Wealth management

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Wealth Management
1st June 2006
Banking Vietnam
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Agenda

• No Time Like The Present
• Back to the Future

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Wealth Creation in Vietnam

• Wealth generated by entrepreneurial activity
• Creation of Nouveau Rich New Money
• General investment strategies tend to be
• Property Market
• Stock Market
• Savings
• Cash / Asset Rich Time Poor

4
Vietnams Economic Growth

• 2005 and 2006 GDP growth of 8.2
• GDP growth by
• Industry and construction sectors 10.37 growth,
  
• Service sectors 8.29 advance,
• Rising incomes and consumer spending driving
  retail sales up 20.7 year-over-year.
• Q1 2007 GDP
• 7.7 year-over-year
• 7 year high.

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Stock Markets Today
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Property Markets Today

• Rising Property Prices
• More 100 increases especially in high end
  property

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Back to the Future

• Remember Thailand, Korea, Indonesia..
• Booming economies
• Entrepreneurial successes
• In 1997Wealth hit badly by the perfect storm
• Collapse of stock market
• Falling property prices
• Falling interest rates
• Collapse of the banking system

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The Realization

• With the depletion of wealth, the lack of time to
  manage both business and personal wealth, proper
  management of wealth became increasingly
  important to those who want to achieve their
  financial and investment goals including
• Protection of Wealth for future family generation
• Maximizing returns on investments through
  diversification
• The need for a sound banking system to support
  the economic growth of the country

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Vietnams Banking Modernization Program

• Governments intention
• The Banking Modernization is being pursued by
  banks in Vietnam in the context of the national
  socio-economic development plan which is set at
  the level of the National Assembly.
• Promoting public confidence in the banking system
• Fostering efficiency and competition in the
  sector through equal treatment for all
  participants and through modernization of common
  systems.
• Competition for banks- operating in open market
  conditions against both domestic and foreign
  competitors.
•  Moving toward a market-based policy in monetary
  management e.g. establishment of a stock
  exchange market

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General Focus of Banking Modernization Program

• Broadening the Customer Base
• Launching new Products and Services
• By
• Expanding of the Branch Network
• Grow total assets and the number of customers
• Attain balanced portfolio of assets to strengthen
  the banks financial stability
• Widen range of products and services beyond
  current set
• Diversification of the banks sources of income

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Current IT Requirements Focus

• Upgrade and Modernize the Core Banking System and
  related systems
• Upgrade and extension of the current online
  network
• Re-Engineering and Redesign of the current
  Operational Procedures

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Customer Segmentation
15-20 of customer base of Fee Based Income
of Consumer Funding Time Deposit
HNW
Priority Customer
Mass Consumer
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In Asia

• Asia-Pacific is the fastest growing market for
  wealth management services activities
• Accounting for 25 of US10.5 trillion
• Bank providing such services expects
• Profits growth of 15
• Asset under management grow by 20

What about Vietnam?
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The Gap

• Following 8020 rule 80 of the wealth is held
  by 20 of the population
• IT Budgets spent to develop banking
  infrastructure for the mass market
• This gap is typically identified by foreign banks

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Banks Opportunity

• To
• Deliver flexible, customizable and
  customer-specific financial and non financial
  solutions
• Provide structured, managed and advisory services
  on timely basis on the asset liability of
  clients in order to achieve their financial and
  investment goals through
• Financial planning
• Active Advisory
• Portfolio management
• Personal touch, trust and understanding between
  advisor and valued client as a foundation to a
  long lasting relationship

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Bank Opportunity

• Wealth Service management
• Provided a different market segment and potential
• Recognized emerging needs of savvy high net-worth
  individuals for excellent services and
  sophisticated products
• Tapped on steady stream of fee based revenue
• Ability to retain and acquire new customers

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Product-Service Segmentation
Priority
Mass
High Nett Worth
Current Savings Time deposit Loans
Unit Trust Bonds Securities Bancassurance
FX Money markets Options
Self Service
Relationship Management
Highly Personalized Service
Customer Profiling /Asset Allocation Portfolio
management / Consolidated Customer view
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WM Solutions to enhance and complement existing
Core Banking system
Branch
Internet
Phone
Is thisenough for Priority customers?
Delivery Channels

• Portfolio revaluation
• Portfolio benchmarking
• Model Portfolio
• Simulations / What if scenarios

Portfolio Management

• Need to
• Widen Product Offering
• Understand the customer
• Increase Service Levels
• Proper reports
• Reduce manual ops

• Tarriff conditions
• Collateral Management
• Order management
• Broker-Custodian Relationship
• Agents Fees
• Risk management

Order Management
Client Management
Sales Management
Financial Products
Investment Products
Banking
Treasury
Securities
MM
Options
Unit Trust
Payments
Deposits
Equities
Bonds
FX
Cards
loans

• Single view of customer
• Consolidated statements

Core systems
Bank management Systems
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Managing the growth opportunities

• Need to manage the relationships
• Customer relationship
• Portfolio management
• Portfolio benchmarking
• Partnership with fund managers and other 3rd
  party providers
• Order management
• Collateral Management
• Settlement
• Fees and commissions
• Efficient and streamlined operations

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Functional Overview
Banking Modules
3rd Party Products Providers
Wealth Management Modules
Bonds
Customers
Stocks Shares
Mutual Funds.
Stock Exchanges
Clearing Houses
Custodian
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Functionality and Modules
Wealth Management Modules
Client Relationship Management
Asset Portfolio Management
Client Accounting Reporting
Order Management
Clearing Custody
Settlement

• Securities ID
• Securities accounting
• Bank portfolio
• Model portfolios
• Portfolio valuation
• Orders
• Paying agent
• Corporate actions
• Repos
• Advanced private banking management

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Key Success Factors

• Clear target market / customer segmentation
• Established Customer Information System
• Good MIS / reporting and Business Intelligence
• Profitable Customer Relationship
• Wide and innovative products and services
• Product differentiation
• Efficient Cost Management
• Good IT infrastructure
• Increased productivity /Reduce manual operations
  /Reduce human error
• Knowledgeable staff

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Profile

• More than 20 years in the Financial Services
  Industry
• Previous Appointments
• VP Asia Pacific,
• Sungard System Access
• Regional Director
• CashTech Asia
• General Manager, Asia
• S1 Asia Pacific

• Managing Director, Asia Pacific
• Callatay Wouters

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Visit Us _at_ Banking Vietnam