High net worths (HNWs) in the US have shown greater interest in digital technology and the investment possibilities it presents, Morgan Stanley has found.
It has now become a requirement for clients to see their wealth/investment firm provide digital services, with 82% expecting online access to their accounts and 78% demanding online management services.
But many (43%) have also expressed concerns about cybersecurity.
“There remains mistrust and concern regarding banking and investing online,” said Rachel Wilson, head of wealth management cybersecurity at Morgan Stanley.
“However, with the proper controls in place, digital wealth management and banking can actually help reduce our clients’ risk of fraud. Clients underestimate the serious risks around physical paper.
“Tax returns, financial statements and personal checks can be a goldmine for fraudsters.”
Different attitudes
The firm surveyed around 1,100 US households with at least $100,000 in investible assets, with over a third of respondents having at least $1m (£828,195, €892,750) available.
Despite their fear of digital safety, 86% said that mobile technology positively impacted them.
That worry, however, changes drastically according to the age cohort.
Younger HNW investors are twice as likely than their older counterparts to feel confident about the degree of security of their financial information online and their firm’s ability to protect it, Morgan Stanley found.
Additionally, 61% of respondents said that they manage their finances more independently and conveniently through mobile access, and 59% have spent more time using this type technology over the past year.
