ANALYSIS AND IDENTIFICATION OF POTENTIAL PRODUCTS OR SERVICES GAP IN WEALTH MANAGEMENT BUSINESS FOR PERSONAL BANKING OF BANK XYZ INDONESIA

• Main Author: DJOHAN (NIM: 29106335), RICKY
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/12563
• Institution: Institut Teknologi Bandung

Emerging wealth in emerging countries has given enormous opportunities for banks to expand their reach to tap the potential markets, especially to the mass affluent customers (usually defined as customers with total investable asset of US$ 50,000 and above). Indonesia is considered as one of the emerging countries, which attracts not only local banks, but also foreign banks to set foot in Indonesia. Among the product propositions to tap the mass affluent segment, wealth management business have become one of the most popular products within the priority banking industry. Wealth management sells not only investment products, but also services and wealth management advices through Relationship Managers to help investors in setting out goals and helping them to achieve the goals by allocating their assets in various investments.<p>In the midst of fierce competitions and lower entry barriers, the industry has been fighting a commodity-like competition. The once exclusive and limited service industry has engaged in never ending price wars filled with lots of copycats. The market has become saturated where no differentiation is emphasized; rather most banks offer relatively similar products with more attractive fees or promotions. Rather than moving in the same stream of Red Ocean, banks should have started looking to fill the gap that might exist within the propositions of products and services for wealth management of priority banking in Indonesia.<p>The process of identifying the gap should be seen in a broader perspective - which might go out from the scope of products per Se and covers the services area as well. The semi- qualitative analysis within the external and internal parties shows that most of the customers think that the new products or product propositions are not the only solution for differentiation - as in the recent marketplace new products can be easily copied shortly. However banks might want to see the gap from services point of view - how the Relationship Managers can build and nurture trust from the customers and maintain a good relationship with the bank through increased professionalism and human resources capability.