Core Demands in Swiss Private Banking

Content

• Datamonitor View
• Catalyst
• Summary
• Analysis
  • Introduction
  • Advisor Support Tools Must Integrate and Work with Back Office Systems to Provide Full Understanding of Customers for All Products / Portfolios and Drive The Execution Process
  • The Relationship Manager Must Combine The Personal Customer Relationship with A Complete Financial Understanding and Advisory Capability, Able to Act as The Face across Entire Service Range
  • Advisor Productivity Is Achieved through Focusing Activity on The Client and Using Advisory Tools, Not in Origination, Reporting and Form Filling
  • Rapid Time-to-Market and Product Innovation Requires Both Flexibility and Transparency of Business Workflows
  • to Achieve Flexibility and Efficiency New Product Types (E.G. Structured Products, Alternative Investments) Require Core Systems That Can Deal with Product Breadth Rather than Isolated or Bolt-on Systems
  • Product Breadth and Innovation Demands Will Stretch The Operational Cost Base Unless Processes Are Flexible, Automated / IT Enabled and Controlled
  • Business Processes Should Be Constructed around Optimum Workflows That Provide Both Speed and Accuracy, Increase Customer Service and Enhance Operational Efficiency
  • Enhanced Customer Service and Operational Efficiency Can Both Be Achieved through Focusing on The Speed of Operational Processes
  • Process Workflows Should Not Be Hard-Coded into Core, but Modeled by The Business, with IT Providing Automation and Monitoring as Well as Workload Optimization Support
  • Reporting Must Enhance The Customer Relationship - Flexibility and Customization Are Key, but The Reporting Process Should Be Automated to Focus Analyst Time on Adding Value
  • Reporting for Both Regulators and Customers Needs to Be An Integrated, Automated Process to Increase Speed, Reliability and Adaptability
  • IT Needs to Focus on Supporting and Aligning Business Strategy. This Requires Shifting IT Spend towards Development, with Systems Transformation and Consolidation Vital Steps
  • Run-The-Bank Spend Dominates IT Budgets; However, Best-in-Class Private Banks Are Focused on Development
  • Development Should Be Focused on Business Objectives, Not IT Integration and/or Process Modification
  • Core Transformation Should Bring The Benefits of Consolidation, Driving Both Operational Efficiency and Business Growth Objectives
  • Key Take Outs
  • Business Priorities
  • IT Strategy Priorities
• Appendix
  • Methodology
  • Further Reading
  • Disclaimer
• List of Figures
  • Figure 1: Brand and Service Remain Top Criteria for Success, but Must Be Matched with Advisory Capability and Customer Understanding
  • Figure 2: Lack of Customer Understanding and Error Levels Drive Customer Dissatisfaction
  • Figure 3: Private Banks Need to Increase Time-to-Market While Lowering Operational Cost Base
  • Figure 4: Business Process Flexibility and Desire to Consolidate Application Are Key Drivers for Core Renewal
  • Figure 5: Compliance Has Become Key Investment Growth Area, but Mandatory Spend Should Support Be Strategic Rather than Necessary Spend
  • Figure 6: IT Spend Is Focused on Core Systems, Largely around Dealing with The Maintenance and Integration Burden Starving IT Spend for Development
  • Figure 7: Legacy Core System Increase Maintenance Costs and Also Drive up Development Time & Expense
  • Figure 8: Legacy Core System Increase Maintenance Costs and Also Drive up Development Time & Expense
  • Figure 9: Best Practice IT to Meet Core Demands in Swiss Private Banking