Wealth Management & Private Banking Workshop

Aims and Objectives The seminar offers Private Banking & Wealth Management professionals, with knowledge and experience, the opportunity to participate in a 3 day program designed to compare, discuss, consult and coach with the seminar director, the different strategies available for business growth, portfolio construction and asset allocation styles that will build long term and lasting relationships with clients in the Private Banking sector. Investors’ preferences, attitudes, and needs have become more demanding and their perception of the value received from advisers, bankers, and wealth managers has dropped significantly. Achieving the role of a trusted advisor has become essential in the business growth and client satisfaction strategy of any Private Bank or Wealth Management unit. The seminar cases, discussions, and experience sharing will provide the assisting professionals with a different set of criteria aimed at achieving business goals, clients investment objectives, and manage investment risk efficiently. Benefits of the Program The Seminar will provide you with the needed criteria, techniques, and knowledge that will allow you to: Construct a business strategy that enables you to meet your firm’s goals, satisfy your client’s expectations and investment objectives, and achieve your professional development and career advancement Increase the wallet size of your clients by building strong long term relationships, and organize and plan your actions efficiently to increase the number of new clients Obtain commitment from your clients through the use of effective communication techniques during meetings and presentations, so that you can close business deals in a natural and enjoyable way Become more comfortable and confident when communicating with clients allowing you to manage objections and rejections turning then into new business opportunities Use behaviour finance concepts to understand your clients’ believes and preferences and the existing biases and anomalies in their decision making process Learn how to conduct behaviour finance profiling and behaviour finance portfolio construction, incorporating the most common cognitive biases often present in the majority of investors Increase your knowledge in the strategic management of investment risk, alternative investment instruments and vehicles, in order to manage the risk-return equation of your clients’ portfolios Increase the value and differentiation of your product offering in order to satisfy your clients’ expectations, needs, and requirements Methodology Formal presentation by the Course Director which may include any of the following: Power Point slides Flip-boards and plastic boards Short films on DVD or internet clips of selected topic related to the course Interactive exercises and case studies for group discussion Hand-outs containing articles, statistics, and theoretical support The extensive experience of the Course Director in global investment management Comprehensive supporting literature and statistical research from reliable source Delegates' own ideas, experiences, cases and questions for discussion Who should attend? Private Bankers Wealth Managers Private Bank & Wealth Managers and Team Leaders Bank & Financial Services Relationship Managers Financial Services Sales and Distribution Investment Advisors of wealthy individuals Family Office Representatives Assistants to Relationship Managers and Relationship Managers Back Office personnel who interact with front Office Officers
Day 1 Global developments in private banking & wealth management Update on the latest challenges and trends in the private bank and wealth management sector Wealth management after the credit crunch and financial crisis: - Analyzing the changing client’s preferences, expectations, and needs - Reviewing the sector’s priorities - Determining new risks and new business opportunities - Planning growth strategies avoiding bubbles and concentration risk Business growth strategies for private banking & wealth management Setting business objectives for private banking and wealth management - Differentiating wealth management from private banking Examining our business strategy and marketing approach for private banking and wealth management - Analysing our products and services capabilities and focus - Transactional banking vs. relationship and advisory focus - From financial needs to personal development needs - From banking products to managing investment portfolios - From brokers to trusted advisors with a holistic approach - What benefits does your client receive from your product offering? Examining our growth strategy: how does the industry grow? - Planning or growth: what are the alternatives? - Which ones are more cost-effective and produce positive lasting results? - Client’s wallet size growth – A relationship based strategy Brand differentiation and management - Stages of brand positioning in the market place: where are we heading? - Controlling our franchise name with foreign offices, affiliates, and third party alliances New players in the market - Competing with non-financial and non-banking firms - Competing with family offices, independent consultants, franchises and representative offices, investment bankers, asset mangers, and brokers The On-Shore and Off-Shore business - The problem of a domestic focus vs. clients’ growing global needs Discussion & exercise: Delegates will analyze specific potential clients’ situations and needs in order to evaluate the effectiveness of their business strategy in attempting to satisfy the potential client’s investment objectives and requirements. Understanding and fulfilling clients' expectations Analysing how much we know about our client’s expectations - The origin of clients’ expectations - Monitoring and managing changes in clients’ expectations The sources of our client’s believes and preferences - Defining what our client expects from us Matching our firm’s business strategy with our client’s expectations - Aligning client satisfaction and business goals Why clients decide to use our services and why they leave - Clients’ motives for seeking our services - Comparing clients’ needs with our business focus and strategy Managing the communication strategy with the client – corporate actions Expected Standards of quality of private banks and wealth managers - Measuring client satisfaction realistically Gathering the essential information from the client for deal closing Conducing practical and effective profiling: what we know and should know - Gathering the information that tells us what the client wants - Analyzing where, why and how our client buys the services we want to offer - Buying centres and their characteristics The questioning process: questioning techniques and types of questions - Open, probe, and closed questions - Concepts, differences, and strategic use in conversations with clients - Need and reinforcement questions - Need and reinforcement questions designed to show the clients why they need our services - Strategic use of reinforcement questions Essential information that we must know during the selling process - Sacrosanct questions that we must never ignore - The variables in the client’s decision making process - Organizing and presenting the benefits of our proposal – the essence of a winning proposal - Making our solutions and proposals competitive Exercise: Delegates will engage in a role-playing exercise to practice questioning techniques in order to obtain as much information as possible from their clients. The course director will guide, assist and provide feed-back and recommendations on the effectiveness and style used by the delegates in order to obtain the needed information from the client. Day 2 Testing our communication approach with potential clients Exercise: Delegates will conduct an exercise consisting of a 90 seconds maximum presentation, in which they have to communicate to a potential client why they should be considered as their services provider. The presentation can have the form of a commercial spot, written communication, or personal conversation. Throughout the session delegates will receive feed-back from the Course Director on the persuasiveness of the language used in their proposals and the effectiveness of their communication style in order to gain commitment from the client The importance of understanding the difference between product features and product benefits - Communicating what the client wants to hear Analyzing why clients buys from their services providers and how they like to conduct business Developing client attention, interest, desire and action Conducting business with clients of different personalities and styles The limitations of investment philosophies based on risk profile only The 4 Quadrant Personality Theory: a practical solution to improving CRM - Communicating with different personalities and styles - Presenting solutions to the different personalities and styles - Closing deals with the different client personalities and styles Exercise: Delegates will conduct a role-playing exercise with the course director in which they have to identify different personalities and styles, and decide which communication style they should use in order to present their business proposal with positive results. Using behaviour finance concepts to manage client relationships The efficient market hypothesis challenged by behavioural finance - Recognizing cognitive heuristics in the decision making process - The case of efficient and rational markets with inefficient and irrational investors - Based on the efficient market hypothesis: What does the client believe? - What do we believe we can achieve for the client? - Identifying investors’ biases, anomalies, inefficiencies and irrational behaviour How can behaviour finance allow us to better understand the client - The importance of the 'prospect theory' and 'framing' in satisfying the client’s needs and expectations - Spotting and managing anomalies in our clients’ decision making process - Analysing and managing the main behaviour finance anomalies: - Loss aversion, Anchoring, Confirmation, Regret, Overreaction, Herd Behaviour, Winners Curse, Gamblers Fallacy, Overconfidence, Disposition and Home biases, and several other erroneous believes and assumptions Behaviour Finance ratios and market indicators – measuring market sentiment and momentum Managing the client’s cycle of emotions – bubbles, depressions and recoveries - How do we counter behaviour finance biases and anomalies? - Behaviour finance client profiling and building our communication through different behave our biases - Constructing a business relationship and selling to clients with different behaviour biases - The educational process: understanding, sympathizing, and proposing solutions to client’s irrationality and biases Exercise: Delegates will analyze how to use questioning and behaviour finance profiling to spot anomalies, biases, and inefficiencies within their clients’ decision making process. Delegates will plan dialogs and use role-playing to develop skills to manage behaviour finance anomalies in order to satisfy clients’ expectations, needs and requirements. Managing objections and deal closing techniques Why do clients object or reject our proposals - Analysis of the most common objections that we receive Types of objections and their reasons - Understanding the clients’ objections Different Methods to overcome objections – The 4C model and the FFF model - Transforming objections into solutions and new business opportunities Planning the deal closing: type, timing, pace, team involvement - Buying Signals and developing client interest - Analysis the different techniques and strategies for deal closing - Deciding when and how to use each technique - Different clients and different styles demand different closings - Asking for client commitment and closing deals naturally Day 3 Earning the role of a trusted advisor and a trusted banker The characteristics of a trusted advisor Developing influencing and loyalty with the client Type of needs: Psychological, Economic, Family, Social, Moral, Spiritual, Growth, etc. Understanding the value of our services: niche, specialty, uniqueness, quality Defining the nature of our actions: Which is our role and what does the client expect? - Sales oriented - Technical-skills oriented - Flexible tailored solutions - Niche oriented - Advisory services oriented Analyzing how the Relationship Manager, Investment Consultant, Private Banker and Trust officer can earn this role Measuring if our actions, communications, and services satisfy the client’s needs - Planning meeting and communications: set an objective first - What products and services can we put together? - Classifying the types of benefits we provide to out client Analyzing the benefits to the client and to our firm of our products and services - Do our products offer a win-win relationship with the client? Trust is key to influencing - Ways of influencing - Communication cycle with the client - Elements and variables of negotiation Managing the client’s perception of our added value Definition and characteristics of advisor - Degree of development of the relationship with the client The organization’s objectives and style vs. the client’s objectives and needs Developing an action plan to consolidate our relationship with the client - Deciding on three things we want to change right away - What will we accomplish by doing this? Exercise: Given different cases and situations delegates will determine what steps and actions they need to implement in order to initiate, improve, or consolidate their role of a trusted advisor with the client. Asset allocation styles and strategies for private bankers and wealth managers Setting measurable and achievable investment objectives The benefits of strategic investing - The investment plan and its process Investment expectations and economic realities: which ones impact our results? Analysing our client’s risk-return equation Skewness: is it positive or negative? - Implementing stop losses and profit taking strategies Controlling risk and return - Measuring risk and uncertainty: What measures doe we use? - Down-Side Risk, VaR, Modified Duration, Default uncertainty, Correlation and multi-asset Portfolio Volatility - Risk Adjusted Return Ratios: How do we measure Performance? - Sharpe, Sortino, Treynor Ratios, Beta and Alpha, CAPM, Arbitration Pricing Models Implementing strategic, tactical, and dynamic approaches The integrated approach for private banking and wealth management Investment styles and strategies - Practical use of the Macro-Economic Top-Down Allocation - Practical use of the Micro-Economic Bottom-Up Allocation Choosing between passive and active investment styles - Benefits, limitations and considerations of both styles Choosing investment strategies - Buy and hold, Market Timing, Growth, Value, GARP, Quality, Income, Cost Averaging, Contrarian, etc. The importance of market timing – using market momentum and sentiment to your advantage - A practical use of Technical Analysis – charts, volume, averages, ratios The effect of time horizon in asset allocation strategies - Stocks vs. Bonds: which are more risky? Portfolio Rebalancing - When to rebalance and how should we conduct rebalancing - The benefits and the cost of not rebalancing Exercise: Delegates will determine the steps they need to follow in order to define clear achievable investment objectives for their clients, and the styles and strategies that they should implement to achieve these investment objectives. Strategic use of products and services: building lasting relationships Strategic products that can build lasting long-term relationships - Reasons why clients decide to stay and to leave - Using products to obtain commitment from the client Products differentiation strategies - Traditional, alternative, and creative solutions Non-financial products and services - Developing new and differentiating products aimed at relationship building - Building a partnerships with the client Implementing a holistic approach when managing relationships - Selling solutions or financial products? - Addressing the solutions to client’s specific wealth management needs The importance of investment vehicles - Legal and administrative characteristics of main investment vehicles - The risk-reward relationship of Alternative and Specialty Investment Products - Benefits, limitations, and considerations of Hedge Funds, Private Equity, Exchange Traded Products, Structured Products, Specialty Funds - Creating your own structures using your firm’s and third parties capabilities Providing long-term solutions and specific benefits to the client Discussion: Delegates will examine which products and services they have used the most with their clients, in order to asses the benefits their clients received and the type of commitment they achieved with the client and the type of relationship have developed. Case study: Delegates will examine the information profile of a potential client with the objective of describing the client’s situation, needs, personality, behaviour biases, believes, in order to determine the business opportunities and relationship with this client and the style of communication and approach that will conclude in a deal closing. The client’s information profile will contain sufficient data for the delegates to determine: - Client’s style, personality, believes, and anomalies - The communication and style to obtain client commitment and close deals - The type of relationship and commitment that can be achieved with this client - What wealth solutions will conclude in several deal closings - What investment portfolio should they recommend including asset allocation, style and strategy Delegates will receive feed-back from the course director on the business opportunities assessment, wealth solutions proposed and the CRM style used to close deals with this potential client Closing session Questions and answers session Assessment of further skills and competencies development needs recommended by the curse diector to the delegates Course evaluation on behalf of delegates