EXCLUSIVE: Weak Digital Suites Are Weighing Down Wealth Managers - Research

Josh O'Neill

30 June 2017

Money managers for the super-rich are missing out on valuable business opportunities due to a lack of digital offerings, according to new data from MyPrivateBanking Research, affirming claims that wealth managers are lagging far behind banks in the digital race.

Only "a few" firms have recognised and reacted to increasing desires from ultra-high net worth clients for more digital offerings, the Swiss research house says in its report Digital Offerings for UHNW Clients 2017 - How wealth managers can win and engage the ultra-wealthy online.

The group analysed and ranked 12 wealth managers' digital offerings targeting the UHNW space, defined as those with at least $25 million in investable assets.

With an overall average performance of just 52 per cent of the maximum achievable points, the world's leading private banks and wealth managers fall significantly short of providing true UHNW-level service, MyPrivateBanking said.

BNY Mellon and Northern Trust performed best, achieving 21 out of 30 total points.

Pictet and US Trust were narrowly behind, as each logged 20 points.

"These firms stand out with features such as interactive websites, superb online asset allocation, and innovative capabilities like curated content, which filters analyses and
reports by experts based on clients' investment profiles," MyPrivateBanking said.

The firm suggested an array of ways wealth managers can bolster their digital offerings.

High-quality, accessible curated content and thought leadership should be "at the heart of UHNW wealth managers' online offerings," MyPrivateBanking said, adding that consistent distribution across platforms is key.

The group also recommends a "superb" level of sophistication on client interface and facilitated access to interactive portfolio tools and VIP features like risk profile and portfolio benchmarking tools, and round-the-clock concierge support to organise exclusive experiences.

“Wealth managers serving the ultra-rich should look at the digital campaigns of leading brands of luxury goods as they stand out as the most innovative and engaging providers for the ultra-wealthy,” said Roxana Palade, analyst at MyPrivateBanking. “In particular since emerging markets - especially in Asia - are expected to continue to drive most of the world’s growth in the UHNW population and luxury goods brands have gained a lot of experience in how to succeed digitally in this region.”