Know Your Clients

Using AI in wealth management helps FAs better under-stand their clients and provide an enhanced portfolio construction beyond merely organizing investors into “aggressive, conservative, or balanced” boxes. More specifically, AI derives relevant social signals that give advisors insight into their clients’ current and potential financial needs. For example, AI can be used to tailor investment advice based on social signals indicating major life events, such as the birth of a child or retirement.

Personalize Engagement

More than ever before, clients are demanding personalized service. But, personalized recommendations are only part of the answer. Clients have specific preferences in the way they want to be served and in how they communicate with their advisors. Wealth management AI systems can track which forms of communication (mail, email, phone calls, texts) are most effective at engaging the client and in delighting them. It can also learn what frequency of communication is most appreciated by clients.

Scale Your Advisors

AI recognizes occasions in which an advisor would typically contact a client, such as a change in the portfolio, a change of address, wishing clients’ birthday or birth of a child. In most cases, the AI can be configured to automatically contact clients to address the issue. Wealth management AI tools provide advisors with client dashboards that are interactive and contain actionable insights and information on the client’s portfolio, including performance against benchmarks. This helps advisors save much of the time that was previously spent on mundane tasks.

Enrich Your Insights

Beyond generic research, bankers and their clients are demanding access to quantamental analysis which uses AI to tap into the power of both quantitative and fundamental investment analysis. Quantamental analysis relies on the ability to ingest very large historical data sets and compare that to current market signals. This data-centric and algorithmic approach analyzes vast amounts of structured and unstructured financial and market data, applying machine learning (ML), natural language processing (NLP) and other technologies to search, navigate, set alerts, analyze filings, news, and other disclosures for critical data that drives intelligent wealth management advice.

Ensure Your Compliance

With the increasing regulatory pressures (as banks prepare for MiFiD II), and intensified competition, FAs face the most complex problem of attaining optimized investment returns while remaining in compliance. As AI-driven algorithms provide ever more insightful content and timing to financial advisors, it is essential that those recommendations fall within the bounds of internal policies and external regulatory compliance. Keeping financial insights within the guardrails of compliance requires the ability to quickly apply the right policy constraint in the right context. Sorting through this complex web of constraints, and doing so at the speed required by clients and their financial advisors, requires AI-powered compliance management.

Learn Continuously

Whether the task is to know clients better, serve and communicate with them more effectively, scale advisory services, provide quantamental analysis, or ensure compliance, AI’s ability to continuously learn is a powerful force for wealth managers. Wealth Management AI systems provide insights and recommendations that are backed by evidence to the ML based system learns from this feedback, and improves its performance as it sharpens its insights.