Untitled - Saxo World

the Bank has been to expand the product and service offeringsto reach a broader client audience.The ability to combine technology with the emergingneeds and preferences of the traders and investors reflectssome of the core abilities of the Bank which is pivotal tothe strategic direction. In 2009, the Bank laid the foundationfor a clearer segmentation and thereby a more focusedapproach to the market.Key in the new market segmentation is the type of client,the level of expertise and the degree of risk appetite. Althoughfinancial products share many of the same characteristicsthe needs of the clients, with respect to service,product package and degree of online product capabilities,can be very different. However, the core in the productand service offerings across the new market segmentationremains the usage of the technology capabilities ofSaxo Bank.Accordingly target customers are categorised in fourgroups.1. The Sophisticated Trader is traditionally the core clientof Saxo Bank. The trader is an expert in one or more financialproducts and is interested in the broad productsuite and tools provided in the SaxoTrader. The SophisticatedTrader is a demanding client and requires expertservice.Expert2. The Self-directed Trader is interested in an online andbroad financial product suite that enables full self-service.The trader is price sensitive and uses communitiesand other online discussion groups to determine thenext trade to make.3. The Self-directed Investor is a new target group. TheInvestor has much less risk appetite than the Trader andneeds access to investor information and analysis beforeinvestment decisions are taken. The Self-directedInvestor is online and informationoriented and requiresa full self-service concept.4. The High-Net-Worth Investor is an institutional investoror a client with significant investable assets. This segmentrequires expert personal service. In order to servicethe High-Net-Worth Investor, expertise and a documentedtrack record are required. The High-Net-WorthInvestor operates off-line and emphasises the importanceof personal service and relationship management.As a natural development the organisation of the Bankwas in 2009 aligned to address the changed business direction.While approaching the newly defined customergroups separately from a commercial point of view thekey driver in the new business structure remains the utilisationof the core technological capabilities of the Bankacross all segments. The aim is to service clients throughtechnology and capacity utilisation as well as to exercisebusiness synergies in full.TraderSophisticatedTradersSelf-directedTradersHigh-Net-WorthInvestorsSelf-directedInvestorsInvestorThe traditional part of Saxo Bank is the Commercial Groupthat provides products and services to traders. In order toenhance the service offering to the Sophisticated Trader,Saxo Bank established a Trade Advisory Team. The focusof the team is to provide a structured and professionalservice to clients. Furthermore, the team provides guidanceto increase client awareness of risk management.Less ExperiencedA newly established Banking and Online Investment businessarea will focus on the development of a new productand service suite that is designed to cater for the Self-directedInvestor. This suite includes the launch of a new12 · SAXO BANK · ANNUAL REPORT 2009