The private banking industry has been evolving over the past few years. Trends are multiplying and the industry is constantly adapting. Private bankers are faced with an increasingly demanding clientele whose product preferences are continuously evolving.
Private banking, like any other banking segment, is influenced by several factors such as the growth of the economy, the geopolitical environment, as well as the financial markets. Predicting the future of private banking is not a safe decision. Any macro-environmental change can have long-term or immediate consequences on the business of private banking. However, it is possible to make an analysis that allows us to anticipate certain changes in a likely way.
What can we expect within the next few years?
Private banking has several surprises in the coming years, such as:
Digitalization: The acceleration of digitalization continues. As mentioned before, clients are more and more demanding, which explains their wish to increase the speed of financial operations. In recent years, private customers have been able to access customer accounts and banking services online. However, there are still banking transactions that require the assistance of a banker. The goal in the coming years is to make it easier for private customers to access more options.
Artificial intelligence: First of all, it is important to know that artificial intelligence is a hot topic. Several industries, both financial and non-financial, have started to integrate it in an accelerated way thanks to all the advantages it offers (saving time, minimizing human errors, etc). Artificial intelligence can be used through algorithms developed to analyze the needs of private customers and suggest appropriate solutions. Some of them have already been launched for a few years, especially in the stock market sector to analyze the evolution of investments. We should expect having much more developed and sophisticated banking services and products based on artificial intelligence by 2030 thanks to the massive investments of private banks in these new technologies.
Banking regulations: Laws and legal procedures will undergo an interesting change, especially with regard to the compliance of private clients and their operations. New techniques will emerge to facilitate AML checks and speed up the completion of legal procedures. New laws will also be announced for the crypto-currency sector to ensure compliance of transactions and to track the source of capital.
To conclude, private banking has a lot of changes in store for us in the coming years. The main objectives are to improve transparency and to satisfy the needs of private clients.