Caribbean Association of Indigenous Banks
Keys to Success in an Uncertain Environment
“The Wealth Management Solution”
Presented by Al Townsend
President
TMC Group, Inc.
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Today’s Environment
 “Offshore banking” has lost it’s strategic
advantage
 Volatility and uncertainty has shifted AUMs to
lower margin products and the competition
 Regulatory change and competition for
customers are forcing banks to change the way
they do business
 Customer retention is tied to their perception of
value and performance
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Post Crisis Analysis
 Customers have not regained their trust in the
regulatory bodies and financial institutions that
are meant to oversee markets and customer
interests
 Customers have become more knowledgeable
and “hands on” in dealing with their finances
 Wealth management practices have shifted to
mirror customer caution and skepticism
 Success will be dependent on a bank’s ability
to embrace change and leverage the key
tenets of behavioral finance
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Traditional Integrated
Business Model
Product origination and packaging
(loans, insurance, investments, checking
and savings accounts)
Transaction processing and account origination
Retail sales and distribution
(ATMs, on-line banking, Relationship Managers)
Bank customer
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New Reconfigured
Business Model
Suppliers:
Mutual Fund
Manager
Other Banks
Auto Lender
CarPoint
Morningstar
Navigators:
Lipper
Primary Bank
Motley
Fool
E*Trade
SchwabOne
Yahoo!
Browser
Quicken
AOL
Phone
call
Financial
Advisor
Bank
software
Customer
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The New Business Challenge
Provide quality and depth of service
across all customer segments:
 Bandwidth and number of products
 Customization
 Interactivity (the human touch)
 Reliability
 Security
 Currency
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Keys To Success
 Drivers of success
 Comprehensive financial advice
 Transparency and simplicity
 Effective risk management
 Differentiating drivers of success
 Competent and credible customer-facing
employees
 Strong due diligence capabilities
 Value-based fee structure
 Proactive wealth management business
strategy
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Wealth Management Strategy
Based on Customer Goals and Needs
Cash flow needs
Other assets
Financial assets
Net worth
Ability to weather
shortfalls
Regional preferences
Event risk
Lifecycle stage
Align risk exposure to goals and needs
Protect
(Personal Risk)
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Manage
(Market Risk)
Improve
(Aspiration Risk)
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“The Big Disconnect”
 Bank’s vision, mission, and strategy are not
aligned to its business/sales practices
 Compliance, operations, product/service units, and
relationship managers have separate agendas
 Communications top down, bottom up, and across
the organization are not effective and/or
dysfunctional
 Compliance/operations have become the primary
driver for managing customer relationships
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“Re-Connect the Pieces”
Investments
Banking
Customer
Lending
Investments
Insurance
Compliance
Operations
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Success Strategy
 Perform a comprehensive and objective
assessment of the bank’s business practices and
competencies
 Define your bank’s wealth management vision
and mission
 Create a dynamic business strategy with realistic
short and long-term goals/objectives
 Progressively manage the organization to a
proactive customer centric sales culture
 Evaluate and train everyone to deliver the bank’s
new “wealth management solution” to customers
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How We Can Help You
 Access to experienced professionals
 Consulting Services




Investment/wealth management
Vision, mission, strategy
Operations/compliance/AML
Business and sales culture
 Training Resources
 Florida International Bankers Association
 TMC Group, Inc.
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Caribbean Association of Indigenous Banks
“Thank You”
Al Townsend
President
TMC Group, Inc.
561-362-0709 / [email protected]
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Keys to Success in an Uncertain Environment, The Wealth