Q&A with: L.E.K Consulting

Core Themes in Private Banking - The challenge of realizing value from AI persists, with around 70% of financial institutions struggling to scale AI solutions due to unclear investment priorities and weak alignment with business objectives [1] - The convergence of traditional and alternative asset management is accelerating, driven by greater investor appetite and broader product availability, leading to tangible offerings across markets [2] - A volatile macro environment and new regulations in the UK have prompted shifts in client residency and asset location, increasing the need for agility in serving an international client base [3] Strategic Insights - Incremental change is insufficient; leaders must adopt a dynamic approach to strategy, continuously adapting rather than relying on static long-term plans [3] - Regulatory shifts, while costly, can create opportunities to strengthen business models and enhance commercial outcomes when managed strategically [4] - Success with AI requires robust foundations in data, talent, and governance, alongside a holistic approach to deliver real value [4] Evolving Client Demands - Clients prioritize real-time, multi-channel access to their wealth, a trend accelerated by intergenerational wealth transfer and growing next-generation engagement [4] - Alternatives are increasingly viewed as essential for higher risk-adjusted returns, with a shift from awareness to practical implementation, including considerations for digital assets as a separate asset class [5] - Next-generation clients expect accessibility, personalization, and transparency, driving demand for tech-enabled, holistic engagement models [5] Emerging Trends - Emerging markets, particularly in Asia and the Middle East, are contributing a growing share of new global wealth and reshaping client demand [6] - Increasingly mobile clients seek solutions that work across jurisdictions and demand frictionless experiences in investment management and service delivery [6]