In general, Artificial Intelligence (AI) refers to machine intelligence, which includes the interpretation of complicated data.
Robo Advisors are already an excellent example of how AI may be utilized in Wealth Management to improve financial services from start to finish.
If you want to increase your returns on IT investments, pursuing innovations in the wealth management space can be your best move.
Potential applications of AI in wealth management are limitless and impact the entire value chain. Consider intelligent, real-time optimization of sales and marketing interactions and client services, predictive market modeling based on teraflops of data processing in real-time, and self-creating exchanges with total pricing transparency. It is not unrealistic to think that research analysts will have their bots using real-time big data to do a majority of their market and financial analysis.
Table of Contents
- Exploring AI in Wealth Management
- Customer experience
- Business enablement
- Automation and process re-engineering
- Compliance and governance
- Innovative Solutions for Wealth Management
- How Wealth Managers Can Accelerate AI
- AI: The Next Frontier in Wealth Management
“It is no secret that AI-powered intelligent chatbots are on the rise. In fact, in a recent Statista study, by 2025, the global chatbots market will expand beyond $994 million. McKinsey Global Institute found that by 2024, companies will have spent $1 trillion to invest in artificial intelligence (AI) technologies. Wealth management chatbots, powered by conversational Artificial Intelligence (AI) and capable Machine Learning (ML) algorithms, can be useful instruments that impact a variety of wealth management use cases and operations.“
Exploring AI in Wealth Management
AI with its potential to augment wealth managers’ capabilities, can help save the day. Here’s how it positively impacts six major dimensions across Wealth Management:
1. Customer experience: AI facilitates enriched, extended reality (AR/VR/MR) based self-service modules for hassle-free access to account details and related information. AI-infused solutions not only provide a superior customer experience through hyper-personalization but also improve security, and reduce manual interventions and related errors.
2. Business enablement: AI facilitates intelligent customer engagement and management in today’s highly complex investment environment. For instance, it suggests multiple investment solutions to high net worth individual customers with accuracy, speed, and efficiency- all while minimizing risks.
3. Automation and process re-engineering: Implementing cognitive computing applications, machine learning, and AI in banking enables increased automation and reduced manual intervention in banking processes. Robo advisors can help cut the cost of advisory services to reach a wider audience.
4. Analytics: AI-based predictive and prescriptive analytics offers proactive and accurate recommendations, enables faster decision-making, and improves governance. AI-based analytics solutions work with patterns in unstructured and structured data to predict and recommend the next best course of action.
5. Operations: AI provides the systems and tools required to automate and optimize processes, enabling organizations to achieve zero-touch operations. It also frees up human advisors’ time to focus on value-adding processes and resolving escalated queries.
6. Compliance and governance: AI strengthens private banks’ data management capabilities against growing vulnerabilities and enables periodic scrutiny of financial data and books of records, ensuring superior compliance. AI-based predictive systems can also predict financial risk and detect fraudulent/unusual transactions to improve fraud detection and proactive management.
Innovative Solutions for Wealth Management
- Derive insights from structured and unstructured data sources for an accurate “big picture” view of customer demands and financial trends.
- Use sophisticated predictive analytics to anticipate customer behavior and investment trends.
- Achieve clear visibility into operations.
- Reduce operational costs and streamline operations by making regulatory compliance more efficient.
- Integrate data from any system and deliver real-time insights.
- Achieve better insights into customer preferences to make custom-tailored offers.
- Provide analysis tools and engaging reports, accessible through dynamic web and mobile portals.
- Empower customers with easy self-service access to their accounts, on any device.
How Wealth Managers Can Accelerate AI
For Wealth Managers that are behind the curve and need to catch up, the following five guidelines can help accelerate the benefits.
- Choose AI that does its data work: AI runs on data: up-to-date, in scope, standardized, verified, and accessible. The right AI solution providers will help to build a foundation with tools to ingest, reconcile, verify, and standardize data from multiple sources in real-time.
- Build out capabilities: Some initial AI deployments may be plug and play, but as your solutions advance, you’ll need to upskill your workforce. You’ll also need to build a culture and a structure that can take advantage of greater automation and quickly act on real-time, data-driven insights.
- Start small and safe: ManyAI consulting firms provide bite-sized solutions and quick ROI. The best also have governance, security, compliance, and ethics built-in. If you choose the right AI tool, you can see quick wins while rigorously controlling your risks.
- Watch the bias: AI that makes decisions that are systematically unfair to certain groups of people & can cause harm in many ways, ranging from brand reputation to recruitment to investment decisions. Be sure to consider solutions that can mitigate biases in AI algorithms.
- Get set to scale: Choose solutions that may start in one place, but can solve other problems too once their worth is proven. Spending time and resources building out a solution is often just the initial investment; you can potentially significantly increase your ROI if you then scale it. When well designed, many AI solutions will also overlap and enhance each other.
AI: The Next Frontier in Wealth Management
As the wealth management and financial services industry changes, so do the needs of its customers. Wealth managers are challenged to transform their businesses to attract and retain clients and create new products and services. Customers are demanding more personalized services, and they expect to manage their assets from anywhere via online and mobile channels.
With the rising chatbots adoption, the technology is opening up new avenues for the financial services sector. Wealth management chatbots, powered by conversational Artificial Intelligence (AI) and capable Machine Learning (ML) algorithms, can be useful instruments that impact the future of wealth management companies.
Recent years have seen the use of chatbots for a wide range of applications, including customer service and sales. This adoption has caught the attention of the financial services industry and many companies have started experimenting with how chatbots can ease wealth management challenges. With top AI development companies like Dash Technologies, it is easier now to adopt chatbots for wealth management. Our Smart Skills provide ready implementation templates for our clients and augment and grow your wealth management services. Read our case study on how we helped a leading investment bank by implementing AI. Contact us to know more!
We’re technology experts with a passion for bringing concepts to life. By leveraging a unique, consultative process and an agile development approach, we translate business challenges into technology solutions.
- App Development (14)
- AR/VR (3)
- Artificial Intelligence (45)
- AWS (1)
- Block Chain (3)
- Digital Marketing (3)
- Dot Net (3)
- E-commerce (1)
- Enterprise Mobility (4)
- Healthcare (23)
- Internet of Things (7)
- Machine Learning (16)
- Magento (3)
- Manufacturing (6)
- Medical Device (9)
- Mobile App Development (27)
- Real Estate (3)
- Retail (5)
- RPA (2)
- Software Development (10)
- Startup Dash (5)
- Technology (15)
- Uncategorized (1)
- Web App Development (2)
- World (1)
- Swift vs. Flutter: Which is Best for iOS App Development in 2022?
- Business Intelligence App Development: Benefits to Optimize Modern Businesses
- Things to Consider While Choosing a Software Development Team
- Blockchain Application Development: Things You Should Know
- Things to Consider Before Integrating AR/VR Into Your Real Estate Business
- How Software Development Revolutionizes the Healthcare Sector
- Agile Vs Scrum Vs DevOps: How They Are Different?
- How to Hire a Mobile App Development Company in the USA
- How Has AI Changed the Course of Mobile Application Development?
- Healthcare App Development Trends 2023 & What Technology Will Rule Across MedTech