Technological Change in Wealth Management : The development of a conceptual CRM model for the HNWI client interaction under the consideration of AI

Abstract

The constantly developing landscape of financial technology significantly shapes the financial sector and how cooperation and individuals interact with each other in a financial setting. While the developments incrementally unfold, the magnitude of their impact is difficult to comprehend and not addressed in wealth management. Many of today’s management models, which are used in academia and business alike, fall short of incorporating the latest developments and are on the brink of becoming outdated or obsolete in the eye of artificial developments. One particular field of interest within financial services, is the wealth management area. The development in this specific field is of particular interest, as it is a human-driven field of finance in which the human aspect (relationship and trust) plays a crucial role in the client interaction. Several models exist which conceptually address the client relationship management, to grasp their complexity. These commonly used models become increasingly impacted and jeopardized by artificial intelligence which impacts the composition of their factors leading to incomplete and outdated models. This doctoral study addresses the issue by analyzing existing models, extracting the factors which hold their validity despite technological developments and incorporating new factors. Thus, proposing a contemporary and conceptual client relationship model (CRM) model enhanced by AI factors. Thereby, this research broadens the understanding of the current developments in the wealth management sector and identifies key areas of development. It offers a conceptual and contemporary CRM model factoring in AI considerations to enable practitioners and academics alike to identify areas of developments and foster a better understanding of the interconnection between the factors in the client interaction. Thereby it provides considerations on AI and uncovers the increasing interconnectivity of CRM factor models.