Xinhua Wittmann May 2007 Shanghai Forum1 Xinhua Wittmann Swiss Banking Institute University of Zurich Private Banking and Corporate Culture

Xinhua Wittmann May 2007 Shanghai Forum2 Banking becomes more global & diverse Heterogeneous markets Intensifying competition Steady HNWI growth The landscape of private banking industry

Xinhua Wittmann May 2007 Shanghai Forum3 HNWI population growth in selected economies, World Wealth Report 2006, Merrill Lynch

Xinhua Wittmann May 2007 Shanghai Forum4 Global top 10 fastest –growing HNWI South India Russia South Indonesia Hong Saudi Singap. United Brazil Korea Africa Kong Arabia Arab Emirates World Wealth Report 2006, Merrill Lynch

Xinhua Wittmann May 2007 Shanghai Forum5 Stronger client insight and focus Holistic advice High value added products Partnering and outsourcing Changes in geographic sources of growth Challenges for private banking Information based on the European wealth and Private Banking Industry Survey 2005, IBM

Xinhua Wittmann May 2007 Shanghai Forum6 Clients’ perspective 6.Private banks with their own brand but part of a lager group 5.Private banking divisions of universal bank 3.No preferences at all 4.Independent private banks 2.Dedicated niche players 1.Other Information based on the European wealth and Private Banking Industry Survey 2005, IBM

Xinhua Wittmann May 2007 Shanghai Forum7 Rank 06CompanyRank JPMorgan Private Bank 1 2. Goldman Sachs 3 3. UBS 2 4. Citigroup Private Bank 4 5. Credit Suisse Private Banking 5 6. HSBC Private Bank 7 7. Pictet & Cie 6 8. Merrill Lynch n 9. Rothschild Bank ABN Amro Private Banking 10 Euromoney's annual private banking awards 2007 The solutions to the problems

Xinhua Wittmann May 2007 Shanghai Forum8 Global banking → global culture? Key characteristics Bureaucratic, hierarchical → partnership ‘silo mentality’ → ‘one firm’ business model standardisation → local responsiveness products focused → human capital

Xinhua Wittmann May 2007 Shanghai Forum9 Why culture matters? practices values rituals heroes symbols Adapted from Hofstede (1991)

Xinhua Wittmann May 2007 Shanghai Forum10 Convergence theory – globalisation drives economies and organizations more alike (modern communication, economic systems, management) Divergence theory – global diversity remains because of differing values, behaviours, stages of economic development, unevenly distributed resources Convergence vs. Divergence

Xinhua Wittmann May 2007 Shanghai Forum11 Intangible factors drive visible results ‘My main mission as CEO has been to create one vision and a set of values.’ Perter Wuffli, Diversity – openness regarding way of thinking, talents, ethnic background, nationality and gender A culture of inclusiveness!

Xinhua Wittmann May 2007 Shanghai Forum12 Intangible factors drive hard facts Human capital is the most valuable asset. Loyalty of highly experienced staff Ongoing staff training and education Genuine respect of foreign cultures

Xinhua Wittmann May 2007 Shanghai Forum13 Diversity and inclusion Interactions within organizations  power relations  promotion and rewarding  task and guidance  responsibility

Xinhua Wittmann May 2007 Shanghai Forum14 Value clarification without adjustment Value expression adjusted to local standards Deeper substantive adjustment Global reconciliation Diversity and inclusion

Xinhua Wittmann May 2007 Shanghai Forum15 Culture as a “Normal Distribution” Low Power Distance High Power Distance 34 Switzerland 80 China ‘Power distance’ among inhabitants in two countries