By FINTECH Books Contributor, Rodger Oates
Private Banks are currently facing a tsunami of disruption from regulation, cost and margin pressures, the emergence of a new class of more empowered customers and the development of technology that is eroding the traditional arbitrage role they played. The traditional Private Bank and sharp suited Banker that pushed simple products at a high margin to their mature customer base will cease to exist as new customers will be increasingly empowered to do what private bankers do themselves today.
Fortunately as well as challenging the current model the emerging technology landscape allows private banks and private bankers to reimagine their role, their value and the service offering they can deliver to their customers. Private Bankers need to become a combination of a lifestyle platform and a personal assistant to their customers, where a product is only one part of the product and service offering they can provide.
Private Bankers need to become a true partner to their customer as the future customer, will want a partner that will anticipate their needs or wants (not just their financial needs), and support them in a holistic and transparent fashion end to end. For example if they are buying a property they don’t just want the financing, but will want help in completing the transaction, identify trusted third parties that can renovate and maintain my home.
How will technology, including AI, APIs, Blockchain etc allow Private Banks to reimagine their business models and stay relevant to their evolving customer needs.
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