Improving Client Relationships via Social and Mobile Channels

Strategies and Developments in the Online Brokerage World
by Alexander Camargo, May 7, 2013
Industry Trends
North America

Abstract

Over the past 18 months, mobility and social media have emerged as legitimate channels in online brokerage. As online brokers continue to push the limits of mobile and social technology, full service wealth managers can look to the self-directed market for guidance in building out their digital strategy.

In the second of several reports on the online brokerage industry, Improving Client Relationships Via Social and Mobile Channels, Celent examines major trends and developments for mobility and social media among online brokerages.

Online brokers continue to add mobile functionality, expand their social media presence, and add new tools and features to private trader communities. “Online brokers seek to differentiate themselves by their advanced technology. As such, they are adding new mobile tools, and establishing a mature social media strategy that includes content, client-to-client interaction, and customer service,” says Alexander Camargo, Analyst with Celent’s Securities and Investments Group and author of the report.

“Usage metrics show that their efforts are paying off; mobile use continues to grow, investors access brokers’ Facebook, Twitter, or LinkedIn pages, and trader networks improve stickiness. Although not all functionalities will be the same, full service wealth managers developing a digital strategy can look to online brokers for lessons learned and inspiration,” he adds.

The report first provides a perspective on the mobile channel. The study supplies recent usage/adoption metrics, considers common and emerging functionalities, and outlines current tablet development. The report also outlines common challenges and future opportunities/considerations for developing a mobile strategy. The report then looks at social media, examining developments among private trader networks and third party social communities. Celent also provides a summary of challenges and a future look at social media developments among online brokers.

The report also outlines how lessons learned from the self-directed market can be applied to an advisor-led/full service environment. Celent concludes with a prospective look at the future of mobile and social media.

This 26-page report contains four figures and six tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Mobility

2

 

Metrics

2

 

Functionality

2

 

Tablets

4

 

Challenges

5

 

Opportunities and Looking Forward

5

Social Media and Social Communities

7

 

Private Trader Networks

7

 

Third Party Public Communities

9

 

Challenges

15

 

Looking Ahead

16

Lessons for Full Service Wealth Managers

17

 

Mobility

17

 

Social Media

17

Conclusions

19

Leveraging Celent’s Expertise

21

 

Support for Financial Institutions

21

 

Support for Vendors

21

Related Celent Research

22

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