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Mar. 02, 2015
Report: Digital and Mobile Solutions for Financial Advisors 2015

Fending off the robos: New technologies reinventing the client/advisor relationship

Wealth managers’ traditional model of providing financial advice is under attack by computers with increasingly cognitive abilities, taking over tasks ranging from risk assessment and portfolio allocation to financial planning and tax optimization. But wealth managers can fend off these threats by applying the right technology themselves, and they can even gain a competitive advantage through the effective combination of digital and mobile tools with human advice. These are the main findings of the new MyPrivateBanking report “Digital and Mobile Solutions for Financial Advisors 2015”, which analyzes the future trends and digital solutions for financial advisors offered by 15 vendors in the fields of mobile apps, visual communication, and analytical and social media solutions.

We see that traditional wealth managers cannot defend their business model against robo-advisors and other digital do-it-yourself tools by merely pointing out that their advisors offer a ‘human touch’ and specific banking know-how. They need to reinvent their business model from the ground up in order to arrive in the 21st century. At the core of this change is the relationship between the client and the human advisor.

The following four technology solutions are in our view critical ingredients in the much needed change at the interface between advisors and clients: mobile apps to facilitate and enrich client meetings, video tools to enable sophisticated communication without personal presence, analytical and recommendation tools to increase insights and choice for clients, and digital solutions to control and leverage social media.

Mobile Apps for Advisors Advancing Significantly

At this point, mobile apps to support financial advisors are by far the dominating technology tool and MyPrivateBanking has identified several major trends that are relevant in the mobile space, among them the following:

  • Growing tendency to provide mobile apps based on SaaS (Software as a Service) solutions and to use modular approaches to offer a customizable menu of features.

  • Biometrical authentication is entering the market of mobile apps for financial advisors. Advanced authentication features like the Apple Touch ID are gaining substantial ground.

  • Social media integration is becoming standard. Almost two thirds of the vendors featured in this report are integrating social media into their solutions.

  • Technology vendors are responding to the needs of client matching solutions. Contributing to an increasing demand for client-engaging tools that empower them to take care of their own finances, there is almost no mobile app for financial advisors without a client sibling.

  • Video conferencing tools are hot. Already, several leading private banks and wealth managers are integrating video chat into their existing mobile interfaces.

In the last three years MyPrivateBanking has seen a significant increase in the number of vendors in the advisor app space, and the features and functions in their mobile products are also on the rise. Still, less than 15% of advisors today are using a proper and professional advisor app provided by their firm, however we predict that within five years the majority will be doing so.

FinTech start-ups develop innovative solutions

While MyPrivateBanking Research sees that the space for mobile app solutions is to a large extent covered by established vendors, we found that in the other areas evaluated in this report, FinTech start-ups play a much bigger role. These relatively young vendors provide solutions for wealth managers that offer a host of new communication and analytical capabilities, lifting client service to new levels:

  • Video communication solutions enabling a natural, authentic communication experience for clients and advisors, with added features to share screens, exchange messages and record meetings.

  • Analytical and natural language software solutions helping advisors to analyze vast amounts of data, identifying critical developments and formulating natural language reports for clients or for internal use.

  • Social media management solutions bringing a disciplined and integrated approach to social media of wealth managers. Individual advisors can have social media presences to connect to their clients without compromising regulatory rules, as the bank can manage and control all social media activities. At the same time these solutions can identify important life events via clients’ and prospects’ social media streams, opening up new opportunities for sales and marketing.

  • Innovative client engagement tools. There are several vendors entering the space of solutions for financial advisors without requiring a whole investment platform for being integrated. These solutions offer copious educational material, including videos and online seminars or the option to summarize meetings via a video presentation instead of the traditional report.

Six vendors recognized as "Leading Vendors"

Our research shows that all the analyzed solutions have unique features and strengths. Depending on a wealth manager’s strategic needs and existing software solutions, these solutions present a wide choice of different tools. However, based on careful analysis and deep research among vendors and user organizations such as wealth managers and banks, MyPrivateBanking Research has given to six vendor solutions the award “Leading Vendor – Digital Solutions for Financial Advisors 2015”.

The award recognizes specific unique and innovative features in these solutions (in alphabetical order): Avaloq Wealth Advisory; eMoney Advisor emX; Hearsay Social; Intellect FABX; MicroStrategy Wealth Management Solutions; Yseop

 

About the report:

The report "Digital and Mobile Solutions for Financial Advisors 2015" identifies 15 key players with digital solutions for wealth managers and financial advisors in the fields of mobile apps, digital communication, and analytical and social media solutions. Vendor offerings of mobile apps for financial advisors are analyzed for the presence of 45 functions grouped in nine categories, such as CRM, onboarding, financial planning, portfolio management, reporting and client communication. Digital communications solutions for financial advisors are evaluated against 15 criteria each and social media solutions along 8 headline functions.

The report is based on in-depth interviews with twelve of the vendors covered, supported by a thorough verification process. In addition, representatives of ten leading wealth managers worldwide have been interviewed on this topic. The report was not commissioned by any vendor or bank and has been conducted fully independently. For further information on the report please click here.


The Report Analyzes Digital Solutions for Financial Advisors from these Vendors:  
Avaloq, Blue Jeans, Crealogix, eMoney Advisor, Hearsay Social, Intellect Design Arena, MicroStrategy, Narrative Science, Orion, Profile Sytems & Software, SunGard, Temenos, TokBox, Upside, YSEOP

My Private Banking



Report: Digital and Mobile Solutions for Financial Advisors 2015

Fending off the robos: New technologies reinventing the client/advisor relationship

  Mar. 02, 2015

Wealth managers’ traditional model of providing financial advice is under attack by computers with increasingly cognitive abilities, taking over tasks ranging from risk assessment and portfolio allocation to financial planning and tax optimization. But wealth managers can fend off these threats by applying the right technology themselves, and they can even gain a competitive advantage through the effective combination of digital and mobile tools with human advice. These are the main findings of the new MyPrivateBanking report “Digital and Mobile Solutions for Financial Advisors 2015”, which analyzes the future trends and digital solutions for financial advisors offered by 15 vendors in the fields of mobile apps, visual communication, and analytical and social media solutions.

We see that traditional wealth managers cannot defend their business model against robo-advisors and other digital do-it-yourself tools by merely pointing out that their advisors offer a ‘human touch’ and specific banking know-how. They need to reinvent their business model from the ground up in order to arrive in the 21st century. At the core of this change is the relationship between the client and the human advisor.

The following four technology solutions are in our view critical ingredients in the much needed change at the interface between advisors and clients: mobile apps to facilitate and enrich client meetings, video tools to enable sophisticated communication without personal presence, analytical and recommendation tools to increase insights and choice for clients, and digital solutions to control and leverage social media.

Mobile Apps for Advisors Advancing Significantly

At this point, mobile apps to support financial advisors are by far the dominating technology tool and MyPrivateBanking has identified several major trends that are relevant in the mobile space, among them the following:

  • Growing tendency to provide mobile apps based on SaaS (Software as a Service) solutions and to use modular approaches to offer a customizable menu of features.

  • Biometrical authentication is entering the market of mobile apps for financial advisors. Advanced authentication features like the Apple Touch ID are gaining substantial ground.

  • Social media integration is becoming standard. Almost two thirds of the vendors featured in this report are integrating social media into their solutions.

  • Technology vendors are responding to the needs of client matching solutions. Contributing to an increasing demand for client-engaging tools that empower them to take care of their own finances, there is almost no mobile app for financial advisors without a client sibling.

  • Video conferencing tools are hot. Already, several leading private banks and wealth managers are integrating video chat into their existing mobile interfaces.

In the last three years MyPrivateBanking has seen a significant increase in the number of vendors in the advisor app space, and the features and functions in their mobile products are also on the rise. Still, less than 15% of advisors today are using a proper and professional advisor app provided by their firm, however we predict that within five years the majority will be doing so.

FinTech start-ups develop innovative solutions

While MyPrivateBanking Research sees that the space for mobile app solutions is to a large extent covered by established vendors, we found that in the other areas evaluated in this report, FinTech start-ups play a much bigger role. These relatively young vendors provide solutions for wealth managers that offer a host of new communication and analytical capabilities, lifting client service to new levels:

  • Video communication solutions enabling a natural, authentic communication experience for clients and advisors, with added features to share screens, exchange messages and record meetings.

  • Analytical and natural language software solutions helping advisors to analyze vast amounts of data, identifying critical developments and formulating natural language reports for clients or for internal use.

  • Social media management solutions bringing a disciplined and integrated approach to social media of wealth managers. Individual advisors can have social media presences to connect to their clients without compromising regulatory rules, as the bank can manage and control all social media activities. At the same time these solutions can identify important life events via clients’ and prospects’ social media streams, opening up new opportunities for sales and marketing.

  • Innovative client engagement tools. There are several vendors entering the space of solutions for financial advisors without requiring a whole investment platform for being integrated. These solutions offer copious educational material, including videos and online seminars or the option to summarize meetings via a video presentation instead of the traditional report.

Six vendors recognized as "Leading Vendors"

Our research shows that all the analyzed solutions have unique features and strengths. Depending on a wealth manager’s strategic needs and existing software solutions, these solutions present a wide choice of different tools. However, based on careful analysis and deep research among vendors and user organizations such as wealth managers and banks, MyPrivateBanking Research has given to six vendor solutions the award “Leading Vendor – Digital Solutions for Financial Advisors 2015”.

The award recognizes specific unique and innovative features in these solutions (in alphabetical order): Avaloq Wealth Advisory; eMoney Advisor emX; Hearsay Social; Intellect FABX; MicroStrategy Wealth Management Solutions; Yseop

 

About the report:

The report "Digital and Mobile Solutions for Financial Advisors 2015" identifies 15 key players with digital solutions for wealth managers and financial advisors in the fields of mobile apps, digital communication, and analytical and social media solutions. Vendor offerings of mobile apps for financial advisors are analyzed for the presence of 45 functions grouped in nine categories, such as CRM, onboarding, financial planning, portfolio management, reporting and client communication. Digital communications solutions for financial advisors are evaluated against 15 criteria each and social media solutions along 8 headline functions.

The report is based on in-depth interviews with twelve of the vendors covered, supported by a thorough verification process. In addition, representatives of ten leading wealth managers worldwide have been interviewed on this topic. The report was not commissioned by any vendor or bank and has been conducted fully independently. For further information on the report please click here.


The Report Analyzes Digital Solutions for Financial Advisors from these Vendors:  
Avaloq, Blue Jeans, Crealogix, eMoney Advisor, Hearsay Social, Intellect Design Arena, MicroStrategy, Narrative Science, Orion, Profile Sytems & Software, SunGard, Temenos, TokBox, Upside, YSEOP

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