Ex-UBS chief Ralph Hamers expects AI to spur next evolution in finance 

THE wealth management industry is on the cusp of change – and banking veteran Ralph Hamers expects artificial intelligence (AI) will drive that.

AI can help banks understand their clients more than “any conventional marketing approach can ever analyse”, and build products to match their exact needs as well, he said.

This is revolutionary, said the Dutch banker, who is known for leading digital transformation at legacy banks.

He expects there is “no further step” in the evolution of the finance industry beyond being able to target customers in a highly individualised way.

On Friday (Oct 11), Hamers was announced as the senior external adviser of Arta Finance, a digital wealth-management platform that aims to democratise wealth management.

Speaking in an interview with The Business Times, the former chief executive of UBS and ING said he “always had a liking for changing and transforming things, and staying ahead of the pack”.

“I don’t need to be a CEO just to become a CEO. I’ve been there, so that’s not the point,” said Hamers, who was an early investor in Arta.

“For me, it would really depend on the challenge itself, and whether I can bring what it takes to support that challenge.”

His role at Arta is one of his first official appointments since he stepped down from the top job at UBS. In March 2023, he handed the reins of the Swiss bank back to his predecessor Sergio Ermotti, who is overseeing UBS’ takeover of the failed Credit Suisse.

Caesar Sengupta, chief executive and co-founder of Arta, called Hamers an “absolute legend” in the world of banking, one who can bring deep industry knowledge to help grow the company.

Risk-on sentiment returns

Commenting on the global economy, Hamers said it is increasingly in a good place. But there are still some events that may disrupt the current momentum.

For one, the US elections pose a risk, depending on how narrow the results are, and geopolitical tensions in the Middle East and Asia remain, he noted.

He expects risk-on sentiment will remain in the next few weeks, before the markets enter a holding pattern until after the US elections. But confidence should return as fundamentals are strong globally, in terms of economic growth and getting inflation under control.

Sengupta added that technology adoption is growing globally, particularly where AI is making its impact on various use cases, which should change the way people work across various industries.

“That massive boost, and this change from the industrial era to the AI era is something that is going to be profound in the next five to 10 years,” he said.

Launch of Arta Finance

Arta was launched on Friday to accredited investors globally via Singapore.

The company, dual-headquartered in the US and Singapore, has been operating in the US since its October 2023 debut.

Sengupta expects Singapore’s wealth-hub status would appeal not only to accredited investors in the city state, but also to those across the region, India, the Middle East and Europe.

Arta’s global platform includes an AI Copilot service, which lets users ideate, analyse and track their portfolios with the tools and insights that usually require large teams of relationship managers, private bankers and investment analysts.

The platform is also launching its wealth-as-a-service product, which is a business-to-business offering that lets banks integrate Arta’s capabilities into their platforms.

“We have the capabilities of a private bank, but the modern experience you would expect from a consumer digital app,” said Sengupta.

On his role at Arta, Hamers said: “I see the enormous opportunity of having incredibly smart people from the worlds of technology and finance coming together to build a platform that is more than ready to take its place among the world’s leading wealth managers.

“This is where things are heading – (the company) understands how to use the latest technology in getting further than where all the others have stopped.”

When asked about his future plans, Hamers noted that he has helped other companies transform and supported them as an adviser since he left UBS.

He need not join a larger institution, as he can also apply his experience to help smaller startups.

He said: “I know some of the growing stages they will go through, and I also know that once they are big, they will run into the same issues that some of the incumbents have run into as well.

“After 10 years of being a CEO, it’s also good to have a bit of a rest. We’ll see what comes.”