MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Archive for the ‘mobile banking’ Category

Mobile apps for wealth management: Will innovation beat complacency?

Thursday, September 28th, 2017

It has been 10 years since the Apple released its first smartphone, a technology that has become a part of everyday life and facilitated the growth of apps. Since then, consumers have been exposed to innovative and well-designed  apps - as well as online security breaches and fraud. Their experience with apps in their daily life has made them savvier when it comes to what they expect from their private banking and wealth management apps.

While other digital industries have taken agility - the ability to evolve and adapt their digital products to customers’ need quickly - to heart and in practice,  private banks and wealth management firms are still struggling with this important concept. This is especially clear from their digital offerings, particularly in their mobile apps for U/HNW clients.

Based on our new benchmarking report, Mobile Apps for Wealth Management,  75% of the 34 companies we profiled that provide apps for wealthy clients lack innovative features that are helpful to their clients’ financial lives. Many wealth managers consistently underperform in the provision of advanced portfolio features, interactive portfolio tools, top-notch security, and contact features to their wealth clients.

This is alarming because in an age where technology is moving fast - dragging  clients’ expectations with it -  not having an app strategy is the biggest competitive disadvantage facing wealth managers and private banks. Private banks and wealth management firms with weak apps risks irrelevance and losing their clients to other banks or FinTech startups that offer more user-friendly and innovative features as well as value-added services.

One area where private banks and wealth managers have to step up is security.  This is a concern because wealthy clients will not tolerate data breaches and unauthorized use of their data. Banks must employ top-notch security and anti-fraud measures in their apps and constantly evaluate it in order to keep up with malwares and other attacks.  One private bank client who spoke with MPB expressed incredulity at the lack of two-factor authentication in his/her app, which is already standard for credit card companies and retail banks. “I work with are far better and more trustworthy than the ones from my wealth manager, who is handling my entire net worth. They have to change this if they want to keep me as a client,” the client said.

Another area for improvement is the core app features for wealth management. While there has been a slight rise in this category since 2016, the apps that we evaluate this year lack around 40% of the core features we expect to find in wealth management apps.  As technology improves, some advanced portfolio tools such as virtual portfolios and automated, risk re-assessment tools have become standard and average features. Wealth managers who are slow in applying emerging technologies to core features risk an ineffective and boring app and, consequently, losing their clients.

Despite these shortcomings, we do see some  signs that a select few private banks and wealth managers are innovating to anticipate clients’ needs-and running away from the competition in this regard. We find some banks that integrate gamification and virtual reality in their apps, for instance. Content for marketing and client retention by way of thought leadership, market news and insights, also improved from 2016 to 2017.

Overall, we urge wealth managers to develop agile mobile strategies and integrate new technology quickly in their mobile offerings to U/HNW clients.  As agile development is also based on  feedback, banks and wealth managers should also be proactive in getting their clients’ feedback early in the development process and collaborate with other stakeholders to improve their mobile services for the wealthy.

 

Chatbots for Banking and Wealth Management 2016: Why financial institutions should employ virtual assistants

Thursday, December 15th, 2016

Artificial Intelligence (AI) and chatbots are a very big topic at the moment. Yet, there are a lot of uncertainties related to the emergence of this new mega-trend. Chatbots are software-based agents that can lead an intelligent conversation with users, sometimes based on AI, sometimes based on pre-defined responses. So basically you are chatting with a robot. This trend has already arrived in the financial services industry with FinTechs, Challenger Banks and also established players starting to jump on the bot wagon. These are very interesting times as bots are going to revolutionize the way companies will interact with their clients and we are now seeing the first real examples of bots being launched in the financial services industry. We can definintely say, that the bot trend is something that noone can ignore!

In our new report Chatbots for Banking and Wealth Management: Why financial institutions should emply virtual assistants we investigate the ways chatbots are already used in banking and wealth management and explore how they will revolutionize the future client interaction. For our assessments and recommendations, we screened more than 100 established banks and wealth managers to identify and analyzes the 35 most advanced and innovative chatbots and virtual assistants. In addition the report evaluates state-of-the-art chatbots by 9 FinTechs and challenger banks and as well the offerings of 8 bot developers.The report provides data driven answers to following key questions a financial institutions should ask when using bots of client interaction:

  • What does the current landscape for chatbots in financial services look like and what drives the developments?
  • Which are the most advanced chatbots in the financial services sector, how do they look and what do they offer?
  • How will bots change and enhance the client interaction and communication?
  • How to choose the right bot, platforms and implementation?
  • What do the vendors offer?


 

Biometric authentication to go mainstream in 2016

Friday, January 8th, 2016

Digital banks become more and more attractive to millennials who expect secure and convenient banking solutions when on-the-go. Atom Bank (based in the UK) is the latest online bank promoting innovative features that put brick-and-mortar retail banks and wealth management firms under pressure as they have difficulties to keep pace with the latest technology trends. Atom Bank uses a combination of biometric technology empowering clients to authenticate password-free by means of face and voice recognition technology. Another example is the more staid USAA financial conglomerate that already uses IdentityX, the biometric platform by Daon.

The increasing popularity of biometric authentication methods will surely challenge the banking industry and tech giants like Google to offer improved client experience and secure login options. Google’s new password free login allows invited users to sign in their Google account by responding to a notification sent to their smartphone; the new login option fails to add security to mobile users whose smartphones have no lock-screen protection or fingerprint identification option in case their smartphone is stolen. Google will be challenged to offer something more secure and customer friendly – something that could be delivered by biometric authentication.

Client habits and potential regulatory hurdles may slow down the move to biometric authentication but we have no doubt that the future lies beyond manual passwords and (SMS) token. The future will offer a seamless digital experience to every client – from log-in throughout the complete customer journey.

 

How Banks Fail to Make Their Apple Watch Apps Personal

Monday, November 30th, 2015

In our analysis of the Apple Watch banking apps offered by 22 of the largest retail banks worldwide, we come to the conclusion that the first generation of banking apps reveal some major shortcomings while in other industries, there are already several outstanding examples.

The infographic below displays the share of points the banks achieved for the nine features an Apple Watch banking app should contain. The results show that amongst other aspects, banks yet have to recognize the main benefit of a smartwatch app – the access to a very personal accessory of their clients that allows banks to get closer to their clients’ daily lives. Hence, Apple Watch apps should particularly deliver mobile moments that excite clients. Making use of the client’s location, interests, and financial situation for personalized offers, news, and product offerings is a field not yet explored by the leading retail banks, albeit adding substantially to a bank’s equipment in the race for clients’ attention.

The study shows how in other industries apps perform very well in delivering such mobile moments amongst other impressing best practices banks should take a closer look at when developing their Apple Watch apps.

Don’t miss out on our new study available tomorrow to not lose sight of what really matters when developing your Apple Watch app. sum

 

Bank at your Wrist: How the Apple Watch will Reinvent Banking

Monday, November 23rd, 2015

This week MyPrivateBanking Research releases the first comprehensive report on banking apps of the largest retail banks worldwide that run on the Apple Watch.

The report shows that the market for wearables will substantially benefit from the launch of the Apple Watch as it continues to grow to over $ 12 billion by 2018. The implication for banks is obvious: as the market penetration of smartwatches is increasing, the demand for banking apps that run on these devices will increase at the same rate. Actually, many banks are adopting this technology already today: The MyPrivateBanking report evaluates 23 Apple Watch apps of 22 banks and compares their overall performance. The evaluation comes to the conclusion that today’s Apple Watch banking apps are mainly providing only very basic features lacking the capability to excite clients. Outstanding examples from other industries and comprehensive strategic recommendations complete the study.

Watch out for our concise guidelines helping banks to take the right steps towards a winning Apple Watch app.

Wearable device market value from 2010-2018

 

Forget passwords. Pay with a selfie!

Wednesday, October 28th, 2015

From passwords to two-factor authentication, bio-authentication, and tokenization, both consumers and cybercriminals have forced the online and mobile banking industry to come up with innovative and convenient security technologies. The latest functionality announced to be available to US e-commerce consumers in the middle of 2016 is MasterCard’s new facial recognition-based identification method. Online retailers will be able to authorize a transaction by taking a snapshot of their face and blinking once (to prevent fraudsters from holding up a picture of the retailer and fooling the system).

Particularly popular with Millennials or the ‘selfie-generation’, using selfies to authorize transactions is a clear advantage to passwords/ PINs as it saves consumers from remembering complicated combinations of numbers or letters.

Just like other biometric authentication functionalities, ‘pay by selfie’ is surely on-trend but it remains uncertain how secure the new technology is. Biometrics that rely on static information like face recognition or fingerprints can be easily faked; the case of the German defense minister Ursula von der Leyen’s fingerprint cloned just from photos is a solid proof in this sense.

The retail banking industry is rushing its way in offering consumers innovative mobile technology functionalities but the next generation of mobile banking apps needs to include stronger security features to make cyberattacks impossible.

 

How Credit Suisse moved from app laggard to app champion

Thursday, October 22nd, 2015

In our Mobile Apps for Banking 2015 benchmark, Credit Suisse appears to be the most successful bank when it comes to continuous improvements during the last three years.

While DBS and BNP Paribas are on top of our rankings regularly, Credit Suisse managed to jump from the 13th rank in 2013 to the 9th rank in 2014 and arrive at the third rank in this year’s evaluation of the banking apps offered by the 35 largest retail banks worldwide.

Credit Suisse is rolling out its new digital strategy since beginning of this year and the continuously improving performance of its mobile flagship Private Banking Schweiz shows its great success. These are the four improvements that had most impact on its progression:

Core functions: The new version now offers a complete set of core functions, including trading.

Add-ons for clients: Clients can view their finances graphically, making it easy and convenient to check the financial situation at a glance.

Content for customer retention and marketing: Clients can now apply for new products and services directly from the app and they have access to a comprehensive section discussing mortgage, including video material, calculators and tips.

Attraction of a whole client segment: The Viva app contains valuable rewards and music streaming offerings, which is particularly attractive to the young client segment.

 

Part No. 4: Guess who has made the most progress on mobile apps for banking?

Thursday, October 1st, 2015

Here’s the fourth hint for our little quiz about which bank showed an outstanding effort in continuously improving its core banking app in our yearly ‘Mobile Apps for Banking’ benchmarking:

4.) THE BANK WE ARE SEARCHING IS KEEPING PACE WITH THE LATEST TRENDS, OFFERING A SMARTWATCH APP THAT ADDS A LOT OF VALUE TO INVESTORS

Watch out for our new report coming soon!

 

Part No. 3: Guess who has made the most progress on mobile apps for banking?

Wednesday, September 23rd, 2015

Here’s the third hint for our little quiz about which bank showed an outstanding effort in continuously improving its core banking app in our yearly ‘Mobile Apps for Banking’ benchmarking:

3.) THE BANK’S CORE APP EXCELS THROUGH ENGAGING CONTENT WHILE PROVIDING EXCELLENT USABILITY

Watch out for our new report coming soon!

 

Part No. 2: Guess who has made the most progress on mobile apps for banking?

Wednesday, September 16th, 2015

Here’s the second hint for our little quiz about which bank showed an outstanding effort in continuously improving its core banking app in our yearly ‘Mobile Apps for Banking’ benchmarking:

2.) THE CORE APP OF THE BANK WE ARE SEARCHING CONTAINS INNOVATIVE PAYMENT OPTIONS FOR CONVENIENT TRANSACTIONS

Watch out for our new report coming soon!

 
Subscribe