MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Posts Tagged ‘digital wealth management’

Discovering the world behind the walls of wealth management

Friday, December 4th, 2015

As digital wealth management is one of the hot topics at the moment in the financial industry, MyPrivateBanking’s analysts have embarked on a journey to evaluate remarkable and innovative features of secured websites and mobile apps for wealth management.

The forthcoming focus-style study ‘Behind the Login – Helping the Wealthy to Connect and Transact’ sets itself apart from the previous benchmarking reports by analyzing exclusively the behind the login content and capabilities of digital offerings for wealthy clients. Based on comprehensive interviews with representatives of leading wealth management firms and intensive analysis, the report explores the current and potential digital wealth capabilities, it shows how the digital strategy for wealth/private banking is defined and provides strategic recommendations and suggestions like the ‘10 essential capabilities for Digital Wealth Management in 2016’.

Don’t miss out this report on the secure site and app offerings for HNWIs! This report will be published soon – please check our website.

 

Wealth Management Solutions at FinovateEurope 2015

Tuesday, February 17th, 2015

/by Francis Groves , Senior Analyst/

I saw numerous presentations at FinovateEurope that have implications for wealth management, especially in the wide variety of security features and applications designed to help people with their financial goals were demonstrated. However, there were just three presentations that looked at supporting the work of wealth managers/client relationship managers specifically.

The first of these presentations was from Crealogix, the digital banking software providers based in Zurich, whose CLX.AdviceManager financial advisory mobile app we covered in MyPrivateBanking’s ‘Mobile Apps for Financial Advisors 2014′report. Now Crealogix are adding a new product to their overall offering for financial advisors called ‘BankClip’. This an easy to use video clip assembly module that enables the advisor to create a customized video including components such as an update on the client’s portfolio, excerpts from the latest market commentary by the private bank’s analysts together with, for example, the advisor themselves making the argument in favour of a change to the client’s portfolio. It’s a good way to make service more personalized and more immediate and it really was straightforward to implement.

The next item that was specifically relevant to wealth management was by newcomer Mydesq, also based in Zurich. The company’s CEO, Milan Vora, demonstrated their just launched advisor application. The most impressive aspect of Mydesq is how much the application assists advisors with its continuously updated compliance content. This not only enables advisors to keep up-to-date with regulations in multiple jurisdictions but it seamlessly introduces all necessary compliance-related changes to the advisor’s work processes. As an advisor application, Mydesq includes features to support account and portfolio analysis and portfolio recommendations to the client. A client app is planned for Q2, 2015.

Lastly, Vienna-based CPB Software introduce some of the features of its PROFOS software, launched in September 2014. The three aspects of PROFOS that particularly stand out are presentation in relation to risk, the financial crises feature and the client profiling. PROFOS has introduced an extra degree of flexibility in portraying investment risk so that in addition to text explanations or charts projecting risk, the advisor can employ other graphical tools to explain risk in relation to the client’s portfolio. The financial crises feature of PROFOS allows the advisor to demonstrate how the client’s portfolio would have performed during specific crisis events such as the Russian default in 1998, the dotcom bust or the collapse of Lehman Brothers. Lastly, PROFOS allows the advisor to create a (confidential ) profile of each client on the basis of client meetings that will enable them to prepare for future meetings in the most effective way. The client profile focuses on the client’s negotiating style and communication style in particular and gives the advisor extra resources for achieving mutually satisfactory outcomes from client meetings.

 

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.

 
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