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Mar. 22, 2016
Report: Digital Wealth Management Offerings for UHNWs

Super-rich get only poor Digital Services from their Wealth Managers

UHNW

Digital wealth management for the super-rich today is at a very immature stage. This is one main finding of our new report “Digital offerings for UHNW clients - How wealth managers can win and engage the ultra-wealthy online”. For the report MyPrivateBanking analyzes the digital offerings targeted to ultra-high-net-worth clients by 12 leading private banks and family offices worldwide. The evaluation was conducted on the basis of over 25 different criteria describing performance and potential features, divided into nine functional categories such as exclusive contact or assistance options, education and lifestyle, special online functions and services.

The report describes the current and future digital needs of ultra-wealthy clients and it becomes clear that it is a myth that UHNW individuals don’t use technology, but clearly the characteristics and habits of the wealthy usually differ significantly from affluent and retail consumers. This underlines the importance for family offices and private banks to have a strong set of digital capabilities which appeal to wealthy investors, and the need to attract the target audience online.

However, in our research we found few wealth management firms who have clearly recognized and reacted to the increasing significance of digital tools for their UHNW clients and could identify three leading UHNW digital providers. However, our findings demonstrate how even the longest established firms are exposed to the risk of disintermediation by a variety of potential innovators through their lack of a well-rounded digital strategy.

The report evaluated the digital offerings of the 12 analyzed wealth managers along a number of specific criteria and key findings among others are (detailed profiles and gap analysis in the report):

  • The highest scoring function at 69% on average is for the prominence of online services; including a permanent login for websites to offer clients quick access.

  • Education and lifestyle scores half of the maximum possible points, although we found few firms provide a communication platform or program for clients related to financial literacy or investing education which includes a digital/online element.

  • Exclusive contact and assistance options comes in as weakest function, with firms scoring only 8% on average. For instance none of the surveyed firms offer instant, private communication via social media or the website.

While ultra-wealthy individuals are used to a personal and exclusive treatment in almost all circumstances, of all things their financial managers, most likely one of their most expensive service providers, falls short. However, any opportunity to communicate with an UHNW client or prospect should be considered unmissable. It would be a fatal mistake of wealth managers serving UHNWs to think that ‘being digital’ equates to an online version of a brochure which one could find in print form – currently some websites are not much more advanced than this.

Based on the research findings the report provides a detailed guide on how wealth managers can attract and engage this unique and discerning client segment online. These recommendations are supported by numerous best practices and several case studies of technology innovation from adjacent industries such as high-end luxury goods and global art.

The report analyzes the UHNWs digital offerings of following firms: Atlantic Trust, Bessemer Trust, BNY Mellon Wealth Management, Citi Private Bank, Goldman Sachs Private Wealth Management, Hawthorn (PNC), HSBC Private Bank, Northern Trust Wealth Management, Pictet, Stonehage Fleming, U.S. Trust, UBS Family Office.

About the report: For the report “Digital offerings for UHNW clients - How wealth managers can win and engage the ultra-wealthy online”, MyPrivateBanking analyzes the digital offerings targeted to ultra-high-net-worth clients by 12 leading private banks and family offices worldwide. The evaluation was conducted on the basis of over 25 different criteria describing performance and potential features, divided into nine functional categories such as exclusive contact or assistance options, education and lifestyle, special online functions and services. The report describes the current and future digital needs of ultra-wealthy clients and provides several case studies of technology innovation from adjacent industries such as high-end luxury goods and global art. The report identifies the leading wealth managers and detailed key findings from our analysis of the extent firms have adopted digital. Based on these findings, the report provides a detailed guide on how to engage the elusive elite online, supported by numerous best practices. For further information on the report please click here. 

My Private Banking



Report: Digital Wealth Management Offerings for UHNWs

Super-rich get only poor Digital Services from their Wealth Managers

  Mar. 22, 2016

UHNW

Digital wealth management for the super-rich today is at a very immature stage. This is one main finding of our new report “Digital offerings for UHNW clients - How wealth managers can win and engage the ultra-wealthy online”. For the report MyPrivateBanking analyzes the digital offerings targeted to ultra-high-net-worth clients by 12 leading private banks and family offices worldwide. The evaluation was conducted on the basis of over 25 different criteria describing performance and potential features, divided into nine functional categories such as exclusive contact or assistance options, education and lifestyle, special online functions and services.

The report describes the current and future digital needs of ultra-wealthy clients and it becomes clear that it is a myth that UHNW individuals don’t use technology, but clearly the characteristics and habits of the wealthy usually differ significantly from affluent and retail consumers. This underlines the importance for family offices and private banks to have a strong set of digital capabilities which appeal to wealthy investors, and the need to attract the target audience online.

However, in our research we found few wealth management firms who have clearly recognized and reacted to the increasing significance of digital tools for their UHNW clients and could identify three leading UHNW digital providers. However, our findings demonstrate how even the longest established firms are exposed to the risk of disintermediation by a variety of potential innovators through their lack of a well-rounded digital strategy.

The report evaluated the digital offerings of the 12 analyzed wealth managers along a number of specific criteria and key findings among others are (detailed profiles and gap analysis in the report):

  • The highest scoring function at 69% on average is for the prominence of online services; including a permanent login for websites to offer clients quick access.

  • Education and lifestyle scores half of the maximum possible points, although we found few firms provide a communication platform or program for clients related to financial literacy or investing education which includes a digital/online element.

  • Exclusive contact and assistance options comes in as weakest function, with firms scoring only 8% on average. For instance none of the surveyed firms offer instant, private communication via social media or the website.

While ultra-wealthy individuals are used to a personal and exclusive treatment in almost all circumstances, of all things their financial managers, most likely one of their most expensive service providers, falls short. However, any opportunity to communicate with an UHNW client or prospect should be considered unmissable. It would be a fatal mistake of wealth managers serving UHNWs to think that ‘being digital’ equates to an online version of a brochure which one could find in print form – currently some websites are not much more advanced than this.

Based on the research findings the report provides a detailed guide on how wealth managers can attract and engage this unique and discerning client segment online. These recommendations are supported by numerous best practices and several case studies of technology innovation from adjacent industries such as high-end luxury goods and global art.

The report analyzes the UHNWs digital offerings of following firms: Atlantic Trust, Bessemer Trust, BNY Mellon Wealth Management, Citi Private Bank, Goldman Sachs Private Wealth Management, Hawthorn (PNC), HSBC Private Bank, Northern Trust Wealth Management, Pictet, Stonehage Fleming, U.S. Trust, UBS Family Office.

About the report: For the report “Digital offerings for UHNW clients - How wealth managers can win and engage the ultra-wealthy online”, MyPrivateBanking analyzes the digital offerings targeted to ultra-high-net-worth clients by 12 leading private banks and family offices worldwide. The evaluation was conducted on the basis of over 25 different criteria describing performance and potential features, divided into nine functional categories such as exclusive contact or assistance options, education and lifestyle, special online functions and services. The report describes the current and future digital needs of ultra-wealthy clients and provides several case studies of technology innovation from adjacent industries such as high-end luxury goods and global art. The report identifies the leading wealth managers and detailed key findings from our analysis of the extent firms have adopted digital. Based on these findings, the report provides a detailed guide on how to engage the elusive elite online, supported by numerous best practices. For further information on the report please click here.