Around a third of the 35 global firms analyzed by MyPrivateBanking Research drag their feet to such an extent that only a re-launch of their websites could enable them to catch up, according to the report by the Switzerland-based research group. The report is entitled Websites for Wealth Management 2016 – The Digital Divide between Wealth Managers Deepens.

“The leading wealth managers, however, are beginning to form a breakaway group, having developed the skills to continuously improve their websites each year,” said Emma Haffenden, a senior analyst at the firm.

Earning a total of 66 points out of 80, Netherlands-based ABN AMRO was crowned the overall winner of the 2016 ranking, bagging the top spot for the third consecutive year. DBS held onto second place, with 63 points, closely followed by Charles Schwab, with 62 points, and Investec, with 59 points. Barclays and Vontobel were ranked joint fifth with 57 points.

A key area that the leaders have focused on is in their convincing research hubs and multimedia thought leadership content, Haffenden told this publication.

“It’s so important to offer insights on financial markets, economic analysis and lifestyle topics relating to HNWIs, for example on succession, or philanthropic investments,” she said. “Another specific criterion where the leaders stood out was their commitment to social media; each of the ten leading ranked firms offers links on their website to social media presences which are targeted at, or relevant to, wealth management clients . This is compared to just over 60 per cent in terms of the overall benchmark average.”

Eighty per cent of the leaders also provided a search tool on their website's entry page , and also delivered on mobile-specific features, such as the use of GPS-assisted navigation to guide the user to the nearest branch.

However, less than half of the benchmarked wealth managers have consistently improved their website performance from year to year, and the average score for mobile websites remains low. Mobile website interactivity is another area of weakness; with an average score of 27 per cent, most firms are not enabling the basic capability to send/share documents, articles or multi-media content via email, MyPrivateBanking said. The firm is encouraged, however, that most wealth managers now seem to understand that a mobile app is not a substitute for a mobile website, as they each have distinct uses. Also, the number of wealth managers with no mobile offerings at all dropped from 12 to seven.

Delving deeper into the findings, desktop websites are generally not keeping up with changing user needs, and are falling behind in terms of transparency, according to the report. Indeed, only 37 per cent of the available points were earned, on average, for disclosing assets under management; 39 per cent for information on costs and fees for services; and the poorest performing of all desktop website requirements was the inclusion of discretionary mandate performance, scoring just 11 per cent. This is a “major sign of weakness” given that robo-advisors are directly challenging the industry in these areas, Haffenden said.

The study is in its seventh year. Asked by this publication how the benchmarking approach changed over the years to reflect changes in the industry, Haffenden said: “The most significant development has come from the change in client behavior since the mobile revolution - rather than the industry. We have shifted our weighting in the benchmark scores more towards mobile again this year, as it continues to grow in its dominance for many of a user’s daily needs.

“There are also changes which have been introduced because we identify new client needs, and changes inspired by best practices that we have seen from the industry. For example, we look for proactivity in offering clients tips on how to stay safe online and their capabilities in this regard such as secure online document vaults. Security is still something that sits on top of clients' worry lists,” she added. 

Based on its findings, MyPrivateBanking made the following recommendations to the industry: build a responsive website, without being restricted by the confines of a particular device or channel; present all services in a dedicated section; offer rich, interactive and multi-media content; and communicate through new contact options such via as a live chat feature. While it is difficult to quantify the effort and resources required to implement all these things, much of it boils down to having digital talent that can leverage hard data on a firm’s target audience, as well as design innovative online propositions and continually enhance various touchpoints including web, mobile apps and social media, according to Haffenden.

“Our evaluation approach is now very mature, and there are still basic areas which are neglected by wealth managers, presumably because for a long time digital has not been a top priority for the industry,” she said. “One thing that I think has become clear this year is that the leaders tend to have websites which have been overhauled or re-launched in the last few years, and some other promising examples who appear to be midway through a transition to a new site. There appears to be a limit to how far incremental improvements can go, versus starting over with a new site, which will take less effort and resources in the long term.”

The following firms were analyzed for the report: ABN AMRO; ANZ; Bank of Singapore; Barclays; BNP Paribas; BNY Mellon; Charles Schwab; CIBC; Citi Private Bank; Commerzbank; Coutts & Co; Credit Suisse; Danske Bank; DBS Bank; Deutsche Bank; EFG Bank; Goldman Sachs; HSBC; ING; Investec: JP Morgan, Julius Bär: KBL; Lloyds Bank; Merrill Lynch; Morgan Stanley; Pictet; RBC; Société Générale; TD Bank; UBS; Unicredit; Vontobel; Wells Fargo; and Westpac.

“Wealth managers should continuously review the positioning of their website not only versus other digital touchpoints, but also the traditional and new competitors,” Haffenden said. “At a time when robo-advisors are attacking the traditional investment industry with a direct challenge on fees and transparency of portfolio returns, wealth managers’ websites should offer this openness as well.”