MOBILE APPS FOR WEALTH MANAGEMENT

Transcription

1 MOBILE APPS FOR WEALTH MANAGEMENT THE NEXT LEVEL OF DIGITAL SERVICE: PERSONALIZED APPS FOR YOUR MOST VALUABLE CLIENTS Data Analysis Implications Learnings May 2016 Report Extract Original Report with 179 pages Plus Data Appendix with individual evaluations of 30 wealth managers Rosalia Engchuan Analyst

2 TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY OVERALL RANKING WEALTH SERVICE INDICATOR RANKING METHODOLOGY 16 SELECTION OF BANKS AND APPS 16 USE CASES AS A GUIDELINE 11 EVALUATION PROCEDURE 12 DETERMINING THE CRITERIA 13 WEALTH SERVICE INDICATOR STRATEGY: MOBILE APPS - A WEALTH MANAGER S STRONGEST COMPETITIVE ADVANTAGE 27 WHO ARE THE (CURRENT AND FUTURE) WEALTH MANAGEMENT CLIENTS? 28 DRIVERS OF CHANGE AFFECTING THE OVERALL STRATEGY 30 THE CASE FOR A DEDICATED WEALTH MANAGEMENT APP 40 PERSONALIZING THE DIGITAL AND MOBILE WEALTH CLIENT JOURNEY 40 USE CASE FOR MOBILE APPS 41 INNOVATIVE METHODS FOR APP DEVELOPMENT 42 OVERARCHING TRENDS WITH REGARD TO APP CAPABILITIES 43 A STRATEGY FOR SOPHISTICATED WEALTH APPS 44 SILVER MUST HAVE FEATURES 45 GOLD - ADVANCED FEATURES 50 PLATINUM PARTICULARLY INNOVATIVE FEATURES 51 MOBILE APPS FOR WEALTH MANAGEMENT 2

3 6.0 TOP 15 BEST PRACTICES 53 WEALTH FEATURES 54 INVESTMENT TOOLS 57 USABILITY 59 PERSONALIZATION 61 VALUE ADDING INTERACTIVE TOOLS SUMMARY OF FINDINGS 65 CRITICAL APP FUNCTIONS 65 TRENDS OVER THE PAST 3 YEARS 66 AVAILABILITY OF MOBILE APPS 67 CORE FUNCTIONS FOR CLIENTS 68 CRITERIA COVERAGE CORE FUNCTIONS FOR CLIENTS 69 SECURITY 70 CUSTOMER RETENTION AND MARKETING 72 CONTACT FEATURES 74 TECHNICAL FEATURES AND SUPPORT 75 PLATFORM INTEGRATION 77 YEAR ON YEAR PERFORMANCE 2015 AND WEALTH SERVICE INDICATOR 80 A CLOSER LOOK INTO PERSONALIZATION CAPABILITIES 84 PERFORMANCE IN THE GOLD SILVER PLATINUM CATEGORIES INDIVIDUAL WEALTH MANAGER PROFILES 89 XXX: A SOLID OFFERING FOCUSED ON PRIVATE CLIENTS, BUT IT NEEDS TO EVOLVE FURTHER TO MEET SPECIFIC WEALTH MANAGEMENT NEEDS. 90 XXX: STRONG MOBILE APP OFFERING BUT WEAK IN DEDICATED WEALTH FUNCTIONS. 93 XXX: AN EXCELLENT SOLUTION THAT LEADS THE PACK IN CUSTOMER RETENTION AND MARKETING. 96 XXX: A WELL-INTENDED WEALTH MANAGEMENT FOCUS FAILED BY LOW FUNCTIONALITY AND CONTENT. 99 MOBILE APPS FOR WEALTH MANAGEMENT 3

4 XXX: A SUCCESSFUL PARTNERSHIP BETWEEN TWO APPS, RESULTING IN A SECURE OFFERING WITH SOME ASPECTS FOR FURTHER REFINEMENT. 102 XXX: HIGHLY PERSONALIZED APP WITH THE HIGHEST WEALTH SERVICE INDICATOR ON THE MARKET. 105 XXX: A NEGLECTED SOLUTION THAT NEEDS RENEWAL AND ENHANCEMENT IN KEY CATEGORIES 108 XXX: EXCELLENT PERFORMANCE ON THE DIGITAL WEALTH MANAGEMENT FRONT. 111 XXX: INNOVATIVE MOBILE BANKING CAPABILITIES WITH PRIVATE CLIENT POTENTIAL 114 XXX: A POTENT APP PARTNERSHIP THAT MEETS ALMOST ALL WM CLIENT NEEDS. 117 XXX: STRONG CONTENDER FOR CORE FUNCTIONS BUT LACKING A DEDICATED APP. 120 XXX: A POTENTIAL LEADER IN MOST CATEGORIES, ALREADY A LEADER IN SOME. 123 XXX: TECHNICALLY STRONG, BUT AN OUTDATED APP IN TERMS OF SECURITY AND FUNCTIONALITY. 126 XXX: A VERY SECURE, RECENT WEALTH MANAGEMENT FOCUS THAT DOES NOT YET FILL ALL THE GAPS AS A COMPLETE OFFERING. 129 XXX: A POTENTIALLY STRONG WEALTH MANAGEMENT FOCUS, PROVIDED SOME ENHANCEMENTS ARE IMPLEMENTED. 132 XXX: TECHNICALLY STRONG AND SECURE APP FOR ALL PLATFORMS AND DEVICES, BUT IT MISSES KEY RETENTION AND MARKETING OPPORTUNITIES. 135 XXX: SECURE BUT LIMITED WM FUNCTIONALITY IN SIMILAR APPS FOR SMARTPHONE AND TABLET 138 XXX: A FORMIDABLE EXAMPLE OF DELIVERING CORE WM FUNCTIONS, BUT REQUIRES WORK IN OTHER CATEGORIES. 141 XXX: EXCLUSIVELY FOCUSED ON WEALTH MANAGEMENT, BUT REQUIRES SOME INNOVATION AND MORE WORK IN ALL CATEGORIES. 144 XXX: LEADS THE PACK WITH FEATURES NEGLECTED BY RIVALS - AN EXCELLENT FOUNDATION READY FOR EVOLUTION. 147 XXX: SOME HIGHLIGHTS, BUT REQUIRES WORK IN MOST CATEGORIES. 150 XXX: ONE YEAR LATER: A GOOD SOLUTION THAT NOW REQUIRES MORE INNOVATION. 153 MOBILE APPS FOR WEALTH MANAGEMENT 4

5 XXX: A SOLID FOUNDATION THAT WILL REQUIRE SOME IMPORTANT IMPROVEMENTS TO STAY WITHIN THE TOP RANKS. 156 XXX: A GOOD START BUT REQUIRES MAJOR WORK TOWARDS FULL MATURATION. 159 XXX: A VERY SECURE SOLUTION WITH STRONG CORE FUNCTIONS, BUT LACKING IN SOME OTHER CATEGORIES. 162 XXX: A WINNING APP PORTFOLIO WITH GROUNDBREAKING FEATURES. 165 XXX: A STRONG, SECURE CONTENDER WITH GOOD CORE WM FUNCTIONALITY AND SOME DRAWBACKS IN RETENTION AND MARKETING. 168 XXX: A SECURE AND TECHNICALLY COMPETENT OFFERING THAT IS LOW ON CORE FUNCTIONS, CONTACT FEATURES AND RETENTION/MARKETING. 171 XXX: A WELL-SUSTAINED APP PARTNERSHIP THAT HAS MATURED, WITH WORK STILL OUTSTANDING ON CORE FUNCTIONS. 174 XXX: A VERY SECURE APP WITH GOOD CORE WM FUNCTIONS, BUT IT DOES LITTLE TO RETAIN CLIENTS AND HAS TECHNICAL CHALLENGES. 177 AUTHORS 180 DISCLAIMER 181 To order the full report, please click here. MOBILE APPS FOR WEALTH MANAGEMENT 5

6 TABLE OF CHARTS Trend over the past 3 years Ritz-Carlton Mobile App BNP Paribas NextGen Club app AsiaNews A peek into Credit Suisse Asia Pacific app capabilities A peek into UBS app capabilities Source: Statista as of end April Hyatt Chatbot Advertising Facebook Messenger Airline Bot Sample Bot Communication Average Retention Rates Pyramid of Silver, Gold and Platinum Capabilities Peek Balance Example (DBS) Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Best Practice XXX Critical app functions Trends over the past 3 years Criteria coverage availability of mobile apps Ranking availability of mobile apps Criteria coverage core functions for clients Ranking core functions for clients Criteria coverage security Criteria coverage customer retention and marketing Ranking customer retention and marketing Criteria coverage contact features Ranking contact features Criteria coverage technical features and support Ranking technical features and support Criteria coverage platform integration Ranking platform integration MOBILE APPS FOR WEALTH MANAGEMENT 6

7 Year on year performance of banks 2015 and Trends in performance 2015 and Criteria coverage Wealth Service Indicator Ranking Wealth Service Indicator Criteria coverage Personalization Ranking personalization Average performance in the Silver, Gold and Platinum categories Criteria coverage Platinum features Ranking Platinum features Criteria coverage Gold features Ranking Gold features MOBILE APPS FOR WEALTH MANAGEMENT 7

8 1.0 SUMMARY Wealth managers have come to acknowledge the importance of mobile apps: 82 percent provide their clients with apps that cater exclusively and specifically to the needs of high-net-worth individuals. These is one of the key findings of this report for which MyPrivateBanking Research analyzed and ranked, in total, 60 mobile apps of 30 leading wealth managers worldwide. The share of exclusive apps for wealthy clients increased significantly compared to our last year s survey, when the average in this category was at 63 percent. In MyPrivateBanking s view the question for wealth managers is no longer if they should have a mobile app, but how they can develop a winning mobile app to provide them with an essential competitive advantage. However, many private banks struggle to offer state of the art apps. They cover basic requirements but still do not differentiate themselves from retail apps and fail to offer their wealth clients a valuable and personalized digital journey. Top 5 Wealth Managers with the Best Mobile Apps A select group of wealth managers leads our ranking when it comes to addressing the digital needs of HNW clients: Rank 2016 (2015) Wealth Manager Total Points (max. 80) 1 (9) UBS 69 2 (2) Credit Suisse 65 3 (1) BNP Paribas 64 4 (7) DBS 61 5 (4) Societe Generale 58 The leading wealth managers mobile apps rated particularly high for their offerings of remote channels for client and advisor interaction and advanced personalization capabilities. The full report profiles and analyses in detail the mobile apps of the Top 30- wealth managers and offers an overall ranking of their app offerings as well as a separate ranking for each of the offered app features. MOBILE APPS FOR WEALTH MANAGEMENT 8

9 Wealth managers apps should go beyond the usual The MyPrivateBanking report identifies overall several weak points in the available mobile apps for wealth management, among them a lack of core functions such as interactive tools for portfolio analysis (only offered by 11 out of 30 wealth managers) and the fact that not even half of the wealth managers allow direct contact to a personal advisor. In addition, features for customer retention and marketing were considered to be sub-standard, as only eight wealth managers offer access to an exclusive customer magazine, and personalized, targeted push messages are found in only seven wealth management apps. In total the reports details the performance of eight different app features and identifies must-have, advanced and particularly innovative features. 15 best practices provide in-depth illustrations on how to optimize these features for mobile apps targeted towards wealthy clients. The report analyses in distinct profiles what can be learned from each wealth managers mobile apps offerings and draws as well numerous strategic recommendations for developing a top performing wealth app such as: Develop a dedicated and exclusive wealth app. Wealth management clients expect extra value and differentiation from the retail experience. Offering a true wealth app begins with an exclusive design and color scheme, a personalized greeting when logging in, direct access to an advisor and access to relevant and inspiring content. Build a remote channel for client and advisor interaction. The whole business model of wealth management is transforming as a result of the technical opportunities brought about by the digital revolution. Wealth managers should see this revolution as an opportunity and embrace the possibilities for interacting with clients on a whole new level. Work on an omni-channel strategy. The whole idea of an omni-channel strategy is to offer clients the opportunity to choose how they will interact with their wealth manager. Wealth managers need to provide the infrastructure to enable such an omni-channel experience, for instance through seamless integration of the social media platforms and mobile apps. The report details as well why wealth managers should watch the robo-advisors revolution. What sound like distant future scenarios to many are already a reality for new FinTech providers that are also beginning to penetrate the wealth management market. Sophisticated wealth apps should provide clients with tools to build hypothetical portfolios and receive product recommendations based on their unique financial situation. MOBILE APPS FOR WEALTH MANAGEMENT 9

10 2.0 OVERALL RANKING Rank 2016 Wealth Manager Total Points Availability of Mobile Apps (max 8) Core functions for clients (max 20) Security (max 7) Customer retention and marketing (max 13) Contact features (max 8 ) Technical features and support (max 12) Platform integration (max 9) Best Practices (max 3) 1 UBS 69 2 Credit Suisse 65 3 BNP Paribas 64 4 DBS 61 Societe 5 Generale MOBILE APPS FOR WEALTH MANAGEMENT 10

11 3.0 WEALTH SERVICE INDICATOR RANKING Bank Points The Wealth Service Indicator was newly introduced in this study in order to show the level of wealth service of an app. Some apps offer a lot of content and features but lack specific wealth features, that make the difference between a retail app and a truly sophisticated wealth app. (more in full report) Coloring of cells indicates relative performance in the respective categories. Green: top performance Light Green: better than average Yellow: average Orange: below average Red: lacking MOBILE APPS FOR WEALTH MANAGEMENT 11

12 4.0 METHODOLOGY SELECTION OF BANKS AND APPS This study analyzes the mobile apps of 30 leading private banks and wealth managers that offer apps for their private clients. The banks under evaluation were selected on the basis of their wealth management assets under management by the end of 2015, provided that the wealth managers had a significant mobile presence. A small group of wealth management firms was added to our selection despite their assets under management being below the threshold mark. These providers were admitted in order to make sure that all global regions were represented. For all wealth managers, mobile apps were identified globally on various mobile app platforms including Apple ios, Android, BlackBerry and Windows Phone. To be included in the evaluation, an app had to exhibit at least some features that are specifically for HNW clients, such as investment portfolio overview, trading/brokerage capability, and content and features that are of particular interest to wealth clients. We have excluded apps that are solely intended for institutional clients or commercial clients. Also excluded were any apps that were solely dedicated to a bank s investor relations activities or apps with a clear retail focus. Apps were included in the analysis if they met the following criteria: Available to wealth clients The apps had to be promoted as wealth management apps on the website or in the app store description. (more in full report) USE CASES AS A GUIDELINE Use Case Portfolio check Trading and brokerage Objectives Overview of investment portfolio and portfolio analysis capabilities (asset allocation, performance over time) (more in full report) MOBILE APPS FOR WEALTH MANAGEMENT 12

13 The criteria were derived from use cases defined on the basis of years of research in this field, including, for example, regular in-depth interviews with wealth managers and comprehensive surveys aimed at profiling today s digital use patterns of high-net-worth clients (for more information, see here). (more in full report) EVALUATION PROCEDURE Two analysts evaluated each app independently of each other within an interval of four weeks to minimize the possibility of faults due to subjective points 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 50 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, newspaper coverage, etc. (more in full report) 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. In contrast to previous editions of the report, we were stricter with regard to the inclusion of embedded website content. So called wrapper apps can be downloaded in app stores but are heavily reliant on website content. Whilst this was considered okay when mobile apps were just introduced, it is no longer tolerable to have such a solution, as user experience is considerably impaired. We measured usability in terms of eight overarching criteria: Availability of mobile apps Core functions for clients Security Content and features for customer retention and marketing Contact features Technical features and support MOBILE APPS FOR WEALTH MANAGEMENT 13

14 Platform integration Best practices In the following, the parameters for each criterion 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. These changes, along with several minor adjustments (e.g. in the weighting for the criteria), reflect current developments and future trends in the interface of wealth management and the digital world for the current MyPrivateBanking report criteria on Mobile Apps for Wealth Management. Newly added criteria reflect changes in the overall environment and the constant development of technical features that can be realized in mobile apps. Overall, there is a trend towards more interactivity and remote advisory within the wealth management industry. (more in full report) WEALTH SERVICE INDICATOR The Wealth Service Indicator was newly introduced in this study in order to show the level of wealth service of an app. Some apps offer a lot of content and features but lack specific wealth features, that make the difference between a retail app and a truly sophisticated wealth app. (more in full report) The Wealth Service Indicator measures performance in the following categories: Specific app for wealth management clients: Only apps that are specifically dedicated to wealth management clients will offer a user experience that is adapted to the needs of the HNW clientele. Only offering the retail app to wealth clients will not be enough here. Of course there are other solutions, such as offering a wealth skin to wealth clients instead of featuring a stand-alone app. The most important thing is giving HNW clients the feeling that their needs are met. (more in full report) MOBILE APPS FOR WEALTH MANAGEMENT 14

15 5.0 STRATEGY: MOBILE APPS - A WEALTH MANAGER S STRONGEST COMPETITIVE ADVANTAGE (more in full report p.27 to 52) 6.0 TOP 15 BEST PRACTICES (more in full report p.53 to 64) 7.0 SUMMARY OF FINDINGS (more in full report p.65 to 88) 8.0 INDIVIDUAL WEALTH MANAGER PROFILES (more in full report p.89 to 179) MOBILE APPS FOR WEALTH MANAGEMENT 15

16 AUTHORS Rosalia Engchuan, Analyst, has a research focus on the mobile and web presences of wealth managers and banks as well as on the impact of disruptive technologies on the wealth management sector. She specializes in online communication technologies and mobile channel strategies. Rosalia has previously worked as a CSR Analyst in Kuala Lumpur, Malaysia and as digital media consultant. She studied in Germany and Malaysia holds a Bachelor Degree in Asian Studies and Management. Anton Venter, Analyst, does research on the use of technology for applications supporting banks and wealth managers, with a focus on Customer Servicing channels and Intermediary Support applications. Before focusing on research he worked for over 26 years at Old Mutual, a leading financial services institution in South Africa. As Technology Architect his role included functions such as vendor management, technology road mapping and the practice of Enterprise Architecture. Anton holds a Master s Degree in Computer Science from the University of Cape Town. Steffen Binder, Managing Director and co-founder of MyPrivateBanking Research. Steffen is Head of Research and oversees the research agenda and analyst teams. He is responsible for creating and developing powerful concepts and relevant content to help our clients navigate a rapidly changing digital environment. As a regular speaker at finance and technology industry events around the globe, Steffen is frequently quoted by leading business media such as the Wall Street Journal, Handelsblatt and the Financial Times. Prior to this, Steffen was Managing Director of Forrester Germany, Switzerland and Austria. He came to Forrester through its acquisition of Forit GmbH, a leading European technology research company, of which he was also a co-founder. Prior to that, Steffen was a partner at Monitor Company (Strategy Consulting). He holds Master s Degrees in Organizational Behavior from Rutgers University (USA) and in Public Administration from the University of Konstanz (Germany). MOBILE APPS FOR WEALTH MANAGEMENT 16

17 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. MyPrivateBanking GmbH Hafenstrasse 50B CH-8280 Kreuzlingen, Switzerland Tel For our latest reports please check: MOBILE APPS FOR WEALTH MANAGEMENT 17