Core Demands in Swiss Private Banking

Published by: Datamonitor

Published: Apr. 23, 2008 - 12 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS

Introduction

Advisor support tools must integrate and work with back office systems to provide full understanding of customers for all products / portfolios and drive the execution process

The relationship manager must combine the personal customer relationship with a complete financial understanding and advisory capability, able to act as the face across entire service range

Advisor productivity is achieved through focusing activity on the client and using advisory tools, not in origination, reporting and form filling

Rapid time-to-market and product innovation requires both flexibility and transparency of business workflows

To achieve flexibility and efficiency new product types (e.g. structured products, alternative investments) require core systems that can deal with product breadth rather than isolated or bolt-on systems

Product breadth and innovation demands will stretch the operational cost base unless processes are flexible, automated / IT enabled and controlled

Business processes should be constructed around optimum workflows that provide both speed and accuracy, increase customer service and enhance operational efficiency.

Enhanced customer service and operational efficiency can both be achieved through focusing on the speed of operational processes

Process workflows should not be hard-coded into core, but modeled by the business, with IT providing automation and monitoring as well as workload optimization support

Reporting must enhance the customer relationship - flexibility and customization are key, but the reporting process should be automated to focus analyst time on adding value

Reporting for both regulators and customers needs to be an integrated, automated process to increase speed, reliability and adaptability

IT needs to focus on supporting and aligning business strategy. This requires shifting IT spend towards development, with systems transformation and consolidation vital steps

Run-the-bank spend dominates IT budgets; however, best-in-class private banks are focused on development

Development should be focused on business objectives, not IT integration and/or process modification

Core transformation should bring the benefits of consolidation, driving both operational efficiency and business growth objectives

Key take outs

Business priorities

IT strategy priorities

APPENDIX

Methodology

Further reading

Disclaimer

List of Figures

Figure 1: Brand and service remain top criteria for success, but must be matched with advisory capability and customer understanding

Figure 2: Lack of customer understanding and error levels drive customer dissatisfaction

Figure 3: Private banks need to increase time-to-market while lowering operational cost base

Figure 4: Business process flexibility and desire to consolidate application are key drivers for core renewal

Figure 5: Compliance has become key investment growth area, but mandatory spend should support be strategic rather than necessary spend

Figure 6: IT spend is focused on core systems, largely around dealing with the maintenance and integration burden starving IT spend for development

Figure 7: Legacy core system increase maintenance costs and also drive up development time & expense

Figure 8: Legacy core system increase maintenance costs and also drive up development time & expense

Figure 9: Best practice IT to meet core demands in Swiss private banking

Abstract

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