Personal messaging apps have been used by banks and other wealth managers for off-the-books communications for years. Scandal and fines recently have brought the issue to the fore. Firms of all stripes are racing to self-report and emerge from the sights of the regulator.

Why have financial institutions done so little to address the issue? Part of the problem has been a see-no-evil approach on the part of banks willing to overlook the transgressions of their high-powered trading units. Brokerages and other wealth managers have also been sluggish in their approach, however, particularly in the U.S. Many firms have understood messaging apps in terms of Gen Z communications, WhatsApp, and WeChat. Such myopia has blinded firms to the appeal of messaging apps among all types of investors. It has also exposed tensions between the corporate bank and the retail wealth management business, for whom communication with investors is the lifeblood. 

Key questions discussed in this report:

• How do firms tackle communication that takes place off-platform?
• What are the strategic benefits of adopting instant messaging platforms? 
• How do firms balance security, operational efficiency, and user-experience considerations? 

Companies Mentioned: 

Accenture, Aegis Capital Corp, Android, Apple, Avaloq, Bloomberg, Broadcom, CellTrust, Citigroup, Cognizant, Credit Suisse, Deutsche Bank, Erado, Facebook, Fidelis, Global Relay, Goldman Sachs, HSBC, Jefferies Group, JonesTrading, JPMorgan Chase, Message Matrix, Microsoft, Mimecast, Movius, Proofpoint, Safeguard Cyber, Signal, Sprint, TD Securities, Telegram, TeleMessage, T-Mobile, UBS, United First Partners, Verizon, WeChat, WhatsApp, Wipro, Zoom