Wealth Management and “augmented advisor”
Evolutions in Wealth Management
Wealth Management is reshaping itself, especially because client expectations evolve quickly. Contrary to the beginning of the 21st century when advisors merely worked on portfolio management, they now have to work globally, which means managing portfolios according to the estate, the objectives and the family structure of the client.
“Jeff Bezos has not stepped into the financial services yet for only one reason. He is not masochistic. When he looks at the regulation, the KYC he has to comply with, I know the answer he has come to”
Paul Raphaël, Vice Chairman, UBS Wealth Management
Client expectations have evolved with the emergence of Internet giants like Amazon, and private banks are forced to follow these new needs. With these quick changes, “we need to react now and pray for the Internet giants not to steal our businesses […] We can see how fast business are ‘amazoned’. We need to hurry!” warns Guillaume Dard.
Educating the client
With new client expectations, advisors must now educate their clients and make their experience more intuitive. Today, clients have the tools to educate themselves, which generates a strong competitiveness. Educating clients would also help avoid problems with PRIIPs and MiFID II.
Using AI to augment the advisor
New technologies will put the relationship back at the heart of the private banker’s job and personalize this relationship and the offers proposed to the clients. “Amazon works because its business model is based on client data. Private banks don’t take advantage of this data” states Joop von Gennip (Board member, Neuflize OBC). Technology will simplify, galvanize and make the client interface more intuitive but it will also connect clients with common center of interests.
The advisor becomes then an “augmented advisor” thanks to the different tools mentioned (algorithms, AI). Using digital tools in management means multiplying the sensors and integrating them in the advisor way of thinking. Digital tools are assisting the advisor in order to better know the client and to offer him personalized reports. Exchanges between the advisor and the client will then occur more often. At the end, digital tools will help wealth managers to better understand the emotional aspect of the client and everything that can be managed by an AI will be assigned to it.
“We should talk about digital optimisation instead of digital transformation for we are doing the same but cheaper and in a better way”
Joop von Gennip, Board member, Neuflize OBC
This round table was hosted by Fanny Berthon, journalist in economics at BFM Business and gathered many leaders specialized in Asset and Wealth Management such as Paul Raphaël, Vice Chairman at UBS Wealth Management, Guillaume Dard, CEO at Montpensier Finance, Pascal Koenig, Partner in charge of Wealth and Asset Management Industry at Deloitte France, Joop von Gennip, membre of the board at Neuflize OBC and Philippe Collas, former Executive Director at Société Générale.