Magazine BEAST #4 2016

8
#Business | PrivateBanking
THE RISE
OF DIGITAL
PRIVATE
BANKING
OR THE BEST
WAY TO
EMPOWER
CUSTOMERS
BY ALEXANDRE KEILMANN
Banks have been using computers and therefore
ICT services for ages, notably to register
transactions. If during the last five years,
technology has been revolutionizing retail
banking through the use of new communication
channels, but also allowing clients to pay without
any contact, FinTech has not yet completely
transformed the Private Banking and Wealth
Management branches of financial services,
where human relationship still plays a big part.
But more and more opportunities are emerging,
and private banks all over the world are diving
right into it… for the benefits of their clients.
Answering the new generations’ needs
Nowadays, people are increasingly using digital
channels to contact their banks and purchase financial
products. In Asia Pacific, one of the fastest growing
regions for consumer adoption of digital financial
services solutions, 82% of high-net worth individuals
expect, according to a 2014 Capgemini study, their
wealth management relationship to be conducted
entirely or mostly through digital channels. Also, for
38% of HNWIs in Asia, digital contact with their wealth
manager is more important than direct contact. These
figures actually bring down the myth that many still
believe in: «private banking clients prefer and expect
face-to-face interaction».
Today, more than 70% of HNWIs use social media websites such
as Facebook: communication and interaction though these new
media channels have therefore become crucial when it comes
to developing a lasting trust relation with clients. «Private banks
need to be aware of the fact that the new generation was raised
with technology. Therefore, technology will eventually replace
schmoozing» according to Serge Krancenblum, President of LAFO
(Luxembourg Family Office Association).
Moreover, digital significantly helps with client knowledge and
private banks are notably starting to segment client by life stages,
rather than current assets. As a matter of fact, the needs and
expectations of young entrepreneurs are quintessentially different
from the ones of seniors and retirees. Intimate knowledge actually
provides a new value to private banking, and a customer centric
approach is therefore essential.
More autonomy on the one hand…
Clients are in the driving seat. To answers their new needs, Credit
Suisse Private Banking Asia Pacific launched an app in March 2015,
which allows clients to receive personalized intelligence depending
on their portfolios, and have access to tools to analyze their risk
exposure and even trading tools. Actually, it can be considered as
a new private banking service delivery model, putting emphasis
on mobile: ATAWAD. Benjamin Collette, Deloitte EMEA Wealth
Management and Private Banking Co-Leader can only agree:
«Players should take digital maturity and client perception of
personal relationships into account when going forward with their
business models. A new generation is emerging that places a high
importance on web platforms and accessing information from
wherever they are located at any time of the day».
With online channels now being one of the most important sources
for investment decisions, customers, especially in Asia and the
US, are increasingly willing to make decisions themselves. Europe
is still a bit behind, relying a bit more on their asset managers
and private bankers…a change that might actually be more cultural
than anything else, but things are moving exponentially in this
direction. Digital apps such as the one developed by Credit Suisse
Private Banking give the clients more flexibility and grant them a
decision-making feeling through one single click or tap. In Europe,
BNP Paribas Wealth Management has been recognized many times
for its digital network app «Next Generation Program 2016», which
aims at sharing expertise and developing knowledge of finance
and wealth management online, but also through workshops,
therefore combining digital and physical encounters. «BNP Paribas
is determined to respond to the specific needs of its clients in
innovative ways» underlined BNP Paribas Wealth Management Co-
CEO Sofia Merlo.
Just like a diversified portfolio, customers now expect multiple
channels not only to communicate with their private banker, but
also to be their own actor when it comes to market opportunities.
Les entrepreneurs doivent savoir bien
s’entourer. Si mon entreprise se développe tant
aujourd’hui, c’est aussi parce que ma banque
croit en mon projet.
ING m’accompagne,
mon coeur me guide.
ING Luxembourg SA, 52 route d’Esch, L-2965 Luxembourg - R.C.S. Luxembourg B.6041 - TVA LU 11082217 - ing.lu
BEAST MAGAZINE #4
Tous les projets méritent d’être réalisés.
Rendez-vous sur followyourheart.lu
Follow your heart