Business Architecture in Asset Management, Investment Banking, and Private Banking

 

The Private Banking Market

Dealing with increasing client sophistication and regaining their trust, delivering best-in-class reporting, breaking up old structures, speeding up processes, excelling in asset allocation, and empowering the sales force – all while keeping cost in check and delivering superior performance.

Demands are high in Private Banking’s top leagues even in “normal” market conditions. But in the current financial and economic crisis, Private Banks in Germany, Europe, and all over the world are facing even more fundamental questions concerning their established business models, structures, processes, and IT capabilities:

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  • Significant cost pressure due to diminished revenue from decreased assets under management, often compounded by company-wide cost cutting demands.
  • The need to offer new or modified products and instruments, as previous revenue generators like certificates become “unsellable”, if only due to increasing regulation, and to regain clients’ trust.
  • Finding ways to refine (automated) sales force support to produce more leads and revenue, while ensuring cost-effectiveness and the capabilities for central management and controlling.
  • Increasing the automation and integration of Investment, Sales, and After-Sales processes to offer consistent, yet personalized advisory even on a large scale and with standardized (e.g. fund-based) products.
  • Service providers historically serving the Asset Management industry extend their offerings to Private Banking (e.g. for Risk Analysis) and offer new possibilities to extend capabilities at a budget.
  • Increasingly advanced approaches to advisory and risk (e.g. [post-]Markowitz, VaR, Simulations) intensify requirements for IT platforms, processes, and client advisor qualifications.
  • Providing sophisticated and transparent reporting (printed and online) for clients is becoming more and more important as a differentiating factor in an increasingly crowded market.
  • A significant shift in client topology (especially internationally) is occuring, involving new and altered client demands and business models.
  • The constant rise of regulation (MiFiD, ASt, etc.) causes a high strain on staff and requires increasingly flexible processes and IT platforms as well as pragmatic, cost-efficient solutions.
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