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Jun. 15, 2015
Report: Mobile Apps for Wealth Management 2015

Wealth Managers’ Mobile Apps Lack Focus and Innovation

Global universal banks and wealth managers have made little progress over the last year in offering exclusive mobile apps to their high-net-worth clientele. Only 63% provide their wealthy clients with one or more mobile apps that cater specifically and exclusively for the needs of HNW clients. In 2014, this figure was the same. These are key findings of the new report “Mobile Apps for Wealth Management 2015 – Innovation Leaders and Innovation Laggards” for which MyPrivateBanking Research analyzed and ranked, in total, more than 70 mobile apps of 30 leading wealth managers worldwide.

The research shows that there are innovation leaders but also a significant group of innovation laggards among the global leaders in wealth management. Ten banks out of 30 achieved more than two thirds of the possible points in the MyPrivateBanking ranking of wealth managers’ mobile app portfolios. But there are also nine banks that earned only half or less of the possible points.

The report identifies a select group of wealth managers and banks that are in fact performing extremely well in addressing the mobile needs of their high-net-worth clients. The winner of this year’s ranking of the best mobile app portfolios for high-net-worth individuals is BNP Paribas, with an overall score of 65 out of a maximum of 80 points. The French bank is followed by Credit Suisse and the Royal Bank of Canada, both scoring 61 points and sharing the second rank. RBC has improved by 21 ranks compared to the 2014 survey. Deutsche Bank, FNB, and Société Générale share the fourth place in the overall ranking with a total score of 59 points each. It is noteworthy that Coutts is the only pure play wealth manager making it into the top 10, with other private banks even further down in the ranking.

Despite the fact that mobile devices are more popular among high-net-worth individuals than PCs and notebooks, banks are still focusing their mobile strategies mainly on their retail clients. Banks have not yet fully grasped that their wealthy clients are eager, ready and sophisticated users of mobile devices, especially when it comes to financial matters.”

Apart from the fact that high-net-worth clients are still underserved with specific mobile apps, the report reveals more important trends, namely:

  • Portfolio analysis and security trading remain the pariahs of banks’ mobile services. On average, the banks achieved only 61% of the maximum points for offering portfolio analysis via their mobile apps; an even lower share of 53% provides their clients with security trading features. These numbers remain almost unchanged from 2014.

  • Highest security standards are still not a top priority for many global banks and wealth managers. Only 40% of banks use the app store to inform clients about security, and only two thirds of the tested apps include security disclosures. MyPrivateBanking finds these data somewhat shocking, given the endemic and well-publicized threats from hackers, fraudsters and data manipulation that high-net-worth clients are facing today.

  • The use of innovative features and intelligent tools remains low. Only 15% of the wealth managers make use of innovative technology such as convenient and secure fingerprint authentication, voice control, or contextualization, which are all now available in the latest versions of mobile operating systems.

  • Apple Watch is gaining ground. It is reassuring to see some positive developments: four banks have already developed their own Apple Watch (or Android Watch) mobile apps. Many more have announced that they will publish their own watch apps within the coming weeks and months.

As mobile touch points are now the number one interface for wealthy clients, mobile technology has become the main battleground for disruptive innovations. Wealth Managers offering one high-quality and comprehensive mobile app to their clients will gain major advantages over their competitors. In the long run this competitive advantage will be a matter of survival for all banks competing in today’s fast changing digital environment.

Therefore, the MyPrivateBanking report recommends that banks and wealth managers scrutinize their mobile strategies very closely and consider making the following critical changes:

  • Offer one exclusive and comprehensive app specifically for your high-net-worth clients – now! Wealthy clients have specific needs with regard to mobile features and content. Some of the retail apps may also be helpful for HNW clients, but every private bank and wealth manager should offer at least one exclusive core app.

  • Place a laser-beam focus on security requirements. Any breach of security and privacy can irrevocably damage your reputation with high-net-worth clients. Set a specific focus on client education and information beyond providing full 2-factor authentication and different levels of intelligent fraud protection. Consider biometrical access mechanisms.

  • Make using your apps an exciting experience through the use of innovative and intelligent features. Today’s mobile operating systems offer the potential to wow users with features and tools that go far beyond simple transactions and information features. Examples are voice control, context-specific client loyalty programs (e.g. shopping vouchers powered by location data), simulation tools, risk assessment, portfolio rebalancing, portfolio optimization features, etc.

 
About the report:
The report "Mobile Apps for Wealth Management 2015 – Innovation Leaders and Laggards” analyzes in detail the strengths and weaknesses of the mobile applications of 30 leading wealth managers worldwide that offer dedicated mobile apps for wealthy clients. In total, more than 70 mobile apps were evaluated against 53 criteria and grouped into eight main categories of evaluation: availability of mobile apps; core functions for clients; security and privacy; support features; content and features for client retention and marketing; technical features and support; strategy and navigation; best practices. For further information on the report please click here.

Analyzed Wealth Managers: ABN Amro, Barclays, BNP Paribas, BNY Mellon, Charles Schwab, Citi Private Bank, Coutts, Credit Suisse, Danske Bank, DBS, Deutsche Bank, FNB, Goldman Sachs, HSBC, Hypovereinsbank, ING, Investec, J.P. Morgan, Julius Baer, Merrill Lynch, Morgan Stanley, RBC, Société Générale, Standard Chartered, TD Bank, UBP, UBS, Unicredit, Vontobel, Wells Fargo.

My Private Banking



Report: Mobile Apps for Wealth Management 2015

Wealth Managers’ Mobile Apps Lack Focus and Innovation

  Jun. 15, 2015

Global universal banks and wealth managers have made little progress over the last year in offering exclusive mobile apps to their high-net-worth clientele. Only 63% provide their wealthy clients with one or more mobile apps that cater specifically and exclusively for the needs of HNW clients. In 2014, this figure was the same. These are key findings of the new report “Mobile Apps for Wealth Management 2015 – Innovation Leaders and Innovation Laggards” for which MyPrivateBanking Research analyzed and ranked, in total, more than 70 mobile apps of 30 leading wealth managers worldwide.

The research shows that there are innovation leaders but also a significant group of innovation laggards among the global leaders in wealth management. Ten banks out of 30 achieved more than two thirds of the possible points in the MyPrivateBanking ranking of wealth managers’ mobile app portfolios. But there are also nine banks that earned only half or less of the possible points.

The report identifies a select group of wealth managers and banks that are in fact performing extremely well in addressing the mobile needs of their high-net-worth clients. The winner of this year’s ranking of the best mobile app portfolios for high-net-worth individuals is BNP Paribas, with an overall score of 65 out of a maximum of 80 points. The French bank is followed by Credit Suisse and the Royal Bank of Canada, both scoring 61 points and sharing the second rank. RBC has improved by 21 ranks compared to the 2014 survey. Deutsche Bank, FNB, and Société Générale share the fourth place in the overall ranking with a total score of 59 points each. It is noteworthy that Coutts is the only pure play wealth manager making it into the top 10, with other private banks even further down in the ranking.

Despite the fact that mobile devices are more popular among high-net-worth individuals than PCs and notebooks, banks are still focusing their mobile strategies mainly on their retail clients. Banks have not yet fully grasped that their wealthy clients are eager, ready and sophisticated users of mobile devices, especially when it comes to financial matters.”

Apart from the fact that high-net-worth clients are still underserved with specific mobile apps, the report reveals more important trends, namely:

  • Portfolio analysis and security trading remain the pariahs of banks’ mobile services. On average, the banks achieved only 61% of the maximum points for offering portfolio analysis via their mobile apps; an even lower share of 53% provides their clients with security trading features. These numbers remain almost unchanged from 2014.

  • Highest security standards are still not a top priority for many global banks and wealth managers. Only 40% of banks use the app store to inform clients about security, and only two thirds of the tested apps include security disclosures. MyPrivateBanking finds these data somewhat shocking, given the endemic and well-publicized threats from hackers, fraudsters and data manipulation that high-net-worth clients are facing today.

  • The use of innovative features and intelligent tools remains low. Only 15% of the wealth managers make use of innovative technology such as convenient and secure fingerprint authentication, voice control, or contextualization, which are all now available in the latest versions of mobile operating systems.

  • Apple Watch is gaining ground. It is reassuring to see some positive developments: four banks have already developed their own Apple Watch (or Android Watch) mobile apps. Many more have announced that they will publish their own watch apps within the coming weeks and months.

As mobile touch points are now the number one interface for wealthy clients, mobile technology has become the main battleground for disruptive innovations. Wealth Managers offering one high-quality and comprehensive mobile app to their clients will gain major advantages over their competitors. In the long run this competitive advantage will be a matter of survival for all banks competing in today’s fast changing digital environment.

Therefore, the MyPrivateBanking report recommends that banks and wealth managers scrutinize their mobile strategies very closely and consider making the following critical changes:

  • Offer one exclusive and comprehensive app specifically for your high-net-worth clients – now! Wealthy clients have specific needs with regard to mobile features and content. Some of the retail apps may also be helpful for HNW clients, but every private bank and wealth manager should offer at least one exclusive core app.

  • Place a laser-beam focus on security requirements. Any breach of security and privacy can irrevocably damage your reputation with high-net-worth clients. Set a specific focus on client education and information beyond providing full 2-factor authentication and different levels of intelligent fraud protection. Consider biometrical access mechanisms.

  • Make using your apps an exciting experience through the use of innovative and intelligent features. Today’s mobile operating systems offer the potential to wow users with features and tools that go far beyond simple transactions and information features. Examples are voice control, context-specific client loyalty programs (e.g. shopping vouchers powered by location data), simulation tools, risk assessment, portfolio rebalancing, portfolio optimization features, etc.

 
About the report:
The report "Mobile Apps for Wealth Management 2015 – Innovation Leaders and Laggards” analyzes in detail the strengths and weaknesses of the mobile applications of 30 leading wealth managers worldwide that offer dedicated mobile apps for wealthy clients. In total, more than 70 mobile apps were evaluated against 53 criteria and grouped into eight main categories of evaluation: availability of mobile apps; core functions for clients; security and privacy; support features; content and features for client retention and marketing; technical features and support; strategy and navigation; best practices. For further information on the report please click here.

Analyzed Wealth Managers: ABN Amro, Barclays, BNP Paribas, BNY Mellon, Charles Schwab, Citi Private Bank, Coutts, Credit Suisse, Danske Bank, DBS, Deutsche Bank, FNB, Goldman Sachs, HSBC, Hypovereinsbank, ING, Investec, J.P. Morgan, Julius Baer, Merrill Lynch, Morgan Stanley, RBC, Société Générale, Standard Chartered, TD Bank, UBP, UBS, Unicredit, Vontobel, Wells Fargo.

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