Download - B-Case 3
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Chappuis Halder & Cie
Private Banking-Customer Loyalty
January 2010
Private Banking activities demonstrate clear geographical discrepancies
9,1
+7,0%
5,8
+6,8%
8,3
+6,5%7,4
+12,8%
2,2
+5,1%
Estimated wealth ofHNWI in 2008in K billion $
Growth forecastAnnual Growth Rate 2008 – 2013 Forecast
• Highest wealth concentration of HNWI (one quarter of world HNWI)
• HNWI seek investments closed to home (74% investments onshore)
• Disparate situation between countries (-26% in UK while -3% in Germany)
• Russia has lost 28% of is HNWI population
• Pressure on offshore market• Strong political and
regulatory pressure
• High concentration in Japan (half of HNWI in the region)
• China is becoming the 4th market in the world
• India is an emerging market, with wealth creation “up and down” (2007 / 20008)
• Conservative investments (cash, real estate, etc.)
Source: World Wealth Report 2009
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With $1 700 bn of AuM, Switzerland is not only the leading marketplace, but has the longest history and highest reputation
Source: companies web sites
• Wealth management
• Trust and family offices
• Asset management, Financial product
• Open architecture
• Advices Services for independent asset managers
• Funds management
• Global Custody +
Innovative products
Sustanaibility and trust
Offer Competition landscape
Universal Banks (extract)
Pure players (extract)
know-how, innovation and tradition
Communication and presence (proximity with local customers)
all bank services with large footprint
The Swiss market is interesting to look at for best practices / trends
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Swiss market Pure Players analysis demonstrates different positioning and strategies
Source: companies web sites
AuM : $ 360 bn
• Footprint expansion : new retail office in Honk-Kong (Feb 08), new office in Basel (June 08)
• Innovation on new products based on real assets (gold, timber, water, etc.)
• Development of sustainable business (awarded best provider in 2009)
• Banks : Geneva, Luxembourg, Nassau, Singapore
• Branches : Zurich, Frankfurt, Madrid, Paris
• Offices : Barcelona, Basel, Dubai, Florence, Hong Kong, Lausanne, London, Milan, Montreal, Rome, Turin, Tokyo
• Expanding investment platform with alternative investments
• Expanding client target group in the institutional and private segments with new products
• Increasing onshore business without neglecting position in Switzerland (new office in Fribourg)
• Switzerland : Geneva, Fribourg, Lausanne, Lugano, Vevey, Zurich
• Europe : Amsterdam, Barcelona, Brussels, Düsseldorf, Gibraltar, Jersey, London, Madrid, Paris, Prague
• World : Montreal, Bermuda, Nassau, Singapore, Hong Kong, Tokyo, Dubai
• E-services is highly promoted and used as a differentiator mean
• Expanding footprint : new offices in Nuremberg, Bern and Austria in 2009
• Sarasin entered the Indian market and established Sarasin-Alpen Ltd mid 2009
• Switzerland : Basel, (HO), Berne, Geneva, Lugano, Zurich
• Europe : Dublin, Frankfurt, Guernsey, La Coruña, Nuremberg
• London, Madrid, Munich, Warsaw, Vienne
• World : Delhi, Mumbai (India), Doha, Dubai, Muscat, Hong-Kong, Singapore
Development axis
Footprint
• Several newsletters sent to customers on Economy analysis
• New products : physical gold fund in Switzerland in (oct 09), PF(LUX)-Agriculture fund (May 09), First fund on Latin America Local Currency Debt (March 08), MENA fund in May 08
• Transparency : AuM and Rating on web site
• Numerous interviews of Patrick Odier in press
• Group news focus on LODH proximity and strong involvement in business (market analysis and trends), sponsoring (“hydrocoptère”), events (Private Banking fair in Geneva), awards (family Merck)
• Many press releases on sustainable business (green economy, car manufacturers, real estate, etc.)
• Innovation on sustainable products: Sarasin has issued in July 09 the world’s first fund to specialized in the shares of sustainable property companies, the Sarasin Sustainable Equity – Real Estate Global Fund
Major communica-tions during 2008 - 2009
AuM : $ 75 bn
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With a decrease in asset under management and higher costs of acquisition, Customer Loyalty Management is now a key issue
Decrease of AuM
Higher costs of acquisition
Value proposition must be anti-attrition oriented• Fame and reputation damages
• Lost of confidence and trusts
• Transfer of assets from Universal Banks to Pure Player Private Banks (in 2008 / 2009, not sure in 2010)
• Understanding customers’ expectations : products, services, relationship management, etc.
• Reviewing advisory processes to bring more value
• Integrating Risk Management (e.g. fully understandable risk reporting, risk training, risk profiling) in Customer Relationship Management
• Improve reporting and access to information
• Higher interest rates are now common to attract customers
• Customers are now more interested in simple, transparent and low risks products (cash, fixed income) with low margin for the bank
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From customers’ point of view, reporting and on-line access are major issues to stay with a private bank
Source : Word Wealth Report, 2009
Strategic levers of Client Retention
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Improve distribution channel efficiency
Manage distribution costs
Use the full scope of possible communication tool
Adapt to the client’s changing expectations
• Use indirect distribution to target the right kind of customers
• Make sure targeted customers for the bank are well addressed by indirect distributors
• Distribution costs gather acquisition costs, upselling costs and loyalty costs
• These costs have to be monitored closely to match the customer value (
• Multi-channels is now a reality, and have to be integrated in the distribution strategy
• Most on HNWI are technophiles and are keen to use internet, mobile, etc.
• Clients are now expecting both direct access to their wealth adviser and access to specific information and services through online channels
• They won’t use always the same channel to get in touch with their bank, it is necessary to leave them the choice
Distribution is therefore a key asset to develop customer intimacy if matching customers’ expectations
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