Having spent years both running private banks and relying on them myself as a client, I have experienced first-hand how technology has steadily reshaped the industry. But AI represents something totally different. It’s about to redefine dramatically how value is delivered.

Clients today require responsiveness and insights at a level only AI-driven systems can deliver. Competition from digital-first banks such as Revolut and Monzo and the rapid ascent of robo-advisory platforms such as Betterment has intensified pressure on traditional models. These players are offering low-cost, algorithm-driven advice that appeals to a new generation of tech-savvy investors.

A number of legacy players have already paid the price for digital inertia and watched while others surged ahead. In Asia, for example, many private banks are struggling to match competitors such as Singapore’s DBS, which has fully embraced AI and digital onboarding. New entrants such as the robo-advisor StashAway and Hong Kong's virtual bank ZA Bank also provide powerful competition. Similar examples in Europe also abound.

History offers a useful parallel. The arrival of Bloomberg terminals in the 1980s did not replace traders. It made those who embraced the screen indispensable and those who ignored it obsolete. AI will likely have the same sorting effect: enhancing the value of forward-looking professionals while exposing the limitations of legacy thinking.

In addition, the relationship managers of tomorrow will need fewer transactional skills and far greater technical fluency and strategic capability. Many banks may well reduce headcount. The value of those who remain, namely those who can integrate AI tools while providing strategic human judgment, will increase.

The message is clear: adapt or risk irrelevance.

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