WEALTH MANAGEMENT WEBSITES THAT WIN CLIENTS

Transcription

1 WEALTH MANAGEMENT WEBSITES THAT WIN CLIENTS Benchmarking Best Practices - Strategy OCTOBER 2012 MYPRIVATEBANKING REPORT 3 rd Edition: Completely Revised and Enlarged Extract Full report has 220 pages plus comprehensive data appendix

2 CONTENTS 1.0 EXECUTIVE SUMMARY OVERALL RANKING CRITICAL ELEMENTS OF A GOOD PRIVATE BANKING WEBSITE THE PRIVATE BANKING WEBSITE USER-FRIENDLY NAVIGATION AND STRUCTURE ARE KEY TO CONTENT 15 PRIVATE BANKING PRESENCE TO BE LOCATED WITHIN FIVE SECONDS 15 ACCESS TO ALL CONTENT WITHIN THREE CLICKS 15 PROVIDING A RELIABLE SEARCH FUNCTION 15 MULTIPLE LANGUAGES REQUIRED 16 PRIVACY POLICY IMPORTANT FOR THE BANK S REPUTATION FROM CONTENT TO CONTACT 17 ASSETS UNDER MANAGEMENT - AN IMPORTANT YARDSTICK FOR NEW CUSTOMERS 18 IN-DEPTH PRESENTATION OF SERVICES AND PRODUCTS 18 DETAILS IN PORTFOLIO RETURNS AS PROOF OF PERFORMANCE 18 ADVISORY AND INVESTMENT PROCESS ARE CRITICAL INFORMATION 18 CLEAR COMMUNICATION OF COSTS ADDS TO THE IMAGE OF TRANSPARENCY 18 OFFERING AN ONLINE LIBRARY TO SHOW COMPETENCE 19 TRANSPARENCY ON COMPENSATION OF FINANCIAL ADVISORS 19 REFERENCE TO CORPORATE SOCIAL RESPONSIBILITY, PHILANTHROPY OR SUSTAINABLE INVESTMENT PRODUCTS INTERACTIVITY FOR WINNING NEW CLIENTS 20 CONTACTS EASY TO FIND 20 WIDE RANGE OF CONTACT OPTIONS 20 MULTIPLE MEANS OF CONTACT 21 SECURE CONTACT FORM 21 INTERACTIVE TOOLS 21 02

3 4.0 METHODOLOGY SELECTION OF WEBSITES USE CASES AS GUIDELINE EVALUATION PROCEDURE DETERMINING THE CRITERIA 26 NAVIGATION AND STRUCTURE (MAX. 30 POINTS) 26 CONTENT (MAX. 35 POINTS) 27 INTERACTIVITY AND SOCIAL MEDIA (MAX. 35 POINTS) PRIVATE BANKING WEBSITES MISS OPPORTUNITIES FOR WINNING NEW CLIENTS CONTENT IS THE BIGGEST WEAKNESS NAVIGATION AND STRUCTURE: LACK OF RELIABLE SEARCH FUNCTIONS CONTENT: SEVERE SHORTCOMINGS WITH REGARD TO HARDDATA INTERACTIVITY: BASIC INTERACTIVITY BUT LITTLE ADVANCED FEATURES INDIVIDUAL EVALUATION OF PRIVATE BANKING WEBSITES ABN AMRO ANZ BANK BANCO BILBAO VIZCAYA ARGENTARIA BANK OF NEW YORK MELLON BARCLAYS BB&T BNP PARIBAS BRADESCO CIBC CITIBANK COUTTS & CO LTD CRÉDIT AGRICOLE CREDIT SUISSE DBS BANK DEUTSCHE BANK ERSTE BANK GOLDMAN SACHS HSBC ICICI

4 6.20 ING GROEP INTESA SANPAOLO ITAÙ PRIVATE BANK J.P. MORGAN JULIUS BÄR LLOYDS BANKING GROUP MACQUARIE MERILL LYNCH MORGAN STANLEY NORDEA NORTHERN TRUST ROYAL BANK OF CANADA SANTANDER SEB BANK SOCIÉTÉ GÉNÉRALE STANDARD CHARTERED U.S. TRUST UNION BANCAIRE PRIVÉE UBS UNICREDIT WELLS FARGO TOP 20 WEBSITE BEST PRACTICES DIRECTING THE VISITOR TO THE RIGHT WEALTH MANAGEMENT WEBSITE 182 X-BANK (FULL NAME OF BANKS IN REPORT): EXCELLENT LISTING OF ALL BUSINESS DIVISIONS AS USER GUIDE 182 X-BANK: STATEMENT OF MINIMUM INVESTMENT AMOUNT FOR PRIVATE BANKING DIVISIONS 183 X-BANK: REGIONAL BREAKDOWN OF WEALTH MANAGEMENT PRESENCES PREVIEW OF CLIENTS-ONLY FEATURES 184 X-BANK: PRESENTATION OF CLIENTS-ONLY FEATURES PROVIDING A RELIABLE SEARCH FUNCTION 185 X-BANK: SIMPLE BUT EFFECTIVE SEARCH FUNCTION 185 X-BANK: SEARCH FUNCTION WITH ADVANCED FUNCTIONALITY 186 X-BANK: ABOVE AVERAGE SEARCH CENTER

5 7.4 COMPREHENSIVE INFORMATION ON PRIVACY AND ONLINE SECURITY 188 X-BANK: EFFECTIVE COMMUNICATION OF INFORMATION ON PRIVACY AND SECURITY MATTERS TRANSPARENCY REGARDING COSTS 189 X-BANK: COMPREHENSIVE FEE INFORMATION IN BROCHURE 189 X-BANK: TRANSPARENCY REGARDING COSTS AND SERVICE FEES 190 X-BANK: STATEMENT ON COSTS DIRECTLY ON THE WEBSITE: DISCLOSURE OF PORTFOLIO AND PERFORMANCE DATA 191 X-BANK: REGULARLY UPDATED PERFORMANCE DATA 191 X-BANK: DISCLOSURE OF CURRENT ASSET ALLOCATION INTRODUCTION OF THE BANK S INVESTMENT PROCESS 194 X-BANK: DETAILED DESCRIPTION OF THE INVESTMENT PROCESS BACKGROUND INVESTMENT CONTENT 195 X-BANK; INTEGRATION OF ARTICLES AND MULTIMEDIA CONTENT 195 X-BANK: INTERACTIVE PRESENTATION OF E-MAGAZINE CONTENT 196 X-BANK: INTERACTIVE ONLINE PLATFORMS COMMITMENT TO RESPONSIBLE INVESTMENT 198 X-BANK: STATEMENT ON RESPONSIBLE BUSINESS PRACTICES PERSONALIZED CONTACT OPTIONS 199 X-BANK: DIRECT CONTACT TO ADVISORS 199 X-BANK: DEDICATED EXPERT FOR EACH SERVICE INNOVATIVE TEAM INTRODUCTION: 201 X-BANK: ADDING A PERSONAL TOUCH TO INTRODUCING TEAM MEMBERS 201 X-BANK: DIRECT CONTACT TO WEALTH MANAGEMENT TEAM MEMBERS FINANCIAL PLANNING TOOLS 203 X-BANK: EXTENSIVE COLLECTION OF FINANCIAL ADVISORY TOOLS 203 X-BANK: INTRODUCTION OF PRODUCTS AND SERVICES THROUGH INTERACTIVE TOOLS INTERACTIVE MANDATE FINDER 205 X-BANK: INTERACTIVE MANDATE FINDER INTERACTIVE TOOLS 206 X-BANK: INTERACTIVE KNOWLEDGE BASE NEWSLETTER 207 X-BANK: CONVENIENT AND USER-FRIENDLY NEWSLETTER SUBSCRIPTION

6 7.16 DAILY VIDEOCASTS 208 X-BANK: DAILY UPDATED VIDEO CONTENT BLOG 209 X-BANK: DEDICATED WEALTH BLOG KNOWLEDGE EXCHANGE PLATFORM 210 X-BANK: PRIVATE ONLINE NETWORK FOR PRIVATE BANKING CLIENTS LINKING THE PRIVATE BANKING WEBSITE TO SOCIAL MEDIA 211 X-BANK: PROMOTING SOCIAL MEDIA CHANNELS ON THE WEBSITE OVERALL SOCIAL MEDIA INTEGRATION 212 X-BANK: INTEGRATION OF WEBSITE AND SOCIAL MEDIA CHANNELS SOCIAL MEDIA, OR THE NETWORKED PRIVATE BANKER SNOWBALLING GROWTH OF INTERACTIVE COMMUNICATION IN REAL TIME ARE PRIVATE-BANKING-CLIENTS ACTIVE USERS OF SOCIAL NETWORKS? ELEMENTS OF A SOCIAL MEDIA STRATEGY FOR WEALTH MANAGERS DISCLAIMER

7 1.0 EXECUTIVE SUMMARY <<The private banking websites of ABN AMRO, UBS and RBC come out as winners in the 2012 MyPrivateBanking benchmarking. ABN AMRO Private Banking ranks first, with a total score of 86 out of a possible 100 points. UBS follows with 79 and Royal Bank of Canada with 77 points>> Overall this report shows that websites of private banks and wealth managers still have a lot of room for improvement. On average, the private banking websites of the 40 most important global wealth managers reach a level of only 61% of possible points in this benchmarking analysis. The report reveals two areas that are particularly weak: Lack of basic features to make websites user-friendly: many of the benchmarked websites have a complex structure and important content is often hidden under several layers of web pages or in pdf documents that are hard to find. This becomes especially problematic when there is not even a working search tool on the private banking website to compensate for this complexity: 20% of the private banking and wealth management websites under evaluation do not offer a search tool at all. The remaining banks often have defunct or unreliable search engines that generate few relevant hits when we've tested them. For instance, 25% of the tested search tools didn't come up with any relevant results and only three private banking websites have a search engine that delivers adequate results for the most common search terms. Websites do not provide enough hard data to demonstrate bank credibility: another major problem is the failure of the majority of the analyzed banks to disclose performance data and information on costs and fees. Only 7 out of the 40 banks disclose comprehensive performance data and only about 50% of the banks make even a vague statement on costs. Comprehensive fee information is only available on 20 % of the private banking websites. Even basic and easy to provide data such as assets under management is only indicated on about half of the websites under review, whilst 18 private banking providers do not disclose such data at all. The minimum investment amount required of clients is also not available on 11 private banking websites. Without this important information, visitors to the website will be left with many questions and consequently will go elsewhere to gather their information. However, wealth managers should keep in mind that external sources for such information will most likely be more critical. A proactive and open approach towards performance data is definitely the better choice when it comes to winning clients online. 07

8 ABN AMRO Private Banking, the winner of this year s benchmarking report scores especially well due to the depth of content provided on the national wealth management website. ( ) UBS ranks second with a total score of 79 points. ( ) The private banking presence of Royal Bank of Canada reaches an overall score of 77 points, placing it in 3 rd place in our benchmarking. ( ) However, the average bank s performance is not even close to that of the top performers, failing often in even meeting basic requirements. Particularly, the level of transparency with regard to quantitative performance data and costs is highly problematic. Not only critically important basic information is missed, but the overall presentation of the bank and its unique selling proposition is often ignored as well. Many providers are failing to differentiate themselves from peers on their private banking websites and lose their way in general statements on personalized service or global perspective. Despite the growing importance of social media channels, 70% of the banks under evaluation fail in linking the private banking website to social media channels such as Facebook, Twitter and YouTube. In addition, social media content on the website is also often unavailable. The following results especially should give private banks and wealth managers worldwide food for thought: Navigation and Structure - only basic requirements covered: ( ) Lack of critical information on performance and costs: ( ) Interactivity rarely goes beyond basic contact functionality: ( ) By now it should be standard for a wealth manager or private bank to provide a dedicated website for wealth management clients. Therefore, in this years analysis we have applied the criteria more strictly, only including websites that are specifically targeted at wealth management clients. As a consequence, the performance of some banks has deteriorated considerably as they do not offer dedicated and comprehensive web platforms for their wealth management audience. In comparison to last year, together the private banking websites under evaluation have slightly decreased in their score, only reaching an average of 61 % compared to 64% of benchmarking points in This shows that private banking providers need to develop their understanding of private banking clients as a specific client segment that demands special attention and specific information on a dedicated platform. However, we have also recorded some improvements as compared to last year: in the Navigation and Structure section there has been a slight improvement from an average of 72 % to 75 %. A positive trend is that private banking providers have improved the amount of social media and interactive features on their websites. More than half of the banks under evaluation now offer at least some kind of interactive tool or calculator. Social media deployment now scores an average of 38 % compared to only 34 % in Considering how important social media is becoming, this is still not enough but it is a step in the right direction. Besides fulfilling the basic criteria, wealth managers are advised to focus on the following major to-dos to catch up with recent trends: 08

9 Private banks and wealth managers must understand that wealthy clients have specific needs on the Internet. ( ) Basic website features must work without fail. ( ) Disclosing relevant hard-data to ensure credibility: ( ) Make clients comfortable enough to make contact with the bank: ( ) Integration of the website with social media channels: ( ) 09

10 2.0 OVERALL RANKING Rank (2011) Bank Total Points 1 (24) ABN Amro 86 2 (1) UBS 79 3 (9) Royal Bank of Can (9) Société Générale 74 5 (17) Standard Chartered 73 6 (na) UniCredit 72 7 (12) ING Groep 71 7 (12) Morgan Stanley 71 7 (12) Nordea (6) Barclays (8) Julius Bär (2) Merrill Lynch 69 Navigation and Structure Content Interactivity and Social Media 13 (26) (4) (20) (18) (na) (na) (na) (26) (28) (na) (12) (36) (7) (31) (20) (28) (31) (na) (na) (37) (11) (38) (na) (na) (2) (24) (40) (35)

11 ALL BANKS ANALYZED & PROFILED ABN AMRO ANZ BANK BANCO BILBAO VIZCAYA ARGENTARIA BANK OF NEW YORK MELLON BARCLAYS BB&T BNP PARIBAS BRADESCO CIBC CITIBANK COUTTS & CO LTD CRÉDIT AGRICOLE CREDIT SUISSE DBS BANK DEUTSCHE BANK ERSTE BANK GOLDMAN SACHS HSBC ICICI ING GROEP INTESA SANPAOLO ITAÙ PRIVATE BANK J.P. MORGAN JULIUS BÄR LLOYDS BANKING GROUP MACQUARIE MERILL LYNCH MORGAN STANLEY NORDEA NORTHERN TRUST 11

12 ROYAL BANK OF CANADA SANTANDER SEB BANK SOCIÉTÉ GÉNÉRALE STANDARD CHARTERED U.S. TRUST UNION BANCAIRE PRIVÉE UBS UNICREDIT WELLS FARGO 12

13 3.0 CRITICAL ELEMENTS OF A GOOD PRIVATE BANKING WEBSITE ( ) Read the full report for this chapter. 13

14 4.0 METHODOLOGY 4.1 SELECTION OF WEBSITES This study analyzes the private banking websites of 40 leading global private banks/wealth managers. For integrated banking groups with multiple websites, those websites which offered information specifically for affluent private clients were chosen. Websites that can be used only by private banks existing clients and which require a login were not evaluated. Within the group of 40 providers that were analyzed are the 30 biggest wealth managers for private clients worldwide, by total assets under management. The remaining 10 websites are ones of banks and wealth managers that don t have such a strong global presence, but are among the leading providers in their national or regional markets. The starting point of the analysis for the selected banks was the website intended for potential private banking clients in the domestic market. The domestic market here is taken to be the country in which the bank has its corporate headquarters. With respect to the online presence only websites that address potential wealth management clients in the domestic market were analyzed. This could be the website of the banking group or a website of a wealth management subsidiary. In cases where the domestic market is multilingual, such as Switzerland, the website was evaluated in the language version used by the majority of the population. All the providers that were benchmarked have a significant international presence and the majority of them also had additional websites for potential private banking customers outside the domestic market. These international websites were also included in the analysis, since customers based in a bank s domestic market can also use international sites to get information. In many cases the international website is of more significance to a wealth manager than the domestic Internet presence because of the importance of international clients. With regard to the evaluation, points have been awarded for meeting certain criteria provided these are fulfilled in at least one of a bank s websites under evaluation. Country websites other than the home market were not included in the analysis. In addition, only content on the private banking presence itself, or content that is directly linked from the private banking presence, has been included in the analysis. Consideration of content that is only available on the banks group or retail banking websites was excluded, since private banking clients cannot be expected to refer to various websites when looking for information. On the contrary, they should be provided with one platform that provides them with all the information they are looking for. As the information needs of retail and wealth management clients differ, it is also important for a bank to not just transfer content from the general website but to adapt it appropriately, (e.g. by providing specific information about the wealth management division of the bank, and not just the group, in the About Us section of the website). 14

15 Due to this more stringent application of criteria and a strict focus on content that is specifically dedicated to wealth management clients some of the banks have lost points in comparison to the last benchmarking report. The reason for this shift of focus in the application of evaluation criteria is that we see a strong development towards stand-alone private banking presences. Private banking clients expect wealth managers to provide them with a dedicated website and cannot be expected to gather their information from various websites. 15

16 4.2 USE CASES AS GUIDELINE Prior to the analysis of the website, MyPrivateBanking Research conducted 30 qualitative, indepth interviews with private banking clients. Based on these interviews six core use cases were derived. 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, as we have in our study. By use case we mean a typical scenario of how and why certain user groups use the website. We have derived our detailed evaluation criteria and their weightings directly from these use cases: Use Case User Group Objective Finding and choosing a wealth manager Finding general information on the bank in various areas that are interesting to different stakeholder groups Reading and downloading research and background material Getting in touch with the bank Potential new clients General public, journalists, job applicants, suppliers Potential and existing clients, general public, journalists Potential new clients, general public, journalists, applicants, suppliers, existing clients Creating an overview of the brand, services, products and trustworthiness of a bank Creating an overview of the bank and/or finding specific information Background information on financial topics for various purposes including proof of the bank s expertise Quick identification of the correct contact person with direct contact option by telephone or . Contacting financial advisors Existing clients Contact data for specific branches and/or the personal financial advisor Finding out how to get to an office or branch All possible client groups and stakeholders who wish to visit in person Finding the visiting address and route description, as far as possible with map The use case "Search for information by existing clients" was not considered, because a login is necessary for accessing the client accounts and information. We have evaluated only the freely accessible part of the web presence. 16

17 4.3 EVALUATION PROCEDURE Every website was analyzed by two analysts, independently of each other and the analysis and evaluation was repeated after an interval of six weeks. This was done to minimize the probability of incorrect evaluations due to a purely subjective point of view or short-lived website 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 50 different criteria, divided into three 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. Furthermore, independent testers were asked to visit the websites of the banks and get certain information from there. The behavior of these people was observed, recorded and included in the analyses. 17

18 4.4 DETERMINING THE CRITERIA In this study, the main evaluation criterion for the websites included in the study is the extent to which they fulfill the use cases described above. The use case of an affluent private individual visiting the website as a potential new customer was given top priority. We measured the usability in terms of the three parameters "Navigation and Structure", "Content" and "Interactivity". The definition and weight assigned to the criteria was, as described above, based on qualitative in-depth interviews with private banking clients. The graphic design of a website was evaluated only to the extent that objective criteria could be defined, such as adequate readability of the fonts and colors or a design structure that facilitates easy navigation, not from an aesthetic standpoint. The same applies to technical evaluations. These were taken into consideration only if they affect the customer directly, such as in areas like security and the proper setting-up of links. Navigation and Structure (max. 30 points) The group of evaluation criteria for Navigation and Structure cover of the elements and functions of a website that enable the user to find or access the desired content quickly. Further, the presence and the comprehensiveness of a Privacy Policy were included in the evaluation, since users should be given an opportunity to view these before performing further activities on the website. In detail, the criteria used here are as follows: Link to the Private Banking Site on the Homepage (max. 2 points): ( ) User-friendly Navigation (max. 9 points): ( ) Accurate Search Function (max. 10 points): ( ) Multilingualism (max. 5 points): ( ) Privacy Policy (max. 4 points): ( ) Content (max. 35 points) These evaluation criteria cover the quantity and quality of the content that could be of interest to a potential private banking client. This content should include both basic information about the company and the services it offers as well as the hard facts about the amount of assets under management, the fees and costs and the portfolio returns achieved. Since the quality of the content of a website is decisive for the next step of a potential customer, namely, the move to make contact, 35% of the total points were allocated to this area. In detail, the criteria are: Assets under Management (max. 2 points): ( ) Minimum Investment Amount (max. 2 points): ( ) 18

19 Details of Portfolio Performance and Return (max. 7 points): ( ) Details of the Cost and Fees (max. 7 points): ( ) Investment Process (max. 6 points): ( ) Publications and Background Information (max. 2 points): ( ) Corporate Information and Positioning (max. 6 points): ( ) Presentation of Services (max. 3 points): ( ) Interactivity and Social Media (max. 35 points) The best navigation and the most exhaustive content are of little use if, while online, the client is unable to identify easily the most convenient branch or relevant contact person. As a next step, the user should be provided with the option to reach contact people through a wide variety of means, in a straightforward and secure manner. In addition to the evaluation of the contact options, the number and quality of interactive tools on the website was assessed as well as the use of social media. The criteria in detail are as follows: Navigation to Contact Information (max. 6 points): ( ) Contacts Offered (maximum of 10 points): ( ) Means of Contact (max. 11 points): ( ) Secure Contact Form (1 point): ( ) Interactive Tools (2 points): ( ) Social Media Usage on Website (5 points): ( ) ( ) Check full report under: 19

20 DISCLAIMER 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. MyPrivateBanking GmbH All rights reserved. 20