According to Rickenbacher, trust in banks comes from long-term relationships: \u201cMost \u2013 if not every \u2013 good client relationship has started with a long-term personal connection between the client and the relationship manager or with multiple people in the bank,\u201d he says. Additionally, the continuous creation of value for the client is very important. As technological innovation plays a greater role, the bank-client relationship has grown to include technology too.<\/p>\n\n\n\n
KYC \u2013 \u201cknow your client\u201d has always been a watchword for financial services providers. Knowing the background of the client, his or her sources of wealth and their preferences and ambitions forms the basis of the relationship \u2013 the more data, in other words, the better. \u201cClient data is of essence in our business and safeguarding this data has always been at the center of a banking relationship in wealth management \u2013 and always will be,\u201d Rickenbacher says. \u201cIn the evolution of big data, the banking industry is nothing but a tiny dwarf when it comes to collecting, storing and analysing client data. But obviously we are interested in having a complete picture of the client in order to serve them better.\u201d<\/p>\n\n\n\n
As for privacy concerns, Rickenbacher insists: \u201cBanks will not sell client data \u2013 we will never do that. That is not part of our business model.\u201d<\/p>\n\n\n\n
To benefit from client data, of course, banks need algorithms. According to Rickenbacher banks do not use algorithms enough right now: \u201cwe are just scratching at the surface of what is possible.\u201d Rickenbacher believes, this is a journey worthwhile further pursuing with our clients. Banks use algorithms and models for their risk management calculations. Therefore, to trust them, they need to know them inside and out: They are a starting point, but not the ultimate answer. Philipp Rickenbacher, who earned a masters\u2019 degree in biotechnology from ETH Zurich, learned early in his scientific career that \u201cyou always need to know the limits of your model,\u201d he says.<\/p>\n\n\n\n
That\u2019s why at Julius Baer models are constantly validated by people: \u201cYou will always have the human brain, intuition and experience that complements, validates and further develops the algorithms, and ultimately applies judgment,\u201d he says. \u201cIn that combination, data is extremely powerful.\u201d<\/p>\n\n\n\n
The technological innovation has huge potential to transform the way we do banking. With that in mind, it is important to find the right balance between technological innovation and risk mitigation. Rickenbacher points out the importance of pursuing both things at the same speed. \u201cEverything we do, is built with an eye on the regulatory framework we have to comply with, the stability of the bank, and the fiduciary duty we have towards our clients.\u201d<\/p>\n\n\n\n
After all, banks have always had to — and will have to — handle risk. And technology means another risk to manage is client education. \u201cIt is not just about creating tools,\u201d Rickenbacher says. \u201cIt is also about enabling the users to use those tools in the right way.\u201d<\/p>\n\n\n\n
There seems to be a way to maintain technological innovation within the financial sector: To sustain trust in technology, understanding how the technology works is key. Trust issues may take time to address, but that also means more time to educate customers and bankers alike.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nearly every new company promises some sort of technological innovation nowadays. The opportunities can seem almost infinite. But as the development and usage of tools like artificial intelligence grows, another question pops up: Can we still trust what companies do with their technology, and our data? A sector which is historically reliant on trust is […]<\/p>\n","protected":false},"author":22,"featured_media":1290,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_gspb_post_css":"","footnotes":""},"categories":[14],"tags":[],"ppma_author":[27],"class_list":["post-1287","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sympact"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"acf":[],"featured_image_urls_v2":{"full":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1.jpg",1500,1001,false],"thumbnail":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1-150x150.jpg",150,150,true],"medium":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1-300x200.jpg",300,200,true],"medium_large":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1-768x513.jpg",768,513,true],"large":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1-1024x683.jpg",1024,683,true],"xl":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1.jpg",1500,1001,false],"xxl":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1.jpg",1500,1001,false],"xxxl":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1.jpg",1500,1001,false],"xxxxl":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1.jpg",1500,1001,false],"xxxxxl":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1.jpg",1500,1001,false],"1536x1536":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1.jpg",1500,1001,false],"2048x2048":["https:\/\/symposium.org\/wp-content\/uploads\/2021\/11\/FMP_Symposium_day2_39-1.jpg",1500,1001,false]},"post_excerpt_stackable_v2":"
Nearly every new company promises some sort of technological innovation nowadays. The opportunities can seem almost infinite. But as the development and usage of tools like artificial intelligence grows, another question pops up: Can we still trust what companies do with their technology, and our data? A sector which is historically reliant on trust is financial services. We spoke with Philipp Rickenbacher, CEO of Swiss wealth management bank Julius Baer and a speaker at the St. Gallen Symposium, about the issue of trust and technology. According to Rickenbacher, trust in banks comes from long-term relationships: \u201cMost \u2013 if not every…<\/p>\n","category_list_v2":"SYMPACT<\/a>","author_info_v2":{"name":"wordpress@weitblick-online.ch","url":"https:\/\/symposium.org\/author\/wordpressweitblick-online-ch\/"},"comments_num_v2":"0 comments","authors":[{"term_id":27,"user_id":0,"is_guest":1,"slug":"lisa-maria-neusl","display_name":"Lisa-Maria Neu\u00dfl","avatar_url":"https:\/\/symposium.org\/wp-content\/uploads\/gravatars\/762b22de4bf1bf3924204e9b02554eaa","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/posts\/1287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/comments?post=1287"}],"version-history":[{"count":2,"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/posts\/1287\/revisions"}],"predecessor-version":[{"id":3138,"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/posts\/1287\/revisions\/3138"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/media\/1290"}],"wp:attachment":[{"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/media?parent=1287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/categories?post=1287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/tags?post=1287"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/symposium.org\/wp-json\/wp\/v2\/ppma_author?post=1287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}