Exploring AI in wealth management

Much has been discussed and published on the use of AI, RPA and ML for the benefit of the wealth management industry. The robo advisory evolution is a pragmatic and real trend with firms deploying or delivering such services

by | May 5, 2020 | Profile Software

However, the investment management sector heavily relies on customer preferences as well as on the ability of the sector to adjust to industry standards, so technology evolution is usually the least of the wealth management firm’s concerns, or isn’t it?

How has technology reshaped the industry in the past decade? Back in 2010 many firms were using inhouse infrastructure whilst mobile communication was considered risky for their clients. Since then, countries with strict confidentiality status have experienced changes and today firms appreciate that HNWIs have become more tech-savvy and are seeking access to information, instantly and accurately.

Therefore, as stated in the Capgemini study Wealth Management Trends 2019: “Customers are the heart of the wealth management business. With changing customer preferences, it becomes mandatory for wealth managers to fulfill evolving demands and in most cases pre-empt them to stay ahead.”

Important to achieve this is to gain access to customer data that would deliver powerful insights, improve client engagement by leveraging artificial intelligence, processes automation and personalisation toolkits. Open APIs can facilitate this by enhancing data collection and sharing of information, while technology can ensure compliance both in terms of regulation, as well as risk factor analysis. AR and VR – augmented reality and virtual reality respectively – will spur pro-investments behaviour among millennials and drive new customer acquisition.

According to the study, the adoption of such technology will empower advisors to focus on making their clients more engaged and in-touch with their finances. The benefits include better-educated clients as they can visualise the information whilst improving their overall wealth advice experience.

In Deloitte’s research about AI transforming the financial services, a few points stand out on how technology can improve the operational efficiency of institutions. Those related to the wealth management industry may include:

  • Automated operations: AI-enabled back-office operations are improved and deliver workflow-based results much faster.
  • Better customer approach:  AI can introduce new ways to gain customers ie robo advisory.
  • Self-driving finance: Customers will be better educated, and readily available information will better drive communication.

It is a fact that “Customers would stay with an institution, not because it’s hard to walk away but because their benefits are better there than anywhere else. Process efficiency will result from the interplay of human and artificial strengths.”

For three decades, Profile has been developing solutions for the investment management industry ensuring that wealth managers and their clients experience the latest technology and an automated environment that would benefit both. Find out more on Axia, the omni-channel, cloud-based platform that supports automation, regulatory compliance and intuitive customisation tools spanning from dashboards to reporting and financial planning.



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