Beruflich Dokumente
Kultur Dokumente
Executive Summary
Wealthy clients in Asia are actively using digital
tools and are expected to rely more on them in
the coming years for their wealth management
needs. However, private banks in Asia continue
to lag behind their clients in adopting digital
technologies, especially social media and mobile.
On the internal front, they face challenges from
information silos, a dearth of skilled employees,
fragmented operations and legacy systems.
Externally, they face regulatory restrictions and
threats from lean startups and non-banking firms.
Banks revenues and margins are also being
adversely affected by rising regulatory burdens,
talent shortages, increasing client acquisition and
servicing costs, and low advisor productivity.
5.3
5
4.1
3.7
3.3
2.3
2.1
Online
Purchasing
Gaming
2
1
0
Banking &
Investments
News
Social Media
General
Research
Figure 1
cognizant reports
The Americas
Europe
VOIP calls
Instant
messaging
Written
communications
SMS/
text messages
Social
networking
Secure
Web portal
Telephone
calls
Face-to-face
meetings
0
E-mail
Asia-Pacific
Current
weekly
usage
How long do you currently spend using the following communications each week, and do you plan to use
these communications more in five years time?
Meeting
Face-toFace
Telephone
Calls
Secure
Web
Portal
Social
Networking
Written
SMS
Instant
Messaging
VOIP
(Skype)
56%
36%
40%
46%
47%
28%
40%
44%
33%
Asia Pacific
41%
24%
19%
31%
23%
17%
25%
19%
19%
33%
20%
19%
30%
22%
16%
19%
19%
28%
4.9
hours
4.5
hours
3.9
hours
3.5
hours
3.2
hours
3.0
hours
3.0
hours
2.6
hours
1.9
hours
cognizant reports
Americas
Europe
Internal challenges:
Skills: With a dearth of skilled analysts,
private banks are struggling to derive
meaningful insights from client data. In a
CEB survey, 60% of respondents said it was
important to organize data for decisionmaking and actionable business analytics,
but only 36% believed their organizations
had the ability to do so.8
Percent of Institutions
2013 2016
2013 2016
2013 2016
2013 2016
2013 2016
Figure 4
cognizant reports
Automating risk and suitability assessments when clients order a specific product.
Business Activity
Business Intelligence
CRM Systems
Recruitment
Training
Compliance Tools
10
In the absence of robust integration of the digital technology infrastructure in the front, middle
and back offices, banks will find it difficult to
achieve efficiency and seamless operations a
35
30
25
20
15
10
5
0
Industrialize
Back-end
Automate
advisory
processing
compliance
processes
automation
solutions
Source: Hubbis audience sentiment poll, Asian Wealth Management Forum 2013, Singapore
Figure 6
cognizant reports
Product
innovation
increasing due to a dearth of talent. According to McKinsey & Co., private banks cost to
serve clients was higher in 2011 compared with
20082010 due to a rise in compensation and
reduced advisor productivity, coupled with
greater client servicing requirements (see
Figure 7).15
Stringent and complex regulatory environments across Asia are driving up compliance costs. Regulations such as Basel III, for
instance, hamper banks abilities to generate
profits using their balance sheets.16
Revenues continue to be under stress. At 80%,
the cost-to-income ratios of private banks in
Asia are among the highest in the world.17 The
margins for banks are decreasing as clients
deleverage portfolios and opt for simpler products to reduce risk.
107
78
83
U.S.
Western
Europe
CEE*
Asia**
77
83
106
84
75
84
103
88
68
90
106
99
Operating Costs
53
59
54
78
Operating Profit
67
U.S.
Western
Europe
CEE*
Asia**
52
64
50
70
51
64
50
73
42
61
50
79
53
26
24
U.S.
Western
Europe
CEE*
Asia**
25
24
56
14
21
20
53
15
26
26
56
20
11
Key
Decrease
2011 levels
Increase
2010 levels
Stable
2009 levels
2008 levels
cognizant reports
cognizant reports
Target clients accurately: Banks should combine their client data (structured and unstructured) from their core systems with social
media content to get a unified and accurate
picture of their clients. Approximately 70%
of HNW clients in Asia look to validate their
wealth management decisions with their peers
using social media.22 Banks can leverage this
behavior by deploying targeted marketing
campaigns and sharing their latest insights
and research with clients via social media
platforms. They can also connect clients who
share common interests. For instance, Jyske
Bank, a Danish private bank, makes heavy use
of social media to engage with, update and
build online communities of customers.23
As clients in Asia place more importance to
peer feedback and word of mouth, banks
should use social channels to build their brand
and develop advocates from their client group.
Private banks should identify prospective
clients using their public profiles that can offer
80
60
40
20
0
Improves
advice quality
Ineffective
Improves
service quality
Improves
sales process
Effective
Figure 8
cognizant reports
Saves me time
that can tell them accurately what their customers need. This can be achieved through the
smart management of digital information, the
use of advanced analytics and the integration
of digital channels.
Banks can use gamification to simplify interactions and make routine tasks fun and engaging for employees. Gamification can also help
banks educate clients on wealth management and encourage desired client behavior.
Consider FlexScores online investment advisor tool that leverages gamification to engage
clients and explain goal-based wealth planning
to them.24 Consumers are awarded a numerical
score between 1 and 1,000, which reflects their
financial health. Users are awarded points
for their actions, such as reading articles
about investing. The tool visually explains how
harmful financial decisions can decrease their
score. (For more information on how gamification can help businesses, read our report,
Gamifying Business to Drive Employee
Engagement and Performance.)
Private banks must then adopt enterprisewide approaches to manage and share client
information to improve the flow of and access
to information by all stakeholders to improve
client servicing. Advisors need to be equipped
with customer insights, tools and capabilities
Capture
Analytics
Visualization
Examples
CRM
Trading
Portfolio
Management
Reporting
Key:
Source: Celent
Figure 9
cognizant reports
Footnotes
1
For more on Code Halos, see our book, Code Halos: How the Digital Lives of People, Things, and Organizations are Changing the Rules of Business, by Malcolm Frank, Paul Roehrig and Ben Pring, John Wiley
& Sons, 2014, or our white paper, Code Rules: A Playbook for Managing at the Crossroads, Cognizant
Technology Solutions, June 2013, http://www.cognizant.com/Futureofwork/Documents/code-rules.pdf.
Stepping Into the Communication Age, Scorpio Partnership, January 2013,
http://www.scorpiopartnership.com/uploads/pdfs/2013%20jan_ScorpioPartnership_Futurewealth2012.pdf.
Ibid.
The Futurewealth Report 2014: Upgrading the Service Delivery, Part 2 Scorpio Partnership, March 2014,
http://www.scorpiopartnership.com/uploads/pdfs/140321_Scorpio%20Partnership_Futurewealth_
Paper2_Final.pdf.
Technology and Operations Trends In The Wealth Management Industry, Wealth Briefing and
Advent Software, 2013,
http://www.investmenteurope.net/digital_assets/6812/Tech&OpsReport_-_FINAL_FOR_
DISTRIBUTION.pdf.
cognizant reports
10
DST Global Solutions Ltd., a wholly owned subsidiary of DST Systems Inc., provides technology solutions and services to the world's top financial institutions, utilities and communications companies.
Maximise Investment Data In Asian Wealth Management, DST Global Solutions and Hubbis, 2013,
http://www.hubbis.com/book/MaximiseDataInAsianWealthManagement/files/assets/downloads/
MaximiseDataInAsianWealthManagement.pdf.
10
Industrializing means to streamline and automate the interactions between advisors, clients
and processes.
11
12
13
Asian Private Banking: Today's Boiling Frog? A. T. Kearney and Newtone Associates,
http://www.atkearney.com/documents/10192/640342/pb_report_asian_e+%28final%29.pdf.
14
Navigating the New Era of Asian Retail Banking, McKinsey & Co., July 2013,
http://www.mckinsey.com/insights/financial_services/navigating_the_new_era_of_asian_retail_
banking.
15
16
17
18
Tens of Thousands of Private Bankers Needed In Asia, Execboard in Asia, September 2013,
http://blog.execboardinasia.com/tips-advice/tens-of-thousands-of-private-bankers-needed-in-asia.
19
20
More Personalized Banking through Big Data and Analytics, SAP, September 2013,
http://www.sap.com/bin/sapcom/en_us/downloadasset.2013-09-sep-22-21.more-personalizedbanking-through-big-data-and-analytics-bloomberg-2013-pdf.html.
21
22
23
A New Planning Tool for Advisers Challenges Clients to Win a Game, InvestmentNews, May 2014,
http://www.investmentnews.com/article/20140502/BLOG02/140509978.
24
Global Wealth Management Technology Spending to Reach $32bn by the End of 2017, Ovum
Knowledge Center, December 2013,
https://www.ovumkc.com/Products/IT/Retail-Banking-Technology/Global-wealth-managementtechnology-spending-to-reach-32bn-by-the-end-of-2017/OVUM-VIEW.
25
26
cognizant reports
11
Credits
Author and Analyst
Aala Santhosh Reddy, Senior Researcher, Cognizant Research Center
Design
Harleen Bhatia, Design Team Lead
Suresh Satyavarapu, Designer
About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process
outsourcing services, dedicated to helping the world's leading companies build stronger businesses. Headquartered
in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep
industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With
over 75 development and delivery centers worldwide and approximately 187,400 employees as of June 30, 2014,
Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked
among the top performing and fastest growing companies in the world.
Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
World Headquarters
European Headquarters
1 Kingdom Street
Paddington Central
London W2 6BD
Phone: +44 (0) 207 297 7600
Fax: +44 (0) 207 121 0102
Email: infouk@cognizant.com
Copyright 2014, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any
means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is
subject to change without notice. All other trademarks mentioned herein are the property of their respective owners.