Today's sophisticated mobile devices have made it possible for bank customers to perform most banking transactions remotely - without having to visit their bank's branch offices. However, the nature of the private banking business and the profile of the clientele make this challenging. An all-inclusive, cross-platform app for private banking can provide more visibility into customers' and banks' needs and potentially become the primary channel for private banking, rather than merely an add-on.

1. Private Banking: Redefining the Game Through MobilityThe nature of the private banking business makes mobility a particularly challenging proposition. We believe that an all-inclusive, cross-platform application for private banking can be a game-changer for both customers and wealth managers.
Executive SummaryThe increasing use of mobile devices, such as smartphones and tablets, has prompted banks and other financial institutions to offer platforms, as well as proprietary and third-party applica- tions, that enable their customers to perform most banking transactions without ever having to visit a bank branch. The logical next step in this evolution is to make private banking (PB) services available on mobile devices. At the same time, the nature of private banking and the profile of the target clientele make this a complex proposition. Since most private banking services are personal- ized, packaging them into a single application can be formidable. In this paper, we will examine the factors behind this issue, and discuss how banks can overcome the challenges of setting up a com- prehensive, easy-to-use private banking app. We will also take a detailed look at clients’ and private bankers’ wish lists for mobile and tablet-based banking apps, and explore how tools embedded in these applications function in real-life scenarios. Finally, we will show how institutions can benefit from expert consulting services when developing a private banking application for mobile users.
The Challenges of Private Banking Mobile Apps
Offering specialized, personalized banking and financial-advisory services to High Net Worth (HNW) customers is one of the most lucrative areas of the banking business. However, the scope of private banking is no longer restricted to managing the investments of these customers; it can encompass estate planning, investment banking and managing customers’ philanthropic endeavors, which by their very nature are highly customized. In these scenarios, developing a mobile app that captures the entire range of private banking services and persuading customers to use it for their private banking needs is a challenge for most financial institutions.
Post-2008, a number of non-traditional markets for private banking services emerged, including Asia (ex-Japan), the Middle East, Latin America, Central and Eastern Europe, and Africa. This exacted a price on established PB markets in North America, Western Europe and Japan. (The non-traditional/emerging markets are likely to have a 37% share of the global millionaire wealth by 2016 — a 14% increase from 2008).1
• Cognizant 20-20 Insights
cognizant 20-20 insights | august 2014

2. cognizant 20-20 insights 2
This evolution and the period over which it is
likely to happen coincides with innovations in and
increased adoption of personal mobility devices,
such as smartphones and tablets. However, the
profile of a typical private banking customer is not
expected to change dramatically, and the growing
use of mobile devices may not apply immediately
to high-value and sensitive transactions.
The following are a few reasons why private-bank-ing
customers may hesitate to avail themselves of
PB services over their mobile devices:
• Customer profiles. According to a McKinsey
Global Private Banking survey conducted in
2013,2 the average age of a private banking
client in North America (one of the strongest
traditional markets for such services) is over 60
years old — a statistic that is liable to replicate
across the established private banking markets.
While these customers may use mobile devices
for routine banking transactions, they may not
be receptive to the idea of performing transac-tions
involving sensitive information and signif-icant
sums of money from their mobile phone
or tablet. They are generally more comfortable
having discussions and conducting private-banking
transactions either at the bank branch
or at home in the presence of their banker.
• Nature of services and transactions. The
nature of private banking services and trans-actions
is such that most PB customers prefer
performing transactions in person rather than
electronically. However, they might opt for
electronic transactions under special circum-stances,
such as those related to time or geo-graphical
constraints.
• Secure access. In Asia, most UHNW (Ultra
High Net Worth) and HNW individuals are first-generation
wealth creators. Hence, they might
be more amenable to PB services delivered
through electronic devices. However, concerns
about the security of online transactions and
communications, particularly in this geography,
may curb the use of mobile devices for PB
transactions.3
• Increased sophistication of online financial
fraud. Identity theft has been recognized by at
least one survey as one of the main reasons for
fraud in the private banking space, along with
account takeover and fraudulent documenta-tion.
4 This kind of media exposure might deter
PB customers from using mobile devices for
banking and associated transactions.
• Easy access to other channels. For customers,
accessing PB services over mobile devices
is not the only or most convenient option.
They can avail themselves of similar services
at specially designated bank branches, have
their banker or financial advisors visit them at
their home or workplace, or use laptops and
desktops to perform the same tasks. There is
no imperative to use mobile devices.
Source: Booz and Company: Global Wealth Management Outlook 2014–15. Numbers shown represent a percentage
of respondents.
Figure 1
Conduct Trades
42%
26%
Pay Bills
35%
56%
Use of Tablet
Use of Smartphone
56%
76%
Conduct Investment
Research
45%
70%
Access Account
Information
HNW Clients Use of Mobile Devices for Financial and Account Management

3. cognizant 20-20 insights 3
On the other hand, an increasing number of cli-ents
are getting used to goods and services being
delivered online. Their experiences with digital
shopping, booking tickets and planning travel, for
example, have raised their expectations for similar
services from their banks and wealth managers.
As smartphones and tablets integrate more and
more into the lives of PB customers, banks should
consider offering them multichannel, round-the-
clock wealth-management experiences.
Also, as compared to older customers, younger
HNW individuals are likely to be more receptive
to newer technologies for
their private banking and
wealth-management needs.
The APAC region, which
has a higher concentra-tion
of first-generation
wealth creators, also leads
in smartphone penetra-tion5
— a key indicator of
mobile banking usage. This
category of HNWIs is most
likely to embrace private
banking functions over their
smartphones/tablets.
Banks and financial institutions offering PB ser-vices
have made the effort and borne the cost
involved in developing PB apps for mobile phones
and tablets. While advancements in mobile tech-nologies
have made these devices capable of
offering most of the services provided by pri-vate
bankers or wealth managers, the question
remains: Can existing mobile banking apps for
private banking offer the entire gamut of PB
services through mobile devices?
How HNW Clients Use Emerging Channels to Manage their Wealth
ONLINE
(screen sharing)
VIDEO
(HD from home/office)
VIDEO
(Webcam conference)
VIDEO
(messaging)
MOBILE
(texting) TABLET
59%
32%
24%
56%
24%
16%
54%
21%
19%
52%
23%
17%
53% 55%
13%
5%
17%
9%
AGES 50 & UNDER AGES 51–65 AGES 66 & OVER
Source: Booz and Company: Global Wealth Management Outlook 2014–15
Figure 2
Source: “The Asian Mobile Consumer Decoded” – Nielsen Report
Figure 3
NON-SMARTPHONE SMARTPHONE
13%
87%
13%
87%
20%
80%
25%
75%
29%
71%
51%
49%
77%
23%
82%
18%
85%
15%
28%
72%
36%
64%
38%
62%
40%
60%
DEVELOPED ASIA DEVELOPING ASIA EUROPE U.S.
Hong Kong Singapore Malaysia Australia China Thailand Indonesia India Philippines UK France Germany U.S.
Smartphone Penetration

4. cognizant 20-20 insights 4
A report by MyPrivateBanking.com6 offers some
significant statistics. The study analyzed the apps
of 30 leading private banks and wealth managers,
selected based on their assets under manage-ment
and their mobile presence. For an app to be
included in this study, it had to have the functions
that a private banking or wealth management
client would use, e.g., portfolio review or trad-ing
capability. Additionally, all the apps of the
banks on the four main platforms used by mobile
devices, namely iOS, Android, BB and Windows
Phone, were considered.
The banks were rated against parameters like
availability of apps, core functions, support fea-tures,
content and marketing, integration of other
online media and user-friendliness.
Figure 4 includes results from the survey.
Although the top-ranked banks had respectable
scores, the average was 37 — indicating substan-tial
room for improvement in the mobile apps
offered by the leading private banks worldwide.
On the other hand, the statistics in Figure 5 point
to the fact that despite less-than-optimum apps
for mobile phones and tablets, mobile banking
has found favor with customers. While these find-ings
pertain to retail banking, one can still draw
parallels to the private banking channel.
Figure 5 shows that mobile and tablet banking
are the second or third most popular banking
channel, depending on the country.
A substantial proportion of customers access
their banking accounts over their smartphones/
tablets, more so in developing countries (see
Figure 6, page 5).
Figure 7 (see page 6) is significant from a bank’s
perspective, since it shows that frequent users of
mobile banking have a higher loyalty score than
non-users.
Clearly, by giving the mobile and tablet banking
channel its due, and providing apps with compre-
Source: MyPrivateBanking.com
Figure 4
0
10
20
30
40
50
60 SCORE (MAX 60)
CREDIT SUISSE
SOCIETE GENERALE
ABN AMRO
JP MORGAN
U.S. TRUST
COMMERZBANK
DEUTSCHE BANK
ING
NORTHERN TRUST
BBVA
RBC
Score of Mobile Apps for Wealth
Management Based on Functions
Banking Channel Popularity Across Countries
ONLINE SMARTPHONE/TABLET ATM BRANCH PHONE OTHER NORWAY
DENMARK
SWEDEN
AUSTRALIA
NETHERLANDS
U.S.
GERMANY
SOUTH KOREA
BELGIUM
POLAND
FRANCE
CANADA
UK
CHILE
CHINA
SPAIN
ARGENTINA
SINGAPORE
ITALY
RUSSIA
HONG KONG
INDONESIA
INDIA
JAPAN
THAILAND
MEXICO
100%
80
60
40
20
0
Source: Bain & Company, Customer Loyalty in Retail Banking 2013
Figure 5

5. cognizant 20-20 insights 5
hensive functions and features for these channels,
private banks and wealth managers can poten-tially
reduce expenses through lower transaction
costs, retain more clients, and increase penetra-tion
in previously untapped areas.
Client-Facing Apps
An all-inclusive private banking app should have
the following features/functions in order to be
a viable alternative to other channels. While
existing apps may have some or most of these
attributes, integrating all in a single application
can result in a superlative private banking app for
mobiles and tablets.
• Wide acceptability. A viable private banking
application should function well on most mobile
and tablet operating systems and platforms,
and be equipped to retain those capabilities on
all future versions of the OS.
• Consolidated reporting. Also known as rela-tionship
reporting, consolidated reporting
should include the positions of all of the
customer’s assets and liabilities held with
the bank.
• Reporting of non-proprietary investments.
Investments not held with the bank should
also be part of the customer’s overall reported
portfolio. Transactions induced by non-cus-tomers
and corresponding positions should be
updated on a regular basis.
• Portfolio updates. Portfolio updates should
be made available on both regular and ad-hoc
bases. Transactional and positional data should
be accessible. The app should provide for
updates/alerts from the bank/wealth manager
about the customer’s portfolio, as well as other
investment options dealt with by the bank.
• Portfolio reminders. Reminders regarding
portfolio reviews, risk profile reviews and alerts
about specific transactions and positions
should be available.
• Research. The app should provide access to
research reports published by the bank and
other third-party entities.
• Viable alternative to meetings. The app
should offer access to the private banker/
wealth manager through modes such as
online chat, video chat (such as Skype) or any
other secure social media application. These
channels should also allow customers to join
or stream online investor meetings and forums
arranged by the bank. Some banks are already
in the process of rolling out such services.7
• Transactions capability. The app should allow
users to carry out all required banking and
investment transactions through their personal
DEVELOPING COUNTRIES (46%) AVERAGE INTERACTIONS PER RESPONDENT
IN LAST QUARTER
DEVELOPED COUNTRIES (38%)
CHINA
CHILE
SOUTH KOREA
INDIA
SINGAPORE
HONG KONG
INDONESIA
SPAIN
THAILAND
U.S.
AUSTRALIA
NORWAY
POLAND
SWEDEN
MEXICO
RUSSIA
FRANCE
ITALY
GERMANY
UK
FINLAND
ARGENTINA
DENMARK
NETHERLANDS
CANADA
JAPAN
BELGIUM
60%
40
20
0
5 8 10 5 4 5 5 9 4 8 8 7 5 7 4 3 8 4 5 6 5 4 5 5 4 2 3
Percentage of Respondents Accessing Banking Accounts
Over Smartphones/Tablets
Source: Bain & Company, Customer Loyalty in Retail Banking 2013
Figure 6

6. cognizant 20-20 insights 6
Frequent Mobile Banking Users Show a Higher Bank Loyalty Score
than Non-Users
electronic devices. Adequate safety measures,
such as security devices, virtual keypads and
fingerprint recognition should be enabled.
• Data storage options. The user should be
able to upload, download and store data on
the medium of their choice — whether through
their device or via the cloud. Access to this
data should have no restrictions, wherever it
may be stored.
• Non-banking transactions. Customers should
be permitted to perform non-banking transac-tions
through their devices, e.g., make changes
to their personal profile.
• Rating, feedback and grievance handling.
The app should allow customers to rate their
bankers, advisors and wealth managers,
and offer feedback on the services and
recommendations provided by the bank. A
grievance-handling mechanism should be part
of this application.
• Integration with retail banking services.
The app should provide integration with
other retail banking services, e.g., bill pay,
card management, third-party payments,
checkbook requests, etc.
In addition to the above, the survey conducted by
MyPrivateBanking.com8 highlights the limitations
of current mobile banking apps for private bank-ing
(see Figure 8 on the following page).
Applications for Bankers
and Wealth Managers
Application functionality is equally critical for
private bankers, advisors and wealth managers.
A comprehensive wealth-management applica-tion
can optimize the performance of the wealth
manager by enhancing customer services and
increasing revenues for the bank. Ideally, a
wealth-management solution for banks should
offer the following:
• A 360º view of potential clients. A consoli-dated
view of the entire existing banking rela-tionship
with a potential client enables wealth
managers to make a more informed and more
targeted presentation to the client.
• Easier onboarding. The app should allow
the wealth manager to onboard a client with
the least possible paperwork, in the least
amount of time — preferably soon after making
a proposal.
• A viable alternative to meetings. The app
should enable online chats through messenger
applications, video conversations through
Skype and other similar apps, and also offer
support for closed user-group meetings for a
specific set of clients, e.g., those handled by a
single wealth manager.
DEVELOPED COUNTRIES DEVELOPING COUNTRIES
CHINA
JAPAN
THAILAND
ITALY
HONG KONG
SINGAPORE
RUSSIA
POLAND
INDONESIA
SPAIN
SWEDEN
CHILE
INDIA
MEXICO
SOUTH KOREA
GERMANY
UK
U.S.
AUSTRALIA
CANADA
NETHERLANDS
FRANCE
BELGIUM
0
10
20
30
40
50%
Source: Bain & Company, Customer Loyalty in Retail Banking 2013
Figure 7

7. cognizant 20-20 insights 7
Comparing Apps of Major Private Banks
PRESENCE ACROSS PLATFORMS
Citibank UBS Credit Suisse JP Morgan Deutsche Bank
Mobile Tablet Mobile Tablet Mobile Tablet Mobile Tablet Mobile Tablet
iOS ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Android × × ✓ ✓ × × ✓ ✓ ✓ ✓
Windows Phone ✓ × ✓ ✓ × × × × ✓ ✓
CROSS-PLATFORM FUNCTIONALITY COMPARISON
Citibank HSBC Credit Suisse JP Morgan Deutsche Bank
Eclectic Acceptability × ✓ × ✓ ✓
Consolidated Reporting ✓ ✓ ✓ ✓ ✓
Non-Prop Investments × × × × ×
Portfolio Updates ✓ ✓ ✓ ✓ ✓
Portfolio Reminders ✓ ✓ ✓ ✓ ✓
Research Reports ✓ ✓ ✓ ✓ ✓
Meetings over Skype/other
online media/live streaming ✓ × × × ×
All Payment Transactions ✓ ✓ ✓ ✓ ✓
Data Storage ✓ × × × ×
Non-Banking Transactions × × × × ×
Ratings & Feedback × × × × ×
Grievance-Handling ✓ ✓ ✓ ✓ ✓
Integration ✓ ✓ ✓ ✓ ✓
Marketing Content
Availability × × × × ×
Security Features Explained
Within the App × × × × ×
Note: This comparison of features and functions was done based on information publicly available on Websites and through app
stores. The comparison is hampered by the fact that several functions can only be accessed through individual logins.
Figure 8
• Client order execution “on-the-go.” The app
should allow the wealth manager to execute
client orders for discretionary and non-dis-cretionary
portfolios from any location. This
level of functionality is essential for wealth
managers, who do not always operate from an
office desk.
• Complete wealth management functionality.
The app should be able to perform all of the
functions that a similar desktop application
would. The wealth manager should thus be
able to perform end-to-end financial planning
for customers from his/her mobile phone or
tablet, including profiling, proposal generation,
order execution, etc.
• Regulatory compliance. The app should be
capable of factoring in regulatory changes that
impact its core wealth-management functions
through regular updates.
• Innovative display capability. An app used by
wealth managers should have multiple display
options that can be accessed from any location
for any type of customer. For example, an
application such as PhotoBeamer can transmit
images from a phone to a desktop screen. This
can be useful for clients who find it difficult to
comprehend images and information on the
wealth manager’s mobile phone or tablet due
to the small screen size.

8. cognizant 20-20 insights 8
• Innovative communication capability. The
app should allow the wealth manager to set up
and conduct client meetings online or via video
chat with fund managers, the bank’s research
team, etc. The capability to set up these types
of interactions for all or a select group of clients,
with the parallel ability to share research infor-mation,
should be available.
• Flexible and scalable. An app for a wealth
manager must integrate with the bank’s
existing IT infrastructure. It should offer
similar functions across operating systems and
platforms, and be flexible enough to accom-modate
more advanced versions of the bank’s
core banking and wealth management systems.
The app should also be equipped to cater to any
increase in the number of wealth managers
that the bank may employ.
The Role of Consulting Firms
While the process of developing and/or enhancing
an existing mobile banking app — from creating
the mobile architecture to building proof-of-con-cept
(PoC) and roll-out — might appear to be more
of a technical task for a third party, a qualified
consulting firm plays a very important role here.
Technical teams have an easier job if the scope
of their work and the scope of the functions they
are trying to incorporate in the app are defined for
them from the very beginning. A consulting team
with the right domain expertise can offer the fol-lowing
services — thereby laying the groundwork
for the IT architects and other IT teams:
• Analysis of expected returns. During this
phase, consultants help the bank decide
whether to enhance its existing application
or develop a new one altogether. The cost of
development can be considered in light of
the potential benefits for the bank, such as
savings on cost, increased revenue, more
customers, etc.
• Strategic fit. Deciding if a private banking
mobile app is the best fit for the bank’s business
strategy and business model is critical. The
consulting team can also assess the threat of
cannibalization of other channels.
• Countering obstacles to adoption. A qualified
consulting team can help banks analyze the key
reasons why customers are not installing the
app, or are not using it effectively. Removing
these obstacles and increasing the penetration
of the app is more important than incentivizing
customers.
• Process redesign. Banks that are leveraging
mobility initiatives to bring about key
changes in operational processes can engage
consulting firms to redesign and document
their processes using industry-standard
process-modeling tools.
Limitations of Current Mobile Banking Apps for Private Banking
Fewer apps for
devices running
Android
Fewer apps
for tablets as
compared to
mobiles
Core Wealth
Management
functionalities
are missing
Few apps
explaining
security features
Limited content
and features for
client retention
& marketing
Full-fledged
support &
communication
features
missing
Source: myprivatebanking.com
Figure 9

9. cognizant 20-20 insights 9
• Prioritizing needs. The consulting team can
perform a detailed study to determine if the
enhancement/development plan addresses the
issues currently faced by the bank’s customers
and the bank itself. If the plan is sufficient,
the consulting firm can help in confirming the
issues that need to be addressed first.
• Commercial feasibility. Some items in
customers’ and banks’ app wish list may not
seem commercially feasible. However, a final
decision to proceed with them can be made
following an analysis of future requirements
and the future environment in which all stake-holders
will have to operate. The marketing
cost of such endeavors would also need to be
factored in.
• Adoption curve. The consulting firm can
provide an extrapolated view of how quickly
and at what cost this new technology will be
adopted by the target users, i.e., customers and
wealth managers.
• Competitor assessment. A study of existing
competitors’ solutions and their likely response
to the bank’s own solution can be carried out.
• Candidates for Proof of Concept (PoC). Based
on all of the above, the consulting firm can
prepare a list of likely candidates for the PoC.
Those that best support the consulting and IT
firms’ capabilities and are also indicative of
the core requirements of the bank would make
the cut.
Conclusion
Bigger, better and faster mobile devices, as well
as highly evolved operating systems, have made
smartphones and tablets a viable alternative
for performing many tasks that not so long ago
would have required a laptop or desktop. These
systems are capable of carrying out all of those
functions and more at the same time — with-out
being bound by the limitations of time and
place. Apps are available for almost every imag-inable
activity. Prevailing mobile banking apps
are equipped to support most traditional bank-ing
activities — attributes that make it possible
for private banking apps to offer core PB services
over smartphones and tablets.
An all-inclusive, cross-platform app for private
banking can be a game-changer for both cus-tomers
and wealth managers. It is also an area
that promises more visibility into customers’ and
banks’ needs, and better business for both IT and
consulting firms. Given the speed at which mobil-ity
is impacting existing industries and creating
new ones, the private banking app might very
soon become the top channel for banks, rather
than just an add-on.

10. About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 75 development and delivery centers worldwide and approximately 178,600 employees as of March 31, 2014, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
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Footnotes
1 McKinsey Global Private Banking Survey 2013.
2 http://www.mckinsey.com/client_service/financial_services/latest_thinking/ wealth_management_asset_management_and_retirement
3 http://www.zdnet.com/apac-consumers-more-likely-to-use-mobile-commerce-7000021796/
4 Deloitte India Banking Fraud Survey 2012.
5 http://www.nielsen.com/us/en/newswire/2013/the-asian-mobile-consumer-decoded0.html
6 Mobile Apps for Wealth Management — MyPrivateBanking Research Report. July, 2013.
7 http://www.spearswms.com/blog/citi-private-banks-new-app-keeps-your-wealth-in-view
8 Mobile Apps for Banking — MyPrivateBanking research. April, 2013.
References
•
Booz & Company — Global Wealth Management Outlook 2014-15
•
The Asian Mobile Consumer Decoded — Nielsen Report
•
Bain & Company — Customer Loyalty in Retail Banking 2013
•
www.myprivatebanking.com
•
Websites of Citibank, UBS, Credit Suisse, JP Morgan and Deutsche Bank
About the Authors
Ronak Banker is a Manager with Cognizant Business Consulting, based in Pune. He has more than 12 years of experience across business consulting, banking and accounting. He has worked in Retail and Corporate Banking, Consumer Lending, Regulatory Reporting, as well as Private Banking. His areas of expertise include requirements management, business processes and innovation. He can be reached at Ronak.Banker@cognizant.com.
Nikhil Mehta is a Senior Consultant with Cognizant Business Consulting, based in Pune. He has more than 10 years of experience in the banking and wealth management domain across retail and private banking. Nikhil has worked on core banking and wealth management products, and has expertise in Indian regulatory reporting, business requirements-gathering and business process management. He can be reached at Nikhil.Mehta@cognizant.com.