A Blog of the ZHAW Zurich University of Applied Sciences
Artificial Intelligence (AI) is starting to reshape wealth management. Not through big headlines or dramatic changes – but in quiet and more practical ways. Behind the scenes, smart algorithms are helping relationship managers (RMs) make better decisions, improve efficiency, and give clients more relevant, timely, and cost efficient financial advice. This will not be about […]
Digital transformation has significantly reshaped all banking sectors, transforming traditional banking practices into dynamic, technology-driven services. Social media’s integration into banking has been one of the more recent changes, offering new avenues for client engagement, marketing, and service delivery. For Swiss wealth management banks, known for their discretion and reliability, adapting to this digital shift has become crucial, especially with the emergence of a new generation of wealthy clients: the so-called NextGen.
A recent journal article has reviewed the current state and future direction of the FinTech landscape, mainly focusing on the retail banking space. While many retail banks around the world have partnered with FinTech companies to enhance their services, I believe the question of partnering with FinTech companies is more complex for wealth management banks. With this blog post, I will explore opportunities and challenges for wealth management in partnering with FinTechs, focusing on how these partnerships may benefit HNWI clients and addressing concerns about value chain integration.
The integration of Artificial Intelligence (AI) into portfolio management could bring a shift in how wealth management banks offer investment services to their clients. A recent paper titled “Enhancing Portfolio Management Using Artificial Intelligence: A Literature Review”, to which the Head of our Institute, Prof. Dr. Peter Schwendner, guided me, offers a comprehensive overview of this integration, illustrating the potential of AI to revolutionize asset allocation, client service, and operational efficiency.
With this blog post, I will try to showcase the article’s findings from a wealth management bank’s perspective and outlining strategies for harnessing AI in portfolio management, while navigating the challenges associated with transparency, fairness, and compliance.
The integration of Robo-Advisors and GenA) within wealth management hints at a transformative shift, also for Swiss Private Banks. This blend of advanced technology offers new horizons in personalized and efficient wealth management solutions, potentially reshaping the way advice is delivered to private clients.
For Swiss Private Banks, this represents an opportunity to further sharpen their value propositions, offering clients hyper-tailored investment strategies at scale.
As we know from Deloitte’s traditional Wealth Centre Ranking studies, Switzerland has traditionally been the world leader in cross-border wealth management, whereby the country’s significant number of External Asset Managers (EAMs) have contributed to this position. However, Swiss wealth managers have certainly faced challenges due to shifting demographics and client needs, technological advancements, regulations, or macroeconomic uncertainties.
Motivated by the accelerated shift to digital banking during the COVID-19 pandemic, designing a compelling digital banking value proposition and UX has become crucial for banks. A recent article has examined the digital banking adoption and perceptions across generations, aiming to capture the differing attitudes and usage patterns of digital banking among Gen Z, Millennials and Gen X.
