The evolution of wealth management through AI - Banking blog

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New global megatrends – an industry shift
Artificial intelligence is transforming the wealth management industry. AI enables banks to analyse large amounts of data and provide better investment decisions and personalised products and services: a modern, value-added, hybrid banking experience. To stay competitive, banks that manage wealth should integrate AI, prioritising data security, and combine the new technology with their traditional human advisory skills.

Current AI use cases in wealth management
AI is reshaping the wealth management industry, as our latest study, in cooperation with ThoughtLab and other industry leaders, highlights. Notably, AI may significantly improve efficiency within banks, with 69% of senior executives foreseeing a transformation in their operations. At present we see these use cases for AI in wealth management:

  • Enhanced client interaction: AI-powered tools, such as chatbots or virtual assistants, provide 24/7 support and engagement, improving client service and satisfaction.
  • Personalised investment strategies: AI facilitates increased personalisation (expected by clients thanks to their daily digital activities), allowing banks to tailor investment advice to individual client preferences, risk tolerance, and financial goals.
  • Proactive risk management: AI's predictive analytics help in identifying risks and market opportunities, enabling proactive book management and strategic alignment of portfolios.
  • Automated regulatory compliance: AI assists in ensuring compliance with evolving regulatory requirements (e.g., by automating reporting, monitoring transactions, or identifying anomalies in patterns).
  • Increased operational efficiency: Through automation, AI reduces manual tasks, lowers operational costs, and improves the accuracy of financial analyses and reporting.

Outlook for wealth management banks
As the wealth management industry navigates its transformation, banks that strategically incorporate AI and digital technologies will be well positioned to gain a competitive edge. Our study reveals that by 2028, 52% of firms surveyed expect an increase in the commoditisation of products, urging banks to offer value-added services combined with a world class hybrid banking experience. More radically, 51% of digitally leading firms believe that there will be a shakeout in the industry, with traditional players becoming severely challenged.

Therefore, banks need not only to modernise their product and service offerings but also rethink their business models to align with client expectations for digital experiences and holistic services. The push towards AI is therefore not merely a technological upgrade, but a strategic imperative to enhance client engagement, unlock growth, and improve operational efficiency.

Conclusion: Preparing for the future now
The successful integration of AI in wealth management requires banks to navigate various technological, regulatory, and competitive challenges. It demands a comprehensive transformation approach, combining technological innovation with human insights, ensuring that digital solutions augment rather than replace the human element which remains at the core of the industry’s value proposition. In addition, wealth management banks must prioritise data security, address privacy and regulation concerns, and develop ethical frameworks to maintain client trust and regulatory compliance in the long run. By embracing digital transformation, banks may deliver enhanced value to their clients, achieve sustainable growth, and confidently navigate the complexities of the modern financial landscape.

In sum, the strategic adoption of AI may indeed set the stage for a next era of wealth management, where technology empowers client advisors to exceed client expectations and lead the way in a digitally-driven business environment.

Read and find out more in our recently published study Building a future-ready investment firm.

Key contact

Jean Francois Lagasse

Jean-François Lagassé - Managing Partner, Financial Services Industry, Switzerland and Global Wealth Management Lead

Jean-François is the Swiss Financial Services Industry Leader and a Partner within Deloitte Switzerland’s Financial Advisory business. He also leads our Global Wealth Management segment and is a member of the Swiss Executive. He has more than 20 years of professional experience in the field and has worked in the United States, Canada and Switzerland. Jean-François has successfully completed numerous M&A advisory and valuation mandates in sectors such as financial services, technology and telecom industries.

Email | LinkedIn 

CK

Christoph Künzle - Director, Wealth Management, Financial Services 

Christoph Künzle is a Director in Deloitte’s wealth management practice in Zurich, serving leading clients in Switzerland and across Europe. He has deep experience in strategic initiatives, offering and pricing, target operating models, organisation & governance, as well as digitalisation & innovation.

Email | LinkedIn 

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