Technology
Harness Technology to Better the Wealth Management Client Experience
Published
1 year agoon
By
admin
By: Joseph Wang, Data Scientist at VRGL
At its core, technology is developed to make the lives of its users better. As more industries continue to embrace new technologies, everyday tasks have become more convenient. Wealth management is another industry that has accelerated the adoption of new technologies to improve the advisor and client experience. With new ways to acquire, onboard, and maintain clients, advisors have many new tools to help streamline their workflows and make their lives, as well as their clients’ lives, easier, more informed, and more convenient. Additionally, technology has been able to lower costs for clients and hold advisors more accountable. All these changes improve the overall wealth management ecosystem and allow clients to put more trust in their financial advisors.
Improve prospecting
Technology has made business development and client acquisition more efficient for wealth management firms of all sizes. Depending on the business model, a wealth manager might target the mass market or specific high net worth individuals. Both must go through the “marketing funnel” which is the process from discovery to consideration and evaluation and the purchase decision by the client. Growing technological developments can increase process efficiency and help wealth managers accelerate the prospect’s journey through the funnel.
Mass-market firms can leverage systems on social platforms to be discovered by the most likely clientele. Chatbots can be used to provide a more personalized client experience at scale. Advancements in natural language processing (NLP) allow automated phone calls to take on an increasingly natural and personal touch. Firms targeting select clients can also utilize the same marketing tools but could benefit from specific tracking and analytics on their clients to provide premium services.
Additionally, proposal generation with advanced and customizable analytical tools help advisors build rapport, showcase their capabilities, and help clients objectively evaluate the value of services they receive from wealth managers. With client-provided personal and demographic data, software can cater to a client’s specific life experiences and provide relevant scenarios to consider. Tools like this provide a strong argument for an individual wealth managers’ value-add or lack thereof. Technology ultimately provides transparency and personalized services to help efficiently convert people into paying customers thus, starting the process of building lasting loyalty from customers and continued success for a wealth management business.
Exceed client expectations
Technology can also help streamline the onboarding process. The operational challenge of switching from one service to another is preventing many advisors and clients from choosing the best solution. A growing number of technologies are offering simple API (Application Programming Interface) connections to many different applications and processes. Most importantly, the wide adoption of cloud computing for SaaS (Software as a Service) companies is cutting down the transition time from quarters to weeks. Many cloud-native companies also feature client-friendly interfaces that allow advisors and clients to trial the product, providing process transparency and building confidence. Additionally, because the process is automated and most cloud-native applications have built-in encryption, the likelihood of data leaking, human error, and biases are reduced.
Newer technologies such as robo-advisors, give clients increased visibility and ease of access into their finances. One commonly discussed advantage of robo-advisors is the ease of data access for clients. Rather than having to ask your financial advisors about how you’re doing, all the analytics you’d want to see are readily available online. However, technology startups are also providing human advisors with similar levels of analytics capabilities and transparency. Clients now have a breadth of data and analytics at their fingertips, allowing them to understand their financial situation on a deeper level.
After the client has onboarded, advisors have a wide array of technological options to report and analyze their client’s investments, from portfolio construction to performance reporting. Technology also reduces the advisors cost to service clients. By simplifying their workflows and reducing manual effort, financial advisors are able to scale their business. In addition, the robo-advisor is also attractive for clients looking for a little less personalization and a lower cost. By making financial advisors’ lives easier and providing a wide range of alternatives for clients, technology has made having a financial advisor, human or robotic, less expensive, and more accessible for all.
Foster trust with technology
Ultimately, the hardest-earned currency in the wealth management business is trust. The current technological developments in the wealth management space aim to foster that trust. By providing more visibility into processes, reducing friction in communications and customization, empowering more informed decision-marking, and enabling built-in risk control, fin-tech companies are helping wealth managers earn trust faster, cheaper, and more sustainably.
Business
In-platform solutions are only a short-term enhancement, but bespoke AI is the future
Published
14 hours agoon
September 27, 2023By
editorial
By Damien Bennett, Global Director, Principal Consultant, Incubeta
If you haven’t heard anyone talking about artificial intelligence (AI) yet, then where have you been? Conversations about AI and its advantages to society have been a key talking point over recent months, with advances being made in the generative AI race and ChatGPT opening a whole plethora of possibilities. Many have highlighted the advantages of AI, but notably it’s ability to create human-like content.
But these discussions have only scratched the surface of what AI is capable of doing. It is for far more than just essay writing, adding Eminem to your rave and photoshopping dogs into pictures.
In marketing, we have been using AI for years, for everything from analyzing customer behaviors to predicting market changes. It’s enabled us to segment customers, forecast sales and provide personalized recommendations, having a huge impact on how our industry works.
It is even, for the more savvy marketers of the world, becoming a key tool in maximizing budget efficiency – which is apt, considering over 70% of CMOs believe they lack sufficient budget to fully execute their 2023 strategy.
Now, as AI becomes more intelligent, the number of efficiencies it can unlock continues to rise. Not only can it help brands get the most out of their available resources and identify any areas of waste, but it can also help highlight new opportunities for growth and maximize the impact of your budget allocation.
The trick, however, is to veer away from the norm of using in-platform solutions with a one-size-fits-all approach and create your own, bespoke solutions that are tailored to your business needs.
Pitfalls of in-platform solutions
In-platform solutions aren’t by any means a bad thing. In fact, built-in AI tools have become increasingly popular, owing to their ease of integration, user-friendly interfaces and minimal set up requirements. They come pre-packaged with the platform, offering the user the ability to leverage AI technologies without the need for in-depth technical expertise or the upfront cost of building a solution from scratch.
However, the streamlined and accessible nature of in-platform AI solutions comes at the expense of complexity and customization. They are designed to serve a broad user base, but for the most part are built using narrow AI solutions with predefined features and workflows.
This makes them great for assisting with common AI tasks, but they lack the flexibility to tailor functionality towards unique business requirements or innovative use cases, limiting the potential efficiencies and cost savings that can be unlocked. Additionally, if a business’ competitors are using the same platform, they are probably using the same AI solution, meaning any strategic advantage gained from these will be reduced.
Bespoke AI solutions, on the other hand, may carry a higher initial investment – but can offer a significantly more attractive ROI over a short amount of time.
Why customized and adapted AI is the key
The difference between bespoke AI and in-platform solutions is similar to that between home cooked food and a microwave meal. Yes, it is more time consuming to prepare, and yes it likely carries more of an upfront cost, but the end result is going to be far more appealing and will carry more long-term value (financially… not nutritionally).
That’s because bespoke solutions, by nature, will have been tailored to address your brands specific needs and challenges. These custom-built tools allow for much greater efficiencies by streamlining workflows across different channels, automating more complex tasks, and providing deeper, more relevant insights.
The increased level of optimization can significantly improve productivity and reduce operational costs over time, offering a higher ROI. The increased flexibility of bespoke AI also allows brands to implement innovative use cases that can significantly differentiate them from their competitors.
The data analyzed can be specifically chosen to match business requirements, as can the outputs of the AI tool, providing a significant advantage when understanding and acting on the insights provided.
Additionally, these tools are, by nature, more scalable. They can be updated, upgraded and expanded as needs change, ensuring they continue delivering value as the business grows. They can also be designed to integrate with any existing IT infrastructure, from CRM systems and databases to marketing platforms and sales tools – leading to more efficient and effective decision-making.
Managing finances with AI
It’s no secret that AI in marketing automation has, and will continue to, revolutionize the way marketing is done. It has a bright, if slightly terrifying, future and can help CMOs to unlock new efficiencies, maximize the impact of their budgets and increase their ROI. And as this technology becomes more advanced, its impact will only increase.
But we already know that…and so does everyone else.
So, in order for businesses to make themselves stand out from the crowd , they must look to fully adopt the power of AI. Creating a customized and unique AI solution could be the way to set yourself apart from your competitors. A bespoke AI tool can provide brands and businesses with features unique to them and their business needs. As a result, companies will benefit from more useful data and better results to make more data-driven decisions for their business. Ultimately, this will help brands to maintain a competitive edge over their competitors, deliver ROI and most importantly optimize their budgets.
Business
Exploring the Transformative Potential and Ethical Challenges of AI in Wealth Management
Published
2 days agoon
September 26, 2023By
adminNuno Godinho, Group CEO of Industrial Thought Group
In recent years, the advent of AI has sparked both excitement and scrutiny within the Wealth Management industry. The technology’s capabilities, including but certainly not limited to generative AI algorithms like ChatGPT, offer a new dimension to data analysis, market prediction, and portfolio management. However, while it presents a promising avenue for enhancing decision-making and elevating client interaction, AI also carries inherent challenges that demand careful consideration.
Benefits of AI in Wealth Management:
In a world where CX is key, AI enables wealth managers to provide personalised advice, improved portfolio performance, real-time insights, and convenient access to information and support. Previously it has been impossible for advisors to deliver hyper-personalisation at scale; now, AI-driven customisation lets them tailor investment strategies and recommendations to their clients’ unique financial goals, risk tolerance, and investment horizon.
AI algorithms can also analyse vast amounts of data to identify trends and opportunities, resulting in potentially higher returns on investments. And, more widespread use of automation will gradually reduce the cost of wealth management services, meaning higher-quality investment advice at a lower price. This is critical as firms fight to stay relevant for modern investors disillusioned by traditional advisory firms and private banks.
Relationship-wise, there are many other advantages. AI-driven data analytics make it easier to gain a deeper understanding of an investor’s needs, preferences, and behaviours, all of which help to build long-term relationships. Through predictive analytics, firms can differentiate their service and proactively identify new investment opportunities, such as emerging market trends or underperforming assets. At the same time, chatbots and virtual assistants facilitate constant communication to answer queries and increase engagement. By strategically integrating AI technology into their operations, firms have the power to optimise top and bottom lines, strengthen client connections and position themselves for long-term growth.
Navigating the Ethical and Practical Challenges:
While AI holds remarkable potential, major obstacles must be overcome. With AI’s reliance on large amounts of data, ensuring client data confidentiality, managing consent, and complying with global data protection regulations like GDPR are significant challenges. Another issue is algorithmic bias – as AI learns from data, it may inadvertently perpetuate inequalities or biases present in the training datasets used. Vigilance is necessary to ensure that AI systems don’t amplify these issues. A key concern is the absence of standard governance, leading to a lack of accountability and transparency. Black-box algorithms can make decisions without providing clear explanations for their reasoning, making it difficult for clients and regulators to understand and trust AI-driven outcomes. Overall, the responsibility for AI-generated recommendations remains complex, requiring collaborative efforts to establish robust regulatory frameworks.
Striving for Data Integrity and Reliability:
The efficacy of AI-driven solutions hinges on the quality of training dataset they are supplied with and rely upon. Therefore, ensuring accurate, unbiased, and comprehensive datasets is paramount to generating trustworthy insights. The absence of standardised data sharing can lead to skewed results, ultimately impacting the quality of AI-generated advice. Transparency in data usage, validation, and generation reasoning will be pivotal to cultivating client trust and minimising systemic risks, which ties back to the absence of standard governance, as the output from AI-generated advice will only be as good as the data sets provided. We need to understand the “lineage” of all data used and generated by the algorithms. Until the industry can come to some accord on how we plan to use all of our respective data, it will be prone to various biases and fragmented advice, which will lead to liability and reliability issues down the line. It’s worthwhile wondering whether we can see the industry opening up in an age of data equals value.
The Role of Collaborative Partnerships:
Amidst these challenges, collaborative partnerships emerge as a potent avenue. Established wealth management firms can harness the expertise of FinTech AI companies to augment their capabilities while mitigating the risks associated with AI adoption. A symbiotic relationship, where innovative AI solutions are developed by trusted partners, helps safeguard against potential pitfalls and aligns with the pursuit of ethical, data-driven decision-making.
Looking Ahead: Striking a Balance for Sustainable Progress:
As we journey into the AI-powered future of wealth management, it’s evident that a balanced approach is essential. The integration of AI has the potential to expedite the transition to wealth management 4.0, revolutionising personalised client experiences and advisory services. However, this progress must be underpinned by clear ethical guidelines, data integrity, and collaborative partnerships. Striking this equilibrium promises not only a more informed, efficient, and personalised industry but also one that upholds the principles of transparency, accountability, and client trust.
In conclusion, AI’s impact on the wealth and asset management landscape is profound, offering unparalleled insights and opportunities. While navigating challenges will be crucial, a collective effort to harness AI’s power while ensuring its responsible application will pave the way for a resilient, future-forward industry.
Magazine
Trending


In-platform solutions are only a short-term enhancement, but bespoke AI is the future
By Damien Bennett, Global Director, Principal Consultant, Incubeta If you haven’t heard anyone talking about artificial intelligence (AI) yet,...
Exploring the Transformative Potential and Ethical Challenges of AI in Wealth Management
Nuno Godinho, Group CEO of Industrial Thought Group In recent years, the advent of AI has sparked both excitement...


Are SaaS platforms challenging banks for a piece of the payments pie?
Attributed to: Ralph Dangelmaier, Global CEO of BlueSnap The finance industry is at a tipping point with software firms...


Emerging technology will power long-term sustainability within the UK banking industry
By Peter-Jan Van De Venn, VP Global Digital Banking at Hexaware Mobiquity. Sustainability has been a big focus for...


Is your business suffering with Fintech FOMO?
Tom Kiddle, Chief Commercial Officer at Equals Money It’s a challenging time for businesses of all sizes, but the past three...


The Future of Banking: Streamlined Cash Management for ATMs
Gaetano Ziri, Innovation Manager, Auriga “Maintaining free access to cash for the community demands robust strategies to mitigate the...


Can AI revolutionise wealth management?
~ The benefits of AI when collecting and analysing financial data ~ Global fintech company Finder reported that around...


Where is the value in generative AI for financial services?
Michael Conway, Executive Partner, Data, AI and Technology Transformation Service Line Leader at IBM Consulting The New York Times...


Connecting the security dots with cyber fusion
Anuj Goel, Co-founder and CEO at Cyware Against the backdrop of Russian-based hacktivists declaring war on Europe’s financial systems, the...


Exploring the symbiotic advantages of SoftPoS for merchants and consumers
By: Brad Hyett, CEO at phos by Ingenico Amid the dynamic shifts that have come to define today’s fintech...


Investing In Bitcoin: What You Need To Understand Before You Buy
Bitcoin—the digital currency that launched a financial revolution—is more than a trending investment. This decentralized currency, free from traditional banking...
How the LEI Can Help Financial Institutions ‘Address’ a Growing Challenge in ISO 20022
The vast complexity and inconsistency of address formats globally presents significant challenges for financial institutions. In this blog, GLEIF’s Head...


Building towards an inclusive financial future
By Catharina Eklof, CCO of IDEX Biometrics From the visually impaired to displaced migrants, the unbanked, and people living...


Euro deep tech M&A deal value expected to reach $20bn+ in the next 15 months
Written by Oliver Warren, Associate at DAI Magister Investment in European deep tech has mirrored the broader decline in...


Why ESG Investing Is Becoming More Important
Author: Urtė Karklienė, Sustainability Manager at Oxylabs Environmental, social, and governance (ESG) term was first mentioned in a 2004...


Preparing banks for digital transformation
By Joman Kwong, Strategic Solutions Manager, Financial Services at Laserfiche Today, digital transformation is imperative for every industry. After...


The critical tech to deliver personalised digital financial experiences
Jay Sanderson, Senior Product Marketing Manager, Digital Experience at Progress Providing customers with outstanding digital experiences is now a must...


Bank-fintech partnerships can shape the future of cross-border payments
Steve Naudé, Head of Wise Platform People and businesses are more interconnected than ever. In today’s global economy, international...


DORA Compliance in Financial Organisations: What You Need to Know
Nick Hogg, Director of Security Training, Fortra The regulatory landscape is tightening for European banking, financial, and insurance institutions....


How sound investment research can revive the City of London
Author: Neil Shah, Director at Edison Group A few months ago, leading portfolio manager Nick Train described the modern...

In-platform solutions are only a short-term enhancement, but bespoke AI is the future
Exploring the Transformative Potential and Ethical Challenges of AI in Wealth Management

Are SaaS platforms challenging banks for a piece of the payments pie?

Emerging technology will power long-term sustainability within the UK banking industry

Is your business suffering with Fintech FOMO?

The Future of Banking: Streamlined Cash Management for ATMs

PCI DSS v.4.0 Latest Updates That You Need to Know

RBI’s MASTER DIRECTION ON DIGITAL PAYMENTS SECURITY CONTROLS

EMV® 3-D SECURE: ENABLING STRONG CUSTOMER AUTHENTICATION

HOW TO SIMPLIFY IDENTIFICATION IN THE GLOBAL DIGITAL ECONOMY WITH THE LEI

EXEGER – CHANGING THE PERCEPTION OF POWER

FUTURE FX PROMO
Trending
-
News4 days ago
How the LEI Can Help Financial Institutions ‘Address’ a Growing Challenge in ISO 20022
-
Finance2 days ago
Investing In Bitcoin: What You Need To Understand Before You Buy
-
Business2 days ago
Exploring the Transformative Potential and Ethical Challenges of AI in Wealth Management
-
Finance2 days ago
Where is the value in generative AI for financial services?