The increasing use of Artificial Intelligence (AI) and Large Language Models (LLM) is the result of recent technological breakthroughs and the tremendous awareness created by the introduction of ChatGPT, Bard, and Bing Chat. Solutions with AI meet the needs of users in many industries. The ongoing digitization and application of these new technologies then also have the potential to fundamentally change the banking and wealth management industry. This can strengthen competitiveness and provide greater value to customers.
One of the biggest benefits of new technologies is increased scalability. The ability of banks and asset managers to process large amounts of data quickly and efficiently is nothing new since the use of modern IT. Thanks to AI, however, processing steps that were previously manual can now be automated. Furthermore, AI shows the potential to process unstructured, already existing information in such a way that analyses and actions can be derived directly from it. Banks and asset managers can thus extend their services to a larger number of clients without overburdening their resources. In addition, the automation of processes means that the cost of providing services can be reduced, which in turn benefits customers.
Although proactive communication with clients is recognized as a critical success factor, the tedious task of writing reports can distract highly skilled staff from their focus on investment performance and clients. To this extent, asset and wealth Managers have been able to provide personalized client services to only a subset of clients, usually the wealthiest. This also applies in particular to client communication. The majority of clients have been left alone with number-heavy documents that are difficult to understand and often not read. New technologies are therefore key when it comes to achieving a higher level of personalization. By using AI and LLM, banks and wealth managers can develop a better understanding of their customer's needs and preferences. Personalized and easy-to-understand information can be provided to customers in real-time. The machine-generated text guides the reader through current portfolio positioning, key performance drivers, and underlying key market trends. Banks, asset and wealth managers can thus communicate information quickly and efficiently to customers in different regions and languages, which in turn increases customer satisfaction and ultimately strengthens customer loyalty.
Overall, it can be said that the use of AI and LLM gives banks and asset managers a decisive competitive advantage. They can work more efficiently, scale their communications and offer their customers greater added value. As a result, investment in these technologies is expected to grow in strategic importance and see increased adoption in the coming years.
Commenting on the latest developments, Daniel Rudis, CEO and co-founder of Digipal AG, said: "Natural language generation, when used correctly, can be a game changer in asset and wealth management. Our proprietary technology ensures the accuracy of the statements. The capabilities of today's state-of-the-art language models make output sound as if it were written by humans. Combining automated portfolio analysis with technologies like ChatGPT allows banks to produce compelling reports that are finally easy to understand and fast. The feedback we've received from early adopters has been extremely positive, and we can't wait to add more features to the platform."
Founded in 2021, Digipal AG is a leading AI fintech that combines investment expertise, digitization, and artificial intelligence to enable asset and wealth managers to efficiently scale their client communications. Inspired by their own banking experience and encouraged by the rapid advances in AI, Digipal's three founders set out to create a groundbreaking platform. The passion of the entire Digipal team is to connect cutting-edge technology with real-world banking challenges. In this way, they help wealth managers reach more clients with personalized service and enable them to refocus their valuable resources.
Comments