Avaloq Advises AI Integration to Cater to Growing Affluent Market in Asia
Asia's emerging wealth management sector has seen an increase in attention towards high net worth individuals, leaving the mass affluent market segment relatively overlooked by regional banks, reports Avaloq's Gery Dachlan.
To counterbalance the service gap, banks are considering the implementation of advanced technologies like artificial intelligence (AI).
As wealth accumulation in Asia gains momentum, banks are eager to seize the growing opportunities. However, despite the potential of the mass affluent segment, many regional banks focus predominantly on high net worth clients, leaving a gap in the service for a significant portion of their potential clientele.
In an exclusive interview with finews.asia, Dachlan, Avaloq's managing director for South Asia and Australia, emphasized, "The affluent segment is witnessing steady growth. Local banks already have this segment within their reach, but it remains largely underserved."
The banking sector's ambition to capture this market often revolves around aggressive recruitment. Yet, a glaring challenge persists: the scarcity of skilled relationship managers. Consequently, the existing few are stretched thin, managing an ever-expanding clientele base, which invariably affects service quality.
To bridge this deficit, banks are turning their gaze towards AI. Technological advancements, particularly in the field of generative AI, offer innovative solutions. Tools such as OpenAI’s ChatGPT could potentially act as virtual assistant relationship managers, aiding in rudimentary tasks like opening accounts or providing market insights. "Generative AI could be the key for banks to democratize wealth management even further," Dachlan pointed out.
On a separate note, Avaloq, the Swiss banking software giant, is strategizing its growth in the Asia Pacific market. The company is setting its sights on Vietnam while simultaneously contemplating expansion to the Middle East, targeting nations like the UAE, Saudi Arabia, Qatar, and Bahrain. Dachlan emphasizes the growing significance of wealth management in these regions due to the surge in asset inflows.
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