WHAT WOMEN EXPECT FROM DIGITAL WEALTH MANAGEMENT

WHAT WOMEN EXPECT FROM DIGITAL WEALTH MANAGEMENT GLOBAL SURVEY IN FIVE KEY WEALTH MARKETS FOCUS REPORT - ANALYSIS - STRATEGY MARCH 2018 Report Extract Original report with 41 pages incl. comprehensive data sets CARMELA MELONE SENIOR ANALYST

C ONTENT 1.0 EXECUTIVE SUMMARY 4 2.0 METHODOLOGY 8 3.0 SURVEY RESULTS 11 3.1 SUMMARY OF EMPIRICAL FINDINGS 11 PREFERENCES FOR DEVICES AND COMMUNICATION CHANNELS 11 3.2 MOBILE USAGE PATTERNS 13 CONCERNS WEALTH MANAGERS MUST ADDRESS 13 BEING ABLE TO ANALYZE YOUNG WOMEN S SPENDING BEHAVIOR IS ESSENTIAL 15 3.3 WHAT WOMEN THINK ABOUT ROBO-ADVISORS 17 LEVEL OF AWARENESS OF ROBO-ADVISORS 17 IMPORTANCE OF HUMAN INTERACTION 19 ROBO-ADVISORS ARE USED FOR KEEPING TRACK OF INVESTMENTS 20 3.4 COUNTRY-SPECIFIC FINDINGS 20 HOW WOMEN S TASTES FOR DEVICES AND DIGITAL INTERACTION DIFFER BY COUNTRIES 21 REASONS FOR DECLINING TO USE WEALTH MANAGEMENT APPS ARE DIVERSE 23 WOMEN USE THEIR WEALTH MANAGEMENT APPS FOR DIFFERENT PURPOSES 24 AWARENESS OF AND OPENNESS TOWARD ROBOS DIFFER 25 GENDER GAP VARIES DEPENDING ON THE TOPIC 28 US 30 UK 30 FRANCE 31 GERMANY 31 SWITZERLAND 31 4.0 TEN STEPS TO WINNING THE FEMALE DIGITAL WEALTH CLIENT 32 5.0 APPENDIX 35 SURVEY QUESTIONNAIRE 35 6.0 AUTHORS 40 DISCLAIMER 41 WHAT WOMEN EXPECT FROM DIGITAL WEALTH MANAGEMENT 2

TABLE OF CHARTS Summary statistics female sample 8 Currency conversions 9 Country distribution of the female sample 9 Country distribution and wealth segments of the dataset 11 Preferred use of electronic devices for financial matters 11 Preferred channels to communicate with financial advisor 12 Share of respondents using mobile apps provided by their bank/wealth manager by age group 13 Reasons why the respondents do not use mobile apps provided by their bank/wealth manager by wealth bracket 14 Top five most frequently used wealth management app features 15 Frequency of using different wealth management app features by gender 16 Awareness of robo-advisors among female respondents by wealth segment 18 Share of female respondents using a robo-advisor 18 Preferred level of human interaction when using a robo-advisor, by gender 19 Preferred devices for financial matters by country 21 Preferred interaction channels with the financial advisor/institution by country 22 Reasons for not using wealth management apps by country 23 Top three most used features by country 24 Awareness of robo-advisors by country 25 Usage level of and openness toward robo-advisors by country 25 Level of human interaction preferred by female respondents when using a robo-advisor by country 26 Investment tasks for which the respondents would consider using a robo-advisor, by country 27 Respondents expectations for robo-advisors technical features 27 Gender gaps for preferred electronic devices used for financial matters by country 28 Cross-gender differences in the preferred level of human interaction when using a robo-advisor 30 To order the report, please click here WHAT WOMEN EXPECT FROM DIGITAL WEALTH MANAGEMENT 3

Summary 1.0 SUMMARY Digital wealth management offerings must specifically address the needs of female clients, needs that differ in many important aspects from those of male high-networth individuals (HNWIs). Digital services tailored to female HNWIs offer significant opportunities for wealth managers and this report provides strategic and practical advice on how wealth managers can employ the right digital tools and channels to reach this highly important client segment. This data-driven report identifies the differences in attitudes between affluent and wealthy women and men, and explores how affluent and wealthy women in five key markets the US, the UK, France, Germany, and Switzerland digitally behave when managing their assets. It identifies their preferred devices and communication channels and mobile app features for financial matters and analyzes the women s awareness of and openness toward robo-advisors, as well as the main features they expect. The report compares the female findings with those of the male respondents to explore the specifications of the female sample. In addition, the report offers a detailed analysis of the country findings for the US, the UK, France, Germany, and Switzerland. This report is THE resource for understanding what wealthy women want from their wealth managers digital offerings in five key markets: What are the characteristics of wealthy women that matter for wealth managers? How do the digital usage patterns of female HNWIs differ from those of men? How does the digital behavior of wealthy women vary across different wealth brackets? What are the special digital requirements of the wealthiest women with $1 million of investable assets and more? What are wealthy women s preferred communication channels with their financial institutions? To what extent are smartphones, desktop computers, tablets, smartwatches and smart speakers used for financial matters? Which features of wealth managers mobile apps are used most frequently by female HNWIs? How satisfied are wealthy women with their wealth managers mobile channels? What are their reasons for not using the banking apps? How familiar are female HNWIs with robo-advisors? How many of them already use robo-advisors or plan to do so? What is the preferred level of human interaction when using a robo-advisor? What are the similarities and differences in wealthy women s digital behavior across the US, the UK, France, Germany, and Switzerland? How does the perception and usage of robo-advisors differ for each market? How do cross-country findings differ between female and male HNWIs? Are preferences converging? Which differences persist? What are the similarities and differences among countries that wealth managers have to focus on most? What are the ten things wealth managers must do to reach and keep wealthy women? The report includes more than 25 graphs and charts, and it comes with two additional files: Key insights deck containing an easy-to-understand six-slide presentation that summarizes key findings for quick sharing Data slides showing the detailed results of our survey overall, by age group, by wealth segment, and by country WHAT WOMEN EXPECT FROM DIGITAL WEALTH MANAGEMENT 4

Methodology 2.0 METHODOLOGY REPORT OBJECTIVE This report investigates affluent and high-net-worth women s attitudes and preferences when it comes to digital finances. This includes the use of mobile channels offered by their financial institutions as well as their openness toward and awareness of the concept of roboadvisors and online investing. Our survey covers female affluent and high-net-worth respondents aged 18 and older from the key markets the US, the UK, France, Germany, and Switzerland. SURVEY SAMPLE The basis of this report is a quantitative panel survey conducted in October 2017. It consisted of 23 questions and targeted 1,000 individuals from five key wealth management markets. For this report on women, however, we focus on the results derived from the 450 female respondents only. We aimed at a sample with a household income of at least $200k, which was possible for most countries. In the case of Switzerland, however, we arrived at a mixed sample of 50% $125k+ and 50% $75k+, and for Germany we used a sample with $125k+. (...more in full report pages 8 to 9) SURVEY QUESTIONS The 23 survey questions aim at addressing the following areas: Usage of devices and operating systems for financial matters Usage of wealth management apps and mobile websites Expected and most-used features of mobile wealth management channels Investment behaviors and types Awareness of and openness toward robo-advisors/ online investment platforms Expectations with regard to robo-advisors investment tasks, technical features, and onboarding processes The full questionnaire can be viewed in the appendix. Satisfaction levels for features offered by mobile wealth management channels DATA ANALYSIS After the field phase, the data was analyzed with regard to basic statistical measures such as frequency distributions. To determine any significant differences and demographic trends, the sample was additionally segmented by age group, country and the amount of investable assets. The full survey results are available in the data appendix. WHAT WOMEN EXPECT FROM DIGITAL WEALTH MANAGEMENT 5

Survey findings 3.0 SURVEY RESULTS 3.1 SUMMARY OF EMPIRICAL FINDINGS The following insights are based on data derived from our panel survey that took place at the end of 2017. In this survey we asked 1,000 respondents from the five key wealth management markets the US, the UK, France, Germany, and Switzerland questions that targeted their attitudes and preferences regarding digital banking and investing. We focus on the data from female respondents aged 18 and above in order to gain insights into women s financial behavior. For a more in-depth analysis, we have examined the responses by country, by age segment (18-34, 35-54, and 55 and above), as well as for the wealth segments (with up to $500k of investable assets, between $500k and $1 million, and $1 million and up). The key findings cover the following areas: Preferences for devices and communication channels Concerns wealth managers must address Being able to analyze young women s spending behavior is essential Level of awareness of robo-advisor Importance of human interaction Robo-advisors are used for keeping track of investments How women s tastes for devices and digital interaction differ by countries Reasons for declining to use wealth management apps are diverse Women use their wealth management apps for different purposes Awareness of openness toward robos differ Gender gap varies depending on the topic (.. more in full report pages 11 to 31) 4.0 TEN STEPS TO WINNING THE FEMALE DIGITAL WEALTH CLIENT Our survey results, which have been described in detail in the preceding chapters, lead to important implications that can be of great value for wealth managers and can help them to better understand and address their female clients specific needs and expectations. In the following, we summarize the major points that need to be taken into account when aligning a winning digital strategy that is able to convince wealthy female investors and wealth management clients: (... more in full report pages 32 to 34) 5.0 APPENDIX SURVEY QUESTIONNAIRE (... more in full report pages 35 to 39) WHAT WOMEN EXPECT FROM DIGITAL WEALTH MANAGEMENT 6

Authors 6.0 AUTHORS Carmela Melone, Senior Analyst, specializes in research in the fields of social media for wealth management and mobile apps for financial advisors. Her specific areas of interest are in software benchmarking, channel strategy and online security. Prior to this, she worked at an exchange platform for intellectual property rights, responsible for the digital media marketing strategy. Carmela has a Master s degree in Economics with specializations in Information Management and International Economics from the University of Hagen (Germany). 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). WHAT WOMEN EXPECT FROM DIGITAL WEALTH MANAGEMENT 7

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