Offshore Private Banking and Russian Clients:the past, the present and the future

Karen Aslanian Senior Vice President

Please see important information at the end of the document

Offshore Private Banking and Russian Clients

1. Client Segmentation

2. Key factors

3. Business effeciency vs. client segmentation

4. Evolution of the Russian Client

Please see important information at the end of the document

1. Client Segmentation

• Geographical segmentation ( incl. cultural, religiuos, etc.)• Assets under Management ( HNWI vs UHNWI, affluent)• Required and expected services ( pure PB and / or IB + CB)• ….• Gender segmentation ( any successful examples?)• Regional segmentation ( not very efficient)

Please see important information at the end of the document

2. Key factors

Corporate level• Jurisdiction• Quality of the bank itself (rating, corporate governance)• Image of the bank, balance sheet• Credentials

Personal level• Relationship manager in focus• Personal and direct contact to business owners• Volatility in HR• …..

Please see important information at the end of the document

3. Business effeciency vs. client segmentation

• Wrong: try to embrace all possible typen & classes of clients

• Right: bank specialises on a certain business area / segment and the appopriate client is attracted automatically

Only long term approach and stability and clarity of the business model can generate sustainable success.

NO contradiction between efficiency and segmantation

Please see important information at the end of the document

4. Evolution of the Russian Client

Before• When I asked for 1 vodka, I mean a

bottle, not a shot.

• Where is your VIP-toilet?

• It‘s posh to have a platin credit card.

• What is foundation?

• I want 10% performance!

Now• Your wine has some cork, pls. bring

me the one from the other side of the valley.

• No, I don‘t want the most expensive pair of ski‘s, but the one with maximum carve.

• It‘s posh to have few good contacts.

• What are the due diligence modalities for „ life insurance wrapper“?

• Please protect & secure my assets

Please see important information at the end of the document

Important information - for authorized use only

• This document does not constitute financial research, but represents an investment proposal established upon request by the Bank's Private Client Unit. By accepting it, recipients accept to be bound by the following limitations.

• This document may contain the Bank's views, as of the date of issue, on the macroeconomic situation, as well as an asset allocation as well and an investment proposal. It is being furnished to you solely for your information and personal use and does not constitute an offer or a recommendation to purchase or sell any security.

• The information and recommendations contained herein have been based on sources believed to be reliable. However, the Bank does not guarantee their timeliness, accuracy or completeness, nor does it accept liability for any loss or damage resulting from the use of the opinions and recommendations contained in this document or for any tax implications of an investment for a client. All information and opinions as well as the prices indicated are subject to change without notice.

• The Bank and its affiliates may have long or short positions, or deal as principal or agent in any of the securities or financial instruments mentioned herein, or provide advisory or other services to the issuer of the financial instruments.

• Certain services or products are subject to legal restrictions and cannot be offered worldwide on an unrestricted basis.• Investments mentioned herein are subject to risks, which are difficult to quantify and to integrate into the valuation of investments: for example, illiquidity of the

market in such investments or closed-end nature of an investment, sudden and large falls in value, changes in exchange rates, regulatory risks linked to alternative investments, etc. Upon request, the Bank is available to provide more information to clients on risks associated with specific investments.

• The Group is made up of various entities, each of which is regulated to operate and offer services in its respective market. This document is not directed to or intended for distribution to or use by any person or entity in any jurisdiction where such distribution, publication or use would be unlawful.

• This document may not be reproduced, modified or copies circulated without the prior approval of the Bank.

Please see important information at the end of the document