the adds Hartop. good service and create strong, personal rela- “grade A private banking services that clients Going forward, interest rates will be an tionships with our clients. Our relationship- demand”. “We are focused on building rela- important factor in defining the UK private driven approach will continue,” he says. tionships in a holistic way,” he adds. banking industry’s dynamics. How tech- Hartop’s confidence in Hampden & Co.’s Hartop agrees that the UK private bank- nology develops will also be a vital area to strategy is apparent from the limited amount ing sector is currently going through a chal- watch, says Hartop. However, with pending of marketing the new bank has carried out. lenging phase. Uncertainty in the political Brexit negotiations still to create unknown “A lot of our clients come from referrals and sphere is a top-of-mind concern, and the challenges and opportunities for the sector, introductions,” says Hartop, who was pre- low-interest-rate environment continues to Hartop seems confident in continuing with viously MD of Scottish Widows Bank for be a hurdle. the same approach for Hampden & Co. almost two decades, and also worked with Alongside more established regulatory “Wealthy clients will always value high- Entwistle at Adam & Co prior to that. shifts from the last few years, new regula- quality, personal service. Investors have With Hampden & Co.’s main office in tions are adding to the cost and operational largely taken recent events in their stride. Edinburgh, the bank has an additional Lon- pressures. The UK’s Open Banking direc- What I find now is that people have the con- don outfit. Expanding the bricks-and-mor- tive, the Second Payment Services Directive fidence to get on with things, and the UK tar presence does not seem to be a priority, (PSD2) and General Data Protection Regula- economy has performed better than many however. “The private banking business has tion (GDPR) in Europe are adding to regula- had predicted. changed quite a lot and bankers now meet tory burdens, and are imminent challenges. “With regards to Brexit, how passporting clients wherever they are. It can be in differ- “We have a big number of staff members in rights are going to work will be a big point ent parts of the world. the risk and compliance teams to stay on top to watch. We are entirely UK-focused, so “It is less important for us to have a big of the regulatory changes. Risk and compli- the impact at this point should be relatively branch footprint, but we are keeping an ance teams at banks are very different now light. For more extensive overseas EU clients, eye on where we need physical presence,” from what they were 20 years ago. It is essen- though, the impact could be quite significant. explains Hartop. tial for us to get it right,” says Hartop. However, we are confident that we can still Hampden & Co. offers clients a full pri- For a new private bank, Hampden & Co. make the economics work well at Hampden,” vate banking service, starting from a current has not launched any highly sophisticated Hartop concludes. <
www.privatebankerinternational.com May 2017 y 7 y e
urv Private Banker International S Country russia
Russia: Of hurdles and hope
The Russian wealth market is complex. Despite having a younger HNW population than the rest of Europe, many challenges face the country’s wealth sector. However, the hurdles are not dimming the market participants’ optimism. Vania Goncalves finds the details in GlobalData Financial Services’ recent report
ussia has dominated the news in the the main wealth generators for the HNW to the report. past year or so, often controversial- population. Volatile exchange rates have, and will ly. Its alleged involvement in the US Construction, the second wealth genera- continue to have, an impact on investments presidential election and its ties with tor (21%), is less significant as a sector than abroad, with nearly half of the HNW invest- R it used to be, but is expected to gain some Syria, to mention a few points, have created ment portfolios held offshore. Losing clients a political scenario that may not appeal to momentum as Russia prepares to host the to offshore providers constitutes a major many high net worth (HNW) investors. 2018 FIFA World Cup. threat to onshore wealth managers in Russia. However, participants in Russia’s wealth According to the Wealth in Russia: HNW To reduce this risk, banks such as Deutsche market are optimistic, despite the many Investors 2017 report, wealth managers Bank Wealth Management offer deposit challenges the sector faces. Russia’s new visa should broaden their scope and gain other accounts in currencies including Russian regulations also aim to open the country up types of client – such as high-earning finan- rubles, US dollars, and euros. to foreign entrepreneurs and investors. cial services professionals or entrepreneurs Wealth managers have also been looking In addition, owners of many successful launching IT startups – without neglecting to persuade HNW clients to invest in assets startups, who identified opportunities dur- the oil and gas industry, as most HNWIs are beyond cash holdings. However, high inter- ing the economic crisis and when the coun- still likely to come from this sector. est rates on deposit holdings in the country try was facing sanctions by western govern- First-generation entrepreneurship has are blocking this. Over 30% of the average ments, are climbing the wealth ladder. They constituted the main source of HNW wealth HNWI’s portfolio is currently dedicated to are expected to add to Russia’s HNW popu- in the country, followed by earned income bonds, and bonds are forecast to have the lation in a few years. The UHNW population and family business ownership. According highest inflows, possibly dethroning deposits, is also experiencing healthy growth, stand- to GlobalData, around 32% of Russian according to GlobalData’s report. ing at 1,768 UHNWIs in 2016, according to HNWIs accumulated their wealth through Statista. The wealthy segment is dominated earned income. New visa rules encourage immigration by males aged 41-60 years. Around 57% of the total workforce in Historically, Russia has been known for Advisory mandates are the preferred Russia are women. Despite this, wage ine- restricting international citizens’ access to option for Russian HNW investors. Accord- quality between men and women is high. employment or residency. In 2013, the Rus- ing to the Wealth in Russia: HNW Investors sian government tried to ease immigration 2017 report published in May by GlobalDa- Bonds to register the highest increase laws, but the political instability that fol- ta Financial Services, Russian wealth manag- Deposits and bonds dominate Russian lowed the crisis at the Ukrainian border dis- ers are confident that demand for advisory HNWIs’ portfolios. Around 40% of liquid heartened potential Western immigrants, and asset management will increase over the next assets held onshore are cash and deposit instead saw a migration of Russians from two years as investors look to retain control holdings, reflecting the financial market’s these conflict regions. over assets under management, while receiv- opaque nature, and the general lack of trust According to the report, expatriates ing professional advice. from investors. Many investments outside account for just a fraction of Russian million- However, advisors looking to maintain deposits are carried out abroad, according aires (6%). However, foreign self-employed relationships with investors will, most sig- entrepreneurs or investors can now obtain n age distribution of hnw investors, 2016 nificantly, have to build trust, which is a chal- visas for up to three years to Russia. To qual- % lenge in countries such as Russia where the 40 Europe Russia ify, a self-employed entrepreneur’s business rule of law is less than fully reliable. has to generate income of at least RUB10m On the other hand, while demand for dis- 35 ($163,220) annually for three years, while cretionary mandates and automated invest- 30 investors are required to obtain at least a ment services are unlikely to see drastic 10% share in any profitable business entity 25 changes, the need for execution-only asset already in operation in the country. management is expected to increase. 20 These requirements are low compared Around 40% of Russian HNWIs’ wealth 15 to most European countries, according to has been generated through the mining, oil GlobalData. In addition, visas have become 10 and gas industries, according to GlobalDa- more attractive due to the weakened ruble. ta’s 2016 Global Wealth Managers Survey. 5 Highly qualified specialists can also ben-
These are still the most profitable sectors in 0 efit from an easy visa process if they meet the country, despite low commodity prices. set criteria and are promised employment in 41-50 51-60 61-70 Russia’s economy is highly dependent on Up to 40 Over 70 Russia. They are then allowed to work in the energy exports, with oil and gas remaining Source: GlobalData Financial Services’ WealthInsight country for up to three years. <
8 y May 2017 www.privatebankerinternational.com y e
Private Banker International urv S australia Country
Australia’s wealth market to gain more women entrepreneurs
Australia’s buoyant HNW population is dominated by men, and their wealth has been created mainly through earned income. However, as the market heats up, more women entrepreneurs are expected to join the HNW ranks in coming years, creating shifts in the industry dynamics. Vania Goncalves find out more
ustralia’s booming wealth man- earned income, while the mining, oil and gas have had to invest at least A$500,000 of the agement market is as mature as industry constitutes the second wealth gen- investment in eligible Australian venture cap- it is multicultural. According to a erator, according to the GlobalData report. ital or growth private equity funds, along- Bloomberg article in March 2017, The mining sector has been losing impor- side another A$1.5m in Australian Securities A tance in terms of contribution to GDP, the total wealth held in Australia rose by Exchange-listed small companies. 85% in the last 10 years, compared to 30% according to GlobalData’s Global Macro- Given the higher risk profiles of these in the US and 28% in the UK. The buoyancy economic Indicators, in addition to falling investments, the visa has lost some of its is aided by Australia avoiding recession for investment in this sector. However, those appeal. Around 1,746 Significant Investor 25 years. who sourced their wealth from mining have Visas have been granted since 2012, while The average Australian, therefore, is now experienced a somewhat lucrative market only 136 have been issued since the changes significantly wealthier than the average US or due to the remnants of the mining boom. to the investment rules in mid-2015. UK national. The private banking client base Australian HNWIs heavily invest in equi- The UK is the biggest provider of expats in Australia is made of three key client areas: ties, with 45.2% of their investment portfoli- to Australia, accounting for almost half of families inheriting wealth, professionals os allocated to this asset class, in comparison Australia’s resident expat HNW population, with high annual incomes who dominate the to 27.3% in the overall Asia–Pacific region. according to the 2015-16 GlobalData Glob- country’s wealth market, and a fast-growing Real estate investment trusts, local cur- al Wealth Managers Surveys. International group of first-generation entrepreneurs. rency deposit products, and direct property and local banks in Australia, including ANZ, Australia ranks fourth among developed investments are also popular among the Aus- Credit Suisse, HSBC and Westpac, already economies by the Global Entrepreneurship tralia’s HNW population. Over the next year, offer visa programs to attract expats. Monitor (GEM). Currently this entrepreneur HNW allocation into alternative investments HNW expats constitute a large target seg- bracket is largely male-dominated, but the is expected to rise at the expense of bonds. ment for private banks in Asia-Pacific on the Australian high net worth (HNW) segment is whole, with 88.4% of the expat population likely to see more women entrepreneurs join- Number of expatriates set to decline being Chinese, according to the Department ing in, as female participation in entrepre- Long-term expatriates who have been liv- of Immigration and Border Protection. neurship in the country is significantly high. ing in Australia for over three years account Credit Suisse offers investment portfolios According to the Wealth in Australia: for around 11,855 of the country’s HNWs meeting Australian government needs. To HNW Investor 2017 report published in and are an attractive segment of the wealthy facilitate visa processes for expats, the bank May by GlobalData Financial Services, population. However the number of expats offers a dedicated desk with staff fluent in around 39% of the almost 2m Australians is expected to fall as visa conditions become Mandarin and Cantonese, in addition to its starting new businesses are women. If only more rigorous, according to GlobalData. Significant Investor Visa desk and products. 1% of them move up the wealth ladder into One condition of the Significant Investor However, wealth managers will need to the HNW space, this would mean 750 new Visa, launched in 2012 by the Australian gov- differentiate their services, according to the female entrepreneurs joining the current fig- ernment, is investing a minimum of A$5m report, as a significant number of banks ure of approximately 16,000. ($3.7m) into complying investments such as already support HNW expats during these With the majority of HNW investors aged bonds, mutual funds or equities for at least processes. The provision of business start-up above 50 years in Australia – 78.3% of the four years. Since July 2015, visa applicants services could be a solution, as GlobalData’s wealthy population – the number of wealthy surveys suggest that many expats move to n HNW POPULATION by gender women can also rise as they inherit wealth the country to start a business. % from their spouses. 100 Male Female Lack of time is driving uptake of profes- Demand for digital platforms to rise sional advice for the all-round HNW popu- 80 While a reluctance to relinquish control has lation in Australia, with investors showing seen advisory asset management become strong demand for tax, pension and financial 60 the service of choice for Australian HNWIs, planning. According to GlobalData’s report, automated investment services are not being 88.1% 89.4% demand for all planning services is rising, 40 ignored – particularly by younger investors. making a multi-service proposition from According to GlobalData, robo-advisors private banks critical. 20 and digital platforms need to integrate with The financial services industry is the first other channels to appeal to both the old and wealth generator for nearly half of the Aus- 11.9% 10.6% new generations. An opportunity is arising 0 tralian HNWIs who made their fortunes Asia-PacificAustralia here, as only a third of wealth managers offer through business, entrepreneurship or Source: GlobalData Financial Services’ WealthInsight automated investments to HNW investors. < www.privatebankerinternational.com May 2017 y 9 Private Banker International News digest
OCBC launches onshore private Following the acquisition, CMA will have years, as compared to 10% of their older banking business in Indonesia more than 130 employees globally, with offices counterparts, the report noted. in Hong Kong, Singapore, Miami, Zurich and Around two-thirds of respondents said Singapore’s OCBC Bank, through its subsidi- Liechtenstein. they are planning to buy property in order ary OCBC NISP, has launched an onshore The company will also have an arrangement to earn rental income. private banking business in Indonesia follow- with the brokerage firm for ongoing access to, Barclays Wealth & Investments CEO, ing receipt of regulatory approval. and sales of, services and insurance products Dena Brumpton, said: OCBC NISP Private Banking will target worldwide. Financial terms of the deal were “There is also increasing confidence among HNW Indonesian individuals with more than not disclosed. property investors, as many are taking a $1m in assets, along with SMEs and large cor- long-term view when it comes to putting porations. UK property prices to rise 6% by money into property.” OCBC NISP president director, Parwati 2021: Barclays Surjaudaja, said: “The range of products and Wealth Management Association services that we are currently offering is just to merge with APFA a start. We will be introducing more sophisti- The Wealth Management Association cated solutions that are tailored to our clients’ (WMA) and the Association of Professional unique wealth planning and investment needs Financial Advisers have agreed to merge to as we grow our business.” create a new trade association for investment The new business will be led by a banker management and financial advice. with over decades of experience in the industry, The combined entity, named the Invest- who will be supported by four other private ment Management and Financial Advice bankers having an average experience of 18 Association (IMFA), is expected to be effec- years each. Without disclosing details on the tive from 1 June 2017, subject to member appointed bankers, OCBC said the new team is approval. expected to double in size by the end of the year. IMFA will represent UK firms offering OCBC has been ramping up its wealth man- financial solutions such as investment advice agement operations in Asia-Pacific. The lat- and portfolio management, investment and est deal follows its announcement of plans to execution services, financial planning and acquire the private wealth businesses of NAB advice for private clients. WMA CEO Liz in Singapore and Hong Kong. In November Field will spearhead the merged group. 2016, the bank purchased Barclays Bank’s The new entity is expected to be financially wealth and investment management opera- positive on a standalone basis by the end of tions in Singapore and Hong Kong. its first year of operation. Property prices in the UK are expected SJP partners with Flagstone to to increase by 6.1% in the next five years, Northern Trust sets up branch launch management platform bringing the average property value to office in Abu Dhabi UK wealth manager St James’s Place (SJP) around £300,000 ($388,320), according to US investment management firm Northern has joined forces with financial technology research by Barclays. Trust has opened its branch office in Abu firm Flagstone to launch a new online cash House prices are expected to increase Dhabi, the UAE. management platform for advisers. at the highest rate in southern England, The new facility, located in the Abu Dhabi The new client cash service provides access although HNW investors were also found Global Market (ADGM), will allow the busi- to nearly 350 instant access, notice and term to be keen to invest north of the traditional ness to offer asset servicing and management deposit accounts from over 20 UK lenders. property hubs of London and the South East, solutions directly to the region’s institutional Private individuals, SMEs and charities the Barclays UK Property Predictor revealed. investors and wealthy individuals. with a minimum amount of £250,000 will be Nearly 38% of respondents said they plan Northern Trust first entered Abu Dhabi in able to access multiple deposit accounts with to invest in property in northern regions, 2008 with a representative office. different banks, and transfer funds between where they expect house prices to rise, while The firm also has an office in these accounts. 27% attributed their decision to prospects of Riyadh, Saudi Arabia, and increased its The platform will also allow customers strong rental income. assets in the Middle East by over $100bn in to offset risk by diversifying investments London was expected to record the high- 2016. It has been offering services to Middle between accounts. est rise in property prices, followed by the East clients for 30 years. East of England and the South East. Among Northern Trust head of Middle East, Rob- Charles Monat to snap up Willis the regions projecting rises in house prices, ert Frazer, said: Towers’ wealth business the Midlands took fourth place and Scotland “We see significant opportunity to bring Charles Monat Associates (CMA), a Hong fifth. our institutional-level offering to asset man- Kong-based life insurance solutions advis- The study revealed younger HNWIs to agers, sovereign wealth funds and wealthy er to HNW clients, has agreed to wholly be a major driving force in the UK property families across the region.” acquire the global wealth solutions business market’s growth, with 41% of their invest- Overall, Northern Trust has offices in 19 of UK-based Willis Towers Watson. ment portfolio held in property, compared to US states as well as 22 international loca- Founded in 1828, Willis Towers Watson is 23% among those aged over 55 years. tions in Canada, Europe, the Middle East an advisory and brokerage business with nearly Also, 75% of younger investors were and Asia-Pacific. The company had $1trn 40,000 employees, with clients in more than found to be keener in increasing their prop- in assets under management at the end of 140 countries. erty portfolios over the next three to five March 2017. <
10 y May 2017 www.privatebankerinternational.com ysis l Private Banker International
uk general election A na
The UK Election: A mere distraction, or a cause for concern for UK investors?
With the UK General Election fast approaching, investors are increasingly asking about the outlook for the UK economy, both in the immediate aftermath of 8 June and over a longer-term horizon once the dust has settled, writes Dean Turner, UK and European economist at UBS Wealth Management
ome might argue that the initial strengthen her hand in negotiations, but the vulnerable to the impact from the Brexit weeks of the election campaign pro- final outcome will remain unclear for some negotiations than from the election outcome. vided little entertainment for markets, time. And a smaller win for May that chang- Volatility in sterling has increased follow- with a Conservative landslide victory es little on the arithmetic front in parliament ing reports that we could see a hung parlia- S would heighten concerns about reaching a ment. While a hung parliament would boost seeming inevitable. Yet recent polls showing a closing of the transition deal, with hard Brexit MPs in the volatility in sterling significantly more than gap between Labour and Conservatives, and Conservative party more likely to have their an outright majority, we still believe the ini- the feasibility of a hung parliament, have voices heard. tial impact will be fairly limited. given markets something to talk about, with Against this backdrop, investors bracing The Brexit negotiations will be kicking sterling taking the brunt of their reaction. themselves for the UK election may find off in earnest less than a fortnight after the So should investors be concerned about some comfort in our predictions for the election. It is their impact on sterling that we the election outcome? impact on sterling and equities. should watch more closely. Regardless of In spite of market concerns, in our view Historically, the UK equity market under- which party is elected, the first phase of the the UK election is unlikely to result in a cata- performs global equity markets in the Brexit negotiations is likely to unveil a num- strophic impact for UK equities, sterling and three months following an election. So it is ber of obstacles, increasing sterling volatility. the broader UK economy. understandable that some investors will be Our base case remains that we will see a Indeed, we believe current election uncer- approaching the FTSE with caution at pre- Conservative majority elected, perhaps pro- tainty is a distraction from the wider picture sent. However, in a change from history, we viding markets with some comfort that we and greater concerns for the UK economy. expect relatively little impact on the FTSE have a leader in place who has more room There are factors impacting the UK that will 100 at an aggregated level from this year’s for manoeuvre in the Brexit negotiations. persist regardless of whether Theresa May, general election. Under such a scenario we expect GBPUSD Jeremy Corbyn or a combination of party There are, of course, some sector consid- to trade higher over the next 12 months, but leaders take the helm. Rising inflation, weak erations. For example, if we see a Conserva- in the shorter term things may well be a little income growth, ebbing business confidence, tive majority, we expect volatility in utilities more volatile. and the Brexit negotiations will continue to on account of the Conservative’s planned In our view, uncertainty in the UK will hold UK growth to ransom, regardless of the cap to energy tariffs. However, we are not prevail on account of the Brexit negotiations, party leading the UK government. braced for significant swings on the back of regardless of which party is elected. Savvy As for the Brexit negotiations, even in the the election. investors would be wise to take the result in event of a Conservative victory and con- We believe the performance of the UK mar- their stride, and prepare instead for a bump- tinuation of the status quo, uncertainty will ket will be more closely linked to the direc- ier ride as Brexit negotiations kick off in a prevail. A strong majority for May might tion of the pound, which is, in turn, far more couple of weeks. <
www.privatebankerinternational.com May 2017 y 11 Private Banker International News technology round-up
Let’s talk technology: monthly update
SMFG, NTT to introduce Line-based automated Vanguard unveils new online investment Barclays opens flagship Rise fintech chat service in Japan platform in the UK innovation hub in London Japanese banking group Sumitomo Mitsui US investment management company Van- Barclays has opened its flagship innovation Financial Group (SMFG) and SMBC Nikko guard has introduced a direct-to-consumer site, known as Rise, in Shoreditch, London, Securities, in collaboration with NTT Com- platform for individual investors in the UK. to support innovation in the fintech space. munications, have developed a Line-based The platform will allow investors to man- Rise London will act as a base for fintech automated chat service that uses artificial age investments using smartphones, tablets startups, corporate clients and other experts intelligence. or other connected devices, offering access looking to co-create new products, services The new service, which has been developed to a range of index funds, ETFs, target retire- and platforms. with support from Accenture Japan, will be ment funds and actively managed funds. The innovation hub will house over 40 available at the SMBC Nikko Securities contact The service will charge an annual admin- fintech firms and will be a gathering place centre from 25 May 2017. istration fee of 0.15% on the first £250,000 for leaders in the fintech and venture capital According to NTT, the AI chatbot is capable ($323,620) of investments. Investors will communities. It will host over 200 hours of of understanding customer input on Line Talk not be charged an administration fee for learning, workshops, hackathons and net- to a high degree of precision, and can automati- investments above £250,000, meaning the working every month. cally offer the most appropriate responses to maximum annual account fee payable will The UK lender said Rise London will be customer enquiries. be £375. the largest co-working space dedicated to fin- The chatbot will provide guidance on open- The platform will also charge underlying tech in Europe. Barclays also has Rise hubs ing accounts, initial public offerings, NISAs, ongoing fund charges. Investors need to pay in New York, Manchester, Mumbai, Cape My Number, and Direct Course. a £500 lump sum, or a minimum of £100 per Town, Vilnius and Tel Aviv. This service uses an NTT Communications month, to open an account. AI engine, the Cotoha communication engine, Vanguard European business head, Sean BNP Paribas Wealth Management unveils four which can engage in human-like dialogue. Hagerty, said: “Vanguard’s new online digital platforms Understanding customer inquiries, Cotoha investment service is designed to help simpli- BNP Paribas Wealth Management has intro- provides natural responses by means such as fy and lower the cost of investing in the UK. duced four new digital platforms – Youman- asking questions about missing information “We aim to offer investors the highest-value ist, Wealth e-mag, Voice of Wealth, and automatically. investment products and services available, Expert Voices – to enhance its relationship Cotoha is also equipped with an escalation with an unwavering commitment to lower- with private clients. function, which redirects clients to an opera- ing the cost of investing in the UK.” The Youmanist website and app offers tor for answers to questions that cannot be upscale lifestyle content written specially for resolved via the AI chatbot. Credit Suisse launches digital wealth the firm by an Italian team of bloggers, writ- management platform in Thailand ers and journalists. Topics included in the Invisor launches digital wealth platform Swiss private banking giant Credit Suisse has offering include the latest trends in architec- Invisor, a Canadian provider of online invest- introduced a new digital wealth management ture, food, fashion, music and travel. ment management services, has launched platform in Thailand, marking the first anni- The Wealth e-mag has been designed to Invisor CoPilot, a new digital wealth man- versary of its launch of wealth management offer updates on subjects affecting private agement platform for financial advisers. in the country. clients in France. These could include areas The platform allows advisers to offer Thailand is the third location in Asia-Pacif- such as the impact of the latest fiscal law on customers low-cost portfolios of ETFs and ic, after Singapore and Hong Kong, where life insurance contracts, as well as lifestyle mutual funds. It offers fully managed port- Credit Suisse has introduced its digital plat- content covering topics including the best folios and a dashboard for client-relation- form. Credit Suisse said the solution will golf courses or newest wine startups. ship management, and facilitates paperless allow the lender to provide digital wealth The Voice of Wealth app has been designed onboarding. management services to its current and next to provide daily wealth management updates Users of Invisor CoPilot can access Invi- generation of customers. and analysis from experts worldwide. It is sorGPS, a goal-planning and tracking solu- The wealth management platform will available worldwide in English, French and tion that offers an overview of a client’s give bank customers access to comprehen- Italian languages. financial position, an insurance needs analy- sive information about their accounts, mar- The Expert Voices blogging platform sis and access to online insurance solutions. ket insights and intelligence relevant to their designed to help private investors gain a Advisers can onboard clients with the new portfolio. It will also offer trading tools to better insight on markets and asset classes platform by sending an online invitation or allow customers to respond to moving mar- before investing. It is available worldwide in through a face-to-face process. kets at 30 bourses worldwide. English and French. Advisory firms can access Invisor CoPilot Customers can access the platform through Commenting on the launch, BNP Paribas through a referral arrangement or as a white- iPad and iPhone devices, web browsers, and Wealth Management co-CEO, Sofia Merlo, labelled solution, depending on their particu- Google Android devices through the Credit said: “We want to offer our clients best-in- lar requirements. Suisse Private Banking Asia Pacific app. class investment solutions, but we also take Invisor CEO, Pramod Udiaver, said: “We Credit Suisse launched its wealth manage- our relationship one step further, bringing have already entered into agreements with ment operation in Thailand in May 2016, them interesting and impactful information some large advisory firms, and will be roll- targeting HNWIs with assets more than $2m, on their interests, whether they’re about ing out Invisor CoPilot to more than 400 of and ultra-rich with assets of $50m, or $250m structured products, entrepreneurship, phi- their advisors in the coming months.” in net wealth. lanthropy, or even art.” <
12 y May 2017 www.privatebankerinternational.com Private Banker International regulation round-up News
The latest in regulation A monthly round-up of the main regulatory announcements that impacted the private banking and wealth management industry worldwide
SEC charges ex-Nomura traders with fraud accused of overbilling clients by around $50m. UK watchdog also signed similar agreements The US Securities and Exchange Commission Barclays agreed to the fine without admitting with the Financial Services Agency of Japan, (SEC) has charged two former head traders or denying the wrongdoings, and agreed to the Ontario Securities Commission, and the at Nomura Securities International of create a fair fund to refund affected clients. People’s Bank of China. lying to customers to inflate the profits of The fine includes a $30m penalty and over the firm’s commercial mortgage-backed $60m in interest. Quebec financial regulator launches new securities (CMBS) desk in New York. Co-chief of the SEC’s enforcement division fintech lab The regulator accused traders James asset management unit, C Dabney O’Riordan, The Autorité des marchés financiers (AMF), Im and Kee Chan of misrepresenting price said: “Barclays failed to ensure that clients Quebec’s financial regulator, has established information to customers looking to buy were receiving the services they were paying a new fintech lab to explore the current and and sell CMBS on the secondary market. for. Each set of clients who were harmed are potential applications of new technology “In certain instances, Im and Chan being refunded through the settlement.” among regulated entities. allegedly pretended they were still The lab will study new technologies rather negotiating bond purchases with a third- Credit Suisse to pay $400m over toxic than the business models based on them, party seller at higher prices when Nomura securities sale in US helping the regulator to gain insight into had already acquired the bonds at a lower Swiss banking giant Credit Suisse has agreed carrying out its role in a digital environment. price,” the watchdog alleged. to pay $400m in fines to settle claims of This includes updating the AMF’s The pair generated over $750,000 in improper sales of residential mortgage- knowledge of new technologies and exploring extra profits for the CMBS desk through backed securities that led to the fall of three how it can use them to enhance its business fraud, and secured substantial bonuses credit unions in the US. processes, as well as providing insight into a based on the desk’s performance, SEC said. The settlement with the National Credit review of the regulatory framework and to the Chan agreed to settle the allegations Union Administration (NCUA) involves the regulatory sandbox initiatives implemented by paying a $150,000 penalty, $51,965 in US Central Federal Credit Union, Southwest by the Canadian Securities Administrators. disgorgement, and $11,758 in interest. The Corporate Federal Credit Union and Western AMF said the new lab will invite university settlement is pending court approval. Corporate Federal Credit Union. students in the engineering and technology Chan also agreed to be barred from The bank agreed to the settlement without fields to work as interns on lab projects, the securities industry with a provision admitting or denying any wrongdoings. under the supervision of its fintech working to reapply after three years, though Commenting on the settlement, Credit group members. he neither admitted nor denied the Suisse spokeswoman Nicole Sharp said: “We The regulator has also agreed a partnership accusations. The case against Im is still are pleased that with the finalization of this with distributed ledger technology firm R3 ongoing. settlement, another legacy matter has been to gain access to information about projects The SEC’s New York regional office resolved.” undertaken by other regulators, and develop director, Andrew Calamari, said: “As alleged The settlement with Credit Suisse comes its own initiatives more effectively. in our complaints, Im and Chan operated after a similar $445m settlement with under cover of an opaque CMBS secondary another Swiss banking major, UBS. Overall, US derivatives regulator launches fintech lab market to gain illegal trading profits and the NCUA has recouped nearly $5.1bn The US Commodity Futures Trading potentially larger bonuses by lying to firms through its settlements with several banks Commission (CFTC) has launched a new lab to on the other side of their trades about over toxic security sales to five collapsed support innovators in fintech. the prices at which they were buying and federal credit unions. The new facility, known as LabCFTC, will selling securities.” Proceeds from the recoveries will be used be located in New York and will help CFTC to pay claims against the failed credit unions. and fintech innovators to enhance mutual Barclays fined $97m by US regulator for involvement and work more efficiently. overcharging clients UK’s FCA finalises fintech agreement with One of the project’s two core components Barclays Capital has agreed to pay more than Hong Kong’s SFC is GuidePoint, which will be a direct point of $97m to the US Securities and Exchange The UK’s Financial Conduct Authority (FCA) contact for fintech innovators to engage with Commission (SEC) to settle allegations of has signed a co-operation agreement the CFTC and gain insight into the regulatory overcharging clients. with Hong Kong’s Securities and Futures framework. The other component is CFTC The SEC accused the bank of charging more Commission (SFC) to enhance collaboration in 2.0, which will allow the regulator to assess than 2,000 clients for due diligence and the fintech space. how it can initiate the adoption of emerging monitoring of strategies that were not being The agreement will allow the two regulators technologies. performed as represented. to exchange information and refer innovative Among the key responsibilities of LabCFTC In addition, the bank was accused of startups looking to enter the other’s markets. will be to proactively engage with the recommending more expensive share classes SFC CEO, Ashley Alder, said: “This innovation community to gain a better even though less expensive variants were agreement will help both regulators stay insight of how new innovations interact available, and collecting excess mutual fund abreast of innovation in financial services with the regulatory framework, and identify sales charges from 63 brokerage clients in the while providing innovative fintech firms areas where the innovation could support process. seeking to develop and grow their businesses responsible innovation. Moreover, the bank was found to have internationally with enhanced channels for It will also monitor trends in the area secured excess fees from an additional 22,138 communicating with regulators.” to ensure that CFTC’s framework “does not accounts owing to miscalculations and billing In December 2016, the FCA signed a unduly impede” responsible innovation, errors, the SEC said. Overall, Barclays was fintech agreement with the Hong Kong and exchange information about fintech Monetary Authority. Earlier last year, the applications. < www.privatebankerinternational.com May 2017 y 13 ysis l Private Banker International
A na researchwire
Research Wire: GlobalData
The Research Wire is a snapshot of interesting findings from in-depth reports that have been put together by analysts from PBI’s sister company, GlobalData Financial Services. This month we take a look at two Research Wires focusing on emerging issues affecting wealth markets in the Asia-Pacific region
Why mass affluent Kiwis are increasingly attractive to banks Focusing on the mass affluent investor most interested in other services. In New Research by GlobalData shows that the segment is more of a priority for banks Zealand, like many other mature markets, typical mass affluent investor has a in countries with a decelerating property these customers mean mass affluent total investment portfolio that is much market such as Australia, Canada, and investors with between $50,000 and less dominated by property than what New Zealand. $1m in onshore liquid investments. is typical for New Zealand. They are definitely invested in the market – the With New Zealand’s property These investors are naturally significant price growth in Auckland market reportedly struggling more open to the cross- would have been hard to resist – but in the latter half of 2016 selling of wealth management their other investments mean property and forecast to have a more products and services. This may accounts for a more modest share. moderate 2017, banks need to include structured retirement rethink their strategies. While savings management like This diversification means the mass we expect residential mortgage KiwiSaver, execution-only services affluent will be less adversely affected balances outstanding to continue to rise, like brokerage or term deposits and by a moderate property market and so mortgages cannot be expected to power portfolio investment entities, right up to less preoccupied with its debt load. And new business to the same extent as before. more complex investment advice. consumers less focused on their debts are more open to the cross-selling of With consumers weighed down by large However, banks have another reason to be any financial services, not just classic debt loads, the appetite for further interested in these customers. Not only investment products. This suggests it lending will be constrained and banks do they have larger investment portfolios is time to reconsider the mass affluent need to target customers who are able to than the rest of the retail market, they are as a source for business growth, in New hold up under the pressure and who are more diversified as well. Zealand and elsewhere. < Investor promiscuity lessens Asia’s attraction Several international private banks have only use the services of a few additional pulled their business from Asia in recent specialists. Meanwhile in developing Asia, years, despite the growing high net worth Indonesians only keep half their wealth (HNW) investor base in the region. with their primary bank and spread their risk across many wealth managers. One of the main factors behind this realignment has been the difficulty in Markets where this high degree of achieving AUM growth, leaving many promiscuity holds – which is true of banks with uneconomical client books. much of Asia – are harder to grow in Private banks in Asia need to be able to unless you gain the lead position. A lot of gain the primary wealth manager role international banks entered Asia-Pacific, or content themselves, with a minor gained some business, but generally mandate from their investors. failed to capture the lead position and so could not grow their AUM fast enough. HNW investors have big enough portfolios The extent to which this occurs varies to spread their business around, and a lot considerably by market, reflecting A regional market with HNW liquid assets of them do so. This may be to gain access different local conditions and investor that grew by 7.4% in 2016 – according to specialist products and expertise, such preferences. to our Global Wealth Markets Analytics – as a particularly exclusive private equity becomes one in which gaining sufficient fund or the services of a star investment When analysing a selection of key wealth AUM is a struggle. Until outside private manager. Or it may simply be a desire markets from our 2016 Global Wealth banks are able to secure the main bank to spread the counterparty risk over a Managers Survey, the disparity between role, or expand in the region while number of institutions. This means that markets becomes starkly apparent. US maintaining tight control on costs, Asia- any one wealth manager is unlikely to HNW investors keep the bulk of their Pacific will remain the graveyard of global be managing all of their clients’ wealth. wealth with just one wealth manager, and ambitions. <
14 y May 2017 www.privatebankerinternational.com s Private Banker International people moves TITLE New
People moves
PBI lists the month’s key career developments by the movers and shakers in the private banking and wealth management industry. This month, Suni Harford moves from Citigroup to UBS Asset Management in the US, while in Switzerland Silvan Wyss moves from Credit Suisse to SYZ
People Moves
Country Name Moved from Moved to Old position New position Executive vice-president, CFO, treasurer USA Jim Hom Lombard International Lombard International Global CFO – US division USA Suni Harford Citigroup UBS Asset Management Regional markets head – North America Head – investments Netherlands Clifford Abrahams Delta Lloyd ABN Amro CFO, managing board member CFO, executive board member CEO – alternative investment services USA Frank La Salla Bank of New York Mellon Bank of New York Mellon CEO – corporate trust business and structured products North, Central, Head – North America, HSBC Global Head – global private banking Joe Abruzzo HSBC HSBC South America Private Banking business, Americas Australia David Murray BT Magnitude dealer group Sterling Private Wealth Regional practice business manager CEO Rothschild wealth Head – compliance, UK and UK and Ireland Derrick Cain Julius Baer International Compliance director management Ireland UK Grant Parkinson Coutts Brewin Dolphin COO COO Global head – advisory and wealth Switzerland Silvan Wyss Credit Suisse SYZ Head – wealth management planning
Fidelity Investment Product Fidelity Institutional USA Judy Marlinski Head President Solutions and Innovation Asset Management
Australia Johanna Platt Iron Mountain Vanguard Australia CFO for Australia and New Zealand CFO US Trust, Bank of America Director and private banker – USA Mariia Eroshin Citi Private Bank Private client adviser Private Wealth Management San Francisco team Focusing Capital on the Long Head – environmental, social USA Jonathan Bailey Neuberger Berman Director – research Term and governance investing Head – product and UK Michael Pos Towry Brown Shipley Head – corporate development proposition MD, global head – managed solutions USA Seth Bernstein JPMorgan Chase AllianceBernstein President, CEO and strategy, asset management unit USA Robert Zoellick Goldman Sachs Group AllianceBernstein Chair – international advisory board Chair – board Global head – financial planning and Germany James von Moltke Citigroup Deutsche Bank CFO analysis, treasurer MD, head – North American execution Head – America equity USA David Silber Citi Deutsche Bank sales derivatives USA Eoin Milligan Bank of America Deutsche Bank Director Director – equities Non-executive director, chair – audit UK Tim Tookey Old Mutual Wealth Old Mutual Wealth CFO committee www.privatebankerinternational.com May 2017 y 15 Simple, secure and effortless digital Private Banker International News PBI greater china awards solutions for nancial services organisations
Private Banker International Greater PRIVATE BANKER Editor: Meghna Mukerjee China Awards 2017: Preview Email: [email protected] Correspondent: Vania Goncalves Tel: +44 (0)20 7406 6703 Email: [email protected] Contributor: Robin Arnfield PBI will host its ninth annual Private Banking Awards luncheon for Group Publisher: Ana Gyorkos the Greater China region on 2 June 2017, at the Park Lane hotel, Hong Tel: +44 (0)207 406 6561 Email: [email protected]
Kong. Here is a sneak peek at the award categories for this year Sub-editor: Nick Midgley
he annual Private Banker Internation- cation in the service models and respective al Greater China Awards is back on propositions of private banks with opera- Subscription Enquiries: Alex Aubrey To nd out more please visit: 2 June 2017 at the Park Lane Hong tions in Greater China. Tel: +44 (0)2030962603 Email: [email protected] Kong, a Pullman Hotel. In its ninth “Not only have institutions recognised the Director of Events: Ray Giddings www.intelligentenvironments.com T cognitive changes occurring in these signifi- +44 (0) 203 096 2585 year, this event will see senior executives Tel: from private banks, family offices, inde- cant markets, they are clearly appreciative Email: [email protected] pendent wealth managers and intermediar- of the need for adaptive models to remain Customer Service Tel: 020 3096 2636 or 020 3096 2622 @IntelEnviro ies come together for an awards luncheon, as relevant to the needs of the clients and the Email: [email protected] well as active discussions around the private transformative reform of the region.”
wealth sector in North Asia. The categories for the Private Banker Inter- As a subscriber, you are automatically entitled The Private Banker International Greater national Greater China Awards 2017 are to online access to Private Banker International and a five-year China Awards are widely regarded as the divided into Institutional Awards, Service newsletter archive. Please contact customer services for more most credible in the industry. Proposition Awards and Individual Awards. information. The afternoon of 2 June will be dedicated The Private Banker International Greater For more information on accessing Private Banker International to announcing and celebrating the winners China Awards mark an important extension content online, or to subscribe, please telephone +44 (0)20 7563 5681 or email of the Greater China-focused awards, to of the Private Banker International Global [email protected] celebrate the best among the private banks Wealth Awards, which recognise excellence London Office that are successfully serving wealthy clients by banks and other wealth managers in vari- 71-73 Carter Lane across the region and acting as benchmarks ous regions. China, Hong Kong and Taiwan London, EC4V 5EQ Tel: +44 (0) 207 936 6650 of excellence within the wealth management represent an immense pool of high net worth Asia Office industry. assets, and are at the centre of increasing 1 Finlayson Green Editor of Private Banker International, efforts by banks and other participants, both #09-01 Meghna Mukerjee, said: “Nominations this foreign and domestic, to grow top-flight Singapore, 049246 year continued to show enhanced sophisti- wealth management business. < Tel: +65 6383 4688 Fax: +65 6383 5433 Email: [email protected] PBI Greater China award categories Financial News Publishing, 2012 Registered in the UK No 6931627 Institutional Awards: Intelligent Environments is an international provider of innovative mobile and online solutions for nancial services • Best Private Bank in China (Domestic) Unauthorised photocopying is illegal. The contents of this publication, either in whole or part, may not be reproduced, stored in a data retrieval providers. Our mission is to enable our clients to deliver a simple, secure and effortless digital experience to their • Best Private Bank in China (International) system or transmitted by any form or means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of own customers. • Best Private Bank in Hong Kong (Domestic) the publishers. ® For information on additional copies or syndicated online access to this We do this through Interact , our single software platform, which enables secure customer acquisition, engagement, • Best Private Bank in Hong Kong (International) newsletter, please contact Customer Services. transactions and servicing across any mobile and online channel and device. Today these are predominantly • Best Private Bank in Taiwan (Domestic) focused on smartphones, PCs and tablets. However Interact® will support other devices, if and when they become • Best Private Bank in Taiwan (International) mainstream. Service Proposition Awards: We provide a more viable option to internally developed technology, enabling our clients with a fast route to market • Best Family Office proposition in Greater China whilst providing the expertise to manage the complexity of multiple channels, devices and operating systems. • Best Offshore Renminbi Offering in Greater China Interact® is a continuously evolving technology that ensures our clients keep pace with the fast moving digital • Best Ultra-High Net Worth Individual Offering in Greater China landscape. • Best Next-Generation Offering in Greater China • Most Effective Wealth Management Platform in Greater China We are immensely proud of our achievements, in relation to our innovation, our thought leadership, our industrywide recognition, our demonstrable product differentiation, the diversity of our client base, and the calibre of Individual Awards: our partners. • Outstanding Young Private Bankers (Greater China – North Asia) • Outstanding Private Banker (Greater China – North Asia) For many years we have been the digital heart of a diverse range of nancial services providers including Atom Bank, Generali Wealth Management, HRG, Ikano Retail Finance, Lloyds Banking Group, MotoNovo Finance, Think Money 16 y May 2017 www.privatebankerinternational.com Group and Toyota Financial Services.
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We do this through Interact®, our single software platform, which enables secure customer acquisition, engagement, transactions and servicing across any mobile and online channel and device. Today these are predominantly focused on smartphones, PCs and tablets. However Interact® will support other devices, if and when they become mainstream.
We provide a more viable option to internally developed technology, enabling our clients with a fast route to market whilst providing the expertise to manage the complexity of multiple channels, devices and operating systems. Interact® is a continuously evolving technology that ensures our clients keep pace with the fast moving digital landscape.
We are immensely proud of our achievements, in relation to our innovation, our thought leadership, our industrywide recognition, our demonstrable product differentiation, the diversity of our client base, and the calibre of our partners.
For many years we have been the digital heart of a diverse range of nancial services providers including Atom Bank, Generali Wealth Management, HRG, Ikano Retail Finance, Lloyds Banking Group, MotoNovo Finance, Think Money Groupwww.privatebankerinternational.com and Toyota Financial Services. May 2017 y 17
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Private Banking: London 2017 brings together private banks, family Why Attend? offices, independent wealth managers and intermediaries in an active • Hear from key senior industry thought leaders via informative and discussion of the key issues facing the industry: inspiring keynote sessions • Recognising regulatory changes and trends in private banking this year • Network with speakers, participants, partners and share best • Identifying the needs and preferences of today’s clients practises with your peers • Next generation banking and how it is evolving • Discover the latest key industry trends and discuss practical solutions to the most pressing industry questions • How is digital shaking up the wealth management industry? • Celebrate at our black tie awards dinner recognising those at the • Family Offices: How can they continue to succeed in today’s market? top of their game • The importance of conduct risk at London’s private banks • Brexit: how will this shape the future of private banking in UK and Europe? Top industry movers and shakers will meet to debate the importance of new strategies, business practices and partnerships in the industry. We invite you to become an active voice in this discussion to shape the future of private banking. For more details please contact Victoria Pennell on [email protected] or call +44 (0) 20 3096 2634.
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