AI-based Robo-Advisory in Private Banking: Process Redesign and Strategic Guidance

As AI technology continues to evolve, it is increasingly becoming an essential part of many industries. The finance sector is no exception, and the implementation of AI-based robo-advisory (RA) is rapidly replacing traditional retail investment advisors. However, private banking (PB) clients demand a higher level of personalization in service provision across different digital channels. This is where AI Spaces, an AI consulting firm, aims to help organizations sustainably integrate AI into their processes. As part of our efforts, we have written a scientific article that investigates the impact of intelligent RA on PB investment advisory. Our study offers process redesign knowledge and strategic guidance for AI usage in PB investment advisory.

Dietzmann, C., Jaeggi, T. and Alt, R. (2023)

Methodology

Our study applies an AI process impact analysis approach and decomposes AI-based RA into three AI application types: conversational agent, customer segmentation, and predictive analytics. The analysis results reveal sub-process transformations, which are applied for process redesign integrating AI.

Findings

Our study provides several valuable findings that organizations can utilize to integrate AI into their investment advisory processes. Firstly, AI systems enable seamless client journeys, which is critical in meeting client demands for personalized service provision across different digital channels. Secondly, AI increases advisor flexibility, allowing advisors to focus on more complex and value-adding activities. Thirdly, AI supports the client-advisor relationship by applying an omnichannel approach, which enhances client engagement. Finally, AI demands that advisor skills be augmented with technical and statistical knowledge, highlighting the need for investment advisors to possess the necessary skills to leverage AI systems effectively.

Originality

Our study provides valuable insights that organizations can use to navigate the complex and rapidly evolving world of AI in finance. As an AI consulting firm, we are dedicated to helping organizations sustainably integrate AI into their processes. Our study makes three significant contributions to the current research landscape. Firstly, our AI process impact analysis approach is a novel way to understand the effects of AI on investment advisory processes. Secondly, we derive process redesign knowledge for AI deployment, which can help organizations make the transition towards AI-based investment advisory processes. Lastly, we provide strategic guidance for AI usage in PB investment advisory, which can help organizations achieve a competitive edge in the marketplace.

As an AI consulting firm, AI Spaces is committed to helping organizations navigate the complexities of AI technology and sustainably integrate it into their processes. Our scientific article offers valuable insights into the impact of intelligent RA on PB investment advisory and provides process redesign knowledge and strategic guidance for AI usage in PB investment advisory. By utilizing our expertise and insights, organizations can successfully integrate AI into their investment advisory processes, achieving a competitive edge in the marketplace.

Feel free to download our paper for free at Emerald Insights