The evolving dance of AI and financial advisers - Part 2

02 May 2024 Myra Knoesen

In part one of this article, Ranie Verby, a Contributor on Advisor Perspectives highlighted the role of AI in finance and mentioned that with a mindset change, AI can be seen not as a job-eliminating villain but as a tool to elevate and redefine job duties.

So, how can AI augment the work of fiduciary advisers while helping them stay relevant and competitive?

Enhancing work through AI

As the demand for financial advice continues to outpace the supply of qualified advisers, Verby says AI can provide valuable assistance in several key areas, enabling advisers to offer more efficient, responsive and personalised services. “But AI cannot replace the client service that an adviser can provide by capitalising on the human element – our deep relationships.”

Here are five ways Verby says AI can enhance the work of advisers and help them stay competitive:

  1. Client onboarding and profiling. AI can streamline the client onboarding process by automating data collection and verification. It can also help create detailed client profiles using data analytics, enabling advisers to understand their clients’ financial behaviour, risk tolerance and investment preferences.
  2. Portfolio management and risk assessment. AI can analyse vast amounts of market data to provide insights into investment opportunities and risks. This can enhance portfolio management strategies and help advisers make informed decisions quickly, which is crucial in a field where timing is everything.
  3. Regulatory compliance. With its ability to track and analyse large volumes of data, AI can help advisers stay compliant with ever-changing financial regulations. Automated systems can identify potential compliance issues and provide real-time alerts, reducing the risk of costly errors or oversights.
  4. Client communication and engagement. AI-driven tools like chatbots can handle routine client queries, freeing up time for advisers to focus on more complex issues. Also, AI can help maintain consistent client communication, providing updates and reminders based on clients’ preferences and behaviours.
  5. Scaling small-client solutions. Many advisers struggle to service smaller clients profitably. AI can help by automating routine tasks and enabling advisers to provide cost-effective, scalable solutions to this segment. This will not only expand the client base but also build loyalty and trust among a broader range of clients.


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