Writing Business Plans in Private Banking and Wealth Management

Geneva, 19. April 2007

Overall Objectives to Introduce Systematic Business Plans in Private Banking and Wealth Management

A structured process of approaching markets in private banking

quick understanding of possible incomes, costs and returns of developing new markets

Compare business plans across a bank’s markets

need to align regions and identify what works where

An aggregated overview of all business plans

a standard format allows to quickly draw the big picture

[photo by greenboxhouse.wordpress.com]

Objectives of a Systematic Business Plan for Tackling and Identified Market

Elaborate how a private bank can grow in an identified market

Estimate the revenue potential for this market

Calculate the cost structure of the identified market approach

Evaluate the possible risks of the project

… Produce a structured business plan containing all of the above. Succeed.

A Business Plan Approach in 4 Phases

Preparation and Planning

Elaboration of the Market Approach

Identification of Necessary Resources

Writing of Business

Plan

1

2 3

4

approximately 3 weeks

~ 1 Session

• Calendar• Coordination• Market research

~ 2 Workshops

• Identify market segments

• describe value proposition

• outline client acquisition strategy and specify client relationships

• describe revenue streams and pricing

~ 1 Workshop

• Identify projects• estimate

man/days• determine

necessary resources

~ 1 Session

• Description of market approach

• Expenses/Income• Return estimates• Risk estimates• Implementation

recommendations

approximately 4 weeks approximately 2 weeks approximately 3 weeks

Project Planning

Leadership Interview

Kick-off & Workshop

Second Workshop

Third Workshop

Review „Plan Marketing“

1 hour

personal interviews

Explanation of methodMarket research

Identify objectivesIdentify participantsPlanning Material collection

2x3 hours

group sessions

Client Segments?Offer?

Change AgendaSegmentationClient RadarStrategy Canvas

2x3 hours

group sessions

Client Acquisition?Relationships?Revenues?

Change AgendaMulti-channel DesignRevenue Model

2x3 hours

group sessions

Projects?Man/days?Resources?

Change AgendaMarket Approach

3 hours

group sessions

Final Presentation

ReviewNext Steps

examples / toolset

preparationmarket opinion

analysissynthesis

synthesiswriting

Spread buzz be positive

evaluate assist

evaluate assistStores

CHANNEL Awareness Evaluation Purchase After sales

inform

inform

sell

Web

Groups,Lists, etc.

praise admireBlogs

checkpoint

checkpoint

checkpoint

approval

business plan

Phase 1: Preparation and Planning

Calendar list the participants of the business plan process

identify windows of availability for all participants

Coordination mobilize participants and explain their roles

Market Research „Desk Research“: collect reports and information on

the targeted market

Actively research the addressed market if necessary

1 2 3 4

Phase 2: Elaboration of the Market Approach

Client SegmentsClient Acquisition

&Relationship

Revenue Streams

Today Future

1 2 3 4

Offer / Value Proposition

Market Approach2

Today Future Today Future Today Future

Phase 3: Identification of Necessary Resources

Projects

man/days

Resources

Today Future

1 2 3 4

Necessary Resources3

Client SegmentsClient Acquisition

&Relationship

Revenue Streams

Offer / Value Proposition

Market Approach2

Projects

man/days

Resources

Today Future

Projects

man/days

Resources

Today Future

Projects

man/days

Resources

Today Future

Today Future Today Future Today Future Today Future

Phase 4: Write the Business Plan

1. Targeted market segments

2. The value proposition for each segment

3. Client acquisition, client relationships and resulting revenue streams

4. Differentiate and market positioning

5. Necessary resources to realize the business plan

6. Risks and their management

7. Estimated ROI

8. Implementation plan

1 2 3 4

Client SegmentsClient Acquisition &

RelationshipRevenue Streams

Offer / Value Proposition

Necessary Resources

Market Approach

For detailed information on systematic business plan development in private banking and wealth management contact info@arvetica.com