Expert insight: Dr Marcel Tschanz on the essence of private banking
Expert insight: Dr Marcel Tschanz on the of private banking
Explore how the financial sector can embrace entrepreneurial spirit and innovation to promote financial strength and stability, in our exclusive Q&A with Dr Marcel Tschanz, CEO of VP Bank (British Virgin Islands) Ltd.
insight: essence
Today we welcome Dr Marcel Tschanz, CEO of VP Bank (BVI) Ltd. to share his expertise and perspectives on the importance of client-orientated, diversified operating models in the financial sector.
aunching our conversation, Marcel emphasises the need to embrace entrepreneurial spirit and innovation to better understand the financial sector today.
“In order to understand the financial sector today, we need to consider the client, and how banks or finance institutions can serve them,” begins Marcel. “It is the obligation of
financial professionals to remain incredibly client-oriented and develop diversified operating models to serve their needs. When I say diversified, I mean in the sense of being focused on the individual client segments or groups that are served.”
Marcel explains how the core values of financial strength and stability
are crucial dynamics underpinning client-centricity for modern-day banks.
“Stability and financial strength are tremendously important values,” summarises Marcel. “In my opinion, financial professionals serve their clients best when they are not trying to skyrocket equity prices or recklessly pursue short-term results. Instead, they should prioritise the delivery of longterm financial stability and strength for their clients, alongside high levels of customer satisfaction. I believe, and history confirms, that this is the essence of private banking. Money should be safe, and it should be safe for this and all coming generations.”
According to Marcel, while entrepreneurialism and the spirit of innovation are crucial to the financial sector, these cornerstone foundations cannot be understood without this concept of customer-centricity.
Here, Marcel explains how banks and financial institutions can overcome contemporary challenges by embracing three dynamics in their operations to serve clients: ESG, demographic adaptation and technology.
“It hasn’t been easy for the finance sector in recent years, especially when you take into account factors like evolving regulations and catalysing events behind them such as the Ukraine war,” says Marcel. “However, growth is still possible during these challenging circumstances by deploying innovations focused on and
“In theory, with the technology and expertise available today, the integration of any new solution on the market has never been easier”
Dr Marcel Tschanz, CEO
fuelled by clients’ needs and pain points. Essentially, banks can compensate for these contemporary developments by remaining close to their clients.
“One trend I’ve seen rise to prominence globally with customers is the topic of ESG. I believe a strong solution is to develop scoring systems designed to be easily comprehensible to customers –helping them understand what they are really investing in when they’re pursuing a sustainable investment strategy.”
When it comes to demographic adaptation, Marcel describes how modern banks often have clientele spread across diverse geographies and they are shifting in terms of age profiles.
“Demographic shift is a problem we must consider carefully in the financial industry,” admits Marcel. “The financial industry needs to design ways to service the next generation, establish how to help transition wealth from one
generation to the next and assist them in developing their plans for the future.
“We call this a wealth planning approach in the industry, and there is great potential in a hybrid approach combining human interaction –taking the client by the hand and explaining specific processes – and supporting the customer with digital information. That way, customers can stay calm in an often turbulent market.”
On the technology front, Marcel reiterates the importance of flexibility in the financial sector’s approach as a means of better serving its customers.
“There’s a lot of money being invested by financial institutions into rebuilding infrastructure to ensure that there’s flexibility in embracing and integrating new technological possibilities in banking,” says Marcel. “Ultimately, these initiatives strive to deploy technology so customers can easily do business – anywhere, at any time.”
Marcel elaborates that agile methodologies and digital transformation within technology strategies should be the gold standard for the financial industry, and, when deployed successfully, they can lead to growth and success for businesses.
“Agility is all about being able to adapt to and connect with new situations,” says Marcel. “Banks
are not able to master all disciplines in technological development alone. Instead, the sector needs to focus on the capability to connect with new solutions on the market and integrate them into the financial service process in a way that’s easy for customers to understand.”
To ensure that these solutions are fit to service its markets, Marcel believes it is best for financial institutions to develop them alongside its customers.
“When a bank develops new solutions, it shouldn’t invent them in an ivory tower,” says Marcel. “Instead, they
must bring customers closer, go to them directly and ask them how they do their business. By doing so, they can understand how they live and work in order to craft the right interactions and processes for their customers. Only after doing that can banks develop a system
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“United Signals had established digital onboarding solutions for the German market, but it has extended their business model to cover international customers and adapted their software to serve diverse clients worldwide”
that comprehensively supports their customers’ businesses or financial circumstances.”
According to Marcel, one key example of this is promoting advancements in digital onboarding.
“You might think that digital onboarding isn’t anything new,” says Marcel. “After all, many banks offer customers digital onboarding. However, there is a caveat to add which I believe is important. Digital onboarding needs a nuanced approach, where the needs of the customers are aligned with regulatory obligations in the areas banks operate, to facilitate a safe, secure, efficient and effective process.”
According to Marcel, digital transformation, technological deployments and innovation in the financial sector might stem from internal stakeholders or priorities, but often hinge on external collaboration and robust partnerships. Here, he loops back to the example of remote onboarding capacity.
“When creating new solutions or developing existing mechanisms, such as digital onboarding facilities for clients, tackling it in isolation extends the process of development,” says Marcel. “However by conducting thorough market research to find digital onboarding providers that can help build strong customer journeys, there are some terrific companies out there such as United Signals.
“United Signals had established digital onboarding solutions for the German market, but it has extended their business model to cover international customers and adapted their software to serve diverse clients worldwide. They offer a highly developed and efficient technological service for their customers – be it on-site or remote.”
But remote onboarding is only one early part of the entire customer journey for banking customers. Marcel reiterates how it is important to conceptualise these journeys in their entirety, while keeping in mind the multiple types of journeys different customers might embark upon.
“In my opinion, financial institutions must build IT architecture that is modular and connectable,” says Marcel. “You often read that data is the new gold in the market. I believe that data alone is not creating value – you need to make that data accessible and processible, so that it can fulfil a business purpose, for it to have value.
“At the beginning of opening a relationship with a bank, there are many regulatory obligations that have to be fulfilled, which can be a big hassle. But when financial institutions standardise this, they make a complex process significantly more efficient. Now, it’s about looking beyond that to see how else the finance sector can boost clients’ success rates.
“Obviously, all these products and services have a life cycle. Things change. But by embracing innovation, the finance sector can thrive well into the future – with their customers, together.”
Looking ahead to the future, Marcel describes how he predicts the financial industry will continue its endeavours to improve and innovate its operations and offerings to best serve its customers and investors.
“Platforms must continue to evolve so banks remain agile, with a continuous improvement mindset,” says Marcel. “Every day,
financial professionals and organisations must commit to getting better at what they do.
“Financial professionals must also commit to doing this with a long-term perspective in mind – short-term profit generation should not be the focus. Of course, businesses always want to be profitable, but I believe the finance sector needs to look beyond that and build organisations that have strong foundations, and will be around for a very long time.
“I don’t have a crystal ball, but if finance bodies can apply a robust methodology to build a stable system and governance framework, they will be in a strong position to get through global crises and changes. In theory, with the technology and expertise available today, the integration of any new solution on the market has never been easier.
“More digitisation will come but I believe, for the finance sector, that the human factor will never be replaced by digital capabilities. Rather, digital capabilities can complement and support the human being in becoming more efficient and more effective.”
Connect with Marcel.
From physics to finance
Marcel embraces being an analytical and curious person, which he partly attributes to his background in physics, but also a deeper underlying passion for the wonders of nature and the possibilities of technology.
“From an early age, I’ve loved to build, create, experiment and innovate,” says Marcel. “What I’ve learned throughout my scientific career has been tremendously helpful for my current professional role in the finance sector. It has helped me understand clients, their purpose and various aspects of their businesses.
“For me, most technical problems usually can be resolved. The real challenges are human problems. But I believe with a curious and analytical approach we can resolve them as well."
“If we want to succeed or evolve and become better as a society, we need to be able to take a step back and reconsider which filters we apply when we look at a problem, person or situation.
“Simply put, I am a strong believer that we only can become better when we work together as teams, when we all step back, look at the problem together, and then allow all the different perspectives to be brought into that conversation. For me, this
is the is the essence of agile development: bringing all the perspectives and specialists together.
“As Albert Einstein put it: ‘The thinking that got us to where we are is not the thinking that will get us to where we want to be.’”
Channelling the team spirit of sport
Marcel enjoys playing volleyball and believes sports are an excellent way to embrace cooperation and team spirit.
“One of the most exciting recent experiences I’ve had playing volleyball was winning a tournament with my team,” says Marcel. “None of us were the best players in the tournament. But we played together, all working towards the same goal, and our team spirit helped us to victory that day – not on the merits of our own individual abilities, but through the merits of our shared ability as a team.”
Looking ahead
Marcel is looking forward to attending the BVI Literary Arts Festival 2024 on November 7-10.
“The BVI Literary Arts Festival was created to bring local Caribbean authors and storytellers together, promoting an exchange of ideas and conversation,” says Marcel. “I am thrilled to be taking part in a panel on November 8, 2024, at the festival in Tortola.”
Other key events in Marcel’s diary include:
• Digital Leaders
• Digital Day in Vaduz
• Digital Summit
Connect with Marcel