MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Archive for November, 2014

MyPrivateBanking Research releases first Digital Wealth Survey!

Wednesday, November 26th, 2014

Don’t miss our new report on the digital behaviour of 1000 survey participants from China, UK, France, Germany, and the US. This survey paints a comprehensive picture of the attitudes and the behavior of the wealthy with regard to mobile technology.
Some key findings:

Chinese affluent and wealthy clearly win the race for most technology friendly respondents…

… BUT the rest of the world is about to catch up: particularly the UK survey participants surprise with their technology affinity

The trends apply to all wealth segments – for several criteria, the high-net-worth segment even is in clear lead

All age groups under 55 are heavy users of mobile technology for financial matters

Get ready for these and many more surprising results published in our new Wealth Survey!

 

Social networks offering payment solution: What will banks do?

Wednesday, November 19th, 2014

News about the release of Snapcash surely came as no surprise to us at Myprivatebanking Research. The integration of social media and payment systems is successfully growing and clearly challenging traditional payment players like banks, credit card providers, and older online providers like PayPal. Whereas rumors have made rounds for the last months about Facebook’s plans for a mobile payments system using its Facebook Messenger iPhone app, another popular social messenger provider has stolen the thunder: Snapcash, the product of the recent collaboration between Snapchat and Square Cash (a mobile payments company headed by Twitter co-founder Jack Dorsey), is the latest mobile payment option that allows users to send money to friends via the app by simply typing dollar amounts into new “Snapcash” messages. For now, Snapcash is available to Snapchatters in the United States who have a debit card and are 18 or older.

Trying to keep up the pace with consumers’ increasing demand for highly innovative and convenient products, successful offers like Snapcash or Applepay challenge the banking industry to come up with similar or better solutions. It is true that banks must deal with stricter regulatory guidelines but they should also be aware that consumers have more choices than ever and won’t wait for banks to catch up. But banks – across the globe – seem not to have a strategic response. Will they get frozen out of the online payments markets like music labels have failed to conquer the online music business and traditional book stores never were able to challenge Amazon in online book selling?

Very few banks have already invested in convenient mobile payment solutions aimed at improving the customer experience. Barclays’ Pingit app is one exception. Users can send and receive money via the app without sharing bank account details and even send gifts to friends. But Barclays is the exception and not the rule in the banking industry. Will they finally give up this market to the tech players?

 

Can Banks Participate Fully in Visual Social Media?

Tuesday, November 11th, 2014

(by Francis Groves, Senior Analyst)

Visual Media seems to have grown exponentially in the last few years. Instagram and Pinterest only date back to 2010 and 2011 respectively but as far back as June 2013 Pinterest has had second place - after Facebook -  as a driver of traffic on the Internet.

The power of images is often that they tell a story and, as advertisers have known a long time, pictures undoubtedly have a power to pull people’s attention. And people can process images very rapidly. For social media this has meant that all social media presences are becoming increasingly visual. Just think how rapidly images have crossed into LinkedIn and, especially, Twitter. And Facebook is now one of the Internet’s largest stores of images. Not only have images become ubiquitous in social media, the presences that specialize in images are highly effective. Buying rates (the proportion of buyers to visitors) are significantly higher for Pinterest than Facebook, as is the willingness of Pinterest visitors to affirm they are positively engaged by brands through Pins.

So where does this leave the banking industry with its somewhat abstract products and services?  Visual social media guru, Donna Moritz, lists four especially effective uses that images can be put to in social media: handy tips, how to advice, catchy quotes and checklists and a fifth, infographics, which is also effective but not in Moritz’s top 4. So, the secret of successful images could, it seems, be summed up in a word, ‘Advice’. But of these 5 tactics, banks - and then only a few of them - really only seem to be good at infographics. In the finance industry, if you want advice, you go to a YouTube channel or the blog page on the website because we all know that financial advice is complicated; it takes time to explain it and

So it seems as if banks are not yet quite getting the point of visual social media. No, you can’t say very much at a time through a picture or a graphic but the little you do say could have immense pulling power and visual social media sites like Pinterest could be used to advertise a bank’s services and expertise more directly than is currently the case. In short, banks should use their visual social media as hooks to draw people in to what they have to offer. They seem to ‘get’ this on Facebook and Twitter but not on their visual social media presences.

Congratulations to those banks that are leading the way in visual social media. Maybe now is the time to make these presences more than just pleasant places to visit for a few minutes (Pinterest visits were averaging 16 minutes in 2013) and to make them speak more directly about your service, your expertise and your messages. The good news is that some banks have a lot of original graphical material both already on social media and in their archives and the capacity to create even more. Only 20% of Pinterest content is original (as opposed to shared) so there should be plenty of scope for an institution that can use its visual image ‘capital’ effectively.

(Stay posted for our new report on Social Media in Banking which will be published later this November)

 

Amazon’s Echo another milestone on the way to a no-click payment future?

Monday, November 10th, 2014

Amazon has released a new device called Echo – a device combining speaker and microphone with high-tech inner life. Working Siri-like, Echo is determined to read every wish from the user’s lips. Using voice-command, it is capable of playing music, putting products on a wish list, answering questions about any topic where information is available on the Internet and do a myriad of other things.

Reactions across social media and the blogosphere to this surprising release shortly before Christmas are mostly negative – in the aftermath of the NSA scandal it is only natural people are sceptic about data leeches.

Yet nobody should ignore that voice commanded devices is gaining in popularity. Just imagine a portfolio manager retrieving portfolio infos, drilling deep on some positions or even trading while driving her car to work or sitting at home just by talking into her smartphone, Echo speaker, digital windscreen or even an implanted chip. No matter how it will look like, you can be sure that voice-commanded processes will play an important role in the future and the market potential will be enormous.

 

Why UX Testing DOES Matter for Mobile Apps

Thursday, November 6th, 2014

(by L. Elsler, Analyst)

We often see that mobile apps are prematurely released into the app stores. User experience (UX) tests, if at all, have only been done once the application is fully developed. This common practice leaves little opportunity to really develop a user-friendly application. But UX testing is not something you just bolt on once the development of an app is almost finalized. Especially banking and wealth management apps, with their heavy duty transactional processing (just think of payments, brokerage or portfolio checking) UX testing must become an integral part of app processing:

  • Produce your banking app like an expensive German car. These car brands dedicate a majority of the resources during the development process into user experience. The car is being tested, crashed and judged over and over again before releasing it for sale. Developers must be proud of their end product- only then it will also satisfy the user.
  • Integrate UX tests for all the use cases during the development process. From project start to the first release a dedicated UX team should give input to the mobile app development.
  • Think about what the purpose of the application is in the first place. Is it to “kill time” or to fulfill a task? A task based approach should be held as simple as possible to efficiently support the user.
  • And last but not least, make the user part of the UX team. The most progressive banks have their own UX lab and invite clients frequently to test-drive the latest release of all their apps.
 
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