Improving
capabilities through technology and process re-engineering has
become a priority for Asian wealth managers, according to the
latest research and webinar from VRL Financial News
The recent webinar by
sister publication Banking & Payments Asia identified
the shift of key investment priorities to frontline processes and
technology, and provided some examples on how banks have used
technology to give frontline relationship managers additional
firepower.
Go deeper with GlobalData
Research conducted by VRL
Financial News in association with Oracle Financial Services,
ensuing in the white paper Empowering Relationship Managers in
the Frontline, was the basis for the webinar.
Driven by four key
challenges: compliance, human resources, cost and revenues and
customer expectations, banks have identified five priorities:
automating compliance, managing relationship manager (RM)
attrition, deepening customer relationships, increasing process
efficiency to save costs, and increasing RM efficiency.
Chairing the webinar,
Thomas Zink, associate editor of BPA, said: “Our research
shows that the surge in regulation to protect customers, minimise
anti-money laundering and increase risk management standards is
forcing banks to put considerable resources into frontline
training, supporting technology, process re-engineering and RM
retention.
“This has put even more
pressure on the banks to manage the already high cost of the
private banking business.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOne of our Singapore
respondents estimated that compliance has increased cost-to-income
ratios by 5%-10% in the last five years.”
As a result, wealth
managers have started to invest in technology to support
relationship managers, from know-your-customer automation, risk
profiling and product suitability, towards integration of all
accounts and systems across asset classes to get a holistic view of
the customer’s portfolio.
For some banks this also
means a break with traditional concepts of private banking, for
instance through the introduction of digital channels and bringing
in data and analytics to support RMs through processes such as
scenario modelling, predictive analytics and portfolio stress
testing.
The second speaker,
Bhaskar Jayaraman, vice-president of product management for Oracle
Financial Services, confirms these findings.
“One of the key areas
where we have seen more activity from wealth managers is the
development of a multichannel capability to increase access and
reach for their customers,” he said.
“The objective is to allow a seamless conversation
between customer and bank, well integrated into daily interactions
of the client, allowing him to manage his wealth with ease and at
his convenience.
“This increasingly goes
beyond viewing and allows customers to actively transact.
“We are also seeing more
activity in improving decision-making through data and analytics.
This means, for instance, a better presentation of information to
justify decisions by comparing how markets have moved vis-a-vis the
customer portfolio.
“Data and analytics also
allow ‘what-if’ simulations and portfolio stress testing. It can
also facilitate product comparison, including specific risk
characteristics and suitability. This helps customers and
relationship managers to focus on relevant products in the flood of
products they are exposed to every day,” Jayaraman added.
In the Q&A session,
the panel discussed the need for a differentiation between retail
or emerging affluent core systems, and high net worth (HNW)
systems.
“Given the small volumes
and high values in the HNW individual business, there is simply no
room for mistakes,” said Jayaraman.
“For this reason most
private banks have introduced separate systems for the affluent
segments to manage the higher product complexity and sophistication
of the customers.
“Our research showed this
is particularly true for the mature markets,” said Zink.
“Wealth managers in Hong
Kong and Singapore said the requirements of a wealth management
system go far beyond what a retail system can deliver.
“Our China respondents,
on the other hand, seeing private banking as more ‘retail banking
with perks’, use multiple systems for HNWI banking, but no specific
wealth management system.
“The retail banking
system is used for more basic tasks such as deposits and
transactions, while other products are run on the systems of the
relevant business divisions such as treasury, corporate banking and
investment banking.
“The system
infrastructure is siloed and completely lacks integration and a
holistic portfolio view.”<
To listen to the
webcast, visit
www.vrl-financial-news.com/bankingandpaymentsasia/whitepapers. You
can also download analysis of the research on front-line
automation
