High-net-worth investors (HNWIs) are increasingly attracted to digital technology for their investment needs, while at the same time harboring concerns about cybersecurity, reported the Morgan Stanley Investor Pulse Poll.
“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. When clients use digital offerings to access tax forms and statements, and to move money and pay bills, they can benefit from our strong authentication, encryption and fraud prevention technology.”
While HNWIs expect their investment firm to provide online access to account information (82 percent) and convenient and secure online account management (78 percent), some investors expressed concern about mobile banking cybersecurity, with 43 percent of HNWIs expressing a lack of confidence in the safety of their personal financial information online.
The Investor Pulse Poll surveyed approximately 1,100 U.S. households with at least $100,000 in investible assets in late December 2018 and early January 2019. One-third of respondents had investible assets of $1 million or more.
