MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Posts Tagged ‘communication’

Why wealth managers need to communicate about app security

Wednesday, June 17th, 2015

Given the recent waves of massive security breaches and the increasing data manipulation, high-net-worth clients are justified in being anxious about their personal data being stolen and used by hackers and fraudsters.

Banks and wealth managers continue to ignore the fact that their clientele and prospective clients do not want to lose control over their information. As our new report on Mobile Apps for Wealth Management 2015 shows, out of the evaluated mobile core apps of 30 leading wealth managers worldwide, only 40% use the app store to inform clients about security.

Security measures of most mobile banking apps are not clearly communicated in the available app stores. An accurate description of banking or trading apps should certainly make it clear how users’ personal data is being used and protected in the app.

Initiatives that already give users the right and ability to learn what security measures banks integrate in their apps are successful in inspiring a feeling of transparency and trustfulness. Keeping the language easy to read and reflected in a clear and concise style is key to inform about the app’s necessary high security and encryption standards.

Wealth managers need to understand that their wealthy clients expect to be informed about an app’s security means before downloading it.

 

Apple’s electronic car and how it could change the ways we work, communicate and interact

Monday, February 23rd, 2015

With the unexpected level of success of the iPhone 6 generating record profits, Apple is said to be already ‘cooking’ up the next big tech sensation: the iCar. Apple’s shift into the auto sector would not mean the end of the iPhone business. On the contrary, Apple fans have come to devour anyiThing related to iPhones - apps, music, films and more. And that’s exactly the main idea behind the tech giant’s strategy: to captivate more prospects and clients with every new product into the Apple universe.

With Tesla already leading the electric car market one may wonder how is Apple going to compete against that given the company’s lack of experience in the strictly regulated automobile industry. Have the iBeetle and Google’s self-driving car not stolen the thunder away already? What new revolutionizing design or functionalities could the iCar bring? First of all, Apple has never played the race to first game, the iPhone was not the first smartphone ever seen and the iPad was not the first tablet on the market. Secondly, Apple’s strategy is strongly brand- focused on Apple being a product company and not a technology company like Samsung. The aim is not to come up with completely new products on the market but to make sure the products Apple brings to the market are well-designed and have cutting edge technology integrated. Therefore, the iCar project is going to take a few more years to be finalized. In the meantime, suggestions and rumors are unstoppable: the Apple car would connect to all its existing products thus creating an exciting Internet of Things (IoT) experience or it would enable unimagined ways of interacting through digital channels while driving. Imagine your car morphs into a full-fledged office. It will be another step to make clients and employees more independent of their physical surroundings. It will have implications for advisors and their clients, for the ways they work, meet, communicate and interact.

Electric cars and Apple definitely make an interesting combination but to take on the car industry will be a different kind of fight than everything Apple has done so far.

 

What wealth advisors can learn from Steve Jobs

Friday, January 30th, 2015

Reading about the more and more popular Steve Jobs schools or new iPad schools in the Netherlands it struck me that this kind of digitized scenario is exactly what happens or should be happening in the financial industry. Children attending these schools need no textbooks, blackboards, pencils, or fixed classrooms but only their iPad. They choose what they want to learn and in the rhythm they can do it. And most importantly, the educational apps are interactive, thus providing each kid with immediate feedback on his/her tasks, which changes the traditional teacher-student hierarchy into a closer student-coach relationship.

And this is also what financial advisory should be based on: coaching, advising, suggesting, making recommendations for the client while also allowing clients to use the same technology as the advisor does. Making sure the advisor has access to the latest tech solutions that bank clients are using, being able to offer flexible communication channels like social media or to share screens during a video conference with overseas clients.

Mobile devices and digital solutions reinvent the school for our children, offering them flexibility and enabling individualized learning, helping them stay focused on what they really want to learn. Applied to the advisory world, the advantages are the same: clients become empowered, stay up-to-date with developments and communicate effortlessly with their advisors from anywhere in the world while advisors and relationship managers morph into client coaches. Will banks and wealth managers have the courage to follow this new path?

Our upcoming report (March 2015) on mobile apps and digital solutions for wealth advisors will focus on the technology infrastructure required for a changing client relationship.

 

Why the Investment Industry Should Look at BuzzFeed

Saturday, August 16th, 2014

(by Francis Groves, Senior Analyst)

A few days ago the MyPrivateBanking team were discussing communication and the topic of bullet point came up. Generation Y members of the team were strongly in favour; ‘bullets are snappy, they help the reader focus.’ The baby-boomer wasn’t so sure; ‘it feels like you’re being shouted at’.

This made me think about the way in which the investment industry customarily communicates with investors, whether they are wealth management clients, retail clients of banks or D-I-Y investors. By and large, even in today’s wired world investment content is surprisingly long-winded. Service providers are still providing commentary in substantial chunks of text; they are publishing as if they have to fill up a certain amount of space. And, collectively, much of what they say is repetitive. They seem to have an old fashioned and now misguided idea of what really works for their readers or, you could say, they are focusing on a type of reader who is time-rich, likes reading and equates financial wisdom with acquiring more and more detail.

Perhaps it’s time for a change to providing investment commentary that’s more suited to younger generations. They’re perfectly happy to read but they really don’t want to read the same things over and over again. They want to know what matters and they only need to be told once that, say, shale gas affects energy prices or that good economic data is bad news because it increases the likelihood of interest rate rises. News in brief columns in the press and short business bulletins on the radio work for them but they need news media to be more helpful still.

Maybe it’s time to try out business news that looks more like Buzzfeed lists and rich and varied graphical content and even to start mining ’standard’ news as if it was big data; think of headlines like: “how many mentions of ‘forward guidance’ has Federal Reserve Chairman, Janet Yellen, made in the last three months?” accompanied by a chart.

 

Five reasons why you should not give your retail banking app to wealthy clients

Thursday, June 5th, 2014

Many mobile apps that offer a good provision of core functions for wealthy clients have not managed to stay ahead of the competition. Why so? The analysts at MyPrivateBanking Research disclose the captivating story of what makes a mobile app for HNWIs successful in the forthcoming report ‘‘Mobile Apps for Wealth Management 2014’’. One of the striking results of our research so far has been that only 24% of banks offer an exclusive banking app – for their wealthy clients only. All other banks offer a general banking app to all of their customers – retail, high-net-worth or in between.

Even though the existing retail apps may also be relevant for HNW clients, there are good reasons to offer a customized solution:

  • HNW clients love to be treated exclusively and separately from the crowd. That’s the reason why they are paying substantial fees to their private banker or wealth manager in the first place.
  • HNW clients have other client needs in the mobile world. Often, they are heavy travelers, need to communicate a lot more with their banker and have deeper and more demanding information needs.
  • HNW clients are interested in different products than retail clients. A banner ad for a cheap consumer credit or a good car insurance rate might not really capture their imagination.
  • Investing, research and market developments are key areas of action for HNW clients. Checking and analyzing their portfolios in real-time anywhere in the world, executing a trade or checking quotes are important mobile activities for HNW clients.
  • HNW clients are longing for an app that matches their advisor’s app. Meeting with their advisor will be more and more app supported. Both parties to the meeting should be able to communicate on the same level using matching apps.

And no matter how sophisticated the financial operations they need to support, an app developed for wealthy customers should first of all engage them by means of elegant design, user-friendliness and easy-to-digest content.

 

“WhatsApp in Wealth Management? –five reasons why private banks should pay attention to messaging apps”

Monday, May 26th, 2014

Early this year WhatsApp has been acquired by Facebook for 19 bn USD - not without reason this acquisition has been well above estimated company value. Signs are good that WhatsApp will grow the current 450 million subscribers to reach 1 billion. The mobile app has been initially a mere alternative to SMS but has grown to become a blend of messenger and social media channel. Other messenger apps like WeChat (a strong contender in Asia) or Skype are also throwing their hat in the ring.

But what can private banks and wealth managers learn from WhatsApp and other messenger apps?

  • Convenience. Clients are using the WhatsApp messenger as it is convenient to follow conversations, send pictures and because they immediately get notice if someone is available. Allowing clients to contact their advisor whenever she is online is a powerful tool. Wealth managers should go and fetch it.
  • It’s not a teenager thing anymore. Social media channels in general enjoyed a reputation of being only for a young audience. This age barrier has vanished and more and more older users are being drawn into using apps, social media and messenger features.
  • WhatsApp is planning a telephone function and will in general broaden its functionality. Besides the possibility to conveniently chat or leave messages to advisor/ client soon a telephone function will be broadly available for the app - making the application more flexible than it is already today.
  • Messaging is not email. The hurdle to write an email is way higher compared to messaging, which combines the benefits of chat functions with the option to leave emails. There is no need for all flowery phrases for every message you write. Its fast, it’s fun, it’s what clients want.
  • Everybody knows it. Some wealth managers provide their own contact functions via app – that’s great and important. But WhatsApp is already known by the customer. Allow clients to stay in their comfort zone without having to learn a new technology. Most likely your relationship managers use it already, too.

Wealth managers and private banks need to think about how to leverage mobile messenger technology for their own business. It can be by using existing popular messengers like WhatsApp for some communication. Another option is the integration of similar messaging features in existing banking apps. And keep in mind: these options are not mutually exclusive.

 
Subscribe