Embracing AI: a catalyst for client service and strategic growth

The future of AI in banking holds immense promise, but only for those prepared to adapt. AI has the potential to revolutionize our operations, enhance our services, and deliver superior value to our clients. That is why we have made strategic investments in this area and are committed to continuing them in the future.

— As the Head of Distribution for Electronic Trading Solutions at Vontobel, AI isn’t your primary area of expertise. What sparked your interest in this field?

The emergence of ChatGPT in 2022 was a pivotal moment for me, signaling a profound transformation not just within the banking sector, but across a multitude of industries. After successfully completing my Certificate of Advanced Studies (CAS) in AI Management at ZHAW, I was able to bring the knowledge and inspiration I gained back to Vontobel. Here, my Innovation Hub team, in partnership with the Private Clients, Data & AI Team, embraced and honed this concept. Collectively, we embarked on a project to enhance our approach to institutional client coverage, leveraging the power of AI.

— Could you provide more details on how AI has been incorporated and the resulting impact it has had? 

Today, our CRM system fully integrates AI and is accessible to all relationship managers (RMs), enhancing our services across Structured Solutions, Cosmofunding, External Asset Management, and Transaction Banking units.

Our AI-powered tool can swiftly summarize client journals, which include notes from calls and meetings as well as e-mail exchanges over a selected period. It can also identify complaints and pinpoint opportunities. This means that a comprehensive client overview can be obtained in just a few minutes, a task that previously required extensive cross-team communication or manual review of countless touchpoints. Moreover, RMs can write client notes directly in our CRM system, where AI automatically generates both a new journal entry and tasks for RMs.

The automation of routine tasks is one of the many advantages of AI, freeing up our staff to concentrate on clients and more intricate issues.

— What were some of the initial challenges you faced when implementing AI into your operations, and how did you overcome them?

Securing the necessary resources for the project was one of the initial hurdles we encountered. This challenge extended beyond financial resources, requiring us to assemble a team equipped with the right blend of skills and AI expertise.

Data management presented another significant obstacle. To optimize our AI tools, we needed a comprehensive understanding of our data’s location and structure. This called for an in-depth examination of our data, followed by the development of strategies to extract and structure it effectively.

Additionally, we faced the task of establishing a shared understanding of the entire process, which involved multiple systems, each with its unique complexities. This necessitated a thorough mapping of the entire workflow, the identification of potential bottlenecks or inefficiencies, and the formulation of strategies to streamline these processes.

— What further initiatives do you foresee in the realm of AI at Vontobel? Are there any specific projects or areas you are particularly excited about?

There are several initiatives I would be interested in seeing implemented at Vontobel. One initiative involves using retrieval-augmented generation (RAG). This technology allows us to pose questions directly to a document and receive detailed answers, including their sources. This could dramatically transform how we interact with documents and various departments, like HR, Legal, and Compliance, and greatly enhance our efficiency.

Another promising initiative is the automation of e-mail responses. While this concept isn’t novel and can be implemented with a variety of existing solutions, its potential to significantly improve our productivity cannot be overstated. AI will play a crucial role in content creation, particularly supporting RMs with PowerPoint presentations, investment content, and general marketing topics, as well as writing content for LinkedIn.

An opportunity that excites me is the use of supervised, unsupervised, and reinforced learning for the pricing of our services. If this proves successful, it could be a gamechanger, helping our B2B clients to optimize margins with their clients. The groundwork for this initiative has already been established in our department.

— How do you envision the optimization of margins?

Historically, our understanding of pricing issues was largely based on educated assumptions. However, with over 26 million transactions annually, we recognized the need to validate, verify, and substantiate our assumptions with data-driven insights. As a result, we’ve analyzed vast quantities of data to identify patterns and trends, which has empowered us to make more informed decisions. This approach has proven successful. Looking ahead, we envision a future where AI learning plays a pivotal role. In this scenario, our systems would autonomously identify opportunities for margin optimization.

— In the era of AI, how should banks adapt?

US banks currently hold more than two-thirds of all AI patents in the banking sector. This fact underscores the critical role of innovation and the necessity for banks to consistently reevaluate their strategies. It would be intriguing to discover how many patents your organization possesses in this field.

Starting with small, manageable steps can be a wise strategy, as demonstrated by our own initiatives. The investment was moderate, illustrating that it’s viable to experiment and even encounter setbacks. This is a direct call to action for leadership to embrace learning curves and occasional failures. Bravery in these endeavors can yield substantial dividends.

AI will become an integral part of banking operations, rather than just an added feature. It will provide value and boost the efficiency of our front-line staff. Banks are custodians of vast amounts of data, but this data is often underutilized. This trend needs to shift. We must leverage this wealth of information to enhance our services and operations.

— Predictions, particularly about the future, are inherently challenging. What do you expect to see?

The future of AI in banking holds immense promise, but only for those prepared to adapt. AI has the potential to revolutionize our operations, enhance our services, and deliver superior value to our clients. Yet, harnessing this potential necessitates a commitment to invest in AI and a readiness to change.

As we embark on this journey, it’s crucial to remember that AI is not a threat, but a tool—a tool that helps all of us to serve our clients better and to achieve our strategic goals. As the saying goes, “You won’t lose your job to AI, but you might be replaced by someone who knows how to use it.” This statement highlights the importance of empowering our staff with the necessary skills and knowledge to effectively utilize AI.