Private Banks on the Internet

MARKET BACKGROUND

• Introduction
• The Internet as a channel for financial services
• The Internet as a channel for wealth managers
  • History
    • Online wealth management: Victim of bad timing or a flawed concept?
  • Market drivers
    • A subtle shift is taking place in wealth managers attitude to the Internet

WEALTH MANAGER INTERNET OFFERINGS

• Overview
• The Internet as a marketing tool
  • Type of information communicated
    • Most large wealth managers have a dedicated private banking website
    • Business profile, locations and products are the key items communicated
    • ... but there are key areas where information could be more transparent
  • Wealth manager benchmarking
    • HSBC rates top overall for the use of its website for marketing purposes
    • Instructions for further information could be improved by some players
    • Some wealth managers are failing to distinguish their private banking offering sufficiently
• The Internet as a client service channel
  • Extent of client service features
    • Wealth managers range of services and transactional features varies
    • The web services offered to private banking clients are not always differentiated from wider group online services
  • Wealth manager case studies
    • Credit Suisse: strong transactional capabilities in a comprehensive offering
    • Citigroup: looking to raise the quality of investment reporting
• Industry direction
  • Demand perspective
    • Relatively slow growing demand with face-to-face channels still key
    • Defining where there is and is not demand potential
  • Supply Perspective
    • Enhanced information flow is the key area of perceived opportunity
    • Some also see the opportunity for the internet to deliver efficiencies
• Summary of findings

STRATEGIC OPTIONS AND ACTIONS

• Overview
• Key considerations
  • Purpose and objectives
  • Service possibilities created by technology
    • Technological development will define the universe of possibility
  • Scale of operation and institution type
  • Nature of client base and customer orientation
• Strategic options & positioning
  • Bare minimums
  • Willing and ables
  • Niche innovators
• Action Points
  • Differentiate the online service to private banking customers
  • Prioritize improved communication and increased access
  • Make a clear decision on the necessary online servcies and establish them cost effectively
  • Monitor and seek to optimize the use of the online channel within its established remit

APPENDIX

• Research methodology
• Data tables for website assessment
• Definitions
  • Advisory portfolio management
  • Discretionary portfolio management
  • HNW
  • Mass affluent
  • Self-directed investors
• Further reading
  • Datamonitor Global Wealth Service SPP: Reports
  • Datamonitor Global Wealth Service SPP: Insight Reports
  • Datamonitor Global Wealth Service SPP: Competitor Tracking
  • Related Asia-Pacific Wealth Management SPP: Reports
• Datamonitors Global Wealth Model
• SPP writing team
• List of Tables
  • Table 1: European Internet banking customer numbers and forecasts, 2000-2006f
  • Table 2: Type and level of information communicated by 20 major wealth managers to prospective customers via websites
  • Table 3: Overall scores for wealth managers website as a marketing tool for prospective customers
  • Table 4: Scores for the usefulness of information communicated for each wealth manager, broken down by component (out of 5)
  • Table 5: Scores for the website design and appearance for each wealth manager, broken down by component (each out of 5)
  • Table 6: Countries that can be modeled using Datamonitors Global Wealth Model
• List of Figures
  • Figure 1: Internet Banking has grown substantially across Europe
  • Figure 2: Drivers behind the increasing provision of online services in wealth management
  • Figure 3: Most major private banks have a separate website dedicated to informing prospective customers about their offering
  • Figure 4: Information on fees and past performance is rarely provided to prospective customers via wealth managers websites
  • Figure 5: HSBC makes the best overall use of its website in marketing its proposition to prospective customers
  • Figure 6: Coutts and Unicredit Private Bank fare best in terms of the usefulness of information given to prospective customers
  • Figure 7: There is significant variation in the quality of the design and appearance of private banking websites
  • Figure 8: A quarter of wealth managers do not differentiate the online services they offer to private banking clients
  • Figure 9: Screenshot: Online services from Credit Suisse Private Banking
  • Figure 10: The developing role of the internet channel in wealth managers business models
  • Figure 11: Any emerging online features introduced by wealth managers will be subject to the diffusion of innovation curve
  • Figure 12: Customers orientation in managing their wealth will be key to defining the sophistication of the Internet offering required
  • Figure 13: A matrix for assessing different online services