Private Banking: Volume 1

Shaping Asia's Private Banking Strategies

Publication Date	August 2008
Publisher	IDC
Product Type	Report
Pages	35
ISBN Number	not applicable
Product Code	IDC05751

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Summary

This Financial Insights report spotlights the continuous expansion of the private banking scene in Asia/Pacific and summarizes the major components of a comprehensive private banking initiative. It discusses how Asian private banks have been using these strategies to acquire customers, differentiate offerings, and consequently achieve their desired private banking business outcomes.

"Some components of a comprehensive private banking initiative include excellent investment expertise by the wealth manager, indirect selling of non-proprietary products through an open architecture model, having diverse asset class capabilities, developing a relationship management-based approach, and moving up the value chain towards becoming a trusted advisor," comments Li-May Chew, CFA, senior research manager for Financial Insights Asia/Pacific Financial Advisory Service.

This report also provides Financial Insights' analytical views on how key players can successfully articulate on and deliver a deeper and wider private client services menu in Asia. In a follow-up report, we examine the private banking solution leaders, their traction in the region, and issues to consider during a vendor selection exercise.

Content

Financial Insights Opinion
In This Report
Situation Overview
- Explosion in the Private Client Market
- Figure: HNWI Population Distribution in Asia/Pacific
- Figure: HNWI Population Growth Rate, 2006
- Figure: HNWI Wealth Distribution in Asia/Pacific, 2006
- Spotlight on Asia's Private Banking Developments
  - Business Need
    - Various Financial Institutions Jumping into the Fray
    - The Region at Varying Stages of Market Maturity
    - Client Requirements Becoming More Demanding
    - Increasing Asset Allocation Options
    - Figure: Financial Asset Allocation for HNWIs in Asia/Pacific, 2006
      - Heavily Invested in Conventional Products: Cash and Equities
      - Gravitating Towards Real Estate
      - Utilizing Alternative Investments Vehicles to Diversify Portfolios
      - Table: Asset Class Maturity in Asia/Pacific, 2006 (Mean Score)
The Approach
- Management Challenges
  - Differentiating the Adopters: Forces Shaping Private Banks' Go-to-Market Strategies
  - Figure: Key Elements of a Successful PB Program
  - Investment Expertise
  - Hybrid Model of Open Architecture
  - Figure: Private Banks' Strategic Direction
  - Direct and Indirect Distribution Strategies
  - Asset Class Capabilities
  - Customer Relations
  - Figure: Moving Up the Value Chain to a Trusted Advisor Capacity
  - Wallet Share Acquisition
  - Figure: Percentage of Existing Clients' Investable Wealth that Global Private Banks Expect to Hold
  - Employee Proficiency
  - Employee Acquisition and Retention
  - Figure: Anticipated Growth in Number of HNWI Clients in Asia/Pacific, 2004-2008
  - Brand Image
  - Figure: Strategic Differentiators at Global Private Banks
  - Profitability and Performance Matrices
  - Risk Management and Compliance
  - Technological Efficiency
  - Figure: Key IT Priorities at Global Private Banks
Future Outlook
Essential Guidance
- Actions for Financial Institutions
- Figure: Action Items for Private Banks
  - Actions for Client Targeting
    - Approach Clients According to Their Specific Nuances
    - Refine Customer Segmentation for More Targeted Value Propositions
    - Contemplate Lowing the Entry Barrier
    - Figure: Average Conversion Times for Wealth Segments Globally: Inversely Related to Wealth Levels
  - Actions for Product Offerings
    - Play in the Niche Market for Nontraditional Asset Classes
    - Design Products and Services that Support the Transfer of Wealth
    - Figure: Percentage of HNWIs in Asia/Pacific between 56-70 years
  - Actions for Operational Issues
    - Align IT Strategies to Business Objectives
    - Provide Value-Add Programs that Broaden Client Relationships
    - Avoid the Manpower Shortage Struggle
- Actions for Vendors
Learn More
- Related Research
- Synopsis