According to Akshaya Bhargava, the former boss of the wealth management unit of Barclays, all banks will be using artificial intelligence (AI) in the next five years, as institutions get ready for the $30 trillion (£28 trillion) “great wealth transfer” from the baby boomers to the millennials.
Bhargava was able to set up Bridgeweave, an AI fintech platform, after stepping down from the British bank two years ago. He said that financial institutions will have to be able to adapt to the changes as wealth passes to the next generation – who may anticipate a faster, and more digital service -over the next 20 years.
He stated: “If you work at a large financial institution you have a large amount of talent and money to spend on technology but sometimes it is very hard to get things done quickly. We believe that AI will be transformational.”
He added: “I would have loved to have something like that when I was working at Barclays or other banks.”
He continued; “I think the AI transformation is starting but in the next five years every bank will have to do it because they will have no choice. The early adopters will get a bigger market share.”
The Investment Insights of Bridgeweave was launched today. It will allow wealth managers to scan through billions of data points across more than 700 global stocks and 600 exchange-traded-funds in the United Kingdom in order to generate investment opportunities for each customer.
Bhargava said that the industry is currently “insufficiently prepared” to cope with the changes in the expectations of the customer, their priorities and modes of interaction.
He stated: “Millennials have very different needs and expectations of what a bank should do for them. They want fast service, choice, low cost and mobile apps when it is convenient to them.”
He continued: “We already see that in retail banking but wealth management is behind.”