Business Development Masterclass For Private Banking and Wealth Management

Participants will be better equipped to:

• Exploit growth and opportunities in the private banking market
• Deal with the challenges of COVID
• Manage private client profiling and changing characteristics
• Meet private client requirements and expectations
• Appeal to both macro and micro-markets
• Deal with the challenges of investor choice
• Understand the process of asset allocation and portfolio structuring techniques
• Have a working knowledge of structured products and solutions for private banking clients
• Continue delivering high-quality service using virtual contact and without the ability to engage as easily on a one to one basis with clients
• Deliver rewards for the bank as well as the client
• Achieve an element of risk reduction
• Better identify return enhancement opportunities and strategies during & post-COVID

WEBINAR STRUCTURE

Delivered in 4 x 3-hour sections over two days (12 hours of live webinar in total). These sessions will include short breaks, case studies and Q & A sessions. Delegates will also have access to the eLearning material.

COVID - at the time of writing this outline, it is clear that COVID – or specifically the measures taken by governments to control the outbreak - will have a big impact on the global economy. It is not clear yet how big this will be - the only certainty is that it will be negative. We will incorporate as much as is known about its impact generally and on bank regulation specifically, as the workshop schedules unfold

Introduction

• Impact of COVID
• COVID risk appraisal
• Separating winners from losers
• Likely liquidity pressures
• Ongoing monitoring
• Managing clients within the constraints of the so-called “new normal”

Session 1:  The Private Banking Industry

• What is Private Banking
• Wealth management now usually part of the package
• A brief history of the industry
• Mainstream Products & Services
• Classification of the main global/regional players
• Organisation & structure of a Private Bank
• Wealth Categories
  • Merely affluent – the danger zone for profitability
  • HNW
  • VHNW
  • UHNW
• Family Offices
• Defining roles: teamwork or superstars
• Cross-selling problems & solutions

Case Study/Practical Example

Session 2:  Anti-money Laundering & FCC

• What is private banking and wealth management considered “high risk”
• Risk assessment
• The Risk Assessment Formula
• The Risk-Based Approach
• CDD – KYC, IDV & EDD
• PEP accounts
• Offshore Accounts
• Sanctions
• FATCA & CRS
• Benefits of regulatory profiling requirements
  • Customer Life cycle (student loan, car loan, housing, etc)
  • Investor life cycle – accumulate, consolidate, retirement.
  • Client balance sheet, sources of income, wealth & risk
  • Client paradigms
  • Customer life cycles in relation to the needs process.

Case Study/Practical Example

Session 3:  Private Banking services

• Defensive, strategic or specialist private bank
• Difference between accounts, customers & clients
• Private, retail, business or a mix
• Cash management
• Deposits
• Loans and overdrafts
• Premium services including credit cards
• Strategic tiering of bank relationships

Case Study/Practical Example

Session 4:  Products & Development for Private Banking

• Core private bank products – the essential or minimum range of products
• Risk profiling – green, orange and red lights
• Traditional v alternative investments & hedge funds
• Principal guaranteed products
• Outsourcing part of investment management – do’s & don’ts
• Defending against huge competitors
• Asset Management – discretionary/advisory
• Securities brokerage
• Retirement planning
• Tax & trust advisory services
• Collective investment schemes
• Art jewellery & other investments

Case Study/Practical Example

Session 5:  Client Relationship Management under COVID

• Adapting to a virtual client relationship
• Adapting to the loss of one on one relationships
• General framework for CRM and consultative business development skills under COVID
• Investment needs
• Interpersonal skills for business development
• Using Internet media effectively
• Converting features into benefits
• Concierge services
• Philanthropy

Case Study/Practical Example

Session 6:  Critical Management functions

• Information technology & operating platforms
• Human resources & private banking

Case Study/Practical Example

Session 7: The role of the Private Banking Client Relationship Manager (CRM)

• CRM in general
• The CRM’s perspective
• The client’s perspective
• What makes a good CRM
• Dealing with success & disappointment

Roleplay/case study

Session 8: Marketing Private Banking Successfully

• Client needs & strategy
• Objection handling
• The dos and don’ts of virtual meetings
• Differentiation & Positioning
• Linking features to benefits
• Negotiation versus selling
• Planning the negotiation
• Negotiating successfully & Negotiation styles
• Closing the deal
• Cross-selling opportunities

Roleplay/case study

Session 9: Dealing with Challenging Wealthy Clients

• The “problem” client
• Overcoming Client resistance
• Gaining commitment
• Overcoming difficulties when Shariah intervenes

Role play/case study

Session 10: Essential Self Management Skills

• Time management
• Planning
• Monitoring delegated activities
• Time out sessions
• Internal records

Role play/case study

Session 11: Key Treasury Products in Private Banking

• Conventional Treasury Products
• Interest rate swaps explained and construction examined.
• Cross-currency swaps
• Market participants and their motivations.
• Forward Rate Agreements (FRA)
• Foreign Exchange Derivatives
• Puts & Calls
• Uses of options

Role play/case study

Session 12: Credit Derivatives and Private Banking - Introduction

• The roles of the protection buyer and protection seller
• Constraints of transactions
• The role of the intermediaries
• Forms of Credit Derivatives
  • Credit Default Swaps (CDS)
  • Total Return Swaps
  • Contingent & Dynamic Default Swaps

Session 13: Structured Finance in Private Banking - Introduction

• Bringing borrowers and lenders together with “bespoke” structures
• The development of investment vehicles using embedded derivatives
  • Structures using Special Purpose Vehicles (SPV)
  • The roles of the various parties in such structures
  • Enhancements & risks
• Credit Linked Notes and other similar products
  • Mortgage-Backed Securities
  • Collateralised Loan Obligations
  • Collateralised Bond Obligations

Session 14: Asset & Fund Management

• Investors’ Objectives:
• Capital preservation.
• Maximise yields.
• Balance between liquidity & profitability
• Incorporation of Islamic doctrines.
• Link to Sharia precepts & ethics.
• Legitimate goods.
• Moral behaviour & social objectives.

Case Study/Exercise

Session 15: Risk Management & Compliance in Private Banking

• Reputational risk
• Client confidentiality
• CRD IV & MIFID III

Case Study/Exercise

Session 16:  Marketing, Communications & Managing the Brand

• Creating & developing the brand, image & style of the Private Bank
• Positioning the bank, products and the people
• Communications, PR, sales & marketing literature
• Client marketing – broad brush v narrow
• Marketing via adverts, the web, sponsorship, annual reports

The trainer had a highly successful, long and varied “fast track” career in Lloyds Bank which led him to a very senior management position in the bank’s private banking and wealth management division at an early age. He was then “head hunted” to join a merchant bank at main board director level to oversee the private banking and wealth management offering to the group’s major and prestigious clients. He now has over 40 years’ experience in the UK banking and financial services sector.

He has been a freelance private banking and wealth management training consultant since retiring and is currently an external Master Training at both HSBC and Bank of China where he has delivered major projects. He is an accomplished global trainer and has delivered extensive programmes in the UK, USA, South America, Europe, Africa, Asia and Middle East.

The trainer is a highly adaptive, hands-on and highly sought-after private banking and wealth management facilitator who always receives excellent feedback from delegates. He is comfortable training at any level of seniority and experience, from “black belts” to novices. In addition to his private banking and wealth management specialism, his expertise includes but is not limited to Risk Management, Trade Finance, Regulatory Compliance, FCC & AML and all aspects of Private & Retail Banking. He is also a highly experienced soft skills trainer and has completed numerous “train the trainer” assignments.

These are both exciting and challenging times for the Private Banking and Wealth Management sector. The industry continues to grow strongly with the emerging markets, notably Russia, the Middle East, and Asia creating a steady stream of new high net worth individuals.

There are also constraints; COVID, liquidity shortages, falling commodity prices, the usual rush to invest in gold, the US election uncertainty, international trade challenges and still not resolved but forgotten by some - BREXIT

This course offers an opportunity for staff engaged in private banking / private wealth management to equip themselves with the new skills to formulate innovative strategies, improve their customer relationships and effectively manage their clients' wealth during these challenging times.  The focus of this course is on equipping delegates to help their firms to grow and win new business, to retain and develop existing client relationships, and to defend against clients leaving.

Who Should Attend

Anyone with an interest in the subject.

Knowledge Requirements

A basic understanding of the private banking and wealth industry would be helpful but is not essential.