Achieving tech leadership in private banking

Operating models of private banks must evolve. Investor expectations continue to change, while simultaneously AI and digital services are advancing quickly. Is outsourcing an opportunity for private banks, as the competition heats up?

Deloitte and FNZ have collaborated on this report to provide insight into the current private banking industry and how operating models have been evolving, along with the trends that are impacting the industry.

Key findings:

Private banks’ profitability is under threat – lack of tech leadership, agility and economic resilience are holding many back.

• The private banking digital experience lags as HNW investors' expectations rise: Retail peers and AI are driving up expectations.

• Revenues derived from volatile assets: Client asset valuations vary 20% year-on-year leaving little room to maneuver.

• Heavy reliance on fixed-cost operating models: Up to 75% of costs are fixed and inflexible.

New operating models are needed to enable private banks to take advantage of recent innovations, deliver on client expectations and stay resilient in volatile times.