Creating a Private Banking Superbrand

Publication Date	June 2008
Publisher	VRL KnowledgeBank
Product Type	Report
Pages	163
ISBN Number	not applicable
Product Code	VRL00006

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Summary

A changing market The transformation of the wealth landscape presents new threats, but also significant new opportunities. Traditionally wealth managers have prided themselves on discretion and maintaining a low profile, relying upon word of mouth and personal recommendations to gain business. Once it was sufficient to offer secrecy and security. However, as the majority of wealth is now self-made and internationally mobile, new approaches are required. It is something of a conundrum for private banks to retain their cachet while raising their profile. Increasing competition Firms in the 'wealth' marketplace have proliferated, creating fierce competition. Players with an institutional or retail banking background have entered the fray, as have a multitude of niche firms.

A fragmented industry

There continues to be huge fragmentation in the industry with the largest firms retaining only 3 or 4 per cent of total assets under management. An added complication in gaining market share is that for reasons of security and privacy, high net worth individuals are often multi-banked and might have substantial funds with a number of different private banks and wealth managers, offering clients achance to benchmark rival brands, and check to see if their marketing claims are accurate.

Effective marketing

Marketing techniques to reach wealthy individuals have become more sophisticated and bespoke. With the right proposition and marketing strategy, it is increasingly possible to reach potential clients, although skill and investment are required. As many private banks and wealth management firms have high cost-income ratios, marketing must pay its way and quickly impact on the bottom line to be taken seriously and avoid being cut from the budget
As the wealth management space becomes increasingly congested, a strong marketing strategy is vital for client growth. This report uses exclusive data and interviews with leading practitioners to identify best practice in the marketing and branding of private banks.

Topics include:

Understanding and using the full range of tools at the marketer's disposal
Identifying and maximizing 'touchpoints' and metrics, including the 'nine step conversion process'
Creating and implementing a marketing strategy aligned with overall business goals
Targeting new client segments and creating a compelling customer experience
The lessons from outside of the banking industry from corporate branding and luxury goods providers
Strategies for positioning a private banking brand within a bigger banking organisation, including repositioning following M&A activity
Case studies, figures and examples from markets such as China, Hong Kong, India, Singapore, Switzerland, The Middle East, UK and USA

Case studies and snapshots include:

Addidi
Aston Martin
Barclays Wealth
Citi Global Wealth Management
Collins Stewart Wealth Management
Coutts & Co to RBS Coutts (two brands into one)
Courtiers
Credit Suisse
Dunhill
HSBC Private Bank
Julius Baer
Kleinwort Benson
London and Capital
Nucleus
Route Group
RBS Coutts International
Rothschild
Santander Private Banking

Who should buy this report

Head of Private Banking, Sales Managers, Professional Advisers, Relationship Managers, Marketing and Marketing Communications Managers, Management Consultants, Branding Consultants, Marketing Consultants, Marketing or Banking Academics.

Report Buyer Review

" This report, written by industry experts VRL Knowledge Bank, is a comprehensive publication concentrating on the effects the wealth landscape has had on private banking. The report includes case studies of some major brands in the industry and evaluates both key industry players and the effectiveness of the marketing strategies. "

Reviewed by AT, 02 Sept 2008

Content

Executive summary
- Changing patterns in society the driver of growth
- What this report offers
1. The changing face of wealth: challenge for private bank marketing
- Growth of wealth across the globe
- Industry statistics
- Europe and the G7
- The US
- Global breakdown of high net worth individuals and their wealth
- Middle East
- The super rich
- Asia
- India
- China
- Singapore
- Hong Kong
- The BRICs
- An Overview of Players
- Strength in numbers?
- Credit crunch may stall wealth managers' exponential growth
- Impact of the rise of global wealth on the wealth management industry
- Asia
- China
- Singapore
- Non-resident Indians
- Europe
- Case Study - UBS in Hong Kong and Singapore
- The Middle East
- Strategies to tackle new global markets
2. Who are private banks marketing to?
- New wealth versus old
- Marketing to the 'new wealthy'
- What do the wealthy want from their private bank?
- Segmentation
3. Private banks turn to marketing for differentiation
- Golden rules in marketing to wealthy individuals
- Define a target audience
- Developing a clear and interesting message
- Do not overclaim
- Market research
- Case Study: The Route Group
  - Research approach
  - Repositioning through research
  - Marketing approach
  - Rebranding
  - Creative approach
  - Service industries provide a model for change
- Case study: Superbrands
  - What makes a brand popular or cool?
  - Banking brands are not popular or cool
  - Business Superbrands
  - Cool brands
  - Brand becomes a key differentiator
  - Kleinwort Benson
  - Courtiers
  - Citi Global Wealth Management
  - Route Group
  - RBS Coutts International
  - London and Capital
  - Brand is not always within control of the firm
  - Investment in brand
  - Global branding spend breakdown
  - Brand positioning
- Case study: Nucleus
  - The process in summary
  - The status quo
  - Why it's important
- Process:
  - Design
  - Results
  - The value of brand
  - Case study: HSBC Private Bank
  - Tag lines for tomorrow
  - The importance of Heritage
  - Coutts & Co to RBS Coutts two brands into one
  - Rothschild
- Case study: Barclays Wealth
  - Launch
  - Campaign Execution
  - Measuring success
  - Dispelling the 'stuffy' image of private banking
- Case study: Coutts & Co becomes more "fashionable"
  - Leveraging the sponsorship
  - Measuring success
  - Future activity
4. Employing the Marketing Mix
- Where is marketing spend currently focused?
- Costs and the bottom line
- Media spend on the wealthy
- Costs of acquisition
- Advertising
- UBS
- Media
- International reach
- The message
- Rationale
- Objective
- Media spend
- Credit Suisse
- Julius Baer
- Advertising has its limitations
- Barclays Wealth
- Coutts
- Case study: Kleinwort Benson
  - Advertising
  - Events
  - Referrals
  - The conversion process
- Case study: Collins Stewart Wealth Management
  - The firm
  - Target audience
  - Research
  - The campaign
  - Brand
  - International reach
  - Results
  - HSBC Private Bank
  - The changing media environment
  - Luxury titles
  - High end contract publishing
- Case study: FT Wealth
  - FT reader profile:
  - Costs of advertising
  - Referrals from existing clients remain the mainstay of private bank marketing
  - Direct approach
- Case study: Direct marketing to High Net Worth Individuals: Mobious
  - Building a prospect list
  - A bespoke approach
  - Objectives
  - Brand
  - Digital
  - Costs
  - Results
  - Sponsorship
  - Formula One
  - Credit Suisse and BMW Sauber F1 team
  - ING and the Renault F1 team
- Box out: Other notable private banking sports sponsorships
  - Niche sponsorships can also be effective
  - Creating a Private Banking Superbrand
- Events
- PR and using the media
- Online media
- Case study social networking for the wealthy
5. Segmentation: Targeting the wealthy through specialist interests
- Lack of research creates an uphill struggle in segmentation
- Segmentation by gender
- Case study: Coutts Woman
- Case study: Addidi
  - Measuring success
  - Networking
  - Segmentation by occupation
  - Entrepreneurs
  - What entrepreneurs want
- Case study: Coutts focus on Entrepreneurs
  - Coutts Initiatives for Entrepreneurs
  - Segmentation by assets High earners and the ultra-wealthy
  - Targeting the 'nearly rich'
  - Targeting the ultra-rich
- Case study: Citi: A full service approach to wealth management and marketing
  - Marketing to the affluent
  - Marketing to High Net Worth and Ultra High Net Worth clients
  - Messaging
  - Marketing approach
  - Ultra High Net Worths
- Segmentation by geography: Marketing to the international wealthy
  - Marketing to clients in Asia
  - Marketing to clients in the Middle East
- Case study: The Shariah factor
  - Shariah products how they work, and what they are
  - Marketing to clients in Europe
  - Non-resident Russians in London
  - Switzerland
  - Marketing to clients in the UK
  - Retention strategies
  - The banker is the brand
6. How the luxury goods industry is impacting wealth management
- marketing
- Who does it well?
- Case study: How the spending habits of the wealthy can inform private bank
  - marketing
  - Luxury and convenience
  - Art as an investment
  - Jewellery
  - Wine
- Case Study: Aston Martin
- Case study: Dunhill
  - Background
  - Rebranding without losing sight of its heritage
  - The research process
  - Key learnings
  - Media
- Case study: Investec
  - Print media
  - TV and cinema
  - Outdoor
  - Sponsorship
Appendix: The Advisor as key touch point
- Professional skills
- Priorities of the affluent client in selecting a new adviser
- How well are Advisers doing?
- Conclusion
- Case study: EFG International, the banker's the brand
- Creating a Private Banking Superbrand
List of tables
- Table 1: Number of households with financial assets (excluding property) in excess of $1 m in 2006 and 2016
- Table 2: Percentage changes in HNWI populations and total HNWI wealth by region
- Table 3: The top 10 largest wealth managers
- Table 4: The largest wealth managers by assets under management
- Table 5: Criteria clients use to select a private bank (client versus bank view):
- Table 6: Clients using their private bank for (2005 vs. 2007) (%)
- Table 7: Clients saying they use a private bank because (2005 vs. 2007) (%)
- Table 8: The Lavidge and Steiner model
- Table 9: Length of time using Internet by investable assets
- Table 10: Wealth media budgets and online media
- Table 11: Proportion of wealthy population by postcode
- Table 12: Proportion of UK wealthy population by county
List of figures
- Figure 1: Important client factors when choosing a wealth advisor
- Figure 2: Marketing in private banking a nine-step conversion process
- Figure 3: Please select from the following list the range that best represents your organisation's current expenditure on branding
- Figure 4: In terms of your branding strategy, which of the following best describes your organisation's current position?
- Figure 5: How important is brand in relation to gaining new clients?
- Figure 6: In terms of your branding strategy, which of the following best describes your organisation's current position?
- Figure 7: What do banks say about themselves?
- Figure 8: Client acquisition costs
- Figure 9: Collins Stewart example advertising
- Figure 10: Where did you find out about your private banker/wealth adviser?
- Figure 11: Customer segment opportunity (net investable assets)
- Figure 12: Swiss asset values