Positioning for growth in the German life assurance, pensions and long-term-savings market

Transcription

1 Positioning for growth in the German life assurance, pensions and long-term-savings market Dr. Herbert Walter CEO of Deutsche Bank 24 AG JP Morgan Conference, Frankfurt, June 11, 2001

2 Agenda 1 Customer needs drive pensions & investments wave 2 Deutsche Bank Group uniquely positioned to capture opportunity 3 The road ahead: Powerful implementation is key

3 Agenda 1 Customer needs drive pensions & investments wave 2 Deutsche Bank Group uniquely positioned to capture opportunity 3 The road ahead: Powerful implementation is key

4 Shifting Tectonic plates in the German pensions & investments arena Revolution in the pensions & investments arena driven by age wave and equity culture Convergence of customer preferences & business models Increasing individual responsibility for securing wealth Private investors looking for integrated financial advice

5 Age wave and equity wave drive the German private financial services market Percent Personal financial assets** Ageing Modern Segment Affluents Decreasing state pensions and increasing individual pension planning Age wave* Financial gap to secure minimum to enjoy existing life style * Proportion of individuals aged between 45 to 54 in total population ** Personal financial assets relative to disposable income Source: DB Alex Brown; WEFA; McKinsey

6 Growth of personal wealth accelerated by pensions & investments products EUR trillions** % Life insurance & pensions Mutual funds & Securities % Traditional savings & real estate* % E * Real estate Germany, France, Italy, Spain only; assumption of growth rate in accordance to average growth rate of last four years ** France, Germany, Netherlands, Italy, Spain, Switzerland, Sweden, UK Source: JP Morgan; McKinsey EFIC

7 Agenda 1 Customer needs drive pensions & investments wave 2 Deutsche Bank Group uniquely positioned to capture opportunity 3 The road ahead: Powerful implementation is key

8 Deutsche Bank with unique business model in the pensions & investments arena Origination Capitalmarket Transformation Placement & access Private pensions & investments Placement & access Company pension schemes

9 Modern Segment has broad needs in order to build and secure standard of living Social status / wealth High Pensions & Investments needs: Mass affluent (20-30%) Upper Retail (70-80%) Build and secure lifestyle Life-cycle based individual financial solutions Broad product range covering all aspects of financial needs Low Conservative Progressive Attitude

10 Winners in the pensions & investments race require both scale and scope in percent Mass affluent customers 25 Strategic focus Scope: Become trusted advisor to the mass affluents on their wealth accumulation needs Upper retail / retail customers 75 Scale: Efficiently serve the upper retail customer on their pension needs Deutsche Bank 24

11 Size and critical mass required for effective positioning Broad multi-channel distribution Standardized product offering targeted to the pension needs of the upper retail customer segment Targeted customer contacts through CRM activities Broad employee qualification / information program about upcoming pension wave Efficiently serve the upper retail customers on their pension needs Heavy investments require critical mass (IT, products, training)

12 Scope: Establish Deutsche Bank 24 as the wealth management advisor of choice Comprehensive and innovative product range with investment, insurance, deposit and real estate products Financial advisory with significant skills upgrade through trainings and certification Intelligent financial planning tools supporting advisors Become trusted advisor to the mass affluents on their wealth accumulation needs

13 When it comes to pensions, consumers still rely on experts Answers in percent IFA / Broker 56 My Bank / Building society 52 Greatly or mostly trust these people for advice on pensions: Family 43 My insurance company 41 Employer 36 Source: The Henley Centre, KPMG / Consulting, Goldman Sachs (4/2001)

14 The race for pole position and market share is on Banks Wealth accumulation (Long term-savings / financing) Childhood / education Employment Retirement Asset Gathering + Insurance companies Securing of risk Provisions for retirement Consumption Wealth creation Wealth optimization Secure wealth

15 Multi-channel banks with strong distribution power Distribution of retail mutual fund sales Distribution of life insurance contracts 100 % Direct sales Insurance Agents Multilevel sales % Banks Source: McKinsey EFIC Research

16 Deutsche Bank Group: Strongly ackknowledged product-range Top five mutual fund managers in Germany German unit-linked life insurance DWS (Deutsche Bank) 82.4 Others 48 % Deka (savings banks) 75.7 AMB 30 % Union (co-operative banks) 59.5 Dresdner Bank Investment ADIG (Commerzbank) Aspecia (HDI) 6 % Dt. Herold (Deutsche Bank) 16 % Assets under management, EUR billion, 01/2001 Source: J.P. Morgan

17 Deutsche Bank 24 already has strong distribution power for investment products... Deutsche Bank asset management* IPO** 30 % * 46 % * = EUR 25.9 billions * Of new business in 2000 ** Basis: Infineon / Dt. Telekom, demand of private investors

18 ... as well as pension products Deutscher Herold New contributions 2000 in EUR billions % * Deutsche Bank 24 Allianz Dt. Herold HM R+V Victoria * Summ of all contributions into insurances EUR 7.5 billion

19 Agenda 1 Customer needs drive pensions & investments wave 2 Deutsche Bank Group uniquely positioned to capture opportunity 3 The road ahead: Powerful implementation is key

20 Successfully capturing the opportunity requires powerful implementation Comprehensive product range Extensive customer knowledge Individual financial solutions for the modern segment Advicefocused distribution model Acknowledged powerful brand

21 Deutsche Bank 24 as financial navigator for customers pensions & investment needs Components of customers financial planning wealth build-up Life insurance & pensions Mutual funds & securities Traditional savings & real estate Deutsche Bank 24 as financial navigator Open product Und noch mehr platform Konsequenzen Er macht entgegen Deutscher weitläufiger Herold Meinung nicht blind DWS Er steht als DB Bauspar Platzhalter für DB sinnvollen 24 mortgages, Text savings products Third-party providers

22 German pension reform and increasing investment culture once-in-a-lifetime chance for Deutsche Bank 24 Excellent multi-channel distribution Germany Branches 11,000 financial advisors in more than SB Terminal Financial Centers 1,000 branches and 220 financial centers 800 mobile financial advisors Online Banking Mobile Salesforce Fully integrated multichannel distribution Call Center network

23 Effective financial advisors using CRM to penetrate customer base Knowledge about our customers Financial situation Potential needs Attractiveness Life insurance & pensions Mutual funds & securities Traditional savings & real estate Individual customer Comparison Peer group Customer profitability Financial wealth Intelligent instruments supporting advisors

24 Financial advice as key factor for Deutsche Bank 24 Value Proposition Drivers of brand equity in percent Advice 50 Price 21 Distribution 12 Communication 8 Product 7 Deutsche Bank 24 Private Clients Source: Corporate Center, Group Brand Equity & Market Research (GBEMR), 02/2000