MOBILE APPS FOR WEALTH MANAGEMENT

1 MOBILE APPS FOR WEALTH MANAGEMENT Innovation Leaders and Innovation Laggards BENCHMARKING BEST PRACTICES STRATEGY Report Extract Original Report with 240 pages plus comprehensive data appendix June 2015 MyPrivateBanking Report 3 rd edition

MOBILE APPS FOR WEALTH MANAGEMENT 2015 2 CONTENTS TABLE OF CHARTS 5 1.0 EXECUTIVE SUMMARY 7 2.0 RANKING 10 3.0 METHODOLOGY 12 3.1 SELECTION OF BANKS AND APPS 12 3.2 USE CASES AS A GUIDELINE 14 3.3 EVALUATION PROCEDURE 15 4.0 STRATEGY 24 4.1 THE DRIVERS OF CHANGE IN HNW CLIENTS MOBILE AND DIGITAL BEHAVIOR 24 4.2 TECHNOLOGY-DRIVEN HIGH-NET-WORTH CLIENTS IN A CONSERVATIVE BANKING WORLD 26 4.3 HOW RAPID TECHNOLOGY DEVELOPMENT IS CHANGING USER BEHAVIOR 32 4.4 WEARABLE DEVICES A NEW GENERATION OF MOBILE TECHNOLOGY WILL CHANGE MOBILE BANKING 35 4.5 CHANGE OF COMPETITIVE DYNAMICS: NEW ROBO-ADVISORS AND THE AUTOMATION OF WEALTH MANAGEMENT 39 4.6 ELEMENTS OF A MOBILE STRATEGY 41 4.7 CRITICAL FUNCTIONS 43 5.0 SUMMARY OF FINDINGS 49 5.1 IOS AS THE LEADING OPERATING SYSTEM IS THE DRIVER OF SMARTWATCH APPS 50 5.2 TRADING STILL A STEPCHILD FOR WEALTH MANAGEMENT APPS 51 5.3 APP STORES STILL REMAINING SILENT ON SECURITY 52 5.4 WEALTH MANAGEMENT APPS FAIL TO ADDRESS HNW CLIENTS INFORMATIONAL NEEDS 53 5.5 WEALTH MANAGEMENT APPS STILL RELY MAINLY ON BASIC CONTACT OPTIONS 54 5.6 WEALTH MANAGEMENT APPS EXCEL THROUGH SUPPORT FEATURES 55 5.7 SOCIAL MEDIA INTEGRATION STILL IGNORED BY THE MAJORITY 56

MOBILE APPS FOR WEALTH MANAGEMENT 2015 3 6.0 THE TOP FIVE STANDALONE APPS 57 7.0 PROFILES 59 7.1 ABN AMRO 59 7.2 BARCLAYS 65 7.3 BNP PARIBAS 70 7.4 BNY MELLON 76 7.5 CHARLES SCHWAB 81 7.6 CITI PRIVATE BANK 86 7.7 COUTTS 91 7.8 CREDIT SUISSE 96 7.9 DANSKE BANK 102 7.10 DBS 108 7.11 DEUTSCHE BANK 114 7.12 FNB 121 7.13 GOLDMAN SACHS 127 7.14 HSBC 132 7.15 HYPOVEREINSBANK 137 7.16 ING 142 7.17 INVESTEC 147 7.18 J.P. MORGAN 153 7.19 JULIUS BAER 158 7.20 MERRILL LYNCH 163 7.21 MORGAN STANLEY 168 7.22 RBC 173 7.23 SOCIÉTÉ GÉNÉRALE 178 7.24 STANDARD CHARTERED 184 7.25 TD BANK 190 7.26 UBP 196 7.27 UBS 201 7.28 UNICREDIT 207 7.29 VONTOBEL 213 7.30 WELLS FARGO 218 8.0 BEST PRACTICES: THE BEST 15 MOBILE APPLICATION FEATURES 223 8.1 CORE FUNCTIONS 224 EXCELLENT INTERACTIVE CHARTS FOR PORTFOLIO ANALYSIS: BNP PARIBAS 224 PORTFOLIO STRESS -TESTING TOOL: XXX 225 COMPREHENSIVE INFORMATION TO SUPPORT TRADING: XXX 226 8.2 MARKETING AND CUSTOMER RETENTION 227 INTERACTIVE AND EDUCATIONAL GAME: XXX 227 DYNAMIC FINANCIAL PLANNING TOOL ENRICHING USER EXPERIENCE: XXX 228 UNIQUE FEEDBACK REQUEST: XXX 229 EXCELLENT SIMULATOR AND EDUCATIONAL TOOL: XXX 230

MOBILE APPS FOR WEALTH MANAGEMENT 2015 4 8.3 CONTACT AND COMMUNICATION FEATURES 231 EXEMPLARY CONTACT OPTIONS: XXX 231 SECURE INTEGRATED MESSAGING FUNCTION: XXX 232 DISCUSS RESEARCH ARTICLES WITH AN EXPERT: XXX 233 8.4 SUPPORT FEATURES 234 OUTSTANDING PERSONALIZATION FEATURES: XXX 234 COMPREHENSIVE SUPPORT FUNCTIONS: XXX 235 8.5 INNOVATIVE APPROACHES AND FEATURES 236 DYNAMIC MENU DESIGN: XXX 236 8.6 STRATEGY 237 EXEMPLARY INTEGRATION OF DEDICATED SOCIAL MEDIA: XXX 237 EFFICIENT INTEGRATION OF APPS: XXX 238 9.0 AUTHORS 239 10.0 DISCLAIMER 240 IMPORTANT NOTICE AND DISCLAIMERS: 240

MOBILE APPS FOR WEALTH MANAGEMENT 2015 5 TABLE OF CHART Criteria weighting in the 2015 report... 16 Comparison of criteria category weightings (2014 vs. 2015)... 16 Survey respondents most regularly used electronic devices by age segment... 26 Survey respondents most regularly used electronic devices by age segment... 27 Locations/situations where survey respondents use their mobile devices for financial matters by wealth segment... 28 Communication features survey respondents use most to communicate with their financial advisor... 30 User comments for the Credit Suisse Private Banking Switzerland app (Google Play store)... 31 Global mobile data traffic growth 2014-2019 (source: Cisco 2015)... 32 Drivers of mobile app usage (source: Cisco 2015)... 34 The Schwab Mobile app for Apple Watch... 38 The BNP Paribas Mes Comptes app for Android Wear... 38 The Deutsche Bank Meine Bank app for Apple Watch... 38 App performance for critical functions in % of maximum achievable points... 49 Availability of mobile apps for different operating systems in % of maximum possible points... 50 Core functions for clients in % of maximum possible points... 51 Security and privacy features in % of maximum achievable points... 52 Customer retention and marketing in % of maximum possible points... 53 Contact and finding the bank in % of the maximum possible points... 54 Technical features and support in % of maximum possible points... 55 Strategy and navigation in % of maximum possible points... 56 The top five standalone apps for 2015... 57 Criteria coverage of the ABN AMRO (MeesPierson) apps... 60 Criteria coverage of the Barclays apps... 66 Criteria coverage of the BNP Paribas apps... 71 Criteria coverage of the BNY Mellon apps... 77 Criteria coverage of the Charles Schwab apps... 82 Criteria coverage of the Citi Private Bank apps... 87 Criteria coverage of the Coutts apps... 92 Criteria coverage of the Credit Suisse apps... 97 Criteria coverage of the Danske Bank apps... 103 Criteria coverage of the DBS apps... 109 Criteria coverage of the Deutsche Bank apps... 115 Criteria coverage of the FNB apps... 122

MOBILE APPS FOR WEALTH MANAGEMENT 2015 6 Criteria coverage of the Goldman Sachs apps... 128 Criteria coverage of the HSBC apps... 133 Criteria coverage of the HVB apps... 138 Criteria coverage of the ING apps... 143 Criteria coverage of the Investec app... 148 Criteria coverage of the J.P. Morgan apps... 154 Criteria coverage of the Julius Baer apps... 159 Criteria coverage of the Merrill Lynch apps... 164 Criteria coverage of the Morgan Stanley apps... 169 Criteria coverage of the RBC apps... 174 Criteria coverage of the Société Générale apps... 179 Criteria coverage of the Standard Chartered apps... 185 Criteria coverage of the TD Bank apps... 191 Criteria coverage of the UBP apps... 197 Criteria coverage of the UBS apps... 202 Criteria coverage of the UniCredit apps... 208 Criteria coverage of the Vontobel apps... 214 Criteria coverage of the Wells Fargo apps... 219 App: XXX portfolio analysis screen... 224 App: XXX portfolio benchmarking screen... 225 App: XXX Quotes tool screen... 226 App: XXX The housing collapse screen... 227 App: XXX - Personal Financial Assistant screen... 228 App: XXX entry screen... 229 App: XXX InvestmentFinder tool... 230 App: XXX video presentation of the app on the website... 231 App: XXX Bankmail messaging screen... 232 App: XXX: Asian Insights screens with dedicated contact options... 233 App: XXX - Features store screen... 234 App: XXX portfolio overview screen and over layer support screen... 235 App: XXX spinning wheel dashboard... 236 App: XXX Twitter Updates screen... 237 App: XXX entry screen providing access to integrated apps... 238

MOBILE APPS FOR WEALTH MANAGEMENT 2015 7 EXTRACT OF EXECUTIVE SUMMARY (Executive summary in full report) 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 19 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 wellpublicized threats from hackers, fraudsters and data manipulation that high-networth clients are facing today.

MOBILE APPS FOR WEALTH MANAGEMENT 2015 8 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-networth 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.

MOBILE APPS FOR WEALTH MANAGEMENT 2015 9 2.0 RANKING Rank 2015 Rank 2014 Wealth manager Total points (max. 80 points) Availability of apps (7) Core functions (12) Security and privacy (8) Customer retention and marketing (17) Contact/finding the bank (10) Technical features/support (12) Strategy and navigation (12) Best practices (2) 1 3 BNP Paribas 65 2 23 RBC 61 2 5 Credit Suisse 61... 4 22 59 5 12 7 12 6 8 8 1 4 7 59 6 8 5 14 6 8 10 2 4 17 59 6 9 8 7 7 11 9 2 7 1 58 5 9 7 9 6 9 11 2 8 2 56 5 10 7 11 5 10 6 2 9 7 55 3 12 7 13 3 7 8 2 10 11 54 5 8 7 9 7 8 9 1 11 6 53 6 5 6 6 7 10 11 2 12 12 50 5 12 6 5 5 10 5 2 13 n/a 49 5 11 7 6 5 9 6 0 14 14 49 4 11 5 6 4 9 8 2

MOBILE APPS FOR WEALTH MANAGEMENT 2015 10 Rank 2015 Rank 2014 Wealth manager Total points (max. 80 points) Availability of apps (7) Core functions (12) Security and privacy (8) Customer retention and marketing (17) Contact/finding the bank (10) Technical features/support (12) Strategy and navigation (12) Best practices (2) 15 n/a 48 5 7 4 7 4 8 11 2 15 25 48 4 12 7 4 5 9 7 0 15 18 48 6 8 8 6 5 8 6 1 18 18 47 5 9 6 7 4 9 7 0 19 10 46 6 9 6 4 2 9 9 1 19 12 46 6 11 5 4 3 9 6 2 21 20 45 5 6 7 3 5 12 7 0 22 n/a 40 3 10 5 6 3 7 5 1 23 28 39 3 7 4 4 2 9 9 1 23 30 39 4 7 4 1 4 10 7 2 25 n/a 36 4 3 4 3 3 10 8 1 26 29 35 5 8 4 1 2 8 7 0 27 n/a 34 2 4 8 4 4 5 7 0 27 n/a 34 5 8 5 0 4 9 3 0 29 7 33 5 6 5 5 3 7 2 0 30 24 32 5 1 1 9 3 3 8 2 Average points 47.9 4.7 8.5 5.8 6.8 4.6 8.7 7.7 1.2

MOBILE APPS FOR WEALTH MANAGEMENT 2015 11 3.0 METHODOLOGY 3.1 SELECTION OF BANKS AND APPS This study analyzes the apps of 30 leading private banks and wealth managers that offer apps for their private clients. 3.2 USE CASES AS A GUIDELINE 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). Grouping the representative user profiles reflecting user preferences and concerns played an important role in the weighting of the criteria. Use case User group Objective Portfolio information Existing clients See an overview of one s investments and/or portfolio analysis (asset allocation, performance over time)

MOBILE APPS FOR WEALTH MANAGEMENT 2015 12 3.3 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 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 53 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. 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 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. Availability of mobile apps (maximum 7 points) Core functions for clients (maximum 12 points) Security and privacy (maximum 8 points)

MOBILE APPS FOR WEALTH MANAGEMENT 2015 13 Content and features for customer retention and marketing (maximum 17 points) Contact and finding the bank (maximum 10 points) Technical features and support (maximum 12 points) Strategy and navigation (maximum 12 points) Best practices (maximum 2 points) In this year s evaluation, we decided to follow a stricter approach and check supplementary apps only for certain criteria that do not have to be fulfilled by core apps. For instance, supplementary apps could not score for basic features like contact options or payment functions. The following table gives an overview of the criteria and the type of app by which they can be met:

MOBILE APPS FOR WEALTH MANAGEMENT 2015 14 4.0 STRATEGY

MOBILE APPS FOR WEALTH MANAGEMENT 2015 15 5.0 SUMMARY OF FINDINGS

MOBILE APPS FOR WEALTH MANAGEMENT 2015 16 6.0 THE TOP FIVE STANDALONE APPS Rank Wealth Manager Name of app Total points 1 65 2 59 3 55 3 55 5 52 The top five standalone apps for 2015

MOBILE APPS FOR WEALTH MANAGEMENT 2015 17 7.0 PROFILES ( more in full report, page 59 to 224)

MOBILE APPS FOR WEALTH MANAGEMENT 2015 18 8.0 BEST PRACTICES: THE BEST 15 MOBILE APPLICATION FEATURES ( more in full report, page 225 to 238)

MOBILE APPS FOR WEALTH MANAGEMENT 2015 19 9.0 AUTHORS 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). Carmela Melone, Analyst, specializes in research in the fields of social media for wealth management and mobile apps for financial advisors. Her specific areas of interest are in software benchmarking, channel strategy and online security. Prior to this, she worked at an exchange platform for intellectual property rights, responsible for the digital media marketing strategy. Carmela has a Bachelor s degree in International Economics and European Studies from the University of Tübingen (Germany). Roxana Palade, Analyst, specializes in research in the fields of mobile apps for wealth management and online presences of wealth managers. Her specific interest are in the areas of Web 2.0 technologies, vendor management and data mining. Roxana has held a number of research positions in business and academia in Germany, India and Romania. She has a Master s Degree in British and American Studies from the University of Konstanz (Germany) and a Master s Degree in Literature from the Alexandru Ioan Cuza University, lasi (Romania).

MOBILE APPS FOR WEALTH MANAGEMENT 2015 20 10.0 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. MyPrivateBanking GmbH Konstanzerstrasse 60 CH-8274 Tägerwilen, Switzerland Tel. +41 71 566 10 05 For our latest reports please check: http://www.myprivatebanking.com/category/reports