BEHIND THE LOGIN WEALTH MANAGEMENT DECODING THE CLIENT EXPERIENCE. Report Extract. Assessment - Best Practices Strategies.

Transcription

1 WEALTH MANAGEMENT BEHIND THE LOGIN DECODING THE CLIENT EXPERIENCE Assessment - Best Practices Strategies December 2015 Report Extract Original Report with 84 pages plus comprehensive data appendix Emma Haffenden Senior Analyst

2 CONTENT 2 TABLE OF CHARTS EXECUTIVE SUMMARY METHODOLOGY SELECTION OF BANKS/WEALTH MANAGERS SELECTION OF MOBILE APPS SELECTION OF SECURED ONLINE PORTALS EVALUATION PROCEDURE DETERMINING THE ASSESSMENT FRAMEWORK SUMMARIES BY BANK THE EVOLVING DIGITAL WEALTH EXPERIENCE TRENDS AND KEY FINDINGS HOW SHIFTS IN WEALTH DEMOGRAPHICS AND BEHAVIOR ARE SHAPING NEW DIGITAL JOURNEYS SUMMARY FINDINGS: CAPABILITIES BEHIND THE LOGIN DRIVING FORCES AND THE FUTURE ONLINE WEALTH EXPERIENCE BEHIND THE LOGIN ASSESSMENT OF CAPABILITIES AND BEST PRACTICE FEATURES BANKING AND PAYMENTS TRADING PORTFOLIO ANALYSIS, RISK EVALUATION AND ADVISORY TOOLS THOUGHT LEADERSHIP AND WEALTH MANAGER S EXPERTISE ACCOUNT MAINTENANCE COMMUNICATION CLIENT EXPERIENCE & PERSONALIZATION SECURITY, AUTHENTICATION AND OVERALL USE OF TECHNOLOGY 42 BEHIND THE LOGIN 2

3 5.0 STRATEGY AND RECOMMENDATIONS TRUE INNOVATION WILL SPRING FROM A DEEP UNDERSTANDING OF WHAT CLIENTS ARE STRIVING FOR A HIERARCHY OF DIGITAL CAPABILITIES FOR WEALTHY CLIENTS TEN ESSENTIAL CAPABILITIES FOR DIGITAL WEALTH MANAGEMENT IN BANK SUMMARIES BARCLAYS WEALTH WEBSITE: UNDERSTATED AND ROBUST BANKING AND WEALTH OVERVIEW CAPABILITIES BNP PARIBAS PRIVÉE: BEAUTIFULLY DESIGNED, WITH WELL INTEGRATED THOUGHT LEADERSHIP CONTENT BNY MELLON: COMPREHENSIVE INVESTMENT AND BANKING ACCOUNT INFORMATION CITI PRIVATE BANK TABLET APP: EXPLORE THE PORTFOLIO INTUITIVELY WITH A TAP OR A PINCH AND SEAMLESS ADVISOR COLLABORATION COUTTS MOBILE APP: ATTENTIVELY DESIGNED FOR MAXIMUM DAY-TO-DAY CASH MANAGEMENT CREDIT SUISSE: STRONG SUPPORT FOR INVESTMENT-FOCUSED CLIENTS DBS: EXTENSIVE, WEALTH-BRANDED CAPABILITIES MERRILL LYNCH: AN ONLINE PORTFOLIO OF WEALTH MANAGEMENT CAPABILITIES MORGAN STANLEY: WELL DESIGNED, BROAD CAPABILITY COVERING AND CONSOLIDATED VIEW OF WEALTH SOCIÉTÉ GÉNÉRALE: INNOVATIVE BANKING AND PAYMENT FEATURES UBS: A POWERFUL FEATURE SET WITH INNOVATIVE USE OF TECHNOLOGY TO AUTOMATE DIALOG WITH ADVISORY CLIENTS U.S. TRUST: EXTENSIVE THOUGHT LEADERSHIP 80 AUTHORS 83 DISCLAIMER 84 BEHIND THE LOGIN 3

4 TABLE OF CHARTS Forces shaping future digital wealth experiences 21 IBM Watson for wealth management provides the advisor with a synthesis of structured and unstructured data from internal and external sources 23 UBS ebanking: Personal Financial Assistant 24 BNP Paribas Privée website 25 BNY Mellon online banking: payment form 25 Barclays International payments: IBAN generator 26 MyMerrill app 27 UBS e-banking securities trading 28 BNP Paribas Privée portfolio risk tool 29 Citi In View app portfolio analysis 30 Citi Private Bank tablet app 30 UBS Advice Portfolio Health Check 31 Citi Private Bank tablet app branding 40 Advisory vs Discretionary client experience 45 Digital wealth capabilities - three-tier hierarchy 46 Moven break the glass savings feature 47 Barclays Wealth One Wealth Overview 50 Barclays Wealth One Transaction query screen 50 BNP Paribas Banque Privée secured portal Overall portfolio risk 53 BNP Paribas secured portal Welcome screen 53 BNY Mellon Wealth Management s Private Workbench- reporting options 56 BNY Mellon Private Workbench embedded site that showcases a specific security 56 Citi Private Bank Integrated Video calling 59 Citi Private Bank iphone account summary 59 Coutts mobile app Accounts summary 62 Coutts Mobile Client Dashboard tablet overview 62 Private Banking Switzerland app- welcome screen 65 Private Banking Switzerland app News screen 65 DBS mbanking app- Features overview 67 DBS ibanking Portfolio screen 67 MyMerrill for Android- Holdings details 70 MyMerrill for ipad - Dashboard 70 Morgan Stanley Online Total net worth summary 72 Morgan Stanley Online Accounts view 72 L Appli Société Générale Budget management screen 75 L Appli Société Générale for ipad- Dashboard 75 UBS WM Asia Portfolio Health Check results 77 UBS WM Asia Tablet Insights page 77 Online Access- My accounts screen 80 Online Access- Our capabilities screen 80 BEHIND THE LOGIN 4

5 EXTRACT OF THE EXECUTIVE SUMMARY 1.0 EXTRACT OF THE EXECUTIVE SUMMARY ( Executive Summary in full report p. 5 to 7) The secured websites of wealth managers, which require a client login, have mastered basic capabilities like providing banking transfers or delivering essential research content. However, as our report shows, they have not yet managed to escape the retail consumer look-and-feel in their digital touch points. For the report MyPrivateBanking analyzed 15 secure online and mobile presences of 12 wealth managers worldwide, which are only accessible to clients. The strengths and weaknesses are analyzed according to over 60 criteria and grouped into 8 main categories of evaluation such as Banking and Payments, Trading, Client experience and Personalization, Security and Authentication. Furthermore, the report features 10 Essential Capabilities for Digital Wealth Management in 2016 and a framework on how wealth managers should improve their behind the login client experience. UBS, DBS, and Citi Private Bank offer the most advanced secure online presences of the surveyed wealth managers. However, our analysis shows very clearly that there is presently no single wealth management institution that brings together stateof-the art design, excellent customer experience and the full range of important functionality. Most wealth managers are missing out on the vast opportunities to personalize, enrich and transform their secure spaces to achieve a truly engaging digital customer experience which takes into account the specific needs of their HNWI clientele. The depth of capabilities wealth managers are delivering to enable a digital wealth management relationship with their clients is inconsistent. They are strong on thought leadership and wealth manager s expertise; mediocre in banking and payments and weak on trading and interactive tools. (Detailed splits in full report) In this report, MyPrivateBanking defines a three-tier hierarchy of digital wealth standards including the core functions to provide a basic level of capability; personalization for client engagement and retention, and expertise which complements the portfolio view. In terms of the next phase of technology enhancements and the growing needs of clients, the report predicts that humanized digital advisory features - which are right now in their infancy - will see many more combinations over the next 18 months. Wealth managers are well advised to take a pro-active stance and complement their personal services with automated, but still individually curated experiences. Analyzed Wealth Managers: Barclays, BNP Paribas, BNY Mellon, Citi Private Bank, Coutts, Credit Suisse, DBS, Merrill Lynch, Morgan Stanley, Société Générale, UBS, U.S. Trust BEHIND THE LOGIN 5

6 METHODOLOGY 2.0 METHODOLOGY. Digital wealth management (or rather, the lack of it) is an area which has received criticism, especially in the last two years as so-called robo-advisors have stolen the limelight. Our approach to this report has been to consider the full spectrum of current and potential digital wealth capabilities which are located behind the login (secure client space for desktops/mobiles); some more relevant to specific client segments and certain geographies than others. With an analysis of the coverage depth and through comparing and contrasting what is on offer from leading wealth management firms we aim to illuminate the directions in which digital wealth management is headed now that the strategic nature of this topic is well publicized and a high priority for most firms. The report also considers the level of wealth managers differentiation from retail banking, and any relevant cross-sector or FinTech developments that are targeted at the wealthy. The goal of the report is to identify best practices, innovative features and to define how the industry has evolved in its journey to digitize key elements of the client relationship. 2.1 SELECTION OF BANKS/WEALTH MANAGERS This study analyses the core mobile apps and secure websites of 12 leading private banks and wealth managers worldwide. The research group of 12 firms was selected on the basis of their significant assets under management plus a requirement that they have a visible and comprehensive mobile or secured online presence. In total 15 offerings were evaluated, therefore both the applicable website and the mobile app was included for 3 of the 12 banks. Overall and to enable us to consider the global picture we sought a regionally diverse group of firms and offerings; wealth managers from Europe (France, Switzerland, and UK), US and Asia Pacific have been included. ( more in full report p. 8 to 15) BEHIND THE LOGIN 6

7 THE EVOLVING DIGITAL WEALTH EXPERIENCE TRENDS AND KEY FINDINGS 3.0 THE EVOLVING DIGITAL WEALTH EXPERIENCE TRENDS AND KEY FINDINGS 3.1 HOW SHIFTS IN WEALTH DEMOGRAPHICS AND BEHAVIOR ARE SHAPING NEW DIGITAL JOURNEYS (more in full report p. 16 to 23) BEHIND THE LOGIN 7

8 BEHIND THE LOGIN ASSESSMENT OF CAPABILITIES AND BEST PRACTICE FEATURES 4.0 BEHIND THE LOGIN ASSESSMENT OF CAPABILITIES AND BEST PRACTICE FEATURES In the following chapter, we explore each of the 8 functional areas in detail. ( more in full report p. 24 to 42) BEHIND THE LOGIN 8

9 STRATEGY AND RECOMMENDATIONS 5.0 STRATEGY AND RECOMMENDATIONS 5.1 TRUE INNOVATION WILL SPRING FROM A DEEP UNDERSTANDING OF WHAT CLIENTS ARE STRIVING FOR In this chapter we outline the key deliverables for a digital wealth capabilities strategy based on the learnings and best practice observed in our research. The important themes are empowerment, automation, and trust building. We believe that wealth managers will be rewarded by their clients loyalty and greater share of wallet if they are prepared to adopt digital as a core value and take this opportunity to re-engineer the client dialog. We have identified five important themes: ( more in full report p. 43 to 49). BEHIND THE LOGIN 9

10 6.0 BANK SUMMARIES 6.0 BANK SUMMARIES ( more in full report p. 50 to 82) BEHIND THE LOGIN 10

11 AUTHORS AUTHORS Emma Haffenden, Senior Analyst, has over 10 years of experience in wealth management and technology, mostly delivering analysis, business and technology strategy consulting and research services to C level Executives of the leading global financial institutions. In her previous roles, she led the Wealth & Private Banking practice at Expand Research, a subsidiary of BCG, and was a Senior Consultant and member of the Wealth Leadership team at Capco in London. Emma has a degree in IT and Criminology, and a Master s in Database Systems from the University of Westminster. Roxana Palade, Analyst, specializes in research in the fields of mobile apps for wealth management and online presences of wealth managers. Her specific interests are in the areas of Web 2.0 technologies, vendor management and data mining. Roxana has held a number of research positions in business and academia in Germany, India and Romania. She has a Master s Degree in British and American Studies from the University of Konstanz (Germany) and a Master s Degree in Literature from the Alexandru Ioan Cuza University, lasi (Romania). 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). BEHIND THE LOGIN 11

12 DISCLAIMER 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. MyPrivateBanking GmbH Hafenstrasse 50B CH-8280 Kreuzlingen, Switzerland Tel For our latest reports please check: BEHIND THE LOGIN 12