MOBILE APPS FOR WEALTH MANAGEMENT - … · mobile apps for wealth management ... 8.4 marketing and customer retention 217 ... augmented reality

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MOBILE APPS FOR WEALTH MANAGEMENT GETTING ACCESS TO THE MOBILE HIGH-NET-WORTH GENERATION BENCHMARKING – BEST PRACTICES – STRATEGY

June 2014

MyPrivateBanking Report 2nd edition

Report Extract Original Report with 230

pages plus comprehensive data appendix

MOBILE APPS FOR WEALTH MANAGEMENT 2014 | 2

CONTENTS 1.0 EXECUTIVE SUMMARY 5

2.0 RANKING TABLE 9

3.0 STRATEGY 10 3.1 WHY EVERY WEALTH MANAGER NEEDS A MOBILE APP

STRATEGY 10 3.2 MOBILE INTERNET DEVELOPMENTS 11 3.3 QUALITATIVE INTERVIEWS – INSIGHTS FROM THE USER

PERSPECTIVE 16 3.4 MANY AVAILABLE APPS BUT LITTLE STRATEGIC DIRECTION 18 3.5 ELEMENTS OF A MOBILE APP STRATEGY 19 3.6 CRITICAL FUNCTIONS 22 3.7 THE FUTURE OF WEALTH MANAGEMENT APPS 28

4.0 METHODOLOGY 31 4.1 SELECTION OF BANKS AND APPS 31 4.2 USE CASES AS GUIDELINES 34 4.3 EVALUATION PROCEDURE 36 4.4 DETERMINING THE CRITERIA 37

5.0 SUMMARY: MOBILE STRATEGIES FOR WEALTHY CLIENTS STILL FACING MAJOR CHALLENGES 42

5.1 WEAK IMPLEMENTATION OF EXISTING PLATFORM OPTIONS 44 5.2 EVIDENT GROWTH OVERALL, LOW TRADING PERFORMANCE 45 5.3 SECURITY MECHANISMS NEED URGENT IMPROVEMENT 46 5.4 DEFICIENT CUSTOMER RETENTION STRATEGIES 47 5.5 WANTED: INNOVATIVE CONTACT OPTIONS 48 5.6 SUPPORT FEATURES ON THE RIGHT TRACK 49 5.7 WEAK INTEGRATION OF SOCIAL MEDIA 50 5.8 STRUCTURAL WEAKNESSES IN THE OVERALL

BANKING PORTFOLIOS 51


6.0 TOP 12 BEST STAND ALONE WEALTH MANAGEMENT APPS 52

7.0 PROFILES 54 7.1 ABN AMRO 54 7.2 BANQUE DE LUXEMBOURG 59 7.3 BBVA 63 7.4 BNP PARIBAS 69 7.5 BNY MELLON 74 7.6 BRADESCO 79 7.7 CHARLES SCHWAB 84 7.8 CITI PRIVATE BANK 89 7.9 COUTTS 95 7.10 CREDIT SUISSE 100 7.11 DBS BANK 105 7.12 DEUTSCHE BANK 110 7.13 FNB 115 7.14 GOLDMAN SACHS 121 7.15 HSBC 126 7.16 ING 131 7.17 INVESTEC 136 7.18 J.P. MORGAN 141 7.19 JULIUS BÄR 147 7.20 MERRILL LYNCH 152 7.21 MORGAN STANLEY 157 7.22 NORTHERN TRUST 161 7.23 RBC 167 7.24 SOCIÉTÉ GÉNÉRALE 172 7.25 STANDARD CHARTERED 177 7.26 UBP 182 7.27 UBS 187 7.28 U.S. TRUST 193 7.29 UNICREDIT 198 7.30 WELLS FARGO 204


8.0 BEST PRACTICES: THE BEST 20 MOBILE APPLICATION FEATURES 209

8.1 CORE FUNCTIONS 210 Impressive services and analytical functions – XXX 210

Excellent financial overview through financial dashboards – XXX 211

8.2 SUPPORT FEATURES 212 Outstanding personalization options – XXX 212

Excellent customizing features – XXX 213

User-friendly navigation – XXX 214

8.3 SECURITY 215 Strong protection features – XXX 216

User-friendly privacy communication – XXX 217

8.4 MARKETING AND CUSTOMER RETENTION 217 Interesting insights and tools – XXX 217

Economic research – XXX 218

Marketing for investment products – XXX 219

Interactive digital magazine – XXX 220

Magazine app – XXX 221

Exclusive rewards for wealthy clients – XXX 222

Educational content – XXX and XXX 223

Sponsorship activities – XXX 225

8.5 CONTACT AND COMMUNICATION FEATURES 226 Collaborative platform – XXX 226

8.6 INNOVATIVE APPROACHES 227 Augmented reality – XXX 227

Social media integration – XXX 228

8.7 STRATEGY 229 Overall app strategy – XXX 229

9.0 DISCLAIMER 230


1.0 EXECUTIVE SUMMARY

>> Mobile apps of wealth managers are not yet ready for a world where the main interaction between client and bank will primarily be handled through mobile devices. The majority of wealth managers equip clients with mobile solutions that offer basic functions with simple features and support. More advanced functions to cater for clients’ needs for investing and communication and for customer retention are still lacking. As a result of their slow development wealth managers are stuck in the mobile world of 2010; mobile apps in general have come a long way since then. These are the key findings of the current MyPrivateBanking benchmarking of the mobile apps of the 30 largest wealth managers worldwide. <<

Most of the top 30 wealth managers offer their clients apps with basic investment functions, decent technical performance and some additional content on financial market topics. However, only a minority of the world’s leading wealth managers and private banks are able to set a mobile first standard, living up to the growing expectations that clients have of using mobile apps as the number one channel to communicate and operate with the bank. MyPrivateBanking´s research reveals that banks are struggling with formulating a clear mobile app strategy for wealthy clients to push app use (and usefulness) in the right direction. Clients demand that banks personalize their offers, are accessible anytime and anywhere and give them the tools they need to manage their finances successfully; all of this centered around mobile apps as the main hub for an increasingly mobile lifestyle. Wealth managers need to make sure that the massive resources needed are not invested in vain but focus on integrating mobile apps seamlessly with their other client touch points (advisors, desktop, Internet, social media, branches, telephone).

A select group of the benchmarked wealth managers has already achieved this goal, setting the standard for the industry. At the top of MyPrivateBanking Research’s ranking is DBS with an overall score of 55 points out of a maximum of 70, followed by Citi Private Bank with 54 points and BNP Paribas and Northern Trust who share the third highest score with very different app offerings, each scoring 53 points. Credit Suisse, the strongest performer last year, achieved a score of 50. (… more in full report)

These wealth managers, at the top of our benchmarking, have started to integrate mobile solutions as a key fundamental to their everyday banking relationship with wealthy clients. For the bulk of wealth managers, however, it is still true that mobile apps remained merely supplementary tools. Still, most of the banks were able to score between half and two thirds of the available points. This shows that year-on-year some progress has been made.

The positive developments highlighted in the report are in the area of available core functions, with some key improvements compared to the last year´s benchmarking. The average wealth manager achieved a score of 76% of maximum available points in this section of the MyPrivateBanking analysis: virtually all banks offer their clients a quick portfolio overview and portfolio analysis tools of some kind are integrated in a majority of available investment apps. Basic features to support brokerage, including stock quotes, market insights or investment opportunities, but also, more sophisticated research content on financial markets and economics are quite commonly available. It is a good


sign that the industry leaders in wealth management recognize the key services for investing that they need to deliver in mobile solutions.

Basic support features as well as solid technical standards are the other areas in which the wealth managers performed well with several sub-sections scoring up to 100%: Navigation, stability and regular updates are working properly. The apps’ connections from and to the bank websites and with the app stores are other clear strengths. Our findings allow us to draw an encouraging picture of banks that understand the importance of offering technically flawless solutions with basic user-friendliness.

On average each wealth manager now offers more than two apps with relevance to wealthy clients. Additionally to the core investment app, banks are experimenting with providing value to their clients with supplementary mobile features and content. This demonstrates a big step in the direction of building full portfolios of apps and developing the necessary technical expertise, not least in dealing with security concerns thrown up by mobile banking.

The particular areas of mobile deployment by wealth managers and private banks where improvements are most needed are:

□ App coverage across devices and operating systems is still lacking.

(… more in full report)

□ Too many wealth managers and private banks are failing to provide their clients with securities trading functions.


□ Wealth managers are not talking with their clients through mobile apps.


□ There are structural shortcomings in the provision of content and features to strengthen ties that exist between private banks and their existing or potential clients.


□ There are still some gaps in the app security framework.



Perhaps the greatest shortcoming is an overall strategy on which wealth managers can develop their portfolio and focus on this specific client segment. One example is that specific wealth management apps exlusively available for high-net-worth-clients are offered by only 67% of banks.

MyPrivateBanking Research recommends – as a general mobile approach for wealth managers – the following key strategic measures:

□ Treat your wealthy clients as a separate and privileged client segment.


□ Wealth managers should ENGAGE with clients, TALK to clients, SELL to clients and WIN new clients via their mobile touch points.


□ Core features for wealthy clients must help them evaluate, analyze and understand their investments.


□ Clients want to be sure the apps they are using are secure.


□ Mobile apps should become a means of communication.


□ Wealth management firms usually have a lot of specific content for their high-net-worth clients.


□ Wealth managers should integrate their mobile offer with other online and offline media.



2.0 RANKING TABLE

Rank 2014

Rank 2013

Bank

Total (max.

70 points)

Avail-ability

of apps (6)

Core functions

for clients

(8)

Security and

privacy (7)

Customer retention

and marketing

(17)

Contact and

finding the

bank (10)

Technical features

and support

(11)

Strategy and

naviga-tion (9)

Best Practices

(2)

1 n/a DBS Bank 55 …

2 24 Citi Private

Bank 54 …

3 12 BNP

Paribas 53 …

3 7 Northern

Trust 53 …

5 1 Credit Suisse

50 …

6 3 … 49 5 4 5 8 8 10 8 1

7 n/a … 48 5 6 1 10 7 10 8 1

7 28 … 48 4 8 3 10 5 10 6 2

7 12 … 48 2 8 6 10 4 8 8 2

10 16 … 47 4 8 6 8 5 8 7 1

11 25 … 46 5 3 5 8 6 9 8 2

12 15 … 45 4 8 4 5 7 9 7 1

12 n/a … 45 2 8 4 10 4 9 6 2

14 10 … 44 6 8 4 6 1 9 8 2

14 n/a … 44 3 8 3 10 3 8 8 1

14 4 … 44 3 6 5 11 2 8 8 1

17 2 … 43 3 4 5 6 7 11 6 1

18 20 … 42 4 6 7 12 2 7 4 0

18 4 … 42 4 6 4 8 6 7 6 1

20 17 … 41 3 6 5 9 3 9 6 0

20 7 … 41 1 5 7 7 6 9 5 1

22 7 … 38 3 8 5 5 2 9 6 0

23 10 … 37 4 7 5 5 4 8 4 0

24 30 … 35 4 2 0 8 5 7 8 1

25 19 … 34 4 6 4 1 4 8 6 1

25 20 … 34 3 7 5 0 5 8 6 0

27 20 … 33 3 4 3 7 5 4 7 0

28 27 … 31 3 6 5 0 2 8 6 1

29 n/a … 30 2 6 4 0 5 8 5 0

30 28 … 24 2 6 2 1 3 6 4 0

Average Points

42,6 3,5 6,1 4,5 7,5 4,8 8,4 6,7 1


3.0 STRATEGY (... more in full report)


4.0 METHODOLOGY 4.1 SELECTION OF BANKS AND APPS

This study analyzes the apps of 30 leading private banks and wealth managers that serve and offer apps for their private clients.


4.2 USE CASES AS GUIDELINE

Prior to the analysis of the apps, MyPrivateBanking Research conducted qualitative, in-depth interviews with wealth management clients and app users. A representative group was surveyed that uses wealth management and brokerage apps frequently. The grouping into representative user profiles that reflect users’ preferences and concerns played an important role in the weighting of the criteria.

The term ‘Use case’ originated as a software and systems engineering term to signify the actions a user must take to achieve a specific result. The term can also be applied to user interfaces in website tests and comparisons. By use case we mean a typical scenario of how and why certain user groups use an app. We derived our detailed evaluation criteria and their weightings directly from these use cases:

Use Case User Group Objective

Portfolio information and analysis

Existing clients See an overview of one’s investments and/or analysis of the portfolio (asset allocation, performance over time)

(… more in full report) … …

… … …

… … …

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4.3 EVALUATION PROCEDURE

Two analysts evaluated each app independently of each other at an interval of four weeks to minimize the possibility of faults due to a subjective point of view and accidental network problems at a certain point in time. Given the quantity of information that had to be analyzed, the possibility of not finding all the information in individual cases cannot be ruled out. The evaluation was done on the basis of 70 different criteria that were divided into eight main categories. Care was taken to keep the definition and allocation of points as free as possible from all subjective influences, thus ensuring a high level of objectivity in the benchmarking process.

In addition to the apps themselves, other sources of information were also included in the analysis: user feedback and ratings in the app stores (Apple, Android), screenshots from the major app stores (iTunes, Google Play, Windows Phone and Blackberry), information from the banks’ websites (often the banks displayed additional information about their apps on their websites such as the privacy policy, FAQs or a video tutorial), and occasionally other sources such as Twitter feeds, blogs, etc.


4.4 DETERMINING THE CRITERIA

In this study, the main evaluation criterion for the apps was the extent to which they fulfill the use cases described above, from the point of view of various user segments. We measured usability in terms of eight overarching parameters:

□ Availability of mobile apps

□ Core functions for clients

□ Security and privacy

□ Content and features for customer retention and marketing

□ Contact and finding the bank

□ Technical features and support

□ Strategy and navigation

□ Best practices

In the following, the parameters and criteria for each parameter are described in detail, including the maximum achievable points. In comparison to last year’s report, there have been some changes in our rating scheme. Since the sheer number of mobile devices is exploding and users demand a solution for their particular OS, we have changed the parameter ‘Availability of Mobile Apps’ by opening it up to more solutions and devices.


Availability of Mobile Apps (maximum 6 points)


Core functions for clients (maximum 8 points)


Security and privacy (maximum 7 points)


Content and features for customer retention and marketing (maximum 17 points)


Contact and finding the bank (maximum 10 points)


Technical features and support (maximum 11 points)


Strategy and navigation (maximum 9 points)



Best Practices (maximum 2 points)



5.0 SUMMARY: MOBILE STRATEGIES FOR WEALTHY CLIENTS STILL FACING MAJOR CHALLENGES



6.0 TOP 12 BEST STAND ALONE WEALTH MANAGEMENT APPS

Name of App Bank Points

Citi Private Bank In View Citi Private Bank …

…

…



7.0 PROFILES (… more in full report)


8.0 BEST PRACTICE: THE BEST 20 MOBILE APPLICATION FEATURES



9.0 DISCLAIMER IMPORTANT NOTICE AND DISCLAIMERS:

No Investment Advice

This report is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. This report is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. It does not constitute a general or personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual investors. The price and value of securities referred to in this report will fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of all of the original capital invested in a security discussed in this report may occur. Certain transactions, including those involving futures, options, and other derivatives, give rise to substantial risk and are not suitable for all investors.

Disclaimers

There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth in this report. MyPrivateBanking GmbH will not be liable to you or anyone else for any loss or injury resulting directly or indirectly from the use of the information contained in this report, caused in whole or in part by its negligence in compiling, interpreting, reporting or delivering the content in this report.

Copyright

MyPrivateBanking GmbH’s Products are the property of MyPrivateBanking GmbH, Switzerland, and are protected by Swiss and international copyright law and other intellectual property laws. Customers are prohibited to copy, forward or store MyPrivateBanking Products outside of the legal entity that has made the purchase.

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MOBILE APPS FOR WEALTH MANAGEMENT - … · mobile apps for wealth management ... 8.4 marketing and customer retention 217 ... augmented reality