“The principle sounds simple: if you know your customers well, you can make suggestions that best suit them. This wisdom, which has always applied in the analogue world, is becoming increasingly important in the digital world. It could also become more important when advising on investments in the future.
For example, algorithms can help bank advisors find funds, bonds or shares that suit customers. ‘Anyone who has ever shopped on an online marketplace is familiar with such product suggestions,’ says Max Mindt, who is driving the ‘Next best offer’ project for Deutsche Bank. ‘It’s just much more difficult to implement in investment because it’s much more regulated.’”