Wealth managers and banks reluctant to enter mobile apps age

Wealth managers and major banks are slow to adopt mobile applications at a time when mobile phones and tablet computers are rapidly growing as an online interface with clients, research shows.

Only half of the world’s 30 most important banks and wealth managers offer mobile applications for their clients and only three providers (10%) go beyond applications related to online banking, the study from MyPrivateBanking has found.

Only 15 banks (50%) out of a total of 30 offered mobile applications at all. No more than six banks (20%) could come up with mobile apps that included functionality that was not available on their own websites.
 
It also found that a mere three banks offer applications that go beyond pure online banking or account checking functionality and provided features such as smart, location based services. None of the banks offer a comprehensive mobile application with real time access to the client´s portfolio, financial research and specific mobile functionalities such as financial planning tools with the capability of being personalized by the client.
 
The best mobile app identified by MyPrivateBanking comes from Standard Chartered Singapore, which offers a wide range of services, from the standard location service of the nearest branch/ATM, with location based maps, to viewing account and credit cards details, to transferring funds and paying bills with an electronic check.

MyPrivateBanking believes that the slow adoption by banks of the opportunities of the mobile technologies as a consequence of their general reluctance to embrace new technologies and client interfaces, which to a similar extent characterizes their website and social media offerings.

‘Too many banks miss out on mobile technology to serve their clients, be it out of ignorance, misjudgement or slow internal decision-making and execution processes. Meanwhile other providers do reach users with their financial applications and push the banks aside, particularly in respect to real time information and relevant research,’ said Christian Nolterieke, research director of MyPrivateBanking.

Colleague Steffen Binder said that banks could become one of the information hubs for their clients in the mobile world if they overcame this narrow view of new technologies. ‘They could have offerings that not only included personalized information for their clients but also social networking and financial planning tools,’ he added.

MyPrivateBanking recommends that all banks and wealth manager offer easy to use and safe online banking applications as soon as possible and then build around them a mobile information hub with all the data and features of interest to the client. In this way they can distinguish themselves from the competition, gain more information about client needs and deepen their relationship beyond purely transactional business.