The private banking industry has consistently followed this approach for many years. Platformization and automation of services for wealth management facilitate wealth tech. Let’s look at the forthcoming innovation trends for those involved in private banking.
The Monetary Authority of Singapore organizations is facing effective technology bank applicants, along with a coalition among Grab Holdings, Singtel, and Ant Digital Bank Singapore for a Virtual Wholesale Bank license, one year after Singapore’s central bank opened application forms for digital banking licenses to nonbank businesses.
Blockchain, big data, and AI are at the core of private banking innovation.
Technology innovation addresses a dual issue by making information and services more accessible and cutting expenses for the private bank. Some technologies are already in use, such as machine learning, which, through increasingly potent algorithms, makes it possible to predict financial markets or customize advice. The automating of trading activities is made possible by big data processing techniques. They utilize this in the broad framework for valuing an asset or business.
The development of blockchain technology is another private banking breakthrough. This extensive registry uses smart contracts to certify and record transactions. The blockchain reduces expenses and expedites business operations.
Why Would Private Banks Be Converted Into Digital Platforms?
Since the COVID-19 pandemic rendered face-to-face encounters impossible, customers have anticipated an increasing number of digital services. They anticipate a smooth onboarding process with few physical contacts.
On the other hand, private banks like OCBC ibanking business have a stake in technologies that might significantly alter their business models (such as real-time resolution models, crypto algorithms, SPOT, automated investment vehicles, etc.).
These developments are built on blockchain technology and are useful for asset management. They could, among other things, boost cybersecurity and automate operating costs. Blockchain can fundamentally change all financial organizations’ IT systems and service offerings, including wealth management.
Private Banks Target Millennials As Their Target Market
Private banking must go digital to attract the next group of wealth management clients. Generation Z and Millennials demand high-quality digital experiences and have high expectations for internet services.
- The idea of scheduling a personal appointment to examine their bank accounts has never occurred to many. They are accustomed to switching between apps, logging in, making payments online, etc.
- This target group should be considered in private bank wealth management digitalization projects. It is not necessary to digitize everything, but rather to start now so that you don’t miss the transition.
- Each new service will enhance the client experience and encourage increased loyalty.
- Service is made better and quicker because of automation. Simply having access to an inter-portal could be a subject of delight. When traveling, for instance, the customer can check on his assets using a computer and a smartphone.
All industries must make technology investments while maintaining a tailored and approachable customer experience. This is particularly true in the premium and private banking industry, where serving the needs of the individual is given priority above those of the general public.
In a sense, technology becomes a tool for the consumer experience rather than the entire thing. And it’s crucial to keep this choice available for clients used to personal service. Chatbots and other FAQs are insufficient to satisfy consumer needs in private banking. They ask particular queries far more frequently than general ones.