LoBue: Real World: Wealth Management

WEALTH MANAGEMENT

"The wealthy and upper affluent customer segments are the fastest growing market in financial services today. Yet, banks are seeing as much as ninety percent of the revenue potential from their own high net-worth customers going to the competition."

THE BUSINESS NEED
How can banks be allowing this to happen, especially in a segment with a demonstrated capacity for generating 40-60% gross pre-tax profit margins? Clearly not for lack of discussion - it has seemed that every bank press release in 1999 has quoted its CEO's declaration of commitment to building revenues. And for one simple reason, as the American Banker reported in July - "higher price earning ratios go with rising revenue".

Meanwhile, most private banks remain at a relative standstill, with real (market-adjusted) declines in both market share and client share-of-wallet.

Compressing revenues from flat premium growth, low investment yields and competition from alternative markets (self-insurance, captives, affinity groups) all result in increased challenges to profitability.

THE LOBUE PERSPECTIVE
Wealth management is an individual, "relationship" business. For an entire generation, the brokerage business model ideal has been an orientation around the broker-client relationship's point-of-contact. Job design, compensation, sales management, and structure all align with a strategy of sustained, profitable revenue growth.

To challenge this competitive force, private banks and trust companies must truly align and integrate personal service, relationship development, and operations support structures and processes from a client-focused perspective. But the obstacles to success are immense:

Old banking business models structured around products and operations instead of clients
Incentive and "turf" barriers that discourage cooperative referrals of high-potential clients
Poor job designs that limit relationship managers to as little as 25% or even 15% of their time spent developing relationships and new business
Loss of focus on local markets due to post-merger regionalization of management; uncompetitive information delivery
Ineffective use of technology

THE SOLUTION, REAL EXPERIENCE
LoBue helps wealth management, private banking, and trust companies identify their most rewarding opportunities and ultimately develop and implement sound solutions to capitalize profitably on those opportunities. Expert consultants work with your team, bringing proven expertise in private client strategy, sales productivity, service delivery, operations performance, and change management to your business.

Starting with a review of current vision and objectives, LoBue's powerful new Total Business Performance Model guides the combined team through 6 critical design and implementation modules:

Breakthrough Revenue Planning through our Total Business Performance^sm model
Anticipatory Relationship Management
Macro/Micro Client Productivity
User-Driven Information Delivery
Integrated Sales/Service/Operations (SSO) Model Design
Implementation (SSO Model + "Quick Wins")

The outcome of this "end-to-end" approach to total business performance is an exceptionally productive team focused on developing the high net-worth market profitably, and producing real results for the business and the bottom line.

REAL RESULTS
Since its founding in 1981, LoBue Associates, Inc. has provided numerous companies with on-time, on-target, measurable and reliable results for companies operating in the wealth management area. LoBue's methodology, services, training and executions ensure corporate vision and objectives are carried out, achieving real solutions that create real results.

RELATED SUCCESS STORIES:

Investments and Securities Processing

RELATED ARTICLES:

Breakthrough or Breakdown? New Challenges for Trust Officers

For more information, please contact Carl LoBue .