Mobility in Investment Managementcdn.advent.com/cms/pdfs/papers/WP_MOBINVMGMT.pdf · Another driver of the mobility trend is the advancement of cloud computing. Mobile devices are

Tracking the trends

Mobility in investment management

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Investment management firms have proceeded with caution on mobile technology. Now, their clients and employees are driving change, compelling firms to figure out their mobile strategies and policies.

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2 | Mobility in Investment Management

People have become quite comfortable conducting business on mobile devices, whether they’re ordering pizza, booking travel, or shopping for shoes. Investment advisors, too, are starting to use tablets to monitor client portfolios, review research, present to clients and prospects, and manage their businesses. These two worlds have begun to converge —mobile-savvy clients may soon expect, at a minimum, to be able to look up portfolio data or get reports from their advisors, and eventually even transact business on mobile devices, just as they do in the rest of their lives. Advisors need to be ready for that likelihood.

For some, the day has already arrived. Some advisors have begun offering their clients mobile-friendly web portals that allow them to check on their investments at any time. Today, they are in the minority. In the very near future, however, every advisor and institution should seriously consider having a credible mobile offering or risk becoming less relevant.

Mobile penetration into the investment profession shouldn’t come as a surprise, considering the growth in mobile technology in just the past few years and what’s expected in the next:

> In 2014, more mobile devices will likely be used to access the internet than traditional computers.1

> Traditional PC shipments are declining, while tablet shipments are soaring.2

> Tablet purchases by businesses reached 13 million in 2012 and are expected to triple to 53 million in 2016.3

Tablets, in particular, are quickly becoming the mobile professional’s new device of choice. Advisors should soon be able to perform many tasks on their tablets and smartphones that they do on their desktop computers, only they won’t be chained to their desks.

Another driver of the mobility trend is the advancement of cloud computing. Mobile devices are increasingly used to access cloud-based data and applications. The cloud has already made inroads into business functions such as CRM, human resources, payroll, and others. Considering the cost and efficiency benefits the cloud can deliver, many see its extension into financial services as only logical—albeit with a measure of caution due to the industry’s fiduciary responsibility to its clients.

If you haven’t already, it’s clearly time to acknowledge the surge in mobile technology and get in front of the tide. Up to now, the mobile revolution has been largely client led. It’s up to advisors to reverse the trend and take the lead.

Up to now, the mobile revolution has been largely client led.

Get Out Front

1 “Tracking global trends: How six key development are shaping the business world,” Ernst & Young, 2011

2 By All Accounts, Q2 2011 Gadget Survey 3 Matt Hamblen, “Smartphones and tablets growth

exploding, especially in business, Gartner says,” Computerworld, 6 November 2012

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Tips for a Mobile Friendly Website

As a first step in your mobile strategy, you’ll want to optimize your website and online resources for mobile access. What looks good on a PC may not work on mobile devices. For example, some websites use Flash animation software as the technology that powers the user interface. Apple iPhones and iPads, however, do not support Flash.

Prospective clients may want to be sure they can access your mobile site before meeting with you. Make sure the experience doesn’t disappoint them.

> Don’t use Flash

> Avoid pop-up windows

> Be succinct with content to keep scrolling to a minimum

> Track your mobile metrics—how may visitors are you getting and how long are they staying—so you can continue to refine the site

Comparing Apples to Androids —Pick Your Platform

Some of the industry’s hesitancy to embrace mobility wholeheartedly may stem from the confusing proliferation of platforms.

Apple launched the iPad in 2010 and remains the market leader in tablets despite new and aggressive competition. Surveys among advisors point to Apple as their preferred provider. Brands built on Google’s Android operating system, however, often have a compelling price advantage.

Regardless of the platform, tablet computers are gaining quickly in popularity, with the potential to change the way advisors and their clients connect with each other and share information. According to a 2013 Financial Planning survey, mobile adoption continues to grow among financial advisors. Around 59% of advisors surveyed said they use a tablet for business, up from about 50% the previous year. As Figure 1 indicates, the iPad still reigns as the tablet of choice for

77.5% of the tablet users, while 18.5% use an Android tablet, and a surprising 11.5% use a Windows device.

Whether advisors choose the Apple or Android-operated device, a tablet’s usefulness depends on the quality of the apps and the types and amount of data they can access. In order to be prepared for presentations and client meetings or answer questions on the fly, advisors are embracing new apps that are being developed to help them service their clients and prospects more effectively.

For advisors and firms who are proactive, mobile technology can be a significant competitive advantage. The devices make it easy to keep in contact while on the go and provide instant, compelling data to clients.

Figure 1: Mobile Adoption by Advisors

Which of these specific brands do you currently own or use?

Source: Financial Planning, 2013

Among responders who have an iPad—50% of them are between 44 and 62 years of age.

■ iPad

■ Android-based Tablet

■ Windows Tablet

■ Other

70%

17%

10%

3%

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Security Issues: Employing the Right Safeguards

Mobile technology introduces new security issues. As smartphone and tablet ownership continue to grow—more than half of US consumers own a smartphone, according to a 2013 Forrester Research report— advisors need to be more vigilant about data security. To help advisors combat financial cyber thieves, safeguards will need to be implemented to keep data secure.

Mobile devices themselves, of course, are easier to steal than desktop computers. And because they communicate wirelessly, they can be more vulnerable to compromise. Using strong passwords and changing them frequently are essential practices. As mobile computing advances, firms will need to stay current on the latest technologies to meet clients’ expectations while ensuring that the security ramifications are clearly understood.

Five Helpful Security Tips

1. Don’t Forget to Log OffWe often forget or, for convenience, choose not to log out before closing out of an app. Terminating sessions by logging out can reduce the risk of excessively active sessions being targeted by hackers.

2. Be Wary of Unsecured Wi-FiThink twice before using a public Wi-Fi hotspot. This kind of shared, unsecured connection can leave your activity and data vulnerable to eavesdropping and theft. When you use a smartphone’s cellular network it will often employ 4G service nationwide— which is more secure. Using a cellular network is going to make it more difficult for hackers to spy.

3. Stay Up to DateAdvisors should be keeping their soft-ware and apps up to date, especially when updates include security improvements. In the near future, apps will likely include more advanced security features, such as using the smart device’s camera to recog-nize the user’s face or identifying users by the unique ways they type their passwords.

4. Avoid Questionable AppsJust because there are a lot of apps available, it doesn’t mean they’re all legitimate. In 2011, DroidDream infected a quarter million Android phones by posing as real applications. Users should download apps only from trusted app stores, stick with the more popular apps and benefit from the wisdom of others by downloading apps that have a significant number of reviews and comments.

5. Burn After ReadingWhile the Find My iPhone app is designed for iPhone users, there are similar Android versions on the market. Not only can the app help find the phone or tablet if it’s activated, but it also has the capability to wipe all data on the device if it has been stolen.

Figure 2: Mobile Benefits

Why and how advisors use mobile devices in their work.

Source: ByAllAccounts, 2011

52.2%

59.8%

67.4%

83.7%

50.0%

48.9%

5.4%

0% 20% 40% 60% 80% 100%

Other

Helps me be more responsible/available to clients

Enhances my client meetings

Helps me move toward a “paperless” office

Increases my productivity

Allows me to access educational material relating to my business

Helps me stay connected while traveling/out of office

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In the very near future, every advisor and institution should seriously consider having a credible mobile offering or risk becoming irrelevant.

6 | Mobility in Investment Management

Buy or BYOD?

Many firms choose to buy tablets and issue them to employees strictly for work. On the flip side, the bring-your-own-device or “BYOD” trend, with staff at all levels wanting to work on their personal tablets or smartphones, is compelling firms to figure out their practices and policies.

If your firm is lacking a mobile device policy, now is the time to put one into place. While firms are understandably wary of the compliance concerns of tablets, keeping them out of the office environment long-term will likely be difficult. Given the widespread adoption of tablets among both clients and the advisors who serve them, firms should take the initiative to craft comprehensive policies.

Finally, as is often the case these days, “there’s an app for that.” Check out the available apps from the major security providers to find a mobile security app that’s right for your firm.

Going Native, Digitally

The ubiquity of smartphones and the increasing popularity of tablets are now changing the way financial advisors and clients share information. Clients increasingly expect anytime, anywhere access to their portfolio data. Advisors are using tablets more often in portfolio review meetings with clients. Using mobile devices can save substantial time in preparing for meetings, compared to printing and compiling paper reports in binders. And because they have access to their portfolio data, advisors are better equipped to answer any question the client may throw out—they rarely have to worry that they left a key report at the office.

Today, “digital natives” make up a growing segment of the population—one that has grown up with the internet mobile technology, and is now entering the workforce, accumulating wealth, and starting retirement plans. Digital natives may well expect not only to communicate electronically with their advisors and to view their accounts online, but may also want to make financial decisions in real time, just as they do in other areas of their lives. Advisors with an eye to the

future should be prepared to engage this emerging segment on its own terms.

Weigh the Benefits Against the Risks

There’s little downside for advisors who want to stay ahead of, or catch up to, their clients in the mobile arena. Perhaps the big-gest is device obsolescence. Once a device is approved in-house, it may already have been replaced by a newer version. In addi-tion, advisors who have a strong attachment to one particular device might be disap-pointed by the firm’s choice of another.

Clients and advisors alike may increasingly expect to have the functionality they need to monitor and manage their investments on mobile devices. Firms need to figure out the best way to deliver it. Today, many advisory firms are working diligently to define their mobile strategies. Enabling advisors to access their business applications away from their desks is becoming less of an option and more of a must. Firms that recognize this and embrace mobile technology will have a jump start on their competitors.

Putting it all together

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