Ralph Hamers is one of the world’s biggest wealth managers who thinks that artificial intelligence for replacing the role of financial advisors.
On Wednesday, Ralph Hamers, the CEO of UBS mentioned that technologies like AI are now better suited for handling the day-to-day functions like opening an account or you can say executing traders than advising clients.
Hamer said, “There is no added value for client advisors to be engaged in a process like that.” He even mentioned, “They’re advisors. They should advise.”
“Our financial advisors actually should be supported by the technology,” Hamers said, adding that AI could be used to make sense of the research and other data that advisors don’t have time for.
“That is what artificial intelligence can do because even our client advisors can’t read all the research that is there,” he said. “Our client advisors can’t comprehend all the product options that are out there.”
Moreover, the European banking industry has seen a radical change in the last decade, with new entrants like Monzo, Revolut, and N26 emerging to earn on incumbents with slick, digital-only services.
However, Covid-19 has now further accelerated digital transformation especially in the banking sector with many lenders racing to move away from their aging IT systems to cloud-based technology. Notably, some are now partnering with the tech companies like Microsoft, Amazon, and Google as well as fintech upstarts for hastening the process.
On the other hand, Hamers mentioned UBS is now looking out for adopting a “Netflix experience” in which the clients access to a “dashboard” of different research and products for choosing from.
He even added, “That’s where things are going, and that’s where UBS is making the next step, in terms of dealing with technology to deliver a much better service for our clients.”