PRIVATE BANKER August 2015 Issue 323 www.privatebankerinternational.com A class act Multifamily offices and private banks serve up bespoke solutions for the ultra wealthy • The value of succession planning • Interview: Citibank Singapore • Voice biometrics in wealth management • Country Survey: UAE PBI 322.indd 1 03/09/2015 16:27:17 Connect to Wealth Through Intelligence About WealthInsight WealthInsight provides detailed data and insightful analysis on We work with and provide solutions for: the world’s High Net Worth Individuals (HNWIs) and wealth Wealth Managers sector. With decades of experience providing business Private Banks information, WealthInsight helps organisations make informed Family Offices decisions and win new business. Technology Providers Professional Services – Consultants, Accountants, AtA WealthInsight’s core is our proprietary HNWI Lawyers, Real Estate Professionals Database of the world’s wealthiest individuals. Around Fund Managers, Asset Managers, this database we have built a number of valuable research Venture Capitalists based products and services that make WealthInsight much Non-profits and Educational Institutions more than just a rich contact list. For more information contact us at [email protected] T: +44 (0)207 406 6553 PBI 322.indd 2 03/09/2015 16:27:22 IAB 545v2.indd 25 20/02/2015 16:55:07 Private Banker International EDITOR’S LETTER ANALYSIS Connect to Wealth Through Intelligence Big data, big breaches and big CONTENTS question marks NEWS n a day and age where clients are used to time data access when it comes to investments 2: NEWS DIGEST the likes of Amazon, Google, and PayPal, and performance. 3: NEWS BRIEFS it is obvious why customers expect the Advisers, too, benefit from time efficiencies 12: TECH ROUND-UP same level of service and intuitiveness if the client data is up to date. Keeping on top I of data is also increasingly important for suc- from their banks. 13: REGULATION ROUND-UP However, as the banking industry has sev- cessful regulatory reporting. 15: PEOPLE MOVES eral lessons to learn in terms of good practice Most importantly, analysing data success- from other industries, there is more to learn fully is crucial, now more than ever, from a ANALYSIS from other sectors when it comes to the mis- risk management point of view. 6: WEALTHINSIGHT: EXPERT COMMENT takes that have been made. However, the mining of data and usage of Data breaches have been a running theme analytics tools in the private banking space is 14: LIQUIDITY PROFILES across industries in the last few years, from not as advanced as it could be or is in other the WikiLeaks episode to the Target data vio- industries. FEATURE lation to the recent Ashley Madison data hack Do private banks really have all the tools 4-5: MULTIFAMILY OFFICES AND PRIVATE scandal. in place to navigate the complex data eco - BANKS Such events come to every industry, partic- systems, tackling the high volume and As multi family offices expand and private ularly the private banking sector, in form of velocity, and making use of the structured banks progressively enter the bespoke, loud alarm bells as customers - for whom data as well as unstructured data in effective family office services market, the lines security is of utmost importance - get a blaring ways? Are private banks making use of third are blurring between offerings from these different financial institutions. John reminder of how every bit of their personal party organisations and solutions that are Schaffer speaks to industry experts to get a information that is in the digital space can be available in the market enough in this regard? clear picture accessed, misused or manipulated. Additionally, have private banks and wealth 7: CITIBANK SINGAPORE The significance of data in the financial ser- managers deployed watertight security sys- Rapid growth of the mass-affluent segment vices sector is paramount. tems to tackle highly sophisticated cyber secu- in Singapore offers strong business The usage of big data and analytics is a true rity challenges that continue to come up in opportunities for banks to differentiate differentiator in terms of offering relevant relation to the dynamics of data management? themselves. Citibank Singapore has a products and services to clients on the retail Now is the time to put in place appropriate robust strategy in place to gain and retain a spectrum of wealthy clients banking side. The credit card market has been frameworks and review strategies, yet again, even more proactive about the effective use of when it comes to managing data, cleaning 8: VOICE BIOMETRICS data and analytics, tailoring offers in real time data, and truly making big use of big data Complex and cumbersome authentication to consumers that perfectly fit clients’ taste to predict and mitigate risks, whether that's processes can often be a burden for private banking clients when speaking to an advisor, and in immediate response to their needs. internal or external. with the requirement for multiple pass-codes On the private banking and wealth man - Before becoming the Amazon of banking, or PINs. Voice biometrics offers a way to take agement side, however, the handling of data it’s most important for institutions to go back some friction out of the equation. and the usage of analytics is blanketed with to basics to protect themselves and their cus- 9: SUCCESSION PLANNING an extra layer of privacy concerns, which is tomers, and make their security and risk man- John Schaffer investigates how well the UK totally justified considering the net-worth of agement teams as well as systems as robust and European wealthy are prepared for the each of these clients. and effective as possible. As the cliché goes, transfer of their wealth A lot of banks have invested heavily in their and recent incidents amply prove, it is indeed About WealthInsight 10: AL RAYAN BANK IT and software capabilities, overhauling their better to be safe than sorry. Britain's first fully Sharia-compliant bank back-end systems and using mature analytics WealthInsight provides detailed data and insightful analysis on We work with and provide solutions for: Al Rayan is gaining momentum. It has tools in order to offer agility to customers, Meghna Mukerjee undergone a major revamp following the through their digital channels, in terms of real- [email protected] the world’s High Net Worth Individuals (HNWIs) and wealth Wealth Managers acquisition by Qatar's Masraf Al Rayan (MAR) QSC in 2014 sector. With decades of experience providing business Private Banks information, WealthInsight helps organisations make informed Family Offices COUNTRY SURVEY decisions and win new business. Technology Providers 11: UAE Professional Services – Consultants, Accountants, AtA WealthInsight’s core is our proprietary HNWI WealthInsight's report looks into the trends Lawyers, Real Estate Professionals of wealthy individuals in the UAE Database of the world’s wealthiest individuals. Around Fund Managers, Asset Managers, this database we have built a number of valuable research Follow Private Banker International Venture Capitalists COMMENT based products and services that make WealthInsight much Non-profits and Educational Institutions more than just a rich contact list. 16: LINKEDIN LinkedIn’s Henry Clifford Jones discusses how banks can harness digital technologies Search for ‘Private Banker International to attract a new generation of wealthy young Search for @BankerNews customers – Timetric Financial Services’ For more information contact us at [email protected] T: +44 (0)207 406 6553 www.privatebankerinternational.com August 2015 y 1 PBI 322.indd 1 03/09/2015 16:27:24 IAB 545v2.indd 25 20/02/2015 16:55:07 Private Banker International NEWS DIGEST STRATEGY of financial services software The latest license will take (OMGI) will report to Baines. and software-enabled services, the total number of restricted Also, Warren Tonkinson Citibank to expand has agreed to acquire Citi - license banks in Hong Kong to will become managing direc- wealth management group's alternative investor ser- 24. tor of OMGI to allow Bux - business in Korea vices business for $425 million. The subsidiaries will enable ton to remain focused on his Citigroup's alternative inves- the bank's customers to transact fund whilst providing overall Citibank Korea has unveiled tor services business includes with local entities, rather than investment leadership as CEO. plans to expand its wealth man- hedge fund services and private deal cross-border with the par- Tonkinson will report to Buxton agement business and focus on equity fund services. ent bank in another jurisdiction. in his new role. investments in mobile banking Bill Stone, chairman and Old Mutual Wealth CEO, CEO of SS&C Technologies, to manage low growth and low DEALS Paul Feeney, said: "I can think margins. said: "This acquisition is solidly of no better person to appoint "We will focus more on afflu- in line with SS&C's strategy of RBS offloads as CEO of OMGI than Rich - ent segments in Korean mar- combining organic growth with Luxembourg funds ard - his experience, exceptional kets," said Citibank Korea select, high quality acquisi - business to BlackFin investment skill and his princi- consumer business head and tions. Citi Alternative Investor ples will take our asset manage- senior executive vice president Services clients can be assured State-backed British lender ment business forward with a Brendan Carney. of SS&C's commitment to con- Royal Bank of Scotland