international private bank setup workshop

International Private Bank

Welcome.

Fireside chat.

“No one has a monopoly on good ideas.

...and execution is everything.

Agenda New International Private Bank

Agenda Day OneBusiness Team Centric

1. Introductions

2. Disclaimers. Why this is only an initial briefing on private banking business technology strategy

3. Opportunity. Execution & Vision. Importance of Business Technology Strategy (BTS) e.g in Mergers & Acquisitions if TW banking sector consolidates further

4. Background & Case Studies ( 4 or 5)Importance of Business AND Technology working together on strategy and business performance

5. Why Private Banking Is Different to Onshore - Business & Technology Perspective, APM impact

6. Why Private Banking in 2010 is even more different - key technologies and their business impact

7. Vendor Landscape - top n and why they are

8. Importance of BTS in spinoffs, startups and multi-brand umbrella environments - examples from mature/open markets. SSVM approach.

... Recap & redirect with senior team

Agenda Day TwoTechnology Team Centric

1. Selected items from day one chosen jointly.

2. Beyond APM - Project portfolio management, Service portfolio management, Deeper APM (Components, Web Services, SOA)

3. Channel Architecture Backgrounder

4. Vendor Momentum & Maturity - why rankings can be misleading, the picture beneath the numbers

5. Vendor Risks & Opportunities - samples from a business and technology perspective

6. Negotiation Strategy, Legal Frameworks, value of a experience an a global perspective

7. Technology Product/Architecture Risks & Opportunities

8. Vendor Relative Positioning & Benchmarking Data

9. The Value & (Time) Limitations of Practical Experience

10. Architecture & Investment Profile - The simultaneous equation between Business & Technology?

11. What Are Real KPIs given the simultaneous equation - Value of Time to Market & Continuous Innovation Platforms

12. Some sample internal technology landscapes

Introductions• Peter J Cooper

• Cooper Sydney

• Network

• Business Technology Management as a Management Science

• BTM special role in banking technology

Background/Experience

Life is short...

do something great.

“

experience.

“It is OK to make mistakes...

but only if you own them &

learn from them.

Opportunity

excited?

local opportunityTW -

This week: Exports up 46.9% yoy, CT $100m insurance comms.Banking Industry 4th in Asia, 6% CAGR for 20 years, 4%pa forecast

Tier 1 PBs 23% ^(8) - out performingGOB 55% v (10) - under performing, will privatise, low margins

Other 22% v (23) - too small, need capital

CT 6.15m, ROAE 12.5% (1st), Efficiency 47.8% (3rd), NPL 1.8% (3rd)BOC ?m, ROAE 12.4%, Efficiency 39.3%, NPL 4.6%

CBA 10+m, ROAE 19.8%, Efficiency 51.5%, NPL 0.1%SCB ?m, ROAE 17.7% Efficiency 54.5%, NPL 0.8%

vendor opportunity

Apple +147% so what?

Temenos ++350% ... while Baidu is a mere 215% ;-)

competitor opportunity

Standard Chartered +178%

global opportunity.1. Bank of America – $1,501 billion

2. UBS – $1,393 billion

3. Citi – $1,320 billion

4. Wells Fargo – $1,000 billion

5. Credit Suisse – $611 billion

6. JP Morgan – $552 billion

7. Morgan Stanley – $522 billion

8. HSBC – $352 billion

9. Deutsche Bank – $231 billion

10. Goldman Sachs – $215 billion

The top 20 global private banks manage nearly $9.2 trillion of private client assets. That’s around 63% of the total global market and challenges the widely

expressed view the global wealth industry is fragmented.

-Scorpio/Finetik 7/2009

Needs Updating

ExecutionOnshore vs. Offshore

“ Realizing there is an opportunity

... does not mean you can grasp or maximize it.

Text

?

“execution is everything

...but do you have an exemplary vision?

A cause is even better...

...and how long is the journey?

unique sense of purpose?

“ Where strategic business technology management

decisions start.

“Some managers are uncomfortable with expressing emotion about their dreams, but it’s the passion and emotion that will

attract and motivate others.”- Jim Collins

author of ‘Good to Great’ and ‘Built to Last’.

‘The customer is not always right’

legacy.

the only channel?

iphone/androidapple/google strategies are driving corporate strategies globally

++87% on MS

Over?

1. Send a clear signal of confidence to customers & markets

2. Creates capabilities in time for the post crisis era

3. Retain best internal resources by providing them with an important and strategic initiative to work on.

Boston Consulting Group Q3 2009on why you should build/buy/renovate in an economic winter NOT hibernate

“ it is all about the client

...and the channels they WANT to use.

pc0 The new #megabank private bank is really gr8! Thanks @ctlady

ctlady Our pleasure @pc0, hope you will tell all your mates especially the #hnw ones :-)

technology is the experience.the experience is marketing and personal.

the new technology spend is marketing spend.

+BUT... We don’t control the message any

more, the clients, prospects (actually everyone else)

does...

400,000 titles instantlylower cost per title to customer

higher margins30% of revenue already

one storehigh customer satisfactionimmense customer lock in

“How many login ids and apps do YOU have

to remember?

...all the product silos in the WORLDwon’t deliver good self-service UX across multi channels without $$$$$$$$$$$$$$.

integrated vision. by design.

“We all know products generate revenue.

Make them easy (& consistent) to use.

... share business logic, and design across

channels to reduce cost.

“Business Technology Strategy is a key

enabler of long term merger and acquisition

strategy.

... and short term too!

EFG International>19 banks/booking centres, regulated on a consolidated basis by Swiss Financial Market Supervisory Authority

Member of EFG Group, third-largest banking group in Switzerland (Dec 2008)

> 50 locations and > 30 countries

2008 revenue-generating AUM of CHF 77 bn

> 2,400 employees and >700 Client Relationship Officers (CROs)

CHF 1.8 billion current market capitalisation, BIS Tier 1 ratio of 12.5% at the end of 2008

EFG Acquisition Trail

EFG New Presence Timeline

BTM

• Business Technology Management

• Management Science

• Culture, Tools, Thinking, Process, Resources, Roles

• New and old

• Separate pack...

Align Project Team1. Subject Matter ExpertsForge the project team from individuals who are respected subject matter experts and who are inspired by the greater goal of the initiative (for us, improving the quality of the care we deliver). If backfilling the vacancies created by these individuals in their work units is not painful, then you probably have selected the wrong individuals.

2. Two Leaders - CommonalityEstablish two leaders for every project team: a project leader from IT to perform traditional project management functions and drive technical decisions, along with a process leader from the business unit to drive workflow redesign decisions. Pairs mirror the inherent duality of IT-enabled transformation: technical execution married to effective process redesign. Require that team members have a common space, common goals and a functional dependence on one another to succeed. If you demand that they interact intimately on all aspects of project work, the cultural differences that exist among them will soften over time to create a new, shared culture.

3. Commit to Integration - Multi-Disciplinary Decision ForumEstablish a forum for integrated decision making, where team members from all disciplines (for us, nurses, physicians, pharmacists, clinical technologists, medical records personnel and IT professionals) must contribute. This forum becomes the nerve center of the project. Eradicate decision making in silos, because there are few decisions that affect only a single discipline within a team-based workflow. Allow no party to proceed along an independent path. Nourish the commitment to multidisciplinary integration where it exists; force it where it does not; and highlight the successes achieved through collaboration.

Lets Talk About...

Vendors.

Core CommercialsAn infrequent investment.

Software dominates investment.

Licence fees are driver.

Game changing is normal. Upfront, variable and ongoingPer User, Per Server, Per Market, User Tier, Per Module, Module caps, Module/User tiers, Instance limits, Contract Term Limits, Licence Term Limits, Module categories,

support tiers by module, support levels, tiered PS, rubbery definitions.

Tier one vendors are best at playing the game.

Control the game from outset.

Vendor SegmentsUniversalWholesale

Private/UHNW/HNWHNW/Professional/Consumer/RetailSpecialist (Micro, Islamic, Community)

Contenders ?• Temenos T24 ‘something of value’ (Price? Services?)

• Oracle iFlex Flexcube ex-citi (Architecture? Price? Channels? Product?)

• Viveo vBank de France (Acquired)

• IBM CB Armonk vs Sydney (Acquired)

• ERI Bancaire Olympic Luxembourg (Scale? Product? Technology?

• MiSys Bankfusion et al. -Strategy? Focus? (Maturity? Architecture transition?), Equation (Products?), Midas Plus (Channels?, Architecture?), Bankmaster (Architecture? Age?)

• Odyssey Triple A upfront. (Scale? Product? Technology?)

• SAP e.g. CBA (Price? Integration? Time to market?)

USD3.8b global market

size

USD23b addressable

market

Vendor Landscape• Categories

• Geography

• Role of bank in a box vs. evolutionary vs. revolutionary

• Architecture and long term corporate strategy

• Market share

• Key Players

• Differentiators

• A little history

BTM

Yawn.

Business Technology Management has economic and human potential that rivals any field of science today.

How well people live in the decades ahead may be determined by how well they manage business AND technology together  

Dr Michael NobelChairman, Nobel Family Society

“

Business Technology Management offers a unique opportunity to transform the global community.

Future leaders will need to understand the convergence of business and technology in order to foster economic and social growth.

Harriet Mayor FulbrightChair, The Fulbright Center

“

EstablishedBut not widely known

Good ROIBut not widely realised

Why Not?Fear

KnowledgeCultureNeedDesire

More alignmentValue focus

Life CycleDesign & Decide - BTS

Build & Integrate - ISS

Operate & Optimise - IT/IS SD

also

Strategic Sourcing & Vendor Management - SSVM

Tech & Ops Legal & Compliance - TOLC

Brand/Marketing

Secretariat - APM, SPM, PPM, EA, TARM

“BTMs at the core since 2001...

...top down commitment globally and centralised with 100% coverage.

Future BTM• Extra Enterprise

e.g. Personalised HNW Structured Products

• Social Media

• Generation Google e.g. Boomer’s Transition

• Dramatic Channel Growth & Implicationse.g. channel jump experience and analytics aggregation

• Apps Everywhere

• Proprietary language and tools explode

• Mashups not just apps but multiple app stores &

• Plethora of Platforms

• Dynamic Application Portfolio Management

• APIs for customers, partners

• Social Feedback Tools

• Ecosystem Wars e.g. google vs Amazon vs MS vs VM vs IBM vs Governments

• Compliance & more

• Security & proactive defense

Be Informed.• Trend Radar

• Over the horizon radar

• Community

• Feedback w ranking

informed.

informed.

so many more...

Future Technology• Distributed development as standard

• Campaign based development

• Virtualisation mandatory

• Business technology inductions

• Channel costs management

• Cloud - internal and external

• Social project management and CRM/PRM

• Plethora of Platforms

• Dynamic Application, Asset & Service Portfolio Management

• APIs for customers, partners

• Social Feedback Tools impact on development priorities and business engagement

• Talent Challenges for development and retention caused by Ecosystem Wars

• Compliance & more

• Security & proactive defense

Tools• saasu.com | online erp

• salesforce.com | crm, sfa, paas, chatter

• google corporate mail and google apps, google docs, google sites

• skype for business

• google wave

• techcrunch trends

• trendwatching.com

• bobsguide.com

• finextra.com

• wordpress.com

• dropbox.com

• ted.com

• twitter.com

• linkedin.com

• slideshare

Case StudiesSelection

Thank You.

Peter J Cooperpeter.cooper@coopersydney.com

coopersydney.com

+61 2 8005 0551

@pc0