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Smartphone leading wealth managment


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Smartphone leading wealth managment

  1. 1. Smartphones: Leading Wealth Management to MobilityUniversal Banking Solution System Integration Consulting Business Process Outsourcing
  2. 2. Of the different types of mobile phones owned That was clearly not enough for customers–by 5.3 billion subscribers around the globe, increasingly on the go and hence highly mobilesmartphones grew the fastest in 2010. Since dependent – who wanted to analyse and tradetheir launch a few years ago, smartphones have on their portfolio, create new wealth managementtransformed the nature and scale of mobile accounts and seek financial advice from theirusage, from merely talk and text to lifestyle relationship manager using their handsets. Andenablement thanks to their features, usability those using multiple mobile devices expectedand a variety of downloadable applications. As these services to be device agnostic, that is,they grow in sophistication, mobile devices are equally accessible on any gadget. Last but notbecoming an increasingly popular mode of data least, customers demanded a human touch fromtransmission and Internet access. their mobile wealth management service, so that they could interact ‘face to face’ with advisorsThis progress has also rubbed off on the within their bank or service provider services space. Analysts predict thatby 2015, approximately 1 billion people will use These trends impressed upon investmenttheir handsets to perform banking and other management firms the need to enhance theirfinancial transactions. The success of the mobile customer offering as well as fully mobile enablephone as a means of financial inclusion their customer facing staff. Traditionally,among the unbanked masses of Africa and Asia relationship managers used their mobile phonesis now legendary; however, less known is the mainly to schedule appointments, speak torole that smartphones are playing in the customers or view their holdings; their usage ofopposite end of the market to mobilize wealth wealth management tools was low. Withand investment management. consumers demanding anytime, anywhere, any device interactivity, banks and other providersThe journey of mobile wealth management were pressed to equip their staff so that they could service the wealth or trading relatedBut first, some background. requirements of their end customers over the mobile.As nomenclature suggests, in the past, wealthmanagement and allied advisory services were The mobile enablement of financial advisorsoffered only to High Net Worth Individuals (readas the ‘really wealthy’). However, in recent years From a functionality perspective, mobile wealthfinancial service providers realised that as their management tools had to cater to two distinctincomes rose, even mass market customers sets of needs. Advisors sought support forsought avenues other than routine savings and financial planning, portfolio management,deposit accounts to channelize their funds. In customer relationship management, portfolioresponse, wealth managers started offering analytics, performance and customer reportingtrading, portfolio and investment management and proposal generation, whereas customersservices to a wider customer base. expected help with trade order management, planning and analysis, profile creation, andThe expanding customer base for wealth research into stocks, markets and new gave a two-way push to its mobile-enablement–now, a large number of people In order to mobile enable their advisors,demanded anytime, anywhere access to their banks developed proprietary mobile bankingportfolios, and wealth managers needed a cost- applications in-built with wealth managementeffective way to reach them all. To start with, a and trading tools; similarly, other wealth productlimited set of functions, enabling customers to organizations and trading houses developedview their portfolio and watch the stock market, their own solutions. Alternatively, some institutionswere made available on mobile devices. acquired mobile wealth management toolsMoreover, because mobile devices were still created by third party banking technology vendors.quite basic at that time, people had to access It appears that these measures succeeded inthese features via SMS, which was low on making the investment management businessusability and convenience. more ‘mobile conscious’- according to a 2009 Smartphones: Leading Wealth Management to Mobility
  3. 3. report on the mobile internet by a leading analyst, respondents below the age of 50 want to usethe rate of mobile based trading is directly a variety of technologies including mobileinfluenced by the availability of mobile internet texting, tablet PCs, video messaging andon smartphones. It is expected that by 2014, webcam conferencing to connect with theirtrade related activity on mobile will grow 10 financial advisors.times compared to current levels. • But above all, smartphones have broughtNow customers have started demanding that the usage of mobile devices by customerstheir mobile wealth management service be fully and their financial advisors, which werelinked to mobile banking, so that they can monitor progressing along parallel tracks, in sync.and transact on both accounts simultaneously. When wealth management applications wereGoing forward, financial service providers will first enabled on mobile phones, customershave to offer end to end banking and wealth and relationship managers used themmanagement on mobile devices; a recent independent of each other. Hence, theseexample of this is China’s ICBC which launched tools delivered limited utility to advisorspersonal wealth management services for its because they gave them no visibility intomobile banking users late last year. customers’ activity; as a result, advisors were unable to maximize value for them. In orderThe role of smartphones in mobile wealth to support their customers’ requirements,management what advisors really needed was a unified view of customers on all banking channels,Advancement in mobile technology, particularly including the mobile phone, as well as accessthe arrival of smartphones, has made it possible to enterprise applications. They needed toto meet most customer expectations as follows: be able to access a customer’s detailed profile on mobile, immediately after closing• Because smartphones allow easy connectivity the conversation; they needed customers’ to the mobile web, over a user friendly transaction history – gathered over all banking interface, they have transformed the user channels – as well as the information experience. Rather than struggle with clunky they carried on their own computers to be text messaging, customers can navigate accessible on mobile, on demand. They an intuitive and feature-rich interface to needed the content and context of every complete their financial transactions. What’s customer interaction to be seamlessly more, the usage of wealth management tools available on their handheld device. is smartphone-agnostic – that is, the device itself takes care of screen size and information Smartphones have enabled banks to bring a and graphics rendering issues. mobile banking offering to customers, which they can easily browse through to access• Access to the mobile Internet and a huge information and services, regardless of the variety of downloadable financial tools device they use. They have also opened the enable customers to fulfill all their wealth floodgates to a host of downloadable banking management activities, whether it is account and wealth management applications. To bank aggregation, research and analysis, financial advisors, smartphones have brought a unified planning, portfolio management or trading. view of customers, CRM, access to enterprise- Moreover, smartphones have enabled that level applications, and visibility not only into much needed coupling of mobile banking sites customers’ wealth and trading accounts but also and trading platforms. their complete banking and financial position.• Smartphones score high on interactivity, Looking forward allowing users to communicate with relationship managers via email, instant The use of social media, which is quite prevalent messaging, video chat or even social within Internet banking, is also making its way networking. A recent survey of 1,000 wealthy into mobile wealth management thanks to the investors in the U.S. underscores the smartphone, which has emerged as an alternative importance of interactivity - over 50% of to a ‘laptop plus Internet connection’. Thus, in Smartphones: Leading Wealth Management to Mobility
  4. 4. addition to consulting analyst reports and broker expanded the scope of mobility; hence, mobilityrecommendations, customers are using their is no longer limited to the mobile phone, butsmartphones to easily connect to their social rather, extends to mobile-enabled devices likenetworks in order to discuss wealth management the iPad, tablet and notebook computer. With theoptions with peers. In the survey mentioned unfolding of 3G and even 4G telecom servicesearlier, 1 in 2 respondents under the age of 50 across the world, it will be possible to bring a richclaimed to have used social networking to seek audio-visual experience to wealth managementinvestment advice; 1 in 3 said they participated on all these devices, going investment blogs; and 2 out of 3 wereinterested in being part of an online community References:to discuss investment ideas. 1. Winning the Battle for the Wealthy Investor,Unfortunately, research shows that wealth Jeff Loucks, Robert Waitman, Jorgen Ericsson,management firms have very limited participation Cisco Internet Business Solutions Group, 2011in social media. A 2010 study of the top30 wealth managers revealed that two thirds 2. New My Private Banking Report: Most Banksmade sporadic appearances or were totally and Wealth Managers Ignore Facebook,absent from the social space. If they are to Twitter & Co., November 4, 2010, http://retain demanding customers in a difficult and environment, wealth managers myprivatebanking-report/must fulfil their every need, including that of 3. ICBC Introduces Wealth Managementsocial connectivity. Services to Mobile Banking Users, NovemberThe regulatory environment for mobile financial 2, 2010, http://retailbanking.banking-business-transactions, including those in the realm of and wealth management, is fairly well management_services_to_mobile_banking_established. The only grey area is in the case of users_101102trades originating in a foreign location; more 4. The Mobile Internet Report 2009,clarity is needed on this front. Morgan StanleyBut overall, mobile wealth management is on astrong uptrend. With the branch and Internetchannels assuming a greater advisory role, Authorwe can expect more banking and wealth Sai Kumar Jayantymanagement transactions to be fulfilled over Lead Product Manager -the mobile, especially the smartphone, which will Finacle Product Strategyenjoy even higher adoption in future. Also, theevolution of mobile computing technologies has Infosys Technologies Limited Smartphones: Leading Wealth Management to Mobility