As stock markets continue on their roller-coaster ride, even investors who profess to be buy-and-hold types have become eager users of mobile technology that allows them to track their portfolios almost on a minute-by-minute basis.
That tendency, apparently, goes double for private banking clients, who investment managers say demand more information than the average investor and are embracing smartphone use at a fast clip.
And yet, for a variety of reasons, wealth managers have been slow to embrace mobile applications for their clients. The reasons cited include concerns about security and a general impression that private banking clients did not want that kind of relationship with their bankers.
That is all changing. The PricewaterhouseCoopers Asia Pacific Private Banking Survey 2011 found that 35% of private bankers expected to interact more with their clients through social media in the next two years, and that nearly 50% of private banks expected to use mobile technologies over the same period.
?I think banks will have to go that way,? said Nick Pollard, chief executive of RBS Coutts Asia. The venerable British private bank is using YouTube, Twitter and Facebook to reach out to its clients; a smartphone app is in the works.
?It?s less about today?s clients and more about tomorrow?s clients,? he said. ?Whether we like it or not, this generation and certainly the next one has no boundaries when it comes to accessing information.?
JPMorgan Chase, Merrill Lynch and UBS are part of a small group of banks that have released smartphone applications to their wealth management customers. The use of the application is often restricted regionally; the JPMorgan and Merrill apps are available only to clients based in the United States, and UBS? is available only to Swiss clients.
?Private banks have been trailing behind retail banks with this type of offering for consumers, and even when they do offer an app, those have pretty poor functionality,? said Steffen Binder, managing director of MyPrivateBanking, an independent research firm based in Switzerland.
This year, Merrill Lynch introduced mobile applications for Apple and BlackBerry devices for clients of Merrill Lynch Wealth Management and the online discount brokerage service Merrill Edge. The apps allow clients to view their portfolio holdings and account activity; transfer money between linked Merrill Lynch brokerage and Bank of America banking accounts; and trade stocks, mutual funds, exchange-traded funds and options in approved accounts. Clients can also track market news and headlines, and gain access to the bank?s latest research reports.
Buoyed by clients? positive feedback, the bank now plans to release Android versions in December.
The bank is evaluating how the new technologies ?can create value for advisers and the firm while at the same time having prudent supervisory and compliance oversight?, said Paul Fox, head of Merrill Lynch Online Platforms. The bank is now running a limited pilot programme with LinkedIn to allow clients to communicate with the bank.
The adoption rate of JP Morgan?s iPad and iPhone apps has been rapid, said Stephen Clifford, a managing director at JP Morgan Private Bank in New York. ?The rate of adoption of our mobile apps has been even faster than the take-up rate of our internet site when we first rolled that out,? Clifford said.