Can Credit Suisse’s social network for the wealthy succeed?

In early December, trademark application miners discovered the latest digital strategy of one of the most renowned private banks in the world. An application submitted by Credit Suisse detailed its intention to create The Eleven Group, a social network for HNWs so-called because of the company’s 11 Madison Avenue address. The move demonstrates Credit Suisse’s increasing focus on driving digital engagement with clients.  But, for the Eleven Group to be a success, the Swiss giant will need to consider the factors that motivate high net worth individuals to engage with online networks.

It appears that Credit Suisse may be pursuing digital innovation to align with its refocused growth strategy. In October, the firm announced plans to transition its US private banking business to Wells Fargo through an exclusive advisor recruiting arrangement. Instead, it is prioritising Asia as the source of its future revenue streams.  

Of course, to be successful in the competitive Asian wealth management market means understanding the preferred delivery models of the region’s up and coming wealthy. Our research demonstrates that HNWIs in Asia Pacific are significantly more likely to want to consume their financial services using a digital platform, when compared to their counterparts elsewhere [see Figure 1].

This is something that Credit Suisse clearly understands. It selected Singapore as the location in which to launch its digital private bank earlier this year, enabling clients to review portfolios, market news, trade securities and communicate with members of the Credit Suisse team all via an online platform.

The latest revelation that the bank is building a social network takes this innovation a step further. It certainly helps to mark the firm out as a visionary in a very crowded marketplace. 

But, of course, building an effective social network for the wealthy is easier said than done. Just in case anyone from Credit Suisse is reading Ultra, we have compiled some insights that could stimulate some thoughts about how to make The Eleven Group a success.

First and foremost, it will need to draw inspiration from social networks that are currently popular among the world’s wealthy. The most commonly used site is Facebook, with four in every five global HNWIs currently a member of this community according to our research.

Arguably, the seeds of Facebook’s success were sewn at its inception by identifying a small group of highly engaged and high quality users to form the basis for the community. In this instance, Harvard students formed the start of the Facebook network before it was opened up to the public.

To build a social network in wealth management, it would be wise to identify a group of highly engaged clients who are interested in developing a community before widening participation to the broader base.

Crucially, Facebook allows its community to drive the evolution of the site by listening carefully to user feedback. It also empowers users to invite others to join, meaning that growth of the network is linked to user satisfaction.

This is also important in the context of The Eleven Group. Our insights suggest that the influence factors for HNWIs when joining a social media network relate to their ability to connect with friends and family through an efficient, modern and seamless interface. Content, events and various other features take more of a back seat in their decision making process. Perhaps an incentive programme for referring new users to the site could be a way for Credit Suisse to build a successful social media site.  

We commend Credit Suisse for thinking outside the box and developing a concept that is in tune with their target demographic. Who knows, they may be the first in a wave of private banking social media sites. The success or failure of the idea will be very much dependent on the extent to which these networks understand client engagement and provide a flexible framework for collaboration driven by users.  

Annie Catchpole is an associate at wealth management think-tank Scorpio Partnership