Evolutionising the client investment advisory process with artificial intelligence

The client investment process taking centre stage

In the first blog in this series, we highlight key trends reshaping client investment advisory, and outline measures that Swiss banks can take to amend their offering. As client expectations evolve, generic client investment advice is no longer sufficient and banks must deliver tailored solutions that are available anytime and anywhere, while using automation to optimise processes and reduce operational costs. In this new world, AI and advanced data analytics are the enablers.

The traditional investment advisory process is illustrated in Figure 1, but new technologies have created opportunities to streamline processes and offer more personalised investment advisory services that carefully balance risk and reward.

Key trends in the advisory process

The traditional investment advisory landscape is undergoing a dynamic transformation, in response to key trends and challenges:

1. Technological advancements, particularly in AI and advanced data analytics, are reshaping how banks interact with clients and tailor investment proposals. For example, AI can be leveraged to transform client interactions through enhanced anomaly detection, risk profiling, real-time market sentiment analysis and predictive portfolio optimisation. Banks can therefore improve both efficiency and decision-making. However, this requires system upgrades, strong cybersecurity and skilled personnel.
2. Economic and geopolitical shifts are influencing asset values and client confidence. Banks need to consider these factors within the advice they provide to their clients. With AI's sophisticated analytical capabilities, client advisors are able to navigate the complexities to allow swift strategy adaptation and compliance assurance. For example, AI is used in client sentiment analysis reporting to assess client emotions and opinions from communications, helping advisors to understand client concerns and tailor responses during periods of market volatility or regulatory change.
3. Wealth transfer to younger generations is driving changes in investment approaches to reflect their distinct values and risk tolerances. Banks must stay close to their clients, and make sure that the young generation, just as much as older generations, value their advisory services. AI makes it possible to offer tailored solutions that resonate with the interests and preferences of younger investors, such as technology and sustainability, while also providing financial education to assist for example with investments after inheritance.
4. Client expectations are evolving, with strong demand for personalised services, transparency and proactive communication. Clients seek real-time insights and customised recommendations and expect firms to leverage advanced technologies to help them achieve their financial goals. Deloitte Switzerland’s Customer Experience Maturity Study 2025 finds that 46% of clients desire personalised financial reporting, while 44% seek virtual investment solutions¹ and 34% want one-click portfolio diversification². AI plays a crucial role in meeting these expectations by delivering data-driven advice and fostering continuous client engagement through personalised investment recommendations, including investment rebalancing based on milestones and market conditions.
5. Although they may have less prominence in the current socio-political environment, ESG factors should be integrated into investment strategies, particularly in response to the risk of adverse events arising from climate change or social unrest. The incorporation of ESG criteria into investment advice is streamlined with the help of AI as a risk management tool and in alignment with client preferences for sustainable investment. For example, AI algorithms can evaluate a company’s environmental impact, social responsibility, and governance practices to generate ESG scores, which help advisors identify sustainable investment opportunities and manage ESG risks effectively, ensuring alignment with client preferences for ethical investment.

Key actions for Swiss banks

Based on key trends in the industry and findings of the Deloitte Digital Banking Study 2024 (which evaluates and compares the digital capabilities of Swiss banks globally and provides insights into trends, strengths, and areas for improvement), we have derived the following key takeaways for the client investment advisory process in Swiss banks:

1. Expand value-added services through features that enable personalised, thematic investing:
   Clients want tailored advice based on their individual profiles and preferences during meetings, and also in the recommendations they receive post-meeting. Banks can meet this demand by leveraging AI to analyse unstructured data such as news or other reports, in response to client questions in natural language. AI identifies relevant investment solutions or specific companies according to the question asked and constructs a customised portfolio for client approval, simplifying complex investment themes into actionable strategies offered as self-service. Complementary offerings such as educational content and market insights further enhance client relationships and loyalty. Additionally, banks should use sentiment analysis to gauge client emotions and make proactive adjustments, ensuring advice remains timely and aligned with client needs. Drawing from recent case studies, implementation of AI and analytics enables banks to integrate AI-powered tools seamlessly into their advisory processes, thereby enhancing the overall, measurable client experience by up to 40%.³
2. Future-proof client experience through tailored investment interactions:
   Clients expect 24/7 support, making it essential to enhance functionality and user experience across digital channels. Providing timely, personalised assistance at any time increases the client’s trust and satisfaction, and as the relationship gets stronger, the opportunities for effective cross-selling opportunities also increase. Personal Financial Management (PFM) tools are one way to satisfy a client’s need for a diversified experience. These digital apps help individuals to track, budget and optimise their finances in one place. Alignment with Swiss regulatory developments, including FINMA’s guidance on AI governance and risk management for financial institutions and the Swiss Federal Council’s signing of the Council of Europe’s Convention on AI, will enhance service delivery. This would position Swiss banks as leaders in providing compliant and innovative digital banking solutions within the evolving AI regulatory landscape. Our experience in digital transformation and regulatory compliance highlights the importance of integrating advanced digital tools while maintaining adherence to accessibility standards. Additionally, targeted process optimisation and automation have the potential to reduce operational costs by 15-20%.³
3. Adopt a mobile-first mindset with self-service investment features:
   The Deloitte Digital Banking Maturity Study 2024 shows that clients want ownership and constant access to information such as personalised financial reporting, virtual investment solutions and one-click portfolio diversification via their mobile phones. This means that Swiss banks must prioritise improvements in mobile banking functionalities to provide seamless and personalised experiences for clients regardless of their location or time of access. Currently, Swiss banks lag in offering comprehensive mobile features, with limited capabilities for day-to-day banking and insufficient tools to engage clients effectively. By enhancing mobile platforms to include real-time portfolio tracking, personalised investment recommendations, and more advanced advisory services, banks can better meet evolving client expectations and strengthen customer loyalty.
   
   Through regular and clear mobile communication, AI can be leveraged to explain in simple everyday language why a client’s investments have changed since the day before - helping clients understand market movements without the usual jargon, and making the whole experience feel more transparent, personalised and engaging.
   
   Experience in digital innovation and user experience design shows that banks can integrate advanced self-service mobile tools that encourage customers to provide the required, underlying information themselves. On top, combining this additional information with AI, for example, in periodic KYC reviews, has the potential to reduce investigation times by 20-30%.³

Evolutionising the advisory process means that Swiss banks have to be open to embrace new technologies, especially AI, to deliver personalised, real-time investment advice and support and create a seamless and engaging client experience.
 

Authors

• Dominik Ouschan, Director, Client Investment Advisory and Operational Excellence Lead
• Katerina Drapal Koch, Manager, Client Investment Advisory and Operational Excellence Specialist