In most sectors of economic activity, digitalisation has become a fact of life, the benefits of which are clear for some industries, less so for others--or at least it can seem that way. At a recent private banking conference held on 20 March 2018, industry representatives debated the benefits of digitalisation, with some arguing that, although the activity is not “digi averse”, technology will never replace a relationship of trust.

Delano decided to take this question further and ask quite frankly: in activities such as private banking and wealth management, that have traditionally been based on personal relationships and trust, how far can digitalisation go?  Also, does over-digitalisation risk damaging this relationship of trust? To discuss these points, we talked to Amina Djelloul, CMO of Budget Insight and Dr Zsofia Kräussl of the University of Luxembourg.

Amina Djelloul began by saying that digitalisation is happening and that’s that. “We cannot fight the digitalisation of the financial and banking sector. We need to respond to new users’ demands: immediate accessibility, availability and, always, more and more services.”

Although she agreed that private banking and wealth management are traditionally linked to personal relationships based on trust, little by little things are changing. 

According to Djelloul, “We have more and more native digital people that would like to manage their money and wealth through digital tools. Therefore, it is becoming a must to propose new digital tools with an innovative user experience. Nowadays, you can find platforms that help you to have a global overview of your finances, as well as give advice on where and when to invest.”

Dr Kräussl agreed saying that, “Digitalisation allows the enhancing of private banking services--both for managing client relationships (front-end), and for advancing existing business processes (back-end).”

She believes that digitalisation should not be seen as a threat, but rather that successful digitalisation depends on an existing relationship of trust. “The good banker knows what the client wants and how "tech-ready" he is.” 

For Djelloul, digitalisation is, “An opportunity to propose added value on raw data. The main aim is to deliver innovative seamless services: real time access to data and market information.”

In short, both Kräussl and Djelloul agreed that digitalisation does not mean an end to the personal relationship.

“It is not about digitalising existing relationships or about translating trust onto digital means--it is about diversifying existing services that are built upon trust,” said Kräussl. Djelloul added: “Digital doesn’t inevitably mean the removal of the human being from the process. It’s more about saving time and increasing accessibility.”