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Archive for the ‘digital trends in banking’ Category

Tech vendors’ surprising ideas about wealth management digitization

Thursday, May 4th, 2017

In My Private Banking’s latest report, on the digitalization of advisor functions, we interviewed just over 20 people from 13 different wealth management technology providers and various other industry experts.  Our interviewees gave us some fascinating insights into the direction and pace of innovation but had a number of surprises for the My Private Banking analysts.

Small surprises - but nevertheless significant findings - included a general air of confidence among technology providers about the value of their contribution and their assessment of the outlook for their wealth management clients. Initially, we thought that technology vendors might not be so sure that their digitalization message was finding willing listeners in the wealth management industry.

However there were bigger surprises in store for our researchers, firstly in our interviewees’ evaluation of the relative importance of regulatory compliance the remainder of the current decade and, secondly, perhaps most unexpectedly of all, in their estimation of the part that AI and machine learning will play in advisor digitalization in the near-term.  This provides a useful reality check to some of the technology hype that’s currently popular around the topic of AI.

Overall, our analysis of the future of advisor roles and the part likely to be played by robo advisory services was confirmed, giving us a clear picture of advisors and digital tools working in concert as a dominant model of service.

Last of all, we were a little surprised at the relatively minor attention given to the way in which advisors and relationship managers will experience the change to their roles and work styles through digital enabling.

Our report provides detailed coverage of the difference digitalization will make to compliance, advisor-client interactions (and hence client ratios and overall efficiency) and in which technologies and functions we can expect change soonest.  In addition, we have analyzed the impact of advisor digitilization on communication channels and client journeys.  Our researchers have endeavored to convey the feel of our conversations with technology providers through plentiful quotations and the report sums up My Private Banking’s findings with a number of clear recommendations for wealth management firms and private banks.

 

Swissquote’s new virtual reality trading app: the game-changer or just a hype?

Monday, February 20th, 2017

It’s no science fiction story, nor fake news: VR trading is possible!

Showing an excellent understanding of how to take their digital and client engagement strategy further and create unique experiences, the Swiss financial company Swissquote has recently released a new app that enables trading with virtual reality glasses. By using a VR headset, users are enabled to view the status of their accounts, check stock prices, currency pairs and key figures in a 360 -degree perspective, as well as to execute trades by focusing their eyes on the symbol. This creative approach facilitates a different client experience by enabling users to access information and trade in a highly dynamic way.

As already emphasized by our analysts, gamification will continue to play an important role especially in young consumers’ approach towards banking and trading. The demand for creative and convenient tools and features for mobile use will definitely continue to grow. Millennials, in particular, love it when viewing their portfolio on-the-way is made enjoyable using gamification techniques or when they can quickly track their spending or savings by means of visually engaging icons. Alternatively, customer engagements can also be maximized by introducing gamification elements like customization options in promoting products or displaying client information: it creates a personal experience and gives clients the feeling of being in control while also emphasizing you as an adopter of the latest tech trends.

With Swissquote setting the tone for innovative use of VR-based technology, it won’t be long until we’ll find ourselves in a VR-based setting discussing our retirement plans or investment scheme with an enjoyable chatbot (available round the clock).

The interesting storyline will be to see as many banks and financial companies embrace innovation and leverage the potential of both VR and AR-based technology, which can facilitate customers access to a new dimension giving the feeling of a virtual infinite space. A fresh perspective for (re-)building a distinct client relationship.

 

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?


 

New Report: Mobile Apps for Wealth Management

Monday, May 30th, 2016

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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.

Almost eight years ago, in July 2008 the Apple App store was launched and Google Play followed only a few months later. Since then the app market has grown, apps have become an essential part of our lives and the technical possibilities have developed a lot. The wealth management industry is typically not among the first movers when it comes to technical innovations but we have seen that the market of mobile apps for wealth management is slowly but surely catching up. In our latest study Mobile Apps for Wealth Management we have analyzed the mobile apps of 30 of the biggest wealth managers worldwide. We have found that in contrast to the previous years, the number of wealth managers that offer dedicated apps to their wealthy clients has increased (from 63% in 2015 to 82% in our latest 2016 study).

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New survey: Investors surprisingly open when it comes to robo-advisors

Tuesday, May 10th, 2016

Our new report on investors’ attitudes towards robo-advisors is based on a survey covering (mass-)affluent and HNWI in the UK and the US. The 600 respondents answered questions with regard to their awareness of robo advice, benefits and risks of automated investing, awareness of existing players and many others.

One of the main findings is that investors are generally very open to the new technology as more than 70% believe that automated advisory tools can positively influence their wealth manager’s advice and decision-making process. Particularly when it comes to onboarding processes, investors see huge benefits in automated online tools – 74% think that the technology is likely to speed up registration and, hence, lead to an increased efficiency and convenience.

Similarly encouraging, investors’ awareness of the robo technology is surprisingly high: 45% of the entire sample already heard or read about the concept of robo-advisors and 20% state to know quite a lot about it or even know it in detail. At the same time, the share of people saying that they don’t think to be using robo advice in the future is 20%, which is mainly driven by the older age segment with 55 years and above. Interestingly, the share of the hesitant appears to be more than twice as high in the US (28%) than in the UK (12%).

In the US, the largest share of respondents selected Charles Schwab Intelligent Portfolios as the brand they associate most with robo advice (43%) while in the UK, it is Nutmeg that leads the field, with the same share. This is quite interesting since original robo providers such as Betterment (18%) or Wealthfront (13%) seem to be far less known – this is a strong sign that it is a lot easier for established wealth management brands to promote their automated services.

Our new survey report elaborates on these and a lot more findings that draw a very clear picture of wealthy investors’ adoption of the robo advice technology. In addition to the general results, the report describes the main differences among the two focus countries, UK and USA, different wealth segments (mass affluent, affluent, and high-net-worth) as well as different age segments in order to derive valuable recommendations and learning points dedicated to wealth managers’ target client groups.

 

New FinTech deal: Goldman Sachs buys Honest Dollar

Tuesday, March 15th, 2016

The FinTech market is becoming increasingly complex as new startups emerge and financial institutions come up with own innovations or collaborations with FinTech companies. Yesterday, I came across the latest deal – Goldman Sachs just bought retirement-saving company Honest Dollar that claims to enable employers to sign up in just 90 seconds while offering retirement benefit plans for competitive prices. The process is quick and easy - after having responded to some questions, employees are recommended one of six different portfolios consisting of Vanguard ETFs. Goldman Sachs aim to serve more people with more efficient retirement planning services by partnering with Honest Dollar and, hence, adding to their growing digital offerings. Currently, the finance giant claims, 45 million Americans are not offered retirement plans by their employers, which is mainly due to the high costs.

How important is it for people that they can sign in to such tools quickly and easily? Do they think their financial advisor can make faster and better decisions when using such tools? This and a lot more questions covering affluent people’s attitudes towards robo-advisory services are being answered by our upcoming panel study. Stay tuned! http://bit.ly/1pGGYQt

 

Why wealth managers should consider to add Pinterest and Instagram to their digital portfolio

Wednesday, February 10th, 2016

In our latest research report “Social Media for Wealth Management – Learning from the Best”, we analyzed the social media presences and their popularity of more than 200 wealth managers from around the globe. Our intention was to find out who is the most popular wealth manager on the main networks (Facebook, Twitter, LinkedIn, and YouTube) and to identify major success factors that led to high numbers of likes, followers, and subscribers. Additionally, we took a closer look at Pinterest and Instagram to analyze how wealth managers handle the visual social networks’ specific features, user base, and conventions. While most wealth managers nowadays have an account on Facebook and Twitter, only very few are active on Pinterest and/or Instagram. However, there are clear benefits derived from the industry best practices, they should not ignore:

(Potential) clients see their ‘human face’. Showing the staff, vernissages, branch openings, and sport events visually brings you closer to your clients – and those users who might be clients in the future. Online users like to get the full picture and look behind the scenes and photo and video sharing networks are great platforms that allow wealth managers to offer that.

Great customer support. We’ve seen terrific examples that offered helpful infographics on their Pinterest board, containing FAQs or information on mobile and online offerings. That way, customer support is expanded and presented in an easy-to-understand and engaging way.

Company updates. Posting news and upcoming events helps to keep clients informed about what is going on and makes sure that they don’t miss anything. Especially for HNW clients in might be highly interesting to meet with peers on their wealth managers’ events. Knowledge exchange and networking are additional advantages that help to strengthen your brand and reputation.

Actually, we found few but great examples of well-performing wealth management presences on Pinterest and Instagram. While Instagram is clearly U.S. dominated, wealth managers on Pinterest show a more mixed picture. You can find the case studies for the most impressing wealth management presences on Instagram and Pinterest in our latest report.

 

How to turn a fund website into a conversion machine

Thursday, January 21st, 2016

The habits of digital natives have disrupted the sales process in fund and asset management. Many people are using the Internet to do their own research on the firm and product offers. Only late in the process, they will get in touch with the firm they believe is most likely to match their specific needs. For financial service providers it is important to proactively facilitate an engaging communication with prospective clients already during this time in the decision making process.

According to a study by Scorpio and Pershing: “among under 35s, digital sets the direction of search for a financial provider”. When selecting a financial provider, a website is the third most influential factor for those under 35 when choosing a financial provider. The firm´s reputation and Internet search engines are also important decision making factors. Therefore, SEO to enhance website traffic and providing a convincing and interactive website have become the most important factors in the sale process. MyPrivateBanking has just released a report on “Websites for Fund and Asset Management 2016” providing a benchmarking of the websites of the leading 15 fund and asset managers worldwide. The report also gives insights into trends in the asset management industry and outlines the key factors of providing a convincing website.

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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

 
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