All banks will use artificial intelligence (AI) in the next five years, according to former Barclays wealth management boss Akshaya Bhargava, as institutions prepare for the $30 trillion (£28 trillion) "great wealth transfer" from baby boomers to millennials.
Bhargava, who set up AI fintech platform Bridgeweave after leaving the British bank two years ago, said financial institutions will have to adapt as wealth passes to the next generation – who may expect a faster, more digital service -over the next 20 years.
"If you work at a large financial institution you have a large amount of talent and money to spend on technology but sometimes it is very hard to get things done quickly. We believe that AI will be transformational."
"I would have loved to have something like that when I was working at Barclays, or other banks."
"I think the AI transformation is starting but in the next five years every bank will have to do it because they will have no choice. The early adopters will get bigger market share", he said.
Bridgeweave's Investment Insights, launched today, will allow wealth managers to scan billions of data points across more than 700 global stocks and 600 UK exchange traded-funds to generate investment opportunities for each customer.
The industry is currently "insufficiently prepared" to cope with the changes in customer expectations, priorities and modes of interaction, Bhargava said.
"Millennials have very different needs and expectations of what a bank should do for them. They want fast service, choice, low cost and mobile apps when it is convenient to them," he added, "we already see that in retail banking but wealth management is behind."