DIGITAL LEADERS IN WEALTH MANAGEMENT

Transcription

1 DIGITAL LEADERS IN WEALTH MANAGEMENT EMPOWERING CLIENTS AND CREATING AN INNOVATIVE CULTURE Benchmarking Strategy Recommendations November 2016 Report Extract Original Report with 58 pages Plus comprehensive data appendix

2 CONTENT 1.0 EXECUTIVE SUMMARY METHODOLOGY SCOPE EVALUATION PROCEDURE EVALUATION CRITERIA RANKING AGGREGATED TOP 20 RANKING: CROSS CHANNEL PERFORMANCE TOP 10 RANKED LEADERS: DIGITAL STRATEGY AND DELIVERY STRATEGY: TOMORROW S BUSINESS MODEL DOES NOT EXIST, THE IMPORTANCE OF INNOVATION TODAY WHAT DOES IT MEAN TO GO DIGITAL? DIGITAL DIARY AN INSIGHT INTO THE OMNICHANNEL LIFE OF A NEW CLIENT HOW EVEN THE BEST WEALTH MANAGERS STILL HAVE WORK TO DO SUMMARY OF FINDINGS ANALYSIS OF THE 20 BEST DIGITAL WEALTH PERFORMERS ASSESSMENT OF THE TOP 10 RANKED DIGITAL LEADERS SPOTLIGHT ON THE DIGITAL WEALTH LEADERS MERRILL LYNCH BNP PARIBAS INVESTEC UBS CHARLES SCHWAB SOCIETE GENERALE CREDIT SUISSE ABN AMRO DBS BANK UNICREDIT VONTOBEL 54 DIGITAL LEADERS IN WEALTH MANAGEMENT 2

3 7.0 SUMMARY AND RECOMMENDATIONS AUTHORS DISCLAIMER 58 ORDER THE REPORT HERE DIGITAL LEADERS IN WEALTH MANAGEMENT 3

4 TABLE OF CHARTS Table of underlying reports and scoring 8 Collaboration as a key enabler of digital innovation 15 Top 20 Wealth Managers by weighted aggregated score 22 Mapping of performance by channel and MyPrivateBanking report category 23 Analysis of cross-channel consistency 24 Digital Leaders average performance by theme 26 Digital leaders engagement approach with external innovators 27 Leaders position on a robo-advice offering 28 Digital roles and responsibilities 28 Merrill Lynch Social Media 29 Merrill Lynch ipad app 29 Merrill Lynch desktop website 29 BNP Paribas desktop website 33 BNP Paribas Mobile app and Social Media 33 BNP Paribas showcases its digital tools well 35 Investec home website 37 Investec mobile app and social media 37 UBS home website 41 UBS core mobile app 41 UBS social media 41 Charles Schwab s website 45 Charles Schwab mobile app and social media 45 DIGITAL LEADERS IN WEALTH MANAGEMENT 4

5 EXECUTIVE SUMMARY 1.0 EXECUTIVE SUMMARY >> Only banks and wealth managers firmly establishing digital as a strategic priority for their respective wealth businesses will succeed in winning and engaging clients in the future. Today, even the digital leaders among the global wealth managers are still providing an uneven digital experience, performing well on one channel, but not as well on others. There is a general lack of a coherent, overarching cross-channel strategy for serving clients. << This is a key finding of the report Digital Leaders in Wealth Management 2016 for which we analyzed and ranked the overall digital performance of 20 leading global private banks and wealth managers. The report ranks the 20 firms across all digital channels, and specifically for websites, mobile apps and social media. A separate ranking identifies the top 10 for digital strategy and delivery. The results are illustrated by featuring core elements of the digital presences of the best ranked wealth managers. DIGITAL LEADERS FOR CROSS-CHANNEL PERFORMANCE: UBS, BNP PARIBAS, DBS Looking at the ranking of the 20 best wealth managers across mobile, website and social media channels, the best performer in the MyPrivateBanking ranking is UBS with 582 points (out of a maximum of 736 points), with its mobile channel counting as the bank s main strength. BNP Paribas is ranked second with 556 points, showing a balanced and excellent performance across all three channels. DBS claims the third rank with 555 points, earning the accolade of best website of the Top 3 in an aggregated ranking for cross-channel performance. The full rankings of the 20 banks and wealth managers across all channels are detailed in the report. Our research shows that the leading banks and wealth managers are driving toward multi-channel transformation at varying paces and in their own unique ways, but with a common goal of positively impacting the client experience. These firms have learned more about the online behaviors and needs of HNWIs than their peers, yet there are still major gaps before a truly omni-channel offering can be achieved, which are identified in the report. One striking finding from our analysis of wealth managers performance across multiple digital channels is that there is a huge variation in website, mobile and social media offerings. Even within a channel, websites for example, most firms demonstrate an inconsistent level of capability between domestic and international sites. As a consequence, only five of the top 25 global wealth managers according to assets under management make it into MyPrivateBanking s shortlist of the top 10 digital leaders, and just over half feature in the ranking of top 20 cross-channel performers. In our view, this is far too large a proportion of clients for whom their wealth management relationship is under-digitized and the pace of change is too slow. DIGITAL LEADERS FOR DIGITAL STRATEGY AND DELIVERY: MERRILL LYNCH, BNP PARIBAS, INVESTEC In a special additional assessment, the report explores which firms demonstrate strong digital organization, leadership, industry participation, and targeted wealth solutions. As a result, the research report classifies the top 10 leaders for digital strategy and delivery and provides detailed case studies of the top 10 and an analysis of what makes them unique. DIGITAL LEADERS IN WEALTH MANAGEMENT 5

6 EXECUTIVE SUMMARY The following three top the ranking as strategic leaders: Merrill Lynch, which excels with its unique, client-centric strategy and solutions. BNP Paribas, with its consistently topperforming digital tools offering a plethora of best practices. Investec s entrepreneurial DNA has clearly had an impact on its digital strategy, helping it to get all the key elements in place. We see a traditionally conservative culture within many firms, and to overcome this we found that an outside-in approach to innovation is popular. However, our digital leaders are typically engaged in two different modes of collaboration with FinTech startups and entrepreneurial communities, such as accelerator membership or hosting their own hackathons. The report s data appendix evaluates the digital strategies and delivery of the top 10 along 17 criteria in five areas: innovation, digital strategy, organization and leadership, branding and segmentation, cross-channel integration DIGITAL LEADERS REACH OUT FOR INNOVATIVE INPUT AND GIVE DIGITIZATION TOP PRIORITY IN ORGANIZATION AND CLIENT SERVICE Based on the analysis of the aggregated results of MyPrivateBanking s benchmarks, but also assessing the overall digital strategy and innovation approach of the top 10 ranked firms, the report derives indepth strategic and practical recommendations for engaging and winning wealthy clients through digital channels. MyPrivateBanking sees, among others, some common traits that these digital leaders share: There is defined accountability for the wealth management businesses digital agendas in the form of a Head of Digital/Chief Digital Officer (CDO) and/or ringfenced digital resources. Leaders are high profile advocates for digital transformation in the industry, actively participating in the evolving start-up ecosystem. But there is still more to do, especially in the area of robo-advice and differentiation from other consumer segments, such as retail. Leaders are not afraid to experiment; they have introduced agile development and customer experience methods and are exploring new propositions with FinTech. The digital offerings of the leading firms generally empower clients to act, through a powerful combination of insightful and actionable tools. DIGITAL LEADERS IN WEALTH MANAGEMENT 6

7 METHODOLOGY 2.0 METHODOLOGY In this report, the synthesis of our extensive single channel analyses of wealth managers allows us to identify which firms are operating outside the digital status quo and outperforming their peers in their efforts to implement new client facing digital technologies. These firms, who have undergone comprehensive evaluation, emerge to be crowned leaders. In the following chapters, we present detailed case studies of the top ten digital wealth management leaders and what makes them unique. This report analyzes the overarching digital performance of 20 leading global private banks and wealth managers. Annually, MyPrivateBanking carries out several benchmark studies into the online, mobile and social media capabilities of wealth managers. The evaluation frameworks used evolve each year to adjust to changing user behaviors, technology innovation and new standards in terms of the online tools wealth managers offer their clients. Based on a core set of research reports conducted over the past six months the results for all major digital touchpoints are factored in to this report. Data for the 20 best performing firms are featured in this analysis, with a focus on the Top 10 ranked leaders. Each of the underlying reports generally selects the banks for evaluation on the basis of their size in terms of assets under management to ensure that they have a strong global influence; provided that the wealth managers have a significant website, mobile or social media presence as per the relevant requirements for each study. In all three reports, most of the requirements for website, mobile app and social media capabilities specifically relate to the needs of high-net-worth (HNW) clients and exclude offerings solely for retail or other types of client. In phase 2 and in order to identify the overall leaders the additional analysis is concerned with wealth managers general digital strategy and efforts at innovation. The assessment considers the integration between channels and seeks to identify what are the characteristics associated with the leading firms. LEADERS ARE UNIQUE IN THEIR DIGITAL EFFORTS AND ARE RESPONDING TO INNOVATION AND TRENDS (3 POINTS) Have they won any awards for their digital platforms, or innovation which benefits the end customer? (1 point) Do they have an automated investment (roboadvice) proposition or explicit plan to launch one in 2016/17? (1 point) Does the wealth manager engage with external innovators such as FinTech, via alliances or partnerships? (1 point) LEADERS HAVE A CLEAR DIGITAL STRATEGY FOR WEALTH MANAGEMENT (1 POINT) Are their digital offerings nested within group presences, or separate/own website, dedicated wealth management apps Is there a wealth specific content hub or are thought leadership/research efforts part of group stream? (1 point) Is there a regional or global approach, do the online offerings vary significantly by location, is the major focus on delivering solutions in the domestic market? DIGITAL LEADERS IN WEALTH MANAGEMENT 7

8 METHODOLOGY LEADERS DEMONSTRATE AN ORGANIZATION AND LEADERSHIP COMMITTED TO DIGITAL (1 POINT) Is there Executive Committee or WM Board level accountability for Digital and/or innovative client experience initiatives for wealth management? Is there a Head of Digital for Wealth Management or a digital team with a focus on wealth? (1 point) LEADERS HAVE A DISTINCT APPROACH TO BRANDING, DESIGN AND CLIENT AUDIENCE SEGMENTATION (3 POINTS) Are there features or high quality content focused on wealth client goals, life stage, profession or interest e.g. succession, entrepreneurs (1 point) Is the design of the interfaces/user experience clearly targeted at a wealthy audience, distinct from retail? (1 point) LEADERS BRING TOGETHER AND INTEGRATE THEIR OFFERING ACROSS MULTIPLE CHANNELS (1 POINT) Do they allow front line staff to use social media in addition to corporate presence? Are individual profiles of specialists/advisors linked on the website? Is the branding and approach consistent across different touchpoints? (1 point) How much interoperability is there in terms of opportunities to switch channel, or crosschannel promotion e.g. mobile app featured on the website BONUS POINT (1 POINT) Finally, a bonus point was awarded for wealth managers who scored at least one point in each of the five sections above, bringing the total available points total to 10 points. Is there a transactional capability alongside portfolio management and advisory features? Are there exclusive capabilities for wealthy clients? (1 point) DIGITAL LEADERS IN WEALTH MANAGEMENT 8

9 RANKING 3.0 RANKING The ranking of digital leaders in wealth management is done in two phases, as detailed in the previous chapter. The first phase is based on MyPrivateBanking s extensive benchmarks in websites, mobile apps and social media. We aggregate the results, apply a mobile-first weighting in favor of mobile apps and provide the Top 20 ranked wealth managers across channels. The next step is to examine the Top 10 ranked firms in more detail, and, using the results of our special strategic assessment we finally rank the overall performance of the digital wealth leaders based on their strategy, digital leadership and innovation efforts. 3.1 AGGREGATED TOP 20 RANKING: CROSS CHANNEL PERFORMANCE TOP 20 RANK (Weighted) WEALTH MANAGER WEIGHTED TOTAL TOTAL MOBILE APP(S) WEBSITE(S) SOCIAL MEDIA Weighting UBS BNP PARIBAS DBS DIGITAL LEADERS IN WEALTH MANAGEMENT 9

10 RANKING TOP 20 RANK (Weighted) WEALTH MANAGER WEIGHTED TOTAL TOTAL MOBILE APP(S) WEBSITE(S) SOCIAL MEDIA Note: The scope of the social media report does not include the corporate bank s social media presences even though some content is relevant to HNWIs. Of the 200 wealth managers in scope, only social media profiles that achieve the greatest popularity from being targeted at HNWIs were included. DIGITAL LEADERS IN WEALTH MANAGEMENT 10

11 RANKING 3.2 TOP 10 RANKED LEADERS: DIGITAL STRATEGY AND DELIVERY LEADER RANK WEALTH MANAGER STRATEGIC ASSESSMENT (as %) AGGREGATED POINTS BY CHANNEL 1 MERRILL LYNCH 2 BNP PARIBAS 2 INVESTEC 4 80% % % % % % % % 478 DIGITAL LEADERS IN WEALTH MANAGEMENT 11

12 STRATEGY: TOMORROW S BUSINESS MODEL DOES NOT EXIST, THE IMPORTANCE OF INNOVATION TODAY 4.0 STRATEGY: TOMORROW S BUSINESS MODEL DOES NOT EXIST, THE IMPORTANCE OF INNOVATION TODAY 4.1 WHAT DOES IT MEAN TO GO DIGITAL? Everyone is doing digital to some extent, but what does this actually mean? Our research into wealth managers digital performance focuses on the impact to the client interface, but the deepest changes are the result of innovation and process digitization right through to the back-end infrastructure. ( more in full report pages 14 to 17) 4.2 DIGITAL DIARY AN INSIGHT INTO THE OMNICHANNEL LIFE OF A NEW CLIENT The following realistic example shows how important a wealth manager s various digital touchpoints are to clients going about their daily lives: ( more in full report pages 17 to 20) 4.3 HOW EVEN THE BEST WEALTH MANAGERS STILL HAVE WORK TO DO This report aims to shine a spotlight on those wealth managers leading the digitization of wealth management today. In our detailed analysis of the status quo it is clear that overall, wealth managers are still moving slowly when it comes to delivering this to end clients today. We observed the following themes in our cross-channel analysis of the Top 20 wealth managers performance in websites, mobile apps and social media, as four areas which require improvement: ( more in full report pages 20 to 22) DIGITAL LEADERS IN WEALTH MANAGEMENT 12

13 SUMMARY OF FINDINGS 5.0 SUMMARY OF FINDINGS In this chapter, we present our findings from the analysis of the Top 20 wealth managers across websites, mobile apps and social media. We consider the balance between the different channels and also seek insights into any common areas of consistency. Then we move onto a summary of the strategic assessment of the Top 10 ranked wealth managers, taking a closer look at the unique characteristics of these firms and their digital strategies. 5.1 ANALYSIS OF THE 20 BEST DIGITAL WEALTH PERFORMERS The Top 20 wealth managers charted below and their digital offerings have undergone extensive scrutiny throughout our research and benchmarking, and their combined scores show how every point in these evaluations is crucial, especially in terms of mobile apps... ( more in full report pages 22 to 26) 5.2 ASSESSMENT OF THE TOP 10 RANKED DIGITAL LEADERS The results of our separate special assessment into the specific digital leadership characteristics of leading firms signals a mixed approach. Their interpretation is preceded by a note of caution in that these firms, according to our extensive independent research, are the elite performers the wealth management equivalent of digital natives in an industry which is generally lagging significantly behind with their evolution into this digital age. ( more in full report pages 26 to 29) DIGITAL LEADERS IN WEALTH MANAGEMENT 13

14 SPOTLIGHT ON THE DIGITAL WEALTH LEADERS 6.0 SPOTLIGHT ON THE DIGITAL WEALTH LEADERS ( more in full report pages 29 to 55) 7.0 SUMMARY AND RECOMMENDATIONS Our study has shown how digital leaders have established foundations of accountability, industry participation and have clear strategic views on the topic of digital. There is not one single formula for success, but various approaches as each firm seeks the approach which works best for their organization. The simplest and most striking characteristics of digital leaders in wealth management that we have observed are however, levers of important and radical change: ( more in full report pages 55 to 57) DIGITAL LEADERS IN WEALTH MANAGEMENT 14

15 AUTHORS 8.0 AUTHORS 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). 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. DIGITAL LEADERS IN WEALTH MANAGEMENT 15

16 DISCLAIMER 9.0 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: DIGITAL LEADERS IN WEALTH MANAGEMENT 16