leveraging ecosystems to succeed in digital private banking · key digital innovation barriers in...

Michael Rogenmoser, Chief Market Officer CH/FL, Avaloq

Private Banker International – Switzerland 2018 Conference

Zurich, 12 December 2018

Leveraging Ecosystems

to Succeed in Digital

Private Banking

Operational Efficiency as Main Strategic Objective for Wealth Managers – But Digital Transformation and Regulatory Compliance are Becoming Considerably More Important

Source: IDC Survey “Innovation in Wealth Management”, June 2018 (N=50) Confidential | 2

To Achieve their Strategic Objectives, Wealth Managers are Prioritizing Innovation in Infrastructure, Technology and Digital Transformation


The Majority of Wealth Managers Intend to Adopt a Cloud-first Approach in theNext 3 Years to Accelerate Time to Market. In Addition, Building API Gateways and Open API Platforms is Believed to Deliver Significant Business Benefits


Open Banking –Opportunity or Threat?

Confidential | 5

Open Banking is Seen as an Opportunity rather than a Threat, as it Will Empower Customers and Improve their Experience – However, Data Security Concerns Persist


What are Key Factors forSuccessful Digital Transformation?

Confidential | 7

Key Pillar of Wealth Managers’ Digital Transformation Strategy is Building Omni-Channel Capabilities, Tools for Digital Customer Experience and Digital Self-Service


of Wealth Managers Consider to be Successful in their Digital Transformation

18%

Confidential | 9

Key Digital Innovation Barriers in Wealth Management Companies

Source: IDC Survey “Innovation in Wealth Management”, June 2018 (N=50)

Outdated KPIs

• 68% struggle to adapt to digital operating environment (e.g. digital sales)

• 33% of leadership lack openness to innovation and experimentation

Siloed Digital Transformation initiatives

• 66% believe DX centers of excellence will help them to increase synergies within the group

• 58% believe that innovation hubs will accelerate internal innovation

Tactical plans & lack of clear digital strategy

• 33% say their management lacks a clear digital strategy & acts predominantly on

a tactical approach

• 66% say innovation suffers from a lack of funding

Limited expertise & digital capabilities

• 64% struggle with engaging and understanding customers

• 100% lack the relevant technology and business analysis skills

Silos of innovation

• 86% plan to accelerate innovation through internal cultural change (agile, design thinking, DevOps)

• 50% lack an innovation culture

Confidential | 10

Confidential | 11Confidential | 11

Best Practice Example for a Successful Digital Transformation Journey

Source: DBS website, IDC, Avaloq Research

• DBS transformed itself with an award-

winning digital client experience in just

three years to provide innovative apps

which integrate into the day to day

lifestyles of their clients – from travel

and entertainment to utilities and health

• DBS created agile, multi-disciplinary

DevOps teams, including 50+ fintechs

and clients, and ran innovation programs

with over 1,000 experiments

• The bank researched over 250 customer

and employee journeys, produced over

200 APIs, and developed apps as micro-

services which it deployed in the cloud

Confidential | 12

Where’s the Business Value in Technology Innovation?

Confidential | 13

Wealth Managers Plan to Focus on Big Data and Machine Learning to Automate as well as Better Manage Risk, Fraud, Compliance and Security


Key Takeaways

Confidential | 15

Cloud is the future, and most wealth managers are shifting to XaaS to get

immediate access to technology through an innovative, agile, and effectively

maintained infrastructure1

2Open banking is seen as an opportunity by most wealth managers, but data

security is again seen as their biggest concern

3Data-driven technology innovation is believed to have the highest impact on

the business. Therefore wealth managers invest to automate complex fraud,

risk, compliance, and security processes

4The move to digital has led to wealth managers prioritizing self-service

capabilities and the omnichannel digital experience over specific marketing,

sales, or analytical tools

Leverage Ecosystems to Succeed in Digital Private Banking

Confidential | 16

Disclaimer: This presentation is strictly confidential and intended for information purposes only. You may not copy or

otherwise use the content unless explicitly authorized in writing. All rights (in particular IP rights) of Avaloq, its subsidiaries

and the authors are reserved.

Michael Rogenmoser, Chief Market Officer CH/FL, Avaloq

[email protected]

Thank you for your attention

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