1. The Bank at your Fingertips
Dr. Urs Blattmann
Michael Stöckli
June 2010

2. Content
Current Challenges within the Financial Services Industry and its
Environment
- Weaknesses in the Financial Services Industry
- Quick and Fundamental Changes of the Environment
Concept of a New Approach
Implementation in a Swiss Private Bank
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3. Weaknesses in the Financial Services Industry (1)
Preparation of management information in banks …
May
Mai
hy
tatls-
Mon ort
Mon
15 rep
… takes too much time
… bothers controllers with
number crunching instead of … will no longer be affordable
data analysis in the light of shrinking
margins
► Information is delivered too late, is poorly interpreted and costs too much
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4. Weaknesses in the Financial Services Industry (2)
Information technology in banks is …
MS Office
Excel
mainframe computer and PowerPoint
applications
archives and
datawarehouses
… highly fragmented
► Information is only available in a fragmented way and with huge effort
involved
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5. Weaknesses in the Financial Services Industry (3)
Balanced Scorecard
-
Risk t
or
Rep
risk view not integrated
complex risk metrics based
on questionable assumptions contagion- and spillover-effects
are not considered
► Lack of an integrated and simple view on the risk situation of banks
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6. Quick and Fundamental Changes of the Environment
Readiness to provide information?
Is there a need of setting new
goals?
Which Portfolios require
urgent action?
Which clients are affected?
► Readiness to provide answers and information can not keep pace with
reality and developments
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7. Content
Current Challenges within the Financial Services Industry and its
Environment
Concept of a New Approach
- Build on existing data available
- Simple and structured preparation of information
- Variety and flexibility in analytics
Implementation in a Swiss Private Bank
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8. Build on existing data available
Usually in a bank all required information is available somewhere or
can be generated from existing information sources
core banking
system
data …
data structure
► A logical data structure is imperative - a datawarehouse is not
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9. Simply and structured preparation of information
In all banks management and staff are familiar with a variety of structures and
classification items
client segment
organisational structure
portfolio strategy
return/contrib.margin
type of mandate
client domicile information and presentation structure
► Information along existing structures creates transparency
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10. Variety and flexibility in analytics
Limitation of freedom in analysis is considered as being a constraint.
Maximum benefit is being reached if users get answers in a very short period
of time.
static dynamic
results results
transformation
calculation logic calculation logic
assumptions assumptions
set of data set of data
► The added value of a solution is proportional to the flexibility provided by
the solution of the enduser
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11. Approach - The Bank at your Fingertips
concept financials market/clients
balanced scorecard
employees/know-how processes/IT as link to strategy
actual Filters
target achievement (traffic
lights)
current period
change of view on previous period
data by mouse- period
click organizational
absolute KPI values unit
KPI targets segments
Du-Pont scheme and
legal entity
… composition of the KPIs
… relationship
manager
client
mandate type
values from selected
domicile
period
target values …
target deviation
… time series
… filter for
flexible
top 10/Last 10 hitlists per analysis
relationship manager
(AuM, NNM, …)
top 10/Last 10 hitlists per can be freely
… client (AuM, NNM, …) combined,
simple structure
… enhanced and
creates data from different sources are
adapted
transparency transformed to consistent Example Privat Bank
(dummy values)
information
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12. Content
Current Challenges within the Financial Services Industry and its
Environment
Concept of a New Approach
Implementation in a Swiss Private Bank
- Demonstration
- Feedback from Users
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13. Demonstration
Actual status
Dummy - data
► A summary of this demonstration is available on
www.privatebankinginnovation.com
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14. Feedback from Users
Implementation within a very short timeframe
Data quality of the different source applications, namely the core banking
system, has significantly improved
Handling is easy and intuitive
Speed of preparation of information has improved remarkably
The solution is incredibly flexible
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15. The Bank at your Fingertips …
… has eliminated the weaknesses as mentioned and improved
transparency significantly.
Seite 15 © BERNET & PARTNER AG The Bank at Your Fingertips

16. BERNET & PARTNER AG
Baarerstrasse 57, 6300 Zug
Tel. +41 41 727 65 00, Fax +41 41 727 65 18
www.bernet-partner.ch, info@bernet-partner.ch