The shift from KYC to KYD
Digitalisation and the digital revolution have become fashionable topics in recent years as the way for private bankers to succeed.
Experts at conferences regularly stress the importance of data in digital banking; the role of AI as a disruptor in wealth management and the rise of FinTechs and RegTech startups.
As one speaker at PBI’s recent Private Banking Switzerland 2017 conference in December pointed out: “There is a shift from KYC to KYD – Know your data.”
Without doubt, innovation in robo-advice, AI and data analytics will be critical for private banks and wealth managers to succeed in 2018.
This technology can improve a financial institution’s communication and customer service, help them better understand their consumers as well as enhance back office automation.
Going forward, however, private banks and wealth managers will also need to be more agile and responsive to client needs.
This will required a balanced approach between focusing on private banks’ traditional core strengths of which trust and the client relationship are at the heart of – but also rapidly responding to changing market trends and rapidly embracing innovation. Innovate before you have to has to be the mantra for 2018.