An index on the digitization of customer relationships at private banks highlights three clear winners among the 28 financial institutions. However, a newcomer also makes it into the rankings' top 5.

Swiss private banks continued to make progress on their digitization efforts last year. However, growth has slowed, and not all segments are growing, according to the study by Colombus Consulting, a consultancy firm based in western Switzerland.

Julius Baer, Vontobel, and Lombard Odier are ahead of their competitors, according to the report, but the ranking for 2023 has been turned upside down by the entry of Alpian in particular. The latter's good ranking is based on its large media budget, a well-positioned mobile app, a cultivated customer experience on its website and via its content-sharing platform «i-vest.ch».

Alpian positions itself with a very digital offering complemented by a human-centric service. Choosing digitally supported advisors instead of a robo-advisor could be a real differentiator, says Jean Meneveau, managing partner of Colombus Consulting.

Social Network Investments Mixed

Factors such as website traffic and dwell time, media budgets, mobile app features and updates, and social network investments all play a role in the ranking. A total of 50 criteria are divided into the areas of web, mobile, marketing, and social, with rankings based on measurements taken in the period from January to March 2023.

In terms of apps, banks such as Vontobel (Volt), Lombard Odier (MyLO), and UBP mobile had continued to invest, while Mirabaud is just catching up. During the pandemic, investments in social networks had increased. The development is now turning around again and is only mixed.

Overall, innovation has been heavily focused on banking products, while wealth-tech investments have been declining.

Potential for Generative AI

Because «hyper-personalized advice» is the strength of private banks, they are unlikely to use artificial intelligence in customer relationship management, the report adds. However, the use of generative AI could facilitate the processing of heterogeneous and complex customer information and requests and enable the preparation of more accurate, faster responses. The ease of use of generative AI, however, could convince banks to jump on the bandwagon to facilitate front-office operations, the report predicts.