MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Posts Tagged ‘private banks’

Upcoming report: Mobile Apps for Wealth Management

Monday, June 17th, 2013

In the beginning of July we will publish our brandnew report on mobile apps of wealth managers targeted at the affluent, wealthy and ultra-wealthy client segment. Over the last three months our analyst team has combed through far more than 100 apps of the leading global private banks and wealth managers to determine the strengths and weaknesses of their app strategies. The report tackles the following questions:

Who has the best app strategy and app portfolio to target wealthy clients?

What are the clients’ typical use cases for wealth managers’ apps?

How should the building blocks of an effective and succesful app strategy look like?

What are the best practices looking at functions/features, user experience, design, navigation, security, content and other elements?

How will the future of mobile apps for private banking / wealth management look?

Is there a choice between mobile website and native apps?

When should a bank or wealth manager “go tablet”?

…and many more!

We’ll keep you posted.


Reactions on Our New Research on Middle Eastern and African Offshore Assets

Friday, February 11th, 2011

Our new research brief What the Arab Revolution means for Private Banks and Wealth Managers has been published. So far we had a very friendly reception for this paper in the media around the world, including even a Nigerian newspaper. Here is a selection: Bloomberg, Wealth Briefing, Nigerian CompassBanking Business Review.


Mutual Fund Investors Rarely Get It Right

Monday, April 12th, 2010

The New York Times reports:

“Mutual fund investors usually get the direction of the stock market wrong. Just before the market declines, they generally move money out of their bond funds and into their stock funds, and just before it rises, they shift their money in the other direction.

These are the findings of a new study that provides yet more evidence that most mutual fund investors would fare better if they didn’t try to time the market. And because so many fund investors try to do so anyway, the study suggests that these fund flows provide a new sentiment indicator for gauging excessive pessimism or optimism.”

I would add to these findings that, in many cases, the investors’ financial advisers have to take the blame for the wrong timing decisions. In a study MyPrivateBanking did on the quality of investment proposals of European private banks one of the major outcomes was that the banks proposed an extremely bearish portfolio to potential new clients just when the markets were at their lowest point in early 2009.

The New York Times comes to the conclusion that the decision making of mutual fund investors can be seen as a good indicator on future market moves:

“For several months before the beginning of the bull market in March 2009, for example, fund investors on average transferred money out of stock funds and into bond funds. It’s a common pattern. Little wonder, then, that the average mutual fund investor would be far better off if he never engaged in stock market timing.”

This is exactly the same pattern we have observed in the investment behavior of the big wealth managers’ portfolio management. It would be interesting to research to which extent the irrational behavior of private individuals has been influenced by the advise of their professional wealth managers. The bottom line of this study confirms again that market timing is mostly a trading-fee-generating strategy benefiting the banks rather than the investor.


Reckless Negligence

Monday, March 8th, 2010

Last week we published a report about the privacy risks of Private Banking and Wealth Management websites. The bottom line was that almost two thirds of websites offering online communication through contact forms or email did not care to take even the most basic precautions in order to protect user privacy.


In the light of the recent data thefts affecting mostly European Wealth Managers we find this reckless and negligent. To be fair, there are many cases of banks with role model websites offering all sorts of preacautions and warnings for their users. Yet, it is still deeply unsettling that about 60% of  the analyzed banks across 17 markets have no clue or do not care about privacy. Especially since we are not talking about auto dealerships or mon-and-pap-grocery-stores. We are talking about an industry whose fate rests on a claim of trustworthiness and confidentiality. There is only one thing to do for the affected banks: Realize that you have arrived in the 21st century - a time where online conversations have become as normal as telephone or letter communication and should be protected accordingly.