PrivateBanker Conference Luxembourg
From Secret To Service:
How To Turn Compliance Into Business Opportunities
March 19th 2015
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From Secret To Service
3 reasons why Private Banking business in Luxembourg is
going to adopt a new model
Younger
generations enter
the Affluents
segment with new
requirements
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End of bank
secrecy and
MiFID
Technology
innovation is
disrupting the
industry structure
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Affluents Clients’ New Requirements
Expect a tailored service more than a product
Increasingly aware of finance world and ask for transparency
Mobility: demand for banking anywhere, anytime, anyhow
Proximity and convenience
Loyalty is less important (trust is more widely shared)
Invest with a sense of purpose
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Affluents Clients’ New Requirements
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Alternative Finance
What the 2014 figures tell
Investors are increasingly
interested by the real
impact of their
investments
…And increasingly ready
to go outside the
traditional financial
industry channels
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Regulation Pushes
Clients profiling (purpose more important than process)
On-going follow-up of investment fit with investors’
profile
Fees transparency
End of inducements will have an substantial impact on
Private Banks’ revenue model.
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Technology Innovation
Digital used to
be nice.
Once upon a time, it was
there to help us work
more efficiently and
flawlessly.
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To d a y, i t h a s
turned
dangerous and
n a s t y.
It has become a weapon
in the hands of the
brilliant kids who grew
up with it.
Consumers
don’t want new
technologies.
But technology is an
enabler to new ways to
service clients
If banks (in
Luxembourg)
do not embrace
this enabling
t e c h n o l o g y,
others will do.
Others like banks abroad
and new technologyintensive entrants
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Technology Innovation
Technology innovation requires more than technologists
Incremental or
sustainable
innovation
alone is a slow
but virulent
poison.
But what is the
proportion of your
private bankers (and
Board members) who,
on the other hand, are
truly terrified of anything
unconventional.
Disruptive innovations, on
top of sustainable ones, as
a corporate culture.
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Some Concrete Ways Forward
Portfolio Performance is necessary but not sufficient
So much information available
on the Internet that there is
always someone who can claim
to do better
Technical financial competence
has spread across competitors
(to boutiques and large
institutions as well) and also to
clients
Past performance has been so
uneven that trust on future
performance is weaker than
before
The differentiating value that will make investors stay or come to Luxembourg
is not in portfolio performance
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Some Concrete Ways Forward
Some questions
In the production of financial solutions?
Where is the future of value creation?
In their distribution?
In the combination of different expertises?
What are clients ready to pay for?
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Some Concrete Ways Forward
The needed evolutions
From a product push to a
client centric
architecture
From performance management to
client satisfaction
focus
(technology solution that encourages interactivity)
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Some Concrete Ways Forward
The focus to have
Multi-channel approach
In-person interaction
complemented with digital
services (anywhere-anytime
experience)
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Focus on new valueadded services
(e.g. pension & life schemes,
tax optimisation, assisted selfmanagement, etc.)
Focus on relationships
Training managers to handle
more complex requests and
improve versatility with digital
tools for better proximity and
convenience
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A Client Centric Investment Advisory Platform
Profitable Investment Advisory is a teamwork that starts with the client
Investment Advisory
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Optimization
Risk Mgmt & Compliance
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Gambit For Private Banking And Wealth Management
Provess Overview
I. INVESTMENT ADVISORY
Portfolio
Rebalancing
II. PORTFOLIO MANAGEMENT
Risk & Perf.
Diagnostics
Report
Generation
III. RISK & COMPLIANCE
Compliance
Checks
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Case Study
Cross Border Private Bank in Luxembourg
The challenges one of the major Private Banks in Luxembourg is facing:
 Improving its (pre- and post-) compliance process, to enhance its risk analysis and to automatize its risk
profiling (impact for compliance team);
 Improving its investment advisory process for MA and PB clients and extending its compliance and risk
offering to Corporate Banking.
How to switch from a ‘bank-secrecy ’ positioning to a
‘service’ positioning?
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Case Study
Cross Border Private Bank in Luxembourg
Gambit’s proposition:
 A one-stop-shopping solution
 An end-to-end Investment Advisory solution including:
A complete Profiling tool
Taking into account Risk Aversion and
Risk Perception
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A Portfolio
Recommendation tool
Aligning recommendations and risk
profile
A Compliance tool
Automatic alerts before any
infringement
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Uniqueness and Advantages of Gambit
One single platform for all teams
involved in the process: enable
teamwork and ensure maximum
efficiency in workflow and
communication
Front-to-back and back-to-front
capabilities: give your client a
unique investment advisory
experience
INNOVATION
Close ties with the
scientific world
 constant creation of
better solutions
Innovation investors’
profiling and portfolio
optimization
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COMPLIANCE
CLIENT
CENTRICITY
Our experts closely follow
the evolution of regulatory
environment and
developments in financial
markets
EFFICIENCY
AUTOMATION
Fully automated platform:
focus on expertise and on
clients’ servicing
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Who We Serve
Private
B a n k i n g and
Wealth
Management
An integrated
platform to cover
the entire
investment
advisory process
Mass
Affluent
Banking –
incl. p u r e w e b
AssetLiabilities
Management
Asset
Management
Highly automated
solutions to serve a
large basis of
clients efficiently
and rapidly
A single platform to
unite asset
managers, risk
managers and
actuaries
Cutting-edge
quantitative analysis
with compliance
monitoring
capacities
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Family
Office
Seamlessly
consolidate
information from
multiple data
sources and
monitor
portfolios
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Annexes
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Gambit: From Research to Execution
Born as a spinoff of HEC of
University of
Liege
Development of
solutions for 5
main sectors
Incorporated
in 2007
Partnership with
prominent
academics :
20+ years of
combined
research
Leveraging
permanent
innovation from
markets and
academic
research in:
Investor’s profiling
Asset & portfolio analysis
Compliance management
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Gambit: Key Figures
60%
Offices in
in recurring income
&
cities:
Brussels - Liege
Paris
Luxembourg
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clients since 2010
(B, CH, F, L)
Employees
35%
operating revenues on
recent projects
Fell free to contact us!
Gambit Financial Solutions
2, place de Paris BP80
L-2010 Luxembourg
+352 28 488 831
@GambitFinance
GambitFinance
info@gambit-finance.com