Private banks' robotic evolution

The words'private banking' can evoke some stereotypical images, like leather-backed chairs in rooms with wood-panelled walls and bookshelves filled with expensive tomes or expensively attired Swiss bankers parcelling out bits of investment wisdom over snifters of brandy and cigars. One item not typically included? The rise and rise of new technology is upending many assumptions in finance. Technologically savvy companies are already competing fiercely with banks in areas such as retail banking and small company loans. They now see private banking as their next hunting ground. Automated investment programmes, often called robo-advisers, use algorithms to arrange individual investment portfolios based upon stated preferences – for a fraction of the fees charged by private banks.