Wealth Tech Awards 2018: Winners' profiles

Best private bank, use of technology, global;
Best private bank, digital client communication, Europe
BNP Paribas Wealth Management

To excel in digital transformation and use of technology does not mean merely promoting a few disparate initiatives, but creating a whole new mindset and way of working, explains Mariam Rassai, head of client experience at BNP Paribas WM. “We are dealing with fundamental changes in our clients’ mindset, how they want to be served and considered. We want to develop both a digitalisation strategy for our private clients and a strong culture of innovation.”

At the French institution, the journey started with the appointment, ahead of competitors, of a chief digital officer five years ago, and the launch of a programme in 2016 to identify clients’ expectations. Last year the private bank, which manages €362bn ($420bn) globally, launched a ‘new Client Experience (CX)’ aimed at developing prototype ‘minimum viable’ products, together with clients and in partnership with fintechs.

From the bank’s three factories, or incubators, in Singapore, Geneva and Luxembourg, clients, private bankers and wealth management experts share their experience and know-how, and come up with innovative ideas. 

This year, services and functions are being deployed on a larger scale. “At the heart of the client experience transformation, there is the will to create a new form of wealth management to adapt the banking services to every aspect of a client’s life,” says Ms Rassai. Continuous client feedback provides valuable insights to enhance the customer experience, she adds. 

The bank has launched 20 new digital services so far, including myAdvisory, providing personalised financial advisory via a smartphone, myChat&Trade, which enables clients to trade products and markets, and the Leaders’ connection, where ultra high net worth individuals can interact, share investment ideas and find co-investors in a secure way. 

myWealth is the bank’s new “one-stop-digital platform” for international clients, offering a secure biometric connection, customised investment advice, a chatroom, videoconferencing, as well as an electronic safe. New features are currently being tested, such as myMeeting, a platform which helps clients prepare for meetings with their private banker and myVirtualAssistant, which allows 24/7 access to the bank thanks to AI. With myFeedback, clients can suggest improvements and express their needs. ET

Best private bank, use of technology, Europe
CaixaBank

Spain’s banks, including Caixa, are among Europe’s vanguard in terms of digital innovation. As one of the country’s key consolidators, Caixa has more or less been forced to lead the digital field, as it had to somehow integrate the platforms of the smaller banks it was acquiring after the global financial crisis and decided the best way to do this was to totally rebuild its technology infrastructure and to give clients a much more satisfying experience at the same time.

Rather than bank initiatives and staff appointments in the technology sphere, Victor Allende, head of private and premier banking at CaixaBank, describes the approach as a “service model strategy”, offering customers independence and balance between customised advice and digital capabilities. While the portfolio manager is required to “nurture” the relationship, the customer decides how and where to receive financial advice.

The bank’s recent digital solutions include: Smartmoney – a robo-adviser integrated into home banking; and TIME MAP, a financial planning model which aims to include human and digital approaches, assisting customers in their financial decision making, while also taking on board regulatory requirements. More than 600,000 customers have so far used this service.

Rather than backing the recently formed digital-only fintechs, Mr Allende believes “older” banks can use their history, extensive branch networks and in-depth knowledge of customers across cycles to gain advantage. “All this is crucial for the development of digital models,” he says.  YB

Best private bank, use of technology, CEE
Komerční banka, a.s.

Komerční banka (KB), part of the Société Générale group, admits that its digital transformation is a work in progress. The Czech bank is developing a multi-channel business model. Personal relationships between clients and t advisers remain an important pillar, but the bank is expanding the number of ways in which its customers can choose to interact with it. 

Mobile banking is currently the fastest growing distribution channel. The bank launched its mobile app for retail clients in 2011, and expanded it to include businesses in 2015. “Adding and removing features to both apps is a never ending and continuous process,” says Jan Vichr, distribution channels and direct marketing manager at KB. Recent innovations include the introduction of payments by mobile device using the Android Pay application and allowing clients to access the app through biometric data. 

KB was also the first bank in the Czech Republic to launch a banking application for Apple Watches, and has extended this to Wear OS, with users in the “thousands” and “hundreds” for the two respectively. 

The bank is also looking to take advantage of the AI revolution. So far, two chatbots have been created and successfully tested. “We think there are some cases where it makes sense to implement a chatbot solution,” says Mr Vichr. 

But the process is not easy. “Where AI is involved, it takes time and a lot of effort to train a chatbot so that it provides useful results.” ES

Best private bank, use of technology, Asia;
Best private bank, digitally empowering RMs, Asia
DBS Bank

In a region where big tech firms such as Alibaba and Tencent have made significant inroads into financial services, digital innovation is crucial for wealth managers to survive. 

“Being truly digital involves a complete transformation of the bank, from front to back end,” says Patrick Dreyfuss, chief operating officer, Wealth Management Group at DBS Bank.

The digital mindset is developed not just to serve customers but is embedded into the entire organisation, and spans from “thinking of ecosystem partnerships, to transforming audit and credit processes” through better use of data to optimise operations.  

“Through increased automation, we have been able to increase our release cadence of new applications enabling us to constantly learn, test and iterate – the same way big tech does,” says Mr Dreyfuss.

Since 2009, the bank has insourced 85 per cent of technology, hardware, data centres, network management and app development. “In order to be more digital, it is imperative that we own our technology resources. This has made a tremendous impact on how we approach technology… and how we innovate.”

Being digital “to the core” also means being able to attract the “brightest and most talented technology resources”. The Asian bank has established partnerships with fintechs, while making sure to embrace the way the best tech companies operate. “Tech firms do not have the monopoly of embracing start-up culture,” believes Mr Dreyfuss.

The bank has embedded digital KPIs into the scorecards of every employee, having gathered evidence that digitally-engaged customers bring in “significantly more revenue” than customers who bank in a traditional way.

DBS iWealth, the bank’s all-in-one digital wealth platform, allows clients to perform their banking transactions, manage their wealth and invest, and has a comprehensive set of features and functionality. DBS’s RM Mobility platform enhances relationship managers’ service levels, from client prospecting and acquisition through to portfolio management and relationship building.  ET

Best private bank, use of technology, North America 
Northern Trust

At Northern Trust, technology is central to its ability to provide holistic advice. As a company, it spent $2.5bn on technology between 2015 and 2017, of which a significant portion was invested to support the wealth management business. 

Its goals-driven wealth management offering best illustrates how the institution makes use of technology. Over the past three years, assets under management in this programme have increased by roughly 200 per cent. 

At the core of the approach is the proprietary Goals Powered Solutions (GPS) platform, which utilises algorithms, and a mobile app, designed to optimise conversations between clients and advisers through interactive visuals. 

The solution “features simplification, visualisation, quantification and integration of a holistic view of the client’s total financial picture and the organisation of that information in the context of the client’s goals and objectives,” explains Steve Fradkin, president of Wealth Management at Northern Trust. And it has resulted in “materially higher client satisfaction metrics… and improved efficiency and confidence amongst our advisers,” he adds. More than 90 per cent of advisers use the platform.

The bank is currently ‘beta testing’ how to include estate and wealth transfer planning and other holistic financial considerations within its goals-based framework. 

Digital engagement on the client portal ‘private passport’, since last year also available on Apple Watch, has greatly increased as well. Users can access self-service capabilities, including balance inquiries, transaction history, and document handling across different channels. New client-focused features are being developed, including personalised summaries based on client preferences and one-touch access to the relationship team. 

Client engagement through social media and virtual live events has largely improved. Last year, social media post impressions were almost 500 per cent higher than the highest level in 2016, thanks also to a thought leadership programme developed around helping clients understand the US new tax reform legislation. 

Hiring the right mix of people to drive forward the digitalisation initiatives is key.

“The talent Northern Trust has assembled around our digitalisation efforts features in-house and external expertise, people with strong digital backgrounds and those with other, very diversified interests and experiences,” says Mr Fradkin. ET

Best private bank, use of technology, Africa
Investec

Meeting the demand of increasingly mobile and international high net worth investors is a key priority for private banks. At Investec, the South African bank and asset manager – which also serves clients in the UK and Europe, and in Asia and Australia – every client has access to a specialist private banker and investment manager, as well as digital or “high tech” channels, which contribute to reach this goal.

“In a complex financial world, we make it easy for our clients to get local and international banking and investment exposure,” claims Lyndon Subroyen, global head of Investec Digital.

 “Our high-tech channels, Investec Online and our app, enable our clients to get a consolidated view of their banking and investment accounts, locally and internationally, on one platform with one login. They can transact easily from anywhere in the world,” he states.

Through the online platform, accessible securely through the app, clients can manage their finances, held both with Investec and third parties, and choose between self-directed or assisted investment options, but also simplify their administrative chores, such as getting alerts when their passport is reaching its expiry date. 

Through the Youth Account app, parents can teach their children about banking and the value of money and saving, while My Will provides clients with a template to draw up and save their will, allowing them with a few clicks to get in touch with a specialist attorney firm, if needed. 

The bank, which runs an annual hackathon in Johannesburg and London, designed to “accelerate business and digital innovation”, registered an almost 50 per cent increase in AuM on its online investment platform since last year, while Investec app logins increased by 33 per cent, with the number of logins equally split between Investec Online and the app. ET

Best private bank, robo-advisory, Europe 
Danske Bank

The new robo-advisory investment platform, June, as well as digital client onboarding, both launched last year, significantly contributed to boost inflows and attract new customers at Danske Bank.

“We wanted to democratise investments and make investing accessible for everyone in an easy, low-cost and transparent way,” says Sune Worm Mortensen, global head of Wealth Advice at the Nordic bank. 

A first mover in the Danish market through this automated investment tool, the bank was able to attract more than 15,000 new clients, most of which were first-time investors, mainly in the retail segment. Proving particularly appealing to millennials, the platform builds an appropriate balanced portfolio based on the client risk profile using ETFs, although index products are also being considered. 

“People have a tendency to consider their money in different ‘buckets’ for different goals and purposes,” says Mr Mortensen. Robo-advisory has comparatively low costs, and caters well for buckets involving in- and outflow of money over time, such as dormant deposits, he adds. “I think we’ll see increasing use of robo-advice in the future, but a personal adviser will remain important for more complex buckets.” 

The bank has also continued to improve its advisory platform used by private bankers to better serve wealthy individuals. 

“The key benefit of Wealth Planner is offering goal-based, holistic advice to clients, as opposed to product-driven advice,” he explains. The tool uses algorithms which – taking into account the client’s entire financial situation, including investments, real estate, income and expenses, tax and company data – generate a post-tax, financial overview, also estimating the probability for the client of successfully achieving their goals. ‘What if’ scenarios allow the making of adjustments to variables such as investments, expected retirement age or purchasing properties. 

The bank is currently “experimenting” with allowing clients to use the platform by themselves.  ET

Best private bank, robo-advisory, CEE
UniCredit

Thanks to a new wealth management ‘robo’ solution for advisers, Unique, available in six CEE countries, UniCredit’s private bankers “are able to analyse in a few clicks the behaviour of a client portfolio, understand gaps, perform optimisation analysis and generate automated rebalancing proposals suitable for their clients,” explains Daniela Croitoru, head of CEE Private Banking. 

The aim, she adds, is to offer tailored investment solutions, supported by digital automation, monitoring and alerting, while offering advisers more time with their clients, helping them strengthen their relationship. 

Developed together with a large external IT company, the platform is now used by all private bankers. While younger advisers are “perhaps more open to using the more sophisticated areas of this tool”, feedback is collected regularly from all advisers to improve the user experience and make the tool as easy to use as possible for all, states Ms Croitoru.

The platform is soon to be made available on mobile devices, allowing clients to view their portfolios and make simple transactions, while supported by the private banker through an automated client chatbox. This will further free up advisers’ time, enabling them to focus on clients’ more sophisticated needs.

A web-based platform building bespoke structured products has proven successful with both bankers and clients, since its launch in 2015 in the Czech Republic and Slovakia. “Structured products are very popular in the CEE Private Banking perimeter, especially in the Czech Republic,” she says. Through this tool, advisers are able to illustrate to clients the correlation between coupon and risk associated with a particular product, and explain complex investment solutions, while ensuring that risks match their risk profile.

“The combination of product tailoring, education and high demand for structured products is what convinced us to implement MyOneMarkets,” she states. ET

Best private bank, robo-advisory, Asia
KEB Hana Bank

KEB Hana, the largest private bank in Korea, was an early proponent of robo-advice services. Early versions were opened in 2013 and 2015, and then in July 2017 the bank launched its HAI Robo platform – the Hana Artificial Intelligence Robo Advisor. The platform evaluates clients’ risk-return profiles and recommends model portfolios, before allowing clients to execute investment decisions and monitor portfolio performance. 

By March 2018 assets under management had reached $500m, with 40,000 subscribers, 5 per cent of them new customers for the bank.

“Sixty per cent of users have subscription amount less than $1,000,” reports Jean Hong, senior manager in the private banking business department at KEB Hana, “and this statistics implies that young customers with few assets also need the asset management service which private banking typically provides.”

Around 70 per cent of users are aged between 30 and 50, though 8 per cent are in their seventies. 

The bank now plans to incorporate an interactive AI platform in the form of a chatbot, though Ms Hong does not foresee a time where AI algorithms replace human advisers, unless it is in the distant future, as they do not have the “sophisticated complexity” that humans do. 

“Current AI algorithms cannot consider the big picture including various financial issues such as tax saving, investment goals, or any other qualitative factors,” she says. 

“Considering these limitations, how best to develop a ‘hybrid’ private banking model which maximises synergy between ‘human’ private bankers and AI-based robo-advisers will be the most important issue for the
market.” ES

Best private bank, digital client communication, Asia 
Best private bank, Big Data and AI, global
Credit Suisse

Technology innovations such as a client-facing digital platform, which generated significant trading revenues last year, certainly contributed to Credit Suisse Private Banking’s strong financial results in Asia-Pacific. Net new assets sourced from the region grew by 24 per cent to SF16.9bn ($17.1bn), bringing AuM to SF197bn at the end of 2017.

“We look at technology as a tool that we use for the benefit of our clients and our shareholders,” states Laura Barrowman, chief technology officer at the global bank.

The institution works closely with fintech companies, such as Singapore-based Canopy, which provides asset aggregation services for clients across institutions, geographies and asset classes, and also engages with “broader innovation ecosystem players”, such as venture capital firms and entrepreneurs.

Ms Barrowman is particularly proud of how automation allows processes to become more effective and resilient, thus reducing operational risks and saving costs. “Taking automation to the next level involves marrying the robot with AI to make the robot more and more independent,” adds Ms Barrowman.

The bank’s service desk cognitive agent, Amelia, is “digitally transforming” the way clients receive support. The bank purchased the basic structure and functions of the AI platform from a technology firm. The in-house team used machine learning, psychology models and AI techniques to further build and develop Amelia’s ‘brain’, teaching her to understand what people are saying, diagnose problems and decide whether she can fix them – and if not, hand them over to a human colleague. 

Leveraging big data and deep learning technology, Credit Suisse has also developed an in-house platform to manage eCommunications surveillance. The big data solution processes millions of ecommunications daily and, using advanced analytics, uncovers signals that meet specific criteria on financial misconduct and suspicious behaviour. Supervisors and compliance officers are notified of suspicious or anomalous activity via an alert dashboard. ET

Best private bank, digital client communication, Australasia
ANZ Private – New Zealand

Listening to what clients want sits at the core of improving digital communication, says Ben Kelleher, head of the largest private bank in New Zealand, with $NZ17.4bn ($12bn) in client assets. “Our clients are increasingly time poor, and we’ve placed increased emphasis on keeping our communications timely, easy to understand and delivered in bite-size chunks.” 

The aim is to use technology to enhance relationships and improve private bankers’ efficiency. “We have used technology to streamline our internal processes so that our bankers spend more time face-to-face helping our clients, and less time in the office dealing with administration,” he says.

While timely news flashes have received “amazing readership and great client feedback”, the new ‘banker workbench’ tool, launched in 2017, provides bankers with a single user interface, freeing them from having to log-on on to a dozen different systems.

New iPad tools have enriched their conversations with clients. The ‘projection app’ allows advisers to explore different scenarios and options with clients, based on their specific goals and situation, while the ‘easy app’ speeds up and simplifies the lending process for housing or commercial property. 

Changing people’s mindset is a huge priority across the ANZ Group, claims Mr Kelleher. “We have coined ‘new ways of working’ across our organisation, where the focus is on agile thinking and delivery.” 

One of the most important competitive advantages for a firm is to be able to adapt and react quickly to change, he explains. “We are working to ensure we build an organisation that is at the front of that curve; constantly adapting and improving our services for our clients.” ET

Best private bank, Big Data and AI, Asia
Taishin Bank

Utilising data is an important component of Taishin Bank’s strategy to attract new clients and deepen relationships with existing customers. “In order to provide the service which customers want, we not only use traditional data such as transaction history, location and product consumption, but have built a brand new system called ‘Tagging’,” explains Christy Shyy, head of the Segmentation Division, at Taishin International Bank. 

The Tagging system analyses dynamic data such as a customer’s character, behaviour and preferences in order to build up a more detailed picture of these clients. The Taiwan-based bank created more than 1,500 labels and assigns these to customers, averaging about 15 per individual, although some are attributed far more.

Client behaviour is rapidly shifting as a result of digitalisation, and it is vital for banks to collect the correct data, then be able to analyse and apply that efficiently in order to meet these changing needs, says Ms Shyy. “We must ensure changes in customer behaviour can be immediately reflected in customer observation data. Only then can we effectively and quickly leverage the value of the data transition to provide satisfying customer experiences.”

Banks are now able to access much more than the traditional in-branch transaction data they used to collect. External data sources such as government-provided open data and industry data are one pipeline, though unstructured voice and text data, such as call centre records and interviews between financial advisers and customers are also available. 

But is it not easy to put that data to use. “Data is now more diverse than ever, but is generated by different systems and scattered across different storage locations,” she says. “Mining valuable information for use out of open data is also a challenge.” 

Taishin is therefore searching for ever-more consistent ways to combine bank data with external data sources in order to improve the accuracy of customer behaviour data, thereby improving the client experience.ES

Best private bank, digitally empowering RMs, global
Citi Private Bank

With a goal of enhancing the advisory process, Citi has deployed a big data analytics platform, which gives relationship managers (RMs) the ability to monitor their client’s past, current and future investment activities, including asset allocation gaps and opportunities, upcoming maturities and cash flows. It allows them to quickly drill down and identify what matters most to which client, based on news and views, explains Philip Watson, chief innovation officer for the private bank in Emea and Global Investments.

Machine learning, integrated into the platform, helps anticipate the types of solutions which may be of most interest to specific individuals. “The platform helps our RMs cut to the chase and channel advice to clients in a way that is more timely, relevant and actionable.”

Similarly, Citi’s Global Theme Machine helps RMs determine which companies globally will provide investors with the best exposure to a specific and attractive theme. 

The Outlook Watchlist translates the house view into recommendations for each client, highlighting how their portfolio is positioned thematically, and identifies divergences in exposure. This way, investors can improve the risk-adjusted return of their investment portfolios and address gaps or opportunities. The positive feedback has been overwhelming, reports Mr Watson. “Many clients have seen the Watchlist as a real game-changer in how they assess their investments portfolios in the context of investment themes.”

These innovations have provided “a clearer linkage” between client portfolios, market events, the house views and the investment opportunities on the bank’s platform.   

Private banks can be inspired by other industries in the use of technology, states Mr Watson. Augmented and virtual reality, for example, now enables buyers and sellers to experience overseas property without having to travel physically to the location, and such artificial digital environment could significantly enhance how private bankers provide advice. 

“It isn’t about building a platform of gadgets and widgets…digitalisation should be used to support the client experience along all aspects of their journey.” ET

Best private bank, digitally empowering RMs, Europe
Lombard Odier

For the past 25 years, Lombard Odier, the independently-owned Swiss private bank, has made investments to create a “single, global banking platform” to deliver tailored solutions meeting clients’ goals.

“Our system is all about adding power to human relationships,” says Francesco Di Lella, co-head of front office IT development at the bank. On one level, it is about making life easier for relationship managers, he adds.

For example, the system determines which investment ideas match the client’s personal interests, tax profile and financial knowledge. The relationship manager can then select the ones to propose to the client via the client digital interface, My LO. 

“The technology creates a straight line from our senior investment professionals and into our clients’ smartphones and laptops.”

The system has built-in risk controls, running pre-and post-compliance checks on trades. Checks based on individual clients’ specifications can also be configured.

Through My LO, clients can access a secure messaging link which enables direct, real time communication with their bankers, and also gain a granular overview of their portfolio.  “We believe that this combination of knowledge and interactivity is how wealth managers can use technology innovation to deliver genuinely bespoke wealth management,” says Mr Di Lella. 

The bank, whose technology and operations division employs more than 600 people, also offers its proprietary banking platform to third-party banking groups. This helps make its technology “self-financing”. Nine external banks currently use the bank’s solutions. Over the past year, the institution has signed partnership agreements with three new banks in Switzerland, France and Luxembourg, and built “a second hub” in the Grand Duchy to complement its base in Geneva. ET

Best private bank, digitally empowering RMs, LatAm
Santander Private Banking

Santander Private Banking firmly believes in a client model that is ‘human-led, technology enabled’. “It is true clients are demanding more digital options, yet many still see their banker as their connection to Santander,” says Felipe Chinarro, responsible for Banker’s tools and databases,  in the Wealth Management division. 

The bank has developed a multi-device, multilingual, modular and integrated tool and launched it in a number of countries, the aim being that when bankers meet with customers outside the office, they can “take the bank” along with them, allowing them to have all relevant information readily available. The tool provides, for example investment proposals adjusted to a client’s investment profile and integrated customer information, while allowing managers to view bankers’ schedules and assist them in arranging meetings.

“The bankers really enjoy working with the technology,” he reports. “It supports better, well informed client meetings and helps reduce the administrative burden. It’s also similar to what bankers are using in their personal lives so they’ve really embraced it.”

Santander claims the tool has seen administrative processes reduced by 20 per cent and enabled more, and better-prepared client meetings, resulting in 10 per cent more investment proposals being accepted.

Tools such as these are there to make a banker’s job easier and more productive, insists Mr Chinarro, and are not about replacing humans with machines.  

“There are a number of industry commentators who try to make us believe that digital tools are here to take banker’s jobs. In our case, it’s the opposite,” he says. “We must remember that great relationships are built on ‘trust’, and trust is a deeply human instinct. Santander recognises this and so we continue to recruit the best talent.” ES

Best private bank, RegTech, global
UBS Global Wealth Management

“Delivering regulatory compliance with the support of technology has been one of our focus work areas and thus also one of our investment priorities for many years,” states Jonathan Shih, head of Financial Crime at UBS Group. This is evidenced by investments of more than SF3.5bn ($3.5bn) made at the global bank to implement regulations over the past five years. 

With the rise of more creative, yet also more robust solutions provided by start-ups in the regtech space, the potential for banks and start-ups to partner in solving challenges has increased exponentially, says Mr Shih. With the help of technology and process improvements, such collaborations look at generating creative approaches to address existing and new challenges, for example in digital identity, onboarding, ongoing client due diligence and KYC data, as well as processes or anti-money-laundering and fraud protection.

While optimisation and digitalisation of processes around GDPR and MiFID are seen as a given, UBS has also launched initiatives looking at future market opportunities. An example is the digital wealth passport, delivered as proof of concept (PoC) in collaboration with start-up Tradle, on their blockchain-enabled platform. It offers clients a secure digital passport or digital identity, capturing KYC information and certified documents. 

 The key benefits for clients are that they truly own their data, can choose with whom to share it and re-use it. That includes, but is not limited to, easily requesting data that is stored with partners they own, explains Martin Hartenstein, head of Strategy and Business Transformation, GWM Omnichannel Management, UBS Global Wealth Management. 

For UBS’ advisers – but also for the client’s other service providers, such as banks, lawyers and business partners or even utility providers – it means optimising onboarding and ongoing due diligence.

“It also prepare advisers for future regulation, but also service expectations from more and more data privacy attuned clients, who demand control of their data,” claims Ms Hartenstein. 

Internal research revealed that clients see UBS as a “trusted” financial partner which through the digital wealth passport or similar solutions, may also be “the guardian” of their data, he adds. ET

Best private bank, digital client communication, global
BBVA Private Banking

Of all the digital initiatives taken to improve client communication, Jorge Gordo, BBVA Private Banking director, is particularly proud of those which “empower” customers, allowing them to better manage and monitor their financial and non-financial assets, throughout their life cycle. 

Such initiatives are based on the bank’s philosophy that the more clients know, the better they decide, and this creates new opportunities. 

Through a variety of digital tools, clients can receive personalised advice based on their goals and risk profile, define their most suitable wealth strategy, including succession planning and wealth transfer, and track the performance of their investments, held with BBVA and third parties. They can also monitor real estate portfolios and track property expenses, plan personal finances around the arrival of a baby, and receive up to date information on markets. 

Several services have also been introduced to enhance clients’ daily experience with the bank. Clients can now sign contracts remotely, hold conversations and exchange documents with private bankers in a secure environment. They can also book appointments instantly, receive alerts, and access online reporting.

Enhancing the capabilities of private bankers is a “key priority” for the bank, and all relationship managers have been equipped with a dedicated tablet, with apps and functionalities which enable them to work on the move. 

While digital experts are mostly employed by the group, keen to share know-how and expertise, the bank has also established joint ventures with fintech companies and also acquired some. 

Looking to the future, big data and AI are believed to have great growth potential in private banking. “Big data and AI can improve how we advise our clients and help them take the best investment decisions,” says Mr Gordo, explaining they are working on new tools to optimise customers’ investments, risks, financial behaviour, income and expenses. ET

Best private bank, digital client communication, North America
RBC Wealth Management

RBC Wealth Management, the Canadian bank with C$634bn ($495bn) of assets under management globally, is making significant investments in digital and data capabilities to enhance the way advisers interact with and deliver services to clients.  

 “We’re building a digitally enabled relationship bank,” states Terri-Lee Weeks, senior vice-president, Products and Strategy. “We focus on simplifying everyday client needs as well as adapting our service models to fit our clients’ preferences.” Improving access to information and interaction across channels, and allowing advisers to engage the client through more “personalised, timely and actionable insights” will ultimately drive a greater client relationship stickiness and loyalty, she adds. 

Core to this vision is the AVA application (Adviser’s Virtual Assistant) launched in North America in 2017, which enables advisers to better anticipate and address client needs. 

“AVA provides our advisers with real-time access to critical client insights and the information they need to be more productive while they are on the go,” she explains, while clients are able to make more informed decisions. The application is very popular among advisers, and is currently being used by more than 2,600 of them across Canada and the US. “We think it is a strong complement to the human element of wealth management.”

In the US, the bank launched a client-facing app, providing clients with access to their portfolios, daily updates on positions, balances and performance, and also allowing for digital cheque deposit.

Progress has been made in big data analytics and AI. Last year RBC’s International Wealth Management business launched an “exploratory artificial intelligence bot” to digest and extract key insights from market information, aimed at augmenting sales and relationship management activities, while allowing cost saving. The full scale of the bot’s capability is estimated to be equivalent to 50 full time market intelligence analysts, who analyse publicly available data to build client profile and source contact information. ET

Best initiative, client-facing tech, global
Coutts

UK bank Coutts has recently launched a digital networking site, Coutts Connect, designed exclusively for its clients, extending the reach of the Coutts Investment Club, an introduction-only, non-advised service, which connects clients with private company investment opportunities. 

“Coutts Connect enables us to add another dimension to our customer service and helps build brand loyalty,” explains Elisha Jones, digital platform manager at the bank.

Traditionally, clients have been able to build and expand their networks through the bank’s events and introductions made by their relationship manager. “Now, with Coutts Connect, clients have a smart and convenient way to connect directly with other clients and are no longer contingent on their relationship manager or a face-to-face event.” 

Clients link from their LinkedIn account to set up their profile, while AI and matching algorithms help drive relevant and meaningful interactions. 

Users, representative of the bank’s client base, including entrepreneurs, company directors and are UK-based, can invite other members to their event, advertise job positions, seek advice or share ideas. They experience higher quality responses than other social network sites, due to the level of expertise and experience of the user base, while also benefiting from privacy and discretion, reports Ms Jones.  

“There is also a common purpose to help each other’s businesses be successful, by working together and sharing knowledge.” 

The bank’s digital team does not pre-screen content before it is published, but it monitors content daily to ensure it does not contravene the site’s terms of use, such as illegal activity or offensive language. 

“We do not use the content shared on the platform to drive any marketing, however it may be used by relationship managers to validate what they know about their clients and therefore help drive meaningful conversations,” points out Ms Jones. 

The bank regularly seeks user feedback and works with its technology partner ProFinda to enhance the user experience of the platform. 

“One of the biggest enhancements we want to make in the next couple of years is to bring Coutts Connect under a single login for all Coutts digital services,” she adds. ET

Best initiative, client-facing tech, Europe
ABN AMRO Private Banking

Dutch bank ABN AMRO, which boasts a strong presence across Europe, launched a digital wealth and investment management platform last year in Germany, Prospery, which gives clients an overview of their finances and investments, including those held with third-party banks, and facilitates goal planning. Far from being a purely algorithm-based solution, it combines ‘personal coaching’ by financial experts, through chat or video call.

Meanwhile, payment app Tikkie, which allows consumers to send payment requests via WhatsApp was launched two years ago in the Netherlands, and a digital service model, Next, was developed specifically to cater to millennials. It includes financial coaching via Webex, WhatsApp and email, as well as access to e-learning and events. 

New initiatives in digital communication include video conferencing and a private-banking call centre offering remote advice, as well as live webinars, weblogs and videos. In France, the institution introduced a mobile daily-banking payment app.

 “In private banking, you need digitalisation in combination with a personal touch to make the difference,” says Pieter van Mierlo, CEO of ABN AMRO Private Banking. “Clients appreciate the quality of interactions, knowledge and relevance of our client service teams, as well as our efforts to be more modern, including new websites, portals and apps. Clients, especially the younger generation, expect us to continue to innovate.”

Aiming to add value through data-driven solutions, the bank is preparing to launch an app to allow advisers to have “more valuable and proactive contact with clients”. In addition, a modelling solution will identify which clients are more likely to leave the bank, enabling advisers’ timely interventions. 

While the group’s retail bank proved innovative with its new web-cam advisory service, other industries are certainly inspirational, when it comes to digitalisation and use of technology, says Mr Mierlo. “We can learn from bigtechs like Google. Their success with machine learning is admirable. We also work with fintechs because they have innovative ideas and work fast,” he states. He also cites Spotify for its “agile way of working”, and Amazon and Netflix for their ability to “personalise client contact”. ET

Best initiative, client-facing tech, CEE
Tatra banka

Slovakia’s Tatra banka recently launched a new fully digital advisory tool for private bankers, covering all asset classes, including alternatives, to improve the quality of advice offered to clients.

The platform, which takes on board MiFID regulatory requirements, allows an overall view of all assets and investments, enabling advisers to better prepare client meetings and make simulations of investment proposals. The digital signature allows a paperless process, with transactions sent to the order routing systems directly. 

“The biggest challenge in the implementation phase was to connect this platform to our bank system,” acknowledges Marek Neckár, head of private banking, Tatra banka, Slovakia. A client portal, giving clients access to their portfolios and investments is currently being developed.  

While the institution has used voice biometrics since 2013, biometrics facial recognition was launched last year and recently implemented, enabling clients to securely open a bank account and use it immediately.

To meet client demand for alternative investments, Tatra offers HNW investors the opportunity to invest in start-ups, selected by Slovakan investment service firm Crowdberry, through an equity crowdfunding platform. 

A MobilePay app allows contactless payments by smartphone, while the Tatra banka app, compatible with smartwatches, allows clients to check money transfers and account balance, and withdraw money via their phones. ET

Best initiative, relationship management tech, global
Standard Chartered Private Bank

In 2017, Standard Chartered Private Bank launched Advice, a solution which aims to improve the client experience by enhancing its advisory proposition and reducing turnaround time of the investment process. 

The tool delivers the bank’s investment ideas, conviction product solutions and advisory models to its frontline bankers and is now used by all the bank’s 400 relationship managers and investment advisers across Singapore, Hong Kong, UAE and the UK.  

“The introduction of Advice has drastically reduced the amount of time our relationship managers and investment advisers need to prepare each client’s investment portfolio, by up to 50 per cent,” states Alexis Calla, global head, Investment Advisory and Strategy at the bank. 

Before, advisers had to reference several different sources to generate a relevant investment idea with the necessary rationales, and conduct suitability and compliance checks. This “one-stop” platform delivers investment ideas alongside latest market movements, enhanced with real-time data from Thomson Reuters Eikon.

“Advice allows us to combine the speed of delivery through digital with the relevance and personalisation from the human interaction,” says Mr Calla, explaining that the human “touch” is preferred by clients, especially when having to make bigger investment decisions.

The main challenge of implementing a platform of this scale, with Advice available in four of the bank’s advisory booking centres, is the “sheer number of teams involved in the process”. This spanned from legal, compliance and advisory, to the technology powering the application and various product owners who decided what information would be made available on Advice. 

“What was crucial to our success was a common understanding established to focus on quickly putting out a minimum viable product, and then gathering feedback from the intended users for further iterations,” he explains.

To respond to client enquiries around stocks outside the “comprehensive” range of asset classes and individual securities covered by Advice, within its conviction list, the bank has initiated a proof-of-concept (POC) with a robo-advisory fintech. This is designed to provide live views on stocks within a defined universe, in addition to generating automated talking points to highlight the key drivers and risks to each view. ET