MOBILE APPS FOR WEALTH MANAGEMENT - … MyPrivateBanking... · mobile apps for wealth management,...

MOBILE APPS FOR WEALTH

MANAGEMENT THE NEXT LEVEL OF DIGITAL SERVICE:

PERSONALIZED APPS FOR YOUR MOST

VALUABLE CLIENTS

Data – Analysis – Implications – Learnings

www.MyPrivateBanking.com

May 2016

Rosalia Engchuan

Analyst

Report Extract

Original Report with 179 pages

Plus Data Appendix with individual

evaluations of 30 wealth managers

MOBILE APPS FOR WEALTH MANAGEMENT │ 2

TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY 8

2.0 OVERALL RANKING 14

3.0 WEALTH SERVICE INDICATOR RANKING 15

4.0 METHODOLOGY 16

SELECTION OF BANKS AND APPS 16

USE CASES AS A GUIDELINE 11

EVALUATION PROCEDURE 12

DETERMINING THE CRITERIA 13

WEALTH SERVICE INDICATOR 14

5.0 STRATEGY: MOBILE APPS - A WEALTH MANAGER’S

STRONGEST COMPETITIVE ADVANTAGE 27

WHO ARE THE (CURRENT AND FUTURE) WEALTH MANAGEMENT CLIENTS? 28

DRIVERS OF CHANGE AFFECTING THE OVERALL STRATEGY 30

THE CASE FOR A DEDICATED WEALTH MANAGEMENT APP 40

PERSONALIZING THE DIGITAL AND MOBILE WEALTH CLIENT JOURNEY 40

USE CASE FOR MOBILE APPS 41

INNOVATIVE METHODS FOR APP DEVELOPMENT 42

OVERARCHING TRENDS WITH REGARD TO APP CAPABILITIES 43

A STRATEGY FOR SOPHISTICATED WEALTH APPS 44

SILVER – MUST HAVE FEATURES 45

GOLD - ADVANCED FEATURES 50

PLATINUM – PARTICULARLY INNOVATIVE FEATURES 51


6.0 TOP 15 BEST PRACTICES 53

WEALTH FEATURES 54

INVESTMENT TOOLS 57

USABILITY 59

PERSONALIZATION 61

VALUE ADDING INTERACTIVE TOOLS 64

7.0 SUMMARY OF FINDINGS 65

CRITICAL APP FUNCTIONS 65

TRENDS OVER THE PAST 3 YEARS 66

AVAILABILITY OF MOBILE APPS 67

CORE FUNCTIONS FOR CLIENTS 68

CRITERIA COVERAGE CORE FUNCTIONS FOR CLIENTS 69

SECURITY 70

CUSTOMER RETENTION AND MARKETING 72

CONTACT FEATURES 74

TECHNICAL FEATURES AND SUPPORT 75

PLATFORM INTEGRATION 77

YEAR ON YEAR PERFORMANCE 2015 AND 2016 79

WEALTH SERVICE INDICATOR 80

A CLOSER LOOK INTO PERSONALIZATION CAPABILITIES 84

PERFORMANCE IN THE GOLD SILVER PLATINUM CATEGORIES 85

8.0 INDIVIDUAL WEALTH MANAGER PROFILES 89

XXX: A SOLID OFFERING FOCUSED ON PRIVATE CLIENTS, BUT IT NEEDS TO EVOLVE FURTHER

TO MEET SPECIFIC WEALTH MANAGEMENT NEEDS. 90

XXX: STRONG MOBILE APP OFFERING BUT WEAK IN DEDICATED WEALTH FUNCTIONS. 93

XXX: AN EXCELLENT SOLUTION THAT LEADS THE PACK IN CUSTOMER RETENTION AND

MARKETING. 96

XXX: A WELL-INTENDED WEALTH MANAGEMENT FOCUS FAILED BY LOW FUNCTIONALITY

AND CONTENT. 99


XXX: A SUCCESSFUL PARTNERSHIP BETWEEN TWO APPS, RESULTING IN A SECURE OFFERING

WITH SOME ASPECTS FOR FURTHER REFINEMENT. 102

XXX: HIGHLY PERSONALIZED APP WITH THE HIGHEST WEALTH SERVICE INDICATOR ON THE

MARKET. 105

XXX: A NEGLECTED SOLUTION THAT NEEDS RENEWAL AND ENHANCEMENT IN KEY

CATEGORIES 108

XXX: EXCELLENT PERFORMANCE ON THE DIGITAL WEALTH MANAGEMENT FRONT. 111

XXX: INNOVATIVE MOBILE BANKING CAPABILITIES WITH PRIVATE CLIENT POTENTIAL 114

XXX: A POTENT APP PARTNERSHIP THAT MEETS ALMOST ALL WM CLIENT NEEDS. 117

XXX: STRONG CONTENDER FOR CORE FUNCTIONS BUT LACKING A DEDICATED APP. 120

XXX: A POTENTIAL LEADER IN MOST CATEGORIES, ALREADY A LEADER IN SOME. 123

XXX: TECHNICALLY STRONG, BUT AN OUTDATED APP IN TERMS OF SECURITY AND

FUNCTIONALITY. 126

XXX: A VERY SECURE, RECENT WEALTH MANAGEMENT FOCUS THAT DOES NOT YET FILL ALL

THE GAPS AS A COMPLETE OFFERING. 129

XXX: A POTENTIALLY STRONG WEALTH MANAGEMENT FOCUS, PROVIDED SOME

ENHANCEMENTS ARE IMPLEMENTED. 132

XXX: TECHNICALLY STRONG AND SECURE APP FOR ALL PLATFORMS AND DEVICES, BUT IT

MISSES KEY RETENTION AND MARKETING OPPORTUNITIES. 135

XXX: SECURE BUT LIMITED WM FUNCTIONALITY IN SIMILAR APPS FOR SMARTPHONE AND

TABLET 138

XXX: A FORMIDABLE EXAMPLE OF DELIVERING CORE WM FUNCTIONS, BUT REQUIRES WORK

IN OTHER CATEGORIES. 141

XXX: EXCLUSIVELY FOCUSED ON WEALTH MANAGEMENT, BUT REQUIRES SOME

INNOVATION AND MORE WORK IN ALL CATEGORIES. 144

XXX: LEADS THE PACK WITH FEATURES NEGLECTED BY RIVALS - AN EXCELLENT FOUNDATION

READY FOR EVOLUTION. 147

XXX: SOME HIGHLIGHTS, BUT REQUIRES WORK IN MOST CATEGORIES. 150

XXX: ONE YEAR LATER: A GOOD SOLUTION THAT NOW REQUIRES MORE INNOVATION. 153


XXX: A SOLID FOUNDATION THAT WILL REQUIRE SOME IMPORTANT IMPROVEMENTS TO

STAY WITHIN THE TOP RANKS. 156

XXX: A GOOD START BUT REQUIRES MAJOR WORK TOWARDS FULL MATURATION. 159

XXX: A VERY SECURE SOLUTION WITH STRONG CORE FUNCTIONS, BUT LACKING IN SOME

OTHER CATEGORIES. 162

XXX: A WINNING APP PORTFOLIO WITH GROUNDBREAKING FEATURES. 165

XXX: A STRONG, SECURE CONTENDER WITH GOOD CORE WM FUNCTIONALITY AND SOME

DRAWBACKS IN RETENTION AND MARKETING. 168

XXX: A SECURE AND TECHNICALLY COMPETENT OFFERING THAT IS LOW ON CORE

FUNCTIONS, CONTACT FEATURES AND RETENTION/MARKETING. 171

XXX: A WELL-SUSTAINED APP PARTNERSHIP THAT HAS MATURED, WITH WORK STILL

OUTSTANDING ON CORE FUNCTIONS. 174

XXX: A VERY SECURE APP WITH GOOD CORE WM FUNCTIONS, BUT IT DOES LITTLE TO

RETAIN CLIENTS AND HAS TECHNICAL CHALLENGES. 177

AUTHORS 180

DISCLAIMER 181

To order the full report, please click here.

http://www.myprivatebanking.com/CMSPages/ContactUsReport.aspx


TABLE OF CHARTS

Trend over the past 3 years.......................................................................................... 10

Ritz-Carlton Mobile App ............................................................................................... 29

BNP Paribas NextGen Club app .................................................................................... 32

AsiaNews ..................................................................................................................... 33

A peek into Credit Suisse Asia Pacific app capabilities .................................................. 34

A peek into UBS app capabilities .................................................................................. 34

Source: Statista as of end April 2016 ............................................................................ 37

Hyatt Chatbot Advertising ............................................................................................ 38

Facebook Messenger Airline Bot .................................................................................. 38

Sample Bot Communication ......................................................................................... 39

Average Retention Rates ............................................................................................. 42

Pyramid of Silver, Gold and Platinum Capabilities ........................................................ 45

Peek Balance Example (DBS) ........................................................................................ 47

Best Practice XXX ......................................................................................................... 54














Critical app functions ................................................................................................... 65

Trends over the past 3 years ........................................................................................ 66

Criteria coverage availability of mobile apps ................................................................ 67

Ranking availability of mobile apps .............................................................................. 68

Criteria coverage core functions for clients .................................................................. 69

Ranking core functions for clients ................................................................................ 70

Criteria coverage security ............................................................................................ 71

Criteria coverage customer retention and marketing ................................................... 73

Ranking customer retention and marketing ................................................................. 73

Criteria coverage contact features ............................................................................... 74

Ranking contact features ............................................................................................. 75

Criteria coverage technical features and support ......................................................... 76

Ranking technical features and support ....................................................................... 76

Criteria coverage platform integration ......................................................................... 78

Ranking platform integration ....................................................................................... 78


Year on year performance of banks 2015 and 2016...................................................... 79

Trends in performance 2015 and 2016 ......................................................................... 80

Criteria coverage Wealth Service Indicator................................................................... 83

Ranking Wealth Service Indicator ................................................................................. 83

Criteria coverage Personalization ................................................................................. 84

Ranking personalization ............................................................................................... 85

Average performance in the Silver, Gold and Platinum categories................................ 86

Criteria coverage Platinum features ............................................................................. 86

Ranking Platinum features ........................................................................................... 87

Criteria coverage Gold features.................................................................................... 87

Ranking Gold features .................................................................................................. 88

REPORT EXTRACT


1.0 SUMMARY

Wealth managers have come to acknowledge the importance of mobile apps: 82

percent provide their clients with apps that cater exclusively and specifically to the

needs of high-net-worth individuals. These is one of the key findings of this report for

which MyPrivateBanking Research analyzed and ranked, in total, 60 mobile apps of 30

leading wealth managers worldwide. The share of exclusive apps for wealthy clients

increased significantly compared to our last year’s survey, when the average in this

category was at 63 percent.

In MyPrivateBanking’s view the question for wealth managers is no longer if they should

have a mobile app, but how they can develop a winning mobile app to provide them

with an essential competitive advantage. However, many private banks struggle to offer

state of the art apps. They cover basic requirements but still do not differentiate

themselves from retail apps and fail to offer their wealth clients a valuable and

personalized digital journey.

Top 5 Wealth Managers with the Best Mobile Apps

A select group of wealth managers leads our ranking when it comes to addressing the

digital needs of HNW clients:

Rank 2016 (2015)

Wealth Manager Total Points (max. 80)

1 (9) UBS 69 2 (2) Credit Suisse 65

3 (1) BNP Paribas 64

4 (7) DBS 61 5 (4) Societe Generale 58

The leading wealth managers’ mobile apps rated particularly high for their offerings of

remote channels for client and advisor interaction and advanced personalization

capabilities. The full report profiles and analyses in detail the mobile apps of the Top 30-

wealth managers’ and offers an overall ranking of their app offerings as well as a

separate ranking for each of the offered app features.

REPORT EXTRACT


Wealth managers’ apps should go beyond the usual

The MyPrivateBanking report identifies overall several weak points in the available

mobile apps for wealth management, among them a lack of core functions such as

interactive tools for portfolio analysis (only offered by 11 out of 30 wealth managers)

and the fact that not even half of the wealth managers allow direct contact to a

personal advisor. In addition, features for customer retention and marketing were

considered to be sub-standard, as only eight wealth managers offer access to an

exclusive customer magazine, and personalized, targeted push messages are found in

only seven wealth management apps. In total the reports details the performance of

eight different app features and identifies must-have, advanced and particularly

innovative features. 15 best practices provide in-depth illustrations on how to optimize

these features for mobile apps targeted towards wealthy clients.

The report analyses in distinct profiles what can be learned from each wealth managers

mobile apps offerings and draws as well numerous strategic recommendations for

developing a top performing wealth app such as:

Develop a dedicated and exclusive wealth app. Wealth management clients

expect extra value and differentiation from the retail experience. Offering a true

wealth app begins with an exclusive design and color scheme, a personalized

greeting when logging in, direct access to an advisor and access to relevant and

inspiring content.

Build a remote channel for client and advisor interaction. The whole business

model of wealth management is transforming as a result of the technical

opportunities brought about by the digital revolution. Wealth managers should

see this revolution as an opportunity and embrace the possibilities for

interacting with clients on a whole new level.

Work on an omni-channel strategy. The whole idea of an omni-channel strategy

is to offer clients the opportunity to choose how they will interact with their

wealth manager. Wealth managers need to provide the infrastructure to enable

such an omni-channel experience, for instance through seamless integration of

the social media platforms and mobile apps.

The report details as well why wealth managers should watch the robo-advisors

revolution. What sound like distant future scenarios to many are already a reality for

new FinTech providers that are also beginning to penetrate the wealth management

market. Sophisticated wealth apps should provide clients with tools to build

hypothetical portfolios and receive product recommendations based on their unique

financial situation.

REPORT EXTRACT


2.0 OVERALL RANKING

Rank 2016 Wealth Manager Total Points Availability of Mobile Apps

(max 8)

Core functions for clients (max

20)

Security (max 7)

Customer retention and marketing

(max 13)

Contact features (max 8 )

Technical features and support (max

12)

Platform integration

(max 9)

Best Practices (max 3)

1 UBS 69

2 Credit Suisse 65

3 BNP Paribas 64

4 DBS 61

5 Societe

Generale 58

6 55

8 12 7 4 7 9 5 3

7 53

5 14 3 10 5 9 4 3

8 52

7 7 5 7 7 10 7 2

8 52

8 14 6 3 6 9 5 1

10 51

7 10 4 6 6 10 6 2

10 51

6 9 6 8 4 9 6 3

12 50

8 12 5 4 6 9 5 1

12 50

7 16 4 5 3 8 4 3

14 48

8 12 6 3 2 11 5 1

14 48

6 10 6 5 5 10 4 2

16 46

5 11 5 5 3 9 6 2

16 46

5 12 7 4 4 7 5 2

18 45

5 11 6 7 3 6 4 3

18 45

6 7 6 8 2 9 4 3

20 44

5 14 6 3 4 8 4 0

21 42

7 10 7 2 5 8 2 1

21 42

5 10 4 6 1 10 4 2

21 42

5 9 5 6 3 10 4 0

24 39

5 3 4 3 7 11 4 2

24 39

6 8 4 3 5 7 6 0

26 37

6 8 4 0 4 11 4 0

27 36

5 7 2 2 4 11 4 1

28 35

6 8 5 0 4 9 3 0

28 35

5 6 3 5 1 9 4 2

30 32

6 7 6 0 2 9 2 0

REPORT EXTRACT


3.0 WEALTH SERVICE INDICATOR RANKING

The Wealth Service Indicator was newly introduced in this study in order to

show the level of wealth service of an app. Some apps offer a lot of content

and features but lack specific wealth features, that make the difference

between a retail app and a truly sophisticated wealth app.

(more in full report)

Bank Points

22

19

18

17

16

15

15

13

12

12

12

11

11

11

10

10

10

10

10

10

9

9

9

9

8

8

7

6

6

4

Coloring of cells indicates

relative performance in the respective categories. Green: top performance

Light Green: better than average

Yellow: average

Orange: below average

Red: lacking

REPORT EXTRACT


4.0 METHODOLOGY

SELECTION OF BANKS AND APPS

This study analyzes the mobile apps of 30 leading private banks and wealth managers

that offer apps for their private clients. The banks under evaluation were selected on the

basis of their wealth management assets under management by the end of 2015,

provided that the wealth managers had a significant mobile presence. A small group of

wealth management firms was added to our selection despite their assets under

management being below the threshold mark. These providers were admitted in order

to make sure that all global regions were represented.

For all wealth managers, mobile apps were identified globally on various mobile app

platforms including Apple iOS, Android, BlackBerry and Windows Phone. To be included

in the evaluation, an app had to exhibit at least some features that are specifically for

HNW clients, such as investment portfolio overview, trading/brokerage capability, and

content and features that are of particular interest to wealth clients.

We have excluded apps that are solely intended for institutional clients or commercial

clients. Also excluded were any apps that were solely dedicated to a bank’s investor

relations activities or apps with a clear retail focus.

Apps were included in the analysis if they met the following criteria:

Available to wealth clients The apps had to be promoted as wealth management apps on the website or in the app store description.


USE CASES AS A GUIDELINE

Use Case Objectives

Portfolio check Overview of investment portfolio and portfolio analysis capabilities (asset allocation, performance over time)

Trading and brokerage


REPORT EXTRACT


The criteria were derived from use cases defined on the basis of years of research in this

field, including, for example, regular in-depth interviews with wealth managers and

comprehensive surveys aimed at profiling today’s digital use patterns of high-net-worth

clients (for more information, see here).


EVALUATION PROCEDURE

Two analysts evaluated each app independently of each other within an interval of four

weeks to minimize the possibility of faults due to subjective points of view and

accidental network problems at a certain point in time. Given the quantity of

information that had to be analyzed, the possibility of not finding all the information in

individual cases cannot be ruled out. The evaluation was done on the basis of 50

different criteria that were divided into eight main categories. Care was taken to keep

the definition and allocation of points as free as possible from all subjective influences,

thus ensuring a high level of objectivity in the benchmarking process.

In addition to the apps themselves, other sources of information were also included in

the analysis: user feedback and ratings in the app stores (Apple, Android), screenshots

from the major app stores (iTunes, Google Play, Windows Phone and BlackBerry),

information from the banks’ websites (often the banks displayed additional information

about their apps on their websites such as the privacy policy, FAQs or a video tutorial),

and occasionally other sources such as Twitter feeds, blogs, newspaper coverage, etc.


DETERMINING THE CRITERIA

In this study, the main evaluation criterion for the apps was the extent to which they

fulfill the use cases described above. In contrast to previous editions of the report, we

were stricter with regard to the inclusion of embedded website content. So called

wrapper apps can be downloaded in app stores but are heavily reliant on website

content. Whilst this was considered okay when mobile apps were just introduced, it is

no longer tolerable to have such a solution, as user experience is considerably impaired.

We measured usability in terms of eight overarching criteria:

Availability of mobile apps

Core functions for clients

Security

Content and features for customer retention and marketing

Contact features

Technical features and support

REPORT EXTRACT


Platform integration

Best practices

In the following, the parameters for each criterion are described in detail, including the

maximum achievable points. In comparison to last year’s report, there have been some

changes in our rating scheme. These changes, along with several minor adjustments

(e.g. in the weighting for the criteria), reflect current developments and future trends in

the interface of wealth management and the digital world for the current

MyPrivateBanking report criteria on Mobile Apps for Wealth Management. Newly added

criteria reflect changes in the overall environment and the constant development of

technical features that can be realized in mobile apps. Overall, there is a trend towards

more interactivity and remote advisory within the wealth management industry.


WEALTH SERVICE INDICATOR

The Wealth Service Indicator was newly introduced in this study in order to show the

level of wealth service of an app. Some apps offer a lot of content and features but lack

specific wealth features, that make the difference between a retail app and a truly

sophisticated wealth app.


The Wealth Service Indicator measures performance in the following categories:

Specific app for wealth management clients: Only apps that are specifically dedicated to wealth management clients will offer a user experience that is adapted to the needs of the HNW clientele. Only offering the retail app to wealth clients will not be enough here. Of course there are other solutions, such as offering a wealth skin to wealth clients instead of featuring a stand-alone app. The most important thing is giving HNW clients the feeling that their needs are met.


REPORT EXTRACT


5.0 STRATEGY: MOBILE APPS - A WEALTH MANAGER’S

STRONGEST COMPETITIVE ADVANTAGE

(more in full report p.27 to 52)

6.0 TOP 15 BEST PRACTICES


7.0 SUMMARY OF FINDINGS


8.0 INDIVIDUAL WEALTH MANAGER PROFILES


REPORT EXTRACT


AUTHORS

Rosalia Engchuan, Analyst, has a research focus on the mobile and web presences

of wealth managers and banks as well as on the impact of disruptive technologies

on the wealth management sector. She specializes in online communication

technologies and mobile channel strategies. Rosalia has previously worked as a

CSR Analyst in Kuala Lumpur, Malaysia and as digital media consultant. She studied

in Germany and Malaysia holds a Bachelor Degree in Asian Studies and

Management.

Anton Venter, Analyst, does research on the use of technology for applications

supporting banks and wealth managers, with a focus on Customer Servicing

channels and Intermediary Support applications. Before focusing on research he

worked for over 26 years at Old Mutual, a leading financial services institution in

South Africa. As Technology Architect his role included functions such as vendor

management, technology road mapping and the practice of Enterprise

Architecture. Anton holds a Master’s Degree in Computer Science from the

University of Cape Town.

Steffen Binder, Managing Director and co-founder of MyPrivateBanking

Research. Steffen is Head of Research and oversees the research agenda and

analyst teams. He is responsible for creating and developing powerful concepts

and relevant content to help our clients navigate a rapidly changing digital

environment. As a regular speaker at finance and technology industry events

around the globe, Steffen is frequently quoted by leading business media such as

the Wall Street Journal, Handelsblatt and the Financial Times. Prior to this, Steffen

was Managing Director of Forrester Germany, Switzerland and Austria. He came

to Forrester through its acquisition of Forit GmbH, a leading European technology

research company, of which he was also a co-founder. Prior to that, Steffen was a

partner at Monitor Company (Strategy Consulting). He holds Master’s Degrees in

Organizational Behavior from Rutgers University (USA) and in Public Administration

from the University of Konstanz (Germany).

REPORT EXTRACT


DISCLAIMER

IMPORTANT NOTICE AND DISCLAIMERS:

NO INVESTMENT ADVICE

This report is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where

such an offer or solicitation would be illegal. This report is distributed for informational purposes only and

should not be construed as investment advice or a recommendation to sell or buy any security or other

investment, or undertake any investment strategy. It does not constitute a general or personal

recommendation or take into account the particular investment objectives, financial situations, or needs of

individual investors. The price and value of securities referred to in this report will fluctuate. Past

performance is not a guide to future performance, future returns are not guaranteed, and a loss of all of

the original capital invested in a security discussed in this report may occur. Certain transactions, including

those involving futures, options, and other derivatives, give rise to substantial risk and are not suitable for

all investors.

DISCLAIMERS

There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from

any information set forth in this report. MyPrivateBanking GmbH will not be liable to you or anyone else for

any loss or injury resulting directly or indirectly from the use of the information contained in this report,

caused in whole or in part by its negligence in compiling, interpreting, reporting or delivering the content in

this report.

COPYRIGHT

MyPrivateBanking GmbH’s Products are the property of MyPrivateBanking GmbH, Switzerland, and are

protected by Swiss and international copyright law and other intellectual property laws. Customers are

prohibited to copy, forward or store MyPrivateBanking Products outside of the legal entity that has made

the purchase.

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Tel. +41 71 566 10 05

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MOBILE APPS FOR WEALTH MANAGEMENT - … MyPrivateBanking... · mobile apps for wealth management,...

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