DIGITAL LEADERS IN WEALTH MANAGEMENT

Transcription

1 DIGITAL LEADERS IN WEALTH MANAGEMENT WINNERS SECURE TALENT AND EMPOWER ADVISORS April 2018 Report Extract Original report with 54 pages plus comprehensive data sets ONOWA LACEWELL SENIOR ANALYST

2 1.0 EXECUTIVE SUMMARY RANKING Omini-channel leaders Digital Leadership and Strategy: Digital Winners METHODOLOGY Evaluation Procedure Measuring the Digital Leadership and Talent Pipeline Evaluation Criteria: Digital Leadership and Strategy STRATEGY: SECURING LONG TERM SUCCESS IN DIGITAL LEADERSHIP Strategies for Long-term Digital Leadership The paradox of digital wealth management: analog clients in a digital world? What is the digital advisor journey? Securing the talent pipeline is key to long-term success No one said it was going to be easy SUMMARY OF FINDINGS: DIGITAL LEADERS IMPROVE OVER 2016 BUT STILL FACE KEY SHORTCOMINGS Omni-channel digital performance Overall Performance: Digital Leadership and Strategy SPOTLIGHT ON THE DIGITAL WEALTH LEADERS ABN AMRO PRIVATE BANKING BNP PARIBAS PRIVATE BANK AND WEALTH MANAGEMENT CREDIT SUISSE DBS PRIVATE BANK AND WEALTH MANAGEMENT INVESTEC WEALTH MANAGEMENT JP MORGAN PRIVATE BANK MERRILL LYNCH NEDBANK PRIVATE WEALTH SOCIETE GENERALE PRIVATE BANK UBS WELLS FARGO WEALTH MANAGEMENT TEN RECOMMENDATIONS FOR MAINTAINING LONG-TERM DIGITAL LEADERSHIP 51 AUTHOR 53 DISCLAIMER 54 DIGITAL LEADERS IN WEALTH MANAGEMENT 2

3 Omni Channel Leadership ranking Digital leaders winners Evaluation proceedure for digital leadership 9 Securing the leadership and talent pipeline 10 BNP Leaders Connection: Using digital to increase personalized services for UHNWIs 15 Wells Fargo is exemplary in prioritizing digital advisor tools 16 The talent and leadership pipeline 18 Societe General gains access to young, talented university students through a cooperation with Sciences Po 19 Waterfall versus Agile management (From Segu Technologies) 20 Omni-channel digital performance for the world s top 20 wealth managers 22 The importance of social media to innovation leaders 2016 v Overall performance for general digital leadership 23 Categorical performance for digital leaders 24 Performance across ten key indicators 25 ABN AMRO Transformation Overview 29 ABN AMRO announce the launch of the Digital Impact Fund in October BNP PARIBAS Transformation Overview 31 BNP Paribas allows external comment during the beta testing phase of a new product 32 CREDIT SUISSE Transformation Overview 33 Credit Suisse employees a virtual assistant not for clients but for employees 34 DBS Transformation Overview 35 Paul Cobban, COO for Technology and Operations in a 2016 interview with Forbes 36 INVESTEC Transformation Overview 37 Investec s Grad Program emphasizes hiring talent who think Out of the Ordinary 38 JP MORGAN Transformation Overview 39 Investec s Grad Program emphasizes hiring talent who think Out of the Ordinary 40 MERRILL LYNCH Transformation Overview 41 Merrill Lynch hosts a yearly global technology innovation summit 42 NEDBANK Transformation Overview 43 Nedbank CIO presents the managed evolution of the digital transformation in Oct SOCIETE GENERALE Transformation Overview 45 Societe Generale rewards internal innovation with yearly innovation awards. 46 UBS Transformation Overview 47 The Wealth Management Innovation Lab from UBS turns ideas into products quickly. 48 WELLS FARGO Transformation Overview 49 Wells Fargo prioritizes the client-advisor journey 50 TO ORDER THE REPORT, PLEASE CLICK HERE DIGITAL LEADERS IN WEALTH MANAGEMENT 3

4 1.0 SUMMARY This report identifies the best of the best of digital wealth managers for the past year. These firms demonstrate strong digital organization, clear digital leadership and strategy, a secure talent and leadership pipeline, and a willingness to innovate early and often. Based on an in-depth analysis of the performance across the key digital touchpoints of mobile, website, and social media, this report identifies the top 21 digital wealth managers worldwide. We then evaluate their comprehensive digital leadership and transformation strategies to determine 2018 s top 11 digital leaders. The report also includes an extensive profile of each of top digital leaders for 2018 including an overview of key strengths and weaknesses of their digital transformation..each profile also includes a showcase featuring a best practice where the digital leader is uniquely cutting edge. This highly granular report not only analyzes current performance across multiple digital touchpoints and holistically, but also highlights missed opportunities for long-term success and ways to overcome these. Wealth managers, banks, fund managers, IT vendors and consultants will find answers to the following questions: Which banks and wealth managers have firmly established digital as a strategic priority for their wealth management business? What do these successful digital transformations look like? Which providers perform best across all digital channels, and which ones are best for websites, mobile apps and social media? Which organizations have successfully managed to shift to a culture of innovation? How was this achieved and what can wealth managers learn from these successes? Which wealth mangers offer the best digital advisor journey? Which firms have given advisors priority in their digital transformations? In which fields did the wealth managers improve compared to the previous rankings? Where did they lost ground? Which firms have the most secure digital leadership and talent pipelines? Why is securing talent so important and how can this be achieved? Which wealth managers have prioritized innovation? What types of innovation are prioritized? The report provides detailed analysis and datadriven insights on how to develop a digital strategy across channels to win and keep wealthy clients: Top 21 ranking for cross-channel performance and by channel (websites, mobile apps, social media) Top 11 ranking of the leaders for digital strategy and leadership Evaluation of ranked wealth managers digital strategies and delivery along numerous criteria in areas such as strategic transformation, digital leadership and innovation mindset Detailed profiles, evaluations and showcases of the top 11 ranked digital wealth management leaders and an analysis of what makes them unique Key factors for securing ling-term success in digital leadership How to shift to a culture of innovation, deliver the best digital presences and to avoid the FinTech culture trap. Recommendations on how to make sure that digital presences satisfy digital and analog clients alike. Which firms are most prepared for long-term digital leadership and which are at risk for stalled digital transformations down the road? DIGITAL LEADERS IN WEALTH MANAGEMENT 4

5 The report includes more than 30 graphs, charts and screenshots, and it comes with three additional files: Key insights deck containing an easy-to-understand six-slide presentation that summarizes key findings for quick sharing. Comprehensive data-appendicies (spreadsheet) containing thorough evaluations of each firm and a detailed ranking of the 21 analyzed wealth managers. Special data-appendix evaluating the performance of analyzed wealth managers on main social media channels. 2.0 RANKING OMINI-CHANNEL LEADERS Omni Channel Leadership ranking 2018 DIGITAL LEADERS IN WEALTH MANAGEMENT 5

6 2.2 DIGITAL LEADERSHIP AND STRATEGY: DIGITAL WINNERS 2018 Digital leaders winners METHODOLOGY This report takes a 360-degree view of the digital transformation and leadership strategies of top performing wealth managers worldwide. Using comprehensive data from MyPrivateBanking s 2017 benchmarking reports on digital channel performance, we are able to determine which of the top 20 wealth managers globally are leading the way digitally and which are falling behind. This aggregated benchmarking score combines performance in terms of digital websites, mobile apps and mobile app strategies, and social media strategies. Each of the underlying reports that generated these data is based on a selection of the top global wealth managers according to their assets under management. Additionally, inclusion in benchmarking reports is conditioned on having a strong web, mobile, or social media footprint. 3.1 EVALUATION PROCEDURE As this report is working from aggregated benchmarking data, the evaluation process included two steps: Selection of top ten digital channel leaders based on weighting of benchmarking scores and secondary evaluation of holistic digital strategy. DIGITAL LEADERS IN WEALTH MANAGEMENT 6

7 3.2 MEASURING THE DIGITAL LEADERSHIP AND TALENT PIPELINE One criteria we added to this year s second evaluation is a measure of securing the leadership and talent pipeline. This pipeline is of key importance to long-term digital leadership and, ultimately, it will partially determine whether the digital transformation evolves into a digital-first, innovative, and agile organization in the future. We decided to look for evidence of digital leadership recruitment efforts in four places: 3.3 EVALUATION CRITERIA: DIGITAL LEADERSHIP AND STRATEGY The secondary evaluation consists of criteria measuring three key areas: Strategic Transformation, Digital Leadership, and Innovation Mindset. 4.0 STRATEGY: SECURING LONG TERM SUCCESS IN DIGITAL LEADERSHIP The wealth management and private banking sector in 2018 is defined by a race to the bottom in terms of fees. While the trend away from traditional institutions in favor of new competitors is more solidly entrenched in the retail sector, wealth clients are also moving away from traditional wealth management models. Online brokers, for instance, are beginning to target HNWIs directly with special services and products, while direct banks are increasingly recruiting HNWIs with specialized product offerings. This chapter discusses the strategy behind general digital wealth management transitions and points out key areas that wealth managers must prioritize to ensure digital success for the long term. 4.1 STRATEGIES FOR LONG-TERM DIGITAL LEADERSHIP What does it take to be a digital leader? The need for replacing legacy systems with more agile, and often cloud-based, platforms is clear, and most of the world s top wealth managers are currently in the process of restructuring and transforming their existing business models to a digital first, agile, and innovative plan. However, some of these top wealth managers are more successful than others, and this report showcases these top of the top leaders. DIGITAL LEADERS IN WEALTH MANAGEMENT 7

8 4.2 THE PARADOX OF DIGITAL WEALTH MANAGEMENT: ANALOG CLIENTS IN A DIGITAL WORLD? Wealth management and private banking has traditionally been slow to digitize. The given reason for this is often that U/HNWIs, more than other client segments, still include a significant portion of analog clients. 4.3 WHAT IS THE DIGITAL ADVISOR JOURNEY? Just like a client journey, the advisor too has a digital journey that can be bettered with key technology. The journey begins with recruitment and goes on to include onboarding in a compliant manner, building a client portfolio and setting financial planning goals, reporting, and portfolio management and oversight. 4.4 SECURING THE TALENT PIPELINE IS KEY TO LONG-TERM SUCCESS Long-term thinking means also developing a strategy to maintain the talent pipeline within the bank and a smooth entrance ramp for talented external hires. At the same time, established banks have to make NO ONE SAID IT WAS GOING TO BE EASY Innovation is hard. Especially for established institutions with deep legacies, the transition from waterfall project management to agile project management is a difficult process with many potential pitfalls and roadblocks along the way. 5.0 SUMMARY OF FINDINGS: DIGITAL LEADERS IMPROVE OVER 2016 BUT STILL FACE KEY SHORTCOMINGS This chapter focuses on the performance of the top digital leaders and highlights areas where they have excelled as well as those where there are remaining weaknesses. It is important to reiterate that these eleven wealth managers and private banks are the cream of the crop worldwide. These are the organizations and actors who are leading the way when it comes to developing new digital technologies for private banking clients. They are also the firms who have, to date, the best omnichannel digital offerings and they are often the first to implement the newest technology and take risks when it comes to innovation. Therefore, weaknesses in this group of top leaders are especially problematic for the sector as a whole. DIGITAL LEADERS IN WEALTH MANAGEMENT 8

9 5.1 OMNI-CHANNEL DIGITAL PERFORMANCE The first step of the evaluation process was to examine the omni-channel performance of the top 20 wealth managers. The total number of points possible from the mobile app, website, and social media channel evaluations was OVERALL PERFORMANCE: DIGITAL LEADERSHIP AND STRATEGY After determining the top digital leaders given omnichannel performance, we conducted a second evaluation to examine the strategic transformation, digital leadership, and innovation mindset on a more holistic level. 6.0 WEALTH LEADERS The following profiles take a detailed look at the top digital leaders for this year s report. These include an in depth examination of the digital leadership and strategies and the strengths and weaknesses of the digital transformation to date. Each profile also includes a showcase of a best practice feature where the wealth managers is particularly cutting edge in relation to their peers. 7.0 TEN RECOMMENDATIONS FOR MAINTAINING LONG-TERM DIGITAL LEADERSHIP This report has provided a deep dive into the holistic digital strategies and leadership of the world s leading digital wealth managers. While we found that there have been clear improvements in some areas over the past two years, we also found a troubling lack of longterm planning and strategy. Therefore, we recommend the following: DIGITAL LEADERS IN WEALTH MANAGEMENT 9

10 AUTHORS Onawa Promise Lacewell, Senior Analyst, has a research focus on the impact of disruptive technologies on the financial services sector as well as on consumer behavior and global regulation. A particular focus in her work is the rise of automated investments services and breakthrough technologies such as augmented reality. Previously she worked as a Senior Researcher for the WZB Berlin Social Science Center. She holds a PhD in Political Science with specializations in comparative politics and quantitative research methods and a Bachelor s degree in Political Science with a secondary focus in English. Steffen Binder, Managing Director and co-founderof 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 cofounder. 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). DIGITAL LEADERS IN WEALTH MANAGEMENT 10

11 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 11