MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Archive for March, 2014

6 seconds to capture your clients’ attention

Monday, March 31st, 2014

Videos are a widely used tool in viral marketing as they convey a message ten times more powerfully than a text could do and they are easily consumed on mobile devices when on the go. Consumers don’t like spending time watching lengthy videos just as little as they like being spammed with advertisements. Personalized short videos produced with apps like vine could be an answer to that. These six second self-made videos posted on social media channels like Facebook or Twitter address the user in a quick and catchy way. Unfortunately, apart from a few banks, the financial world has not yet realized the potential of the self-made videos.

NatWest is one of the few banks using this new opportunity. The bank produced an array of short videos in order to reduce answers for user requests on their Twitter support channel to a single tweet:

https://blog.twitter.com/2013/natwest-gets-creative-with-customer-service-on-vine

And this is only one example of the potential of short videos: vine videos can be implemented and integrated virtually anywhere, be it a website or a PowerPoint presentation - revealing their true potential as an eye-catcher that grabs your visitor’s attention in a few seconds.

 

Innovative payment options - Banks are slowly catching up

Monday, March 24th, 2014

The mobile payment industry grew substantially in 2011. There were already 212 million m-payment users at that time and the numbers have been growing significantly ever since. In past years, the largest banks worldwide were slow in adopting innovative payment functions, but now they are starting to catch up with industry trends. We will introduce some of the best payment options that we encountered while evaluating mobile banking solutions for the current Mobile Apps for Banking Report.


Contactless payments allow users to pay for in-store purchases by mobile phone without needing to provide a banking or credit card. CIBC Mobile Banking is an example of this, as it allows the bank’s clients to pay for their groceries, grab a coffee or buy a movie ticket with just a tap of their smartphones. Also, Itaú QR Card enables customers to make day-to-day payments by scanning QR codes of participating partners’ products, with the receipts being automatically forwarded to the client´s postal address.


People-to-people payments are ideal if users want to pay friends, family or acquaintances without needing their bank account details. Various alternatives are available on the market to satisfy different client needs. Commonwealth Bank of Australia’s app collection provides a solution for paying contacts by e-mail, mobile phone or even Facebook accounts. With the addition of another useful feature, clients of National Bank of Australia can also generate QR codes to request payments from their contacts.


Wallets commonly function like a virtual prepaid card that users can create by utilizing the app. BBVA provides such a virtual wallet and cross-sells small credit lines through an included financing calculator. The app allows users to directly calculate financing options and to apply for a loan in only two steps for purchases made with the credit card.


If clients of NatWest forget their banking or credit card at home they will still be able to get cash. The “Get Cash” option provides a code which clients can use to withdraw cash directly from any of the bank´s cash machines or at major supermarket chains.


Barclays Pingit has always been a front runner in mobile payments, allowing clients and non-clients alike to use the service. The bank has been popular for sending and receiving money using just a mobile phone, and in its latest update the bank has added QR code payment options for offline purchases.


Mobile payments are an increasing trend and there are numerous pathways which banks can choose to add more convenience to their customers’ lives and gain potential client interest. Banks need to pay attention to future trends and determine which payment methods will be dying off in the process in order to keep their mobile apps up-to-date and to win clients’ loyalty.

 

Vague about vaults

Friday, March 14th, 2014

(by Francis Groves, Senior Analyst)

In MyPrivateBanking’s latest report, ‘Mobile Apps for Financial Advisors‘, 9 of the 14 vendors covered told us that they provided private banks/wealth manager with some form of electronic vault functionality for use in conjunction with their advisor apps. We believe that this is an encouraging level of provision in this area but there is undoubtedly a lot more that could be done in this area to help advisors/relationship managers and their clients. Moreover, the document handling/electronic vault/secure mailbox sector is full of ambiguity and confusing terminology.

Our focus is chiefly on wealth management clients and their requirements but banks themselves can also be purchasers of electronic vault facilities, as remote back-up services, increasingly cloud-based. Of course, there is likely to be some overlap with the vault facilities that the banks themselves provide for their private clients but it adds to the confusion. On top of that, some service providers and industry specialists use alternative terms such as a ‘digital vault’ or an ‘Internet data safe’, not to mention brand names such as SmartVault, a US provider specialising in vault solutions mainly for accounting purposes.

More serious than the confusion over terms, is the lack of clarity over the details of these client vault services. For example, is it good practice to use the client’s digital vault for posting mail (and documents) as well as for longer term storage? If a relationship manager can put things into their client’s digital vault, can they also retrieve them if, say, they made a mistake and put another client’s documents there by mistake? Presumably, the client’s digital vault requires backing-up, so how quickly would the client have access to that in a disaster recovery situation?

It looks as if private banks and wealth managers are only just beginning to understand the importance of client vault facilities to their overall offering to their clients. Banks face decisions about whether to offer vault services as a way of differentiating their private banking services from their retail ones or whether to use the offer of a digital vault for clients as an incentive for paperless banking. Another area of uncertainty is the extent to which banks should allow clients to store other non-bank related documents, such as electronic copies of wills or deeds of ownership to mention just two, in their digital vault. Providing clients with a secure vault could well become a key way for private banks to ensure they remain (or become) a wealth client’s most important provider of professional services rather than the client’s lawyer or accountant, who may be able to offer their own digital vault service.

Private banks need to give clear messages about what their client digital vault facility can be used for, how secure it is (and whether this security provision is different from that for other banking services), the client’s responsibilities for keeping it secure and who has access to it, both for depositing documents and withdrawing them.

 

The Best Five Client Meeting Features

Friday, March 7th, 2014

Having researched the performance of the main players in the market in our report, ‘Mobile Apps for Financial Advisors 2014’, published on Wednesday, MyPrivateBanking’s researchers came across several features that enhance client meetings in a way that is not only new but thrilling, reflecting the sheer scale of technical innovations in this field.

Here are our top-5 for this year:

  1. Co-browsing – A great opportunity to smooth follow-up meetings that saves time and enhances clients’ experience
  2. Client matching app – An increasing trend in the market that enables the end-client to interact with the advisor through an app of their own and to perform portfolio analysis or initiate trades
  3. Community/Chat function – A highly interactive tool that enhances client-advisor relationships through offering a new channel for correspondence and collaboration and generally making the client feel they are connected
  4. Interactive graphical tools – In this area we could see some of the greatest improvements-these tools range from interactive timelines that are linked with affirmative/negative signals to show if goals match (or not) to full multimedia document sharing tools
  5. Sophisticated document management functions – Particularly in combination with the emerging matching client apps, good document management is highly important as a means of keeping clients up-to-date and ‘in the loop’

 
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