MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Posts Tagged ‘banking’

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?


Facebook Banking Finally Arrives

Friday, July 20th, 2012

Fortune is reporting that Australia’s Commonwealth Bank and Facebook are quietly building the first Facebook banking app:

“Facebook is quietly planning just such an offering with Australia’s Commonwealth Bank. Currently in an internal beta, with the first version built in March, the application is expected to launch sometime this year to customers. It will allow Facebook users who are bank customers to make payments to third parties as well as Facebook friends through the social media channel, according to the bank. Commonwealth will secure transactions with its own authentication system — similar to how payments are secured on its online and mobile banking site, a spokesperson says.”

It’s an interesting experiment and also quite logical, given the rising interest of financial services companies in the use of social media. In combination with a fundamental shift in cosumer behavior - the younger generations are heavy users of social media plus the older gernerations are also adopting these platforms - it makes a lot of sense to use social networks also for financial transactions. For the banks the critical question is whether they want to use a third party (like Facebook) or whether they will be capable to offer their own social media channels - not onlöy for communication but also for transactions.


Why Financial Services should not underestimate Facebook

Tuesday, May 8th, 2012

In the latest issue of NYMag there is a great portrait on Mark Zuckerberg by the infamous Henry Blodget. The former Internet star analyst, who was one of the evangelist of the DotCom bubble, makes some very good observations about Zuckerberg: he is a great CEO, he is a product genius, he has a very ambitious long-term vision and he doesn’t care about the short-term view of Wall Street. One may add: business people from more traditional industries tend to underestimate the guy who usually appears in a hoody before analysts or other Wall Street type suits.

In the banking industry and in the financial services industry in general, people do also tend to underestimate Zuckerberg and Facebook as a business factor. Our latest report shows, that the most important social network of the world is not very important to financial executives: on average, banks reach only 60% of the total possible points for their Facebook presence in the MyPrivateBanking benchmark.

This is a big mistake…as Paul Ford writes:

“Facebook’s platform has been so overwhelmingly successful that the company hardly had time to do anything but grow. Yet when the growth of the network itself slows, as it too inevitably will, Facebook-as a publicly traded leviathan whose mandate is to increase profits-will need to find new ways of slicing and dicing humanity into groups that will respond to marketing. That’s what lurks on the other side of peak Facebook, and it is going to suck.”

Or, to draw a slightly different conclusion, Facebook will do to the service industries what amazon has done to retail.


Social Media and Banking - What is the Best Strategy?

Thursday, March 22nd, 2012

For the last months our analyst team has been working on a new landmark report “Social Media and Banking” - this report will get published in mid April. It will be an in-depth analysis of the social media strategies of the 50 globally most important bank. We are looking  at social media strategies targeted at private customers, retail customers or general users. The banks will be rated and ranked according to a very detailed set of evaluation criteria.

It has become increasingly clear to us that banks approach social media with very different overall strategie - and many have no strategy at all. I think there are right now 3 main social media strategies of banks:

1. Customer support via social media
2. Product and service information via social media
3. Strengthening the brand via charity & community initiatives, sponsoring etc. which is communicated via social media

In many cases, more than one of the strategies are blended together. Rarely, we find an integrated but differentiated offering which brings together all these strategies but doesn’t mix them up or confuses them. In addition, we find typically communication offerings with investors or recruits.

Most banks keep their social media teams separate from their general marketing or communication department. Right now I guess this ist the right strategic step as otherwise the development of social media will develop way too slow. .

We are finding that banks struggle immensely with the issue of how to integrate social media in their regular online strategies and Internet marketing. I am not sure if there is “one best way” to do it. I guess at this stage various experiments are in order to see which approach works best. But this means a good bank will do lots of different things on their website to try out the new media.

So, stay put for our new report - there is lots more to come.  By the way, here is our  older report on Wealth Management and Social Media.


Our new report on mobile banking apps released

Tuesday, November 29th, 2011

Frankly, this is probably the most comprehensive report worldwide on banking and apps you can find. It is full of insights on how banks are doing with their mobile apps for private customers. One of the most surprising findings for me was that only 40% of the surveyed banks offered some kind of brokerage via mobile app. Another interesting result is that US banks (with the exception of Citbank) are very weak with regard to their mobile app strategy. Not sure whether this is due because US banks are more conservative than their competitors in Asia or Europe or whether they are facing some specific hurdles (like privacy laws…)