MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Archive for January, 2012

How Important Segments of Wealthy Customers Open Up to Social & Mobile Media

Tuesday, January 31st, 2012

Important Segments of Wealthy Clients Are Opening Up to Social Media

This chart summarizes a lot of our insights with regard to segmentation of wealthy customers and their usage of social media and mobile apps. Put in a nutshell, we are seeing that particularly the entrepreneurial segment and the “young & hungry” are aggressively using social and mobile media, followed by “Old Money” and the “Mittelstand”  (managerial class and owners of medium-sized businesses) segments.

It is a development that will profoundly influence the business of wealth management over the next decade. As social media are increasingly entering the financial industry, clients will demand new solutions and communication patterns from their banks and advisors. Another development shows, that recommendations from peers will become critical in the decision making process when choosing a new provider. The brand of financial players can also be heavily influenced through discussions and sentiment on social networks. In summary, social and mobile media are a strategic challenge, involving communication, sales and marketing efforts of every financial player. Be ready.


Should banks be present on Google+?

Friday, January 20th, 2012

Google+ was launched 7 months ago in June 2011. On January 19 it was reported that G+ has surpassed a user base of 90 million and may reach 400 million by the end of 2012. However, these are not necessarily active users (as the 900 million reported users of FB). MPB analysts are working right now on a new analysis of social media & banking (to be published end of March 2012). The preliminary results on Google+ show that most banks have a presence there - but usually without any or with very little content. It can be described as “wait-and-see-strategy” or simply to put a placeholder on the network.

Over the last 2 months G+ has gained a lot of traction and there seems also some clear support from Google’s search services for the network. I guess that G+ as a networking platform is still technically a bit confusing (may be a consequence of the different terminology like “circles”, “hangout” etc.) but is essentially offering a similar platform as Facebook. Some innovations like “hangouts” and the search function seem even better than on FB. Yet - despite some heated discussion among tech geeks - this is not really important. What seems crucial is the point that Google potentially has the market power and leverage to push G+ to become a FB rival. The key here is the search services of Google and some existing services which - in combination with a new viable network platform - can potentially become very successful. Yes, Google Buzz was a disappointment - but probably a necessary stepping stone to the technically much more mature G+.

What does this mean for banks and other financial service providers? They should probably have a presence on G+ and also spend some resources on filling this presence with content & life. Not necessarily too much yet - as it remains to be seen what will happen to G+ over the next 12 months but don’t underestimate the marketing power of a 800 pound gorilla. If G+ can keep its speed one will have to take it seriously very soon. It will be fascinating to watch how and where G+ and FB will try to get a competitive advantage and how the will try to differentiate themselves from each other. Make sure to follow our research when our new report will come out in March with more analysis about Google+, other social media trends and how banks can profit.


Why Asia Will Be Leading in Financial Social Media

Tuesday, January 17th, 2012

Chinas’s Internet users cross 500 million reports TechWorld. Almost 70% of those users access the Internet via their mobile devices. Today, China (and in a broader sense the whole of East-Asia) is at the forefront of the mobile and social media revolution. Therefore, it is no wonder that Asian financial institutions are time and again leaders in our rankings for social media and mobile apps. For instance, the Bank of China has - according to our latest app report - the best single mobile banking app. DBS Bank from Singapore made the 4th place in our overall mobile app ranking.

For the future, we are expecting that Chinese financial institutions as well as players from Singapore, Indonesia and India will will play a much bigger role in the application and web development for the socially networked and mobile consumer. It’s a matter of survival in a market place that is dominated by ever more tech-savvy customers who expect their bank to be easily reachable via social media channels as well as on various mobile devices.