Challenges to the Digital Transformation of Private Banking and Wealth ManagementPlamen Dzhaparov

Abstract

The COVID-19 pandemic raises a number of questions for the Private Banking and Wealth Management Industry (PWM). The need for social distancing has created an entirely new situation facing this industry’s business model, traditionally based on continuous personal interaction between financial advisors and wealthy customers. Thus, private banks are facing the difficult task of raising digitalization to the top of their agenda as a matter of urgency. However, investing in digital tools and applications is only one side of the coin. Traditional institutions in the PWM sector have to deal with a number of other problems – the skepticism of some clients, low satisfaction of others, difficulties with advisors, cyber threats, etc.