our irrational obsession with paper statements
TRANSCRIPT
Our irrational obsession with paper statements
STRICTLY PRIVATE AND CONFIDENTIAL© 2015 MESITIS CAPITAL PTE LTD
Our irrational obsession with paper statementsa.k.a
STRICTLY PRIVATE AND CONFIDENTIAL© 2015 MESITIS CAPITAL PTE LTD
STRICTLY PRIVATE AND CONFIDENTIAL
Our irrational obsession with paper statementsa.k.a Using 21st century technology to generate 3000 BC output
© 2015 MESITIS CAPITAL PTE LTD
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We Love our Bank Statements
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We our Bank Statements
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We our Bank Statements
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We file them nicely …
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We file them nicely …
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We obsess about them …
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We obsess about them …
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Strangely enough, we don’t actually
READ them
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Strangely enough, we don’t actually
READ them
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Strangely enough, we don’t actually
READ them
Average paper statement
Has 15 pages with about
300 lines of data
(bulk of them are loan
rollovers)
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Strangely enough, we don’t actually
READ them
Average paper statement
Has 15 pages with about
300 lines of data
(bulk of them are loan
rollovers)
540,000 entries on paper
per year for an average
wealth manager
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We employ a LARGE back office to read
them for us ...
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We employ a LARGE back office to read
them for us ...
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We employ a LARGE back office to read
them for us ...
Average cost per
transaction is
between 10 – 70
cents
(depending on
setup and
complexity)
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This Obsession is NOT a new
phenomenon
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We have loved them since 3000 B.C.
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Statement
written on a clay
tablet
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Statement
written on a clay
tablet
They used a
slightly different
font !
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Apart from the FONT, the statements
haven't changed much in the last 5000
years …
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Modern statement in Babylonian font
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Modern statement in Babylonian font
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We failed settlement as other party did not instruct
Modern statement in Babylonian font
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Last major technological innovation was in
100 B.C
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Last major technological innovation was in
100 B.C
Invention of
paper
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Private banks will spend USD 20bn on IT
in 2015
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Private banks will spend USD 20bn on IT
in 2015
2015 A.D. technology
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2015 A.D. technology
Private banks will spend USD 20bn on IT
in 2015
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2015 A.D. technology 3000 B.C. technology
Private banks will spend USD 20bn on IT
in 2015
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2015 A.D. technology 3000 B.C. technology
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2015 A.D. technology 3000 B.C. technology
Wealth manager’s
money
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2015 A.D. technology 3000 B.C. technology
Wealth manager’s
money
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2015 A.D. technology 3000 B.C. technology
Wealth manager’s
money
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Ideal solution
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Can only do this!
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We use computers
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Every single transaction in the statement
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Every single transaction in the statement
− All asset classes
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Every single transaction in the statement
− All asset classes
− All markets
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Every single transaction in the statement
− All asset classes
− All markets
Accurate to the cent
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What are the implications of being able
to completely analyze bank statements?
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Quality of conversation with the client
goes up!
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Quality of conversation with the client
goes up!
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In our experience,
clients have tended to
add assets to the
platform
And new clients are
easier to acquire
Quality of conversation with the client
goes up!
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You spot (gasp!) mistakes in bank
statements
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You spot (gasp!) mistakes in bank
statements
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Most common
mistake involves
transactions that
straddle month end
You spot (gasp!) mistakes in bank
statements
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You spot (gasp!) mistakes in bank
statements
Most common
mistake involves
transactions that
straddle month end
These errors seem to
correct themselves in
subsequent
statements
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You spot (gasp!) mistakes in bank
statements
Most common
mistake involves
transactions that
straddle month end
These errors seem to
correct themselves in
subsequent
statements … so far!
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Frees up management time to focus on core
business
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Frees up management time to focus on core
business
Wealth managers
have reported
mistakes in
consolidation as their
#1 complaint from the
client
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Wealth managers
have reported
mistakes in
consolidation as their
#1 complaint from the
client
Management time
gets wasted in fire-
fighting these
problems
Frees up management time to focus on core
business
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Data consolidation is only 5% of what we do
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Data consolidation is only 5% of what we do
Consolidate
and report
client’s
accounts
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Data consolidation is only 5% of what we do
Consolidate
and report
client’s
accounts
Report P&L
attribution, mark
to market of
strategies, etc.
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Data consolidation is only 5% of what we do
NIRVANA
Consolidate
and report
client’s
accounts
Report P&L
attribution, mark
to market of
strategies, etc.
Completely
understand
client
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Data consolidation is only 5% of what we do
… We help you succeed !!!
NIRVANA
Consolidate
and report
client’s
accounts
Report P&L
attribution, mark
to market of
strategies, etc.
Long lasting,
profitable
relationship
Become part of
client’s circle of
trust
Completely
understand
client
