MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Posts Tagged ‘wealth management’

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.


Personalization – success factor in bank’s social media strategy

Friday, December 6th, 2013

The world was amazed when Richard Branson, CEO and founder of countless consumer ventures, started to tweet three years ago about his company, events and his personal life. Branson was one of the first CEOs who broke with the common practice that high ranking representatives of companies should stay out of social media. The legendary entrepreneur started tweeting and many were to follow.

Large banking groups and multinational wealth managers feel the challenge to give their firm a human face in age of digital ubiquity. Personal contact with clients, to build or launch relationships, is invaluable especially for wealth managers. With more people spending more time at their desktops, notebooks and mobile devices in the big 5 social networks offline personal contact becomes a scarce good. However, social media offer new opportunities to get close and personal to client. But corporate social media presences and company profiles on social media are not sufficient to foster a real personal relationship on a social network. Only individuals can offer that human touch: Why not follow my personal financial advisor via her Facebook updates? Why not talk to my wealth manager´s CEO via Twitter? Why not ask my bank’s head of the investment committee about the latest economic insights on LinkedIN?

Personalized social media refer to social media channels on either the local/regional level such as country, state or branch level and personal social media presences linked to one person such as a CEO, CIO, or a regular personal financial advisor. These presences bridge the gap between wealth manager and client.

The global wealth manager UBS allows clients to take a closer look at CEO Jürg Zeltner via his personalized blog on the website. Users get information about his career and development within the bank, can listen to his podcasts and read his regular updates.

Alan Higgins, UK CIO of the English wealth manager Coutts, is remarkably active on his Twitter channel. Besides financial market updates he also tweets about cultural events or “best movie of…” list. Moreover, Higgins pays attention to his users by responding quickly and casually to comments to his tweets. A lively Twitter account with high value for customers and a real personal touch are the results.

An outstanding example for local level presences is also German Commerzbank which serves its customers with channels on Facebook for its Hamburg and Munich branches. Customers can get information about opening times, the local team and contact options. The social media team invites users to local events to get to know the bank bridging the online-offline customer experience.

One can imagine many more ways to use social media as a tool to personalize the client experience. It’s up to the financial institutions to leverage this opportunity despite regulatory and other hurdles that might limit the specific content a bank can publish over social media channels.

Our new report on Social Media for Wealth Management 2013: The Train is Leaving


E-Publications - how to leverage them in wealth management

Monday, June 24th, 2013

Wealth managers and private banks communicate with their clients through multiple channels. In addition to the communication with personal advisors, publications play a major role: client magazines, newsletters, research notes, blogs, videocasts, audiocast and many other publication formats are available. Whereas a few years ago most clients received publications in print via post, today electronic formats are more and more common. The latest trends are magazine formats that can be read on tablet devices like the iPad.

Presently one of our analyst teams is investigating e-publications and e-magazines of wealth managers around the globe. In many cases we’ve found little strategic thinking behind the publication approach . Often the content is highly academic or theoretical, dealing mainly with macroeconomic topics. In other cases we’ve seen little segment specific content. We have also observed that content, delivery and quality are often not in line with client needs. But how should a good e-publication strategy look? How should wealth managers and private banks spend their resources? What are today’s best practices? And what will the future bring for e-publications?

If you think these are also critical questions for the marketing strategy of your organization you can look forward to our upcoming report “E-Publications for Wealth Management” (due in August).


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.


MyPrivateBanking speaks on Mobile Apps at the PrivateBanking Summit 2012

Friday, September 21st, 2012

Our head of research, Steffen Binder, was invited to present our research on the impact of the mobile revolution for wealth management and private banking at the Euroforum Private Banking Summit 2012 in Zurich. He joined a panel discussion together with Credit Suisse’s private banking head in Switzerland and received lots of applause from the audience - which seemed particularly surprised to learn of the already high usage of mobile apps by the wealthy across the globe. We still don’t feel that mobile apps are as high on the agenda of private bankers as they should be – but are sure it will be soon. At least for those banks that aspire to grow their business with the wealthy in the next 5 to 10 years.

We offer members of the MyPrivatebanking Research Community the main charts on the trends, usage numbers, best practices and conclusions for free. Please click here for the slides. Of course, the best presentation still needs a speaker and we recognize that this presentation is incomplete without oral commentary. But we think it still provides great insights and data.

Steffen Binder speaks at Private Banking Summit

Steffen Binder speaks at Private Banking Summit


The Age of Viral Information

Friday, December 3rd, 2010

“Information is moving from being the bedrock of market efficiency to a source of crisis. The risk for the market is not the news itself, but what news gets drilled home through so many channels that people act on it; we cannot anticipate when information might go viral and sweep the markets.”

This is Rick Bookstaber on why information is becoming a source of risk. Interesting throughout. It will be one of the critical tasks of any financial institution to monitor and, if necessary, counteract this flow of viral information. As our study on Wealth Management and Social Media has shown, most banks are not prepared at all to deal with social networks and viral information.


Video-Interview on our Social Media Report

Friday, November 19th, 2010

In an interview with the leading Swiss paper NZZ our Research Director Steffen Binder presents (in German) the results of the latest MyPrivateBanking report “Wealth Management and Social Media.

Click here the see the full interview.



Are Private Banking Clients Active Users of Social Networks?

Tuesday, November 9th, 2010

As we have just released our new report on Wealth Management and Social Media we would like to give another peak preview on its content. One of the objections we hear a lot  from private bankers against social media is that typical private banking clients are too old, too conservative and too busy to spend their time on Facebook & co. Well, we beg to differ. This is only a small piece from the report, summarizing our market research:

An important trend for wealth managers to appreciate is that affluent or wealthy individuals use the general platforms like Facebook or LinkedIn most frequently, visiting niche platforms only occasionally. In conclusion, our findings show that wealthy individuals who are active on the Internet typically use two or more platforms in parallel:

Broad-based social networks like Facebook are used to communicate with friends, relatives or neighbors but also to exchange opinions with strangers about a diverse range of topics.

Professional networks like LinkedIn or Xing, are visited in order to find and re-connect to former co-workers, to expand one’s professional network and to identify potential new business partners.

Micro-blogging-networks like Twitter help users to stay informed and to read the comments of specific people on recent news topics in real-time - but also to comment themselves extensively on all matters of personal or professional interest.

Niche-networks are used to communicate with other people who have the same, very specific interests (such as certain hobbies or sharing the same challenges or life situations.


Why wealth managers don’t care about social media…

Friday, November 5th, 2010

…the majority probably thinks Facebook is for their sons and daughters to chat with their highschool buddies. WRONG! Read all about it.