EXCLUSIVE: Mobile Solutions Make Big Strides In Wealth Industry; Could Do Even Better - Study

Tom Burroughes

5 March 2014

In a report likely to cheer advocates of adopting modern technology, a report says mobile solutions for financial advisors are making big strides in the wealth management industry, although several problems remain, a report on the global sector, published exclusively by WealthBriefing, says.

The report, “Mobile Apps for Financial Advisors 2014”, is by the Swiss research company MyPrivateBanking Research, which analyses the mobile solutions for financial advisors offered by 14 software vendors: Appway, Avaloq, Charles River Development, Crealogix, ERI Bancaire, Figlo Finantix, MicroStrategy, New Access, PolarisFT, PROFILE Systems & Software, SunGard, Temenos and True Potential.

The organisation surveyed the industry last year and said there has been progress in the kind of offerings available, such as:

-- Mobile apps for advisors are now considerably closer to making meetings as memorable, effective and convenient as possible with tools such as mobile client onboarding, ad-hoc reporting, scenario-based financial planning and various other features;

-- Growing recognition that a modular approach to advisor apps is a convincing solution to the problems of providing a wide range of functions along with flexibility to suit the needs of different wealth management customers. Almost half of the vendors offer complete sets of apps from which banks can choose the tools they need;

-- Increase in the integration with CRM systems, so that more mobile solutions can be used for adding CRM data, thus making the solutions even more indispensable to their advisor users. This year, 10 out of 14 vendors allow for editing CRM data via their mobile solution;

-- Advisor mobile apps are increasingly not just being organically developed from earlier web-based solutions, but specifically developed for mobile devices.

“It has become apparent that solution vendors are now paying much greater attention to the number-one priority for an advisor mobile app: making advisor-client meetings more satisfactory,” Francis Groves, senior analyst at MyPrivateBanking, said.

There remain weaknesses, however, such as a lack of communication tools, the report said.

The survey found that just six vendors analysed provide instant messaging, and a mere three provide video conferencing. Also secure electronic vaults for document management are missing in two-thirds of the solutions.

“An ongoing problem is that the majority of advisor apps don’t set out to assist advisors to prepare for client meetings by, for example, helping them to line up relevant documentation in advance,” the report said.

This market for mobile solutions has “immense future potential,” the report said, noting that in the US and Western Europe, there are more than one million financial advisors and more than 95 per cent of them use a mobile device at and for work.

Strikingly, however, it said fewer than 5 per cent of these advisors “are using a proper and professional advisor app provided by their firm”.

MyPrivateBanking Research predicts that within five years the majority of advisors will have access to a professional advisor app.

“Banks and wealth managers have to integrate mobile apps solutions in their advisory process and client interaction as soon as possible,” said Groves. “In the decision making on which mobile solution to choose they should pay particular attention to identifying the functions required as well as assessing the coverage of markets and operating systems by different vendors,” he added.

Based on research among vendors and user organisations such as private banks, the report gave six vendor solutions the award of “Leading Vendor, Mobile Apps for Financial Advisors 2014”: Avaloq Wealth Advisory Solution; Crealogix CLX.Advice Manager; Finantix Wealth App; MicroStrategy Wealth Management Solutions; Polaris FT Intellect FABX for iPad; SunGard Mobile Meeting Apps.