A new report shared exclusively with this publication shines a light on some of the reasons why over a quarter of high net worth investors are choosing not to use their wealth managers' mobile offerings at a time when smartphone usage is higher than ever.

More than a quarter of wealthy investors refuse to use their money managers’ mobile applications because they worry about cyber-security, new research shared exclusively with this publication reveals. 

Across the UK, US, Germany, France and Switzerland, only 71 per cent of affluent individuals use mobile applications offered by their wealth managers and banks, according to Swiss research house MyPrivateBanking, which surveyed 1,000 high net worth individuals (HNWIs) on their digital preferences. 

Of the 29 per cent not using mobile applications, more than half (51 per cent) cite concerns around data privacy while a third (33 per cent) are worried about “insufficient security”, the report shows. 

“No matter what the differences in strategy and purpose, wealth managers have to make sure their mobile apps offer the strongest security and privacy features and master the basics, like payment and communication tools, before moving to sophisticated capabilities,” Roxana Palade, analyst at MyPrivateBanking, said. 

The report's findings chime with a report last year from Capgemini, the consultancy and professional services house, which last year predicted that cyber-security would be a "top concern" for wealth managers throughout 2018. “Use of sensitive data, regulatory mandates and digitisation require firms to beef up their cyber-security mitigation plans,” the report said. “A reactive approach is insufficient to stop fraud.”


Source: Capgemini

Wealthy investors want basic features that are efficient and robust, the research shows. The top features that a wealth management mobile application must offer are high security standards, billing and peer-to-peer payment options, and product information. 

There is also a strong demand for more elaborate investment functions and analytical features, specifically around trading (32 per cent), portfolio analysis (28 per cent), live chat (26 per cent) and research (25 per cent). 

The report suggests that the richer the client, the more technology-savvy they are. Those with $1 million or more of investable assets are “by far at the forefront” in using new technologies like smart speakers and tablets to communicate with advisors, the report says.

Palade points out that applications’ performance and functionality varies across different markets. 

“The cross-countries analysis reveals an uneven picture, with wealth managers in France and the UK as digital leaders for their mobile apps, US respondents highly concerned about their privacy and personal data, and Germany and Switzerland standing out as, on average, the more cautious, conservative and less satisfied markets,” she said.