W&F Issue 10 2018

www.wealthandfinance-news.com 12 Wealth & Finance International - Issue 10 - 2018 led questions that potential clients can find time consuming and irritating. In these ways, AI-powered solutions are set to dramatically reduce operational costs and business risks whilst improving sales effectiveness. Investment and financial planning recommendations AI can instantly analyse all the information held on a client, helping the adviser pinpoint any issues or options that should be discussed. In addition, AI can finesse the investment and financial planning recommendations to be proposed in the light of client preferences and constraints, suitability restrictions and cross border rules. It can examine the possible impact of Chief Investment Officer forecasts and differing scenarios - say a huge spike in oil prices - on portfolios or add fine-tuned proactivity to the advisers’ armoury by finding news or business events that have relevant linkage to the client. It can also give advisers access to analytics on what has appealed to similarly profiled investors. Providing personalised service AI technology can record client meetings, transcribe the recording, and then scan the transcript to identify the actions that need to be completed. Any tasks identified, such as ‘send the client information about derivatives’ are automatically put into the adviser’s to-do-list and the appropriate communications are generated to get it done. By combining Natural Language Processing and Machine Learning techniques, wealth managers can have timely identification of impactful market developments and ensure that each client is only sent the investment news and research reports that are of most relevance to them. AI seamlessly adds extra layers of personalised service and support to the premium service that private banks’ wealth managers give to their clients. What next? 43% 1 of wealth management professionals globally see AI technology as offering great potential to improve investment performance and risk management and many believe that it will result in significant changes in how clients and their investments are managed. It will enable portfolio managers to easily identify trends - that might have been hidden within a barrage of information – that could add great value for decision making. AI is the key to providing real time insights that are relevant and personalised to the client. So, is AI delivering for the wealth management industry? The industry is only starting the journey towards the optimal application of AI, but the implementations we have been involved in have already yielded proven business benefits along multiple dimensions: reduction of operational costs; increase in efficiency and productivity; better intelligence on clients; and reduction of compliance and reputational risk. We are now starting to see the emergence of more ambitious business models that will fully leverage the potential of the technology throughout the entire client lifecycle. 1 https://www.finantix.com/report-applying-artificial- intelligence-wealth-management/

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