Banks are investing heavily in artificial intelligence, but the same tools are now accessible to retail clients — fundamentally altering the advisory relationship. Customers can pose questions about pensions, mortgages, and portfolios to chatbots before scheduling a bank appointment, which transforms the starting point of every consultation.
The Finance Circle, a September 21 event co-organized by ZHAW and the Zürcher Bankenverband (ZBV), addresses how AI is changing wealth management. Roland Hofmann, lecturer in Banking and Finance at ZHAW, says the shift is not merely operational automation for banks; it is a redistribution of competence toward clients.
Hofmann notes that professionals can reliably retrieve factual information via AI and verify answers against cited sources. But the same capability is available to customers, and that is where the dynamics change. Clients who research a question with an AI tool will compare its answer against what the bank presents on its digital channels. If the two diverge, clients tend to hold back on transactions, regardless of which side is correct.
In a study of AI performance in financial advice, Hofmann found that even the most capable models answered roughly one-quarter of questions incorrectly. Identifying those gaps is difficult for clients: many do not know what to ask, receiving seemingly plausible answers to the wrong questions, while others cannot interpret or contextualize the output for their own situation.
The practical result is a system of second opinions. Some clients have AI "review" a bank's advice afterward; others bring an AI-derived recommendation to their adviser and request a professional response. For advisers, this means evaluating not only their own proposals but also AI-generated ones — spotting errors, explaining gaps, and communicating clearly. The process is more demanding and time-intensive than traditional advisory work, involving additional appointments and review cycles. Clients close fewer deals quickly and scrutinize recommendations more frequently, at a rising level of sophistication.
Paradoxically, Hofmann argues, this makes in-branch personal advisory more valuable for banks. Physical branches function as "images of trust." Abandoning them risks ceding competence authority to AI in the eyes of clients.
The distinguishing factor between human advisers and machines is accountability. Only people can take responsibility for their actions and recommendations. Advisers will need increasingly strong listening skills, conducted without time pressure — Hofmann draws a comparison with AI, which can listen indefinitely. The focus must shift from product sales to genuinely understanding client needs and developing tailored solutions. Advisers must convey both professional credibility and personal integrity.
Hofmann describes the emerging role as that of a financial life coach. The emphasis moves from solution-finding to accompaniment and implementation, since AI cannot reliably ensure that clients follow through. Many clients struggle to execute decisions and maintain discipline. Successful advisers will need solid training in behavioral finance and psychology, particularly regarding procrastination.
Private financial advisory is entering a period where subject-matter expertise alone no longer suffices. Advisors who transition into coaching roles occupy the space AI cannot fill: assuming accountability and ensuring commitment to action.
