Private banks across the board are exploring how to leverage artificial intelligence to improve business efficiency and client experience. Not all relationship managers are safe from disruption.
According to an Accenture report, 41 percent of banking employees are engaged in tasks with higher potential for automation via generative artificial intelligence (genAI). One of the roles with the lowest potential for automation is personal financial advisors.
And within this subsegment of jobs, private bankers are often believed to face even lower chances of displacement, due to the increasing complexity of serving high net worth clients’ needs, ranging from multi-jurisdictional and intergenerational matters to investor sophistication.
Humans for the Ultra-Rich
Service models for the richest clients at private banks are expected to remain high-touch.
«A lot of people talk about this whole concept of robo advisors and technology replacing the role of the private banker,» said J.P. Morgan Private Bank’s Asia CEO Harshika Patel at a discussion panel during the «PWMA Wealth Management Summit 2024».
«I’ve been at the private bank for all 11 months now and I can safely say that everyone wants to talk to a human being when it comes to their financial well-being because the role of the private banker is simply more than just to tell them where the markets are, tell them where the next trade is. The role of a private banker is an intergenerational role.»
$5-10 Million Segment
However, some believe that not all segments within private banking are safe from disruption. According to Ron Lee, APAC head of private wealth management at Goldman Sachs, the service model for clients with $5 million to $10 million in investable assets could be transformed.
«I think that is a place where that generation of people at that net worth and price point might take a different lens as it relates to technology,» Lee said on the same panel, though he admitted that this segment was not Goldman Sachs’ expertise.
All Must Embrace
Regardless of which segment bankers serve, all their jobs will be affected by AI in one way or another. Bank of Singapore, for example, is incorporating AI tools to help relationship managers access content more easily and also leveraging its parent group’s genAI chatbot for internal queries. Bordier & Cie is planning to deploy genAI capabilities to support investment teams by providing better in-depth review of portfolios.
According to Patel, private bankers need to welcome these changes with open arms.
«I think the talent base we're looking for with the front end doesn't really need to vary as much. They'll just need to be able to embrace the technology and explain it to their clients,» she added.
