AI in the field of wealth management
What does recent research say about AI's impact on wealth management firms?
As per a recent research by PWC financial services it is expected that by 2027 AUM under AI advisors is expected to be $7 trillion, that is more than double of 2022 records. AI has affected several sectors such as sales and marketing, operations, and technology.
Is it true that AI will take away jobs? No, as these GenAI or AI tools that will be implemented in various sectors of wealth management will help advisors in better quality delivery of the services to Affluents.
From, getting assistance in reaching out new prospects to grow their AUM, to assisting in better communication with clients through CRM AI will definitely help in better operations in the wealth management sector.
Scope of AI in the wealth management sector
AI assistance in outreach to new clients
Wealth advisors constantly look for probable prospects, by staying in touch with recent financial news and tracking money-in-motion events. AI powered platforms giving automatic recommendations on the basis of news triggers to wealth advisors will really be beneficial in their AUM growth.
Why don’t you check out the recent AI platform with such capabilities known as Affluense AI. This has capabilities to enhance your prospecting of affluents and research on them with
convenience. They bring in data points from multiple sources at one place to eliminate the hassle of manual data scraping for advisors.
Their API integration enables you to use their API in your own interface, so that you can get started with AI prospecting as quickly as possible.
AI in data management
Advisors spend most of their time finding the relevant set of data that would help them in making financial decisions. Most of these sets are unorganized, AI would help in organizing these data at a much better pace to help advisors in quick decision-making.
AI in operations
In day-to-day operations in wealth management offices, there are multiple intra and inter-client-firm communications. Gen-AI in drafting mail bodies in response to the client's mail, and for report generation would be of great help.
GenAI to help in keeping the whole team in the loop with recent discussions with clients would be really helpful and eliminate frequent meetings among the team, just for the updates.
Meeting client expectations for digitization
Most working professionals have made their smartphones a place to get updates on their bank statements, corporate processes, and many more. Having a platform that would keep the clients in touch in various device interfaces, will be a great advantage of client satisfaction.
Powering up the platform with AI capabilities will be a big win. AI explanation on certain reports and AI handling general queries of a client will help in quick problem solving and time-saving of advisors.
Building a bridge between client and advisor
Addressing knowledge gaps, particularly in sustainable investing, can offer wealth managers a competitive edge. Over half (52%) of investors who do not use an advisor, cited a “lack of knowledge about sustainable investing”, when queried about barriers in the sustainable investment space.
Things Wealth management firms should consider
Wealth management firms should start investing in innovating, as in this fast-paced environment, people are moving towards automation to eliminate repetitive tasks. Firms should also consider building their infrastructure in tech that focuses on scaling opportunities, such as cloud-based platforms.
Various financial services have already started focusing on bringing AI into their day-to-day operations to make their workflow much more efficient and quick. With GenAI in trend, it has started to be used as general-purpose technology that can make organisations much more efficient in delivering quality services.
Managing AI risks among investors, employees and regulators by maintaining robust governance and data protection, while being responsive to concerns about data privacy, stewardship and unintended consequences.
