"Financial institutions need to adapt to an evolving landscape, marked by the significant impact of technological innovation.
‘The global banking sector must also face the growing importance of transparency, corporate social responsibility (CSR), and the integration of environmental, social, and governance (ESG) criteria.
‘Technological innovation emerges as a major challenge, with the necessity for private banks to modernise their services and adopt agile business models to meet evolving customer expectations in terms of advice and reporting.
‘Digitalisation becomes imperative, not only to remain competitive but also to enhance operational efficiency and deliver optimal customer experiences.
‘Simultaneously, considerations related to ESG investing will become increasingly important. The challenge for private banks is to adapt to emerging regulations in a very fluid environment in which data and standards are still very often missing. Capturing clients’ ESG preferences will need to evolve from an art into something more akin to science.
‘Subsequently, those preferences will need to be fully incorporated into portfolio management and advisory services, which adds a level of complexity to standard models. Finally, reporting will need to evolve in parallel to these other changes. Meeting this challenge also requires putting technological innovation to good use."
Selman Bicaco Urrutia, Head of Private Banking.
Consult the full article, published in Citywire on January 9, 2024.