Implications of AI-based robo-advisory for private banking investment advisory

Abstract

PurposeAI-based robo-advisory (RA) represents a FinTech application that is already replacing retail investment advisors. In private banking (PB), clients also increasingly expect service provision across different digital channels, but with a higher degree of personalization. Hence, the present study investigates the impact of intelligent RA on the PB investment advisory process to derive both process (re)design knowledge and strategic guidance for artificial intelligence (AI) usage for PB investment advisory.Design/methodology/approachThe present study applies an AI process impact analysis approach by decomposing AI-based RA into three AI application types: conversational agent, customer segmentation and predictive analytics. The analysis results along a reference PB investment advisory process reveal sub-process transformations which are applied for process redesign integrating AI.FindingsThe study results imply that AI systems (1) enable seamless client journeys, (2) increase advisor flexibility, (3) support the client–advisor relationship by applying an omnichannel approach and (4) demand advisor skills to be augmented with technical and statistical knowledge.Originality/valueThe research study contributes (1) an AI process impact analysis approach, (2) derives process (re)design knowledge for AI deployment and (3) develops strategic guidance for AI usage in PB investment advisory.

Exploratory Factor Analysis on Acceptance of Artificial Intelligence as Online Healthcare Product Sales Advisor Among Consumers of Guardian Pharmaceutical Outlets in Malaysia

“…The acceptance of AI as a health sales advisor, moderated by insurance, presents a new gap in the UTAUT1. The integration of AI as a health sales advisor, particularly in the context of insurance moderation, raises questions about the impact of technology readiness, awareness, and trust on the intention to use AI in healthcare sales (Flavián et al, 2021;Dietzmann et al, 2023;Maier et al, 2022). Therefore, the acceptance of AI as a health sales advisor, moderated by insurance, introduces new dimensions to the UTAUT1 model, requiring considerations of social, behavioural, and stakeholder-related factors to bridge this gap.…”

Exploring the Impact of Chatbots on Customer Satisfaction and Business Efficiency in New Zealand’s Financial Technology Industry

“…In this regard, it could be inferred that the finance service institutions has been a late adopter of this technology as compared to other service industries. The adoption of chatbots in the form of robo-advisors can be traced back to 2008 when a United States-based FinTech company Wealthfront and Betterment was established (Dietzmann et al, 2023). The popularity of chatbots strengthened significantly in the 2014 when the biggest FinTechs in the European market began adopting AIbased chatbot models as robo-advisors (Dietzmann et al, 2023).…”

Untitled

“…In this regard, it could be inferred that the finance service institutions has been a late adopter of this technology as compared to other service industries. The adoption of chatbots in the form of robo-advisors can be traced back to 2008 when a United States-based FinTech company Wealthfront and Betterment was established (Dietzmann et al, 2023). The popularity of chatbots strengthened significantly in the 2014 when the biggest FinTechs in the European market began adopting AIbased chatbot models as robo-advisors (Dietzmann et al, 2023).…”