Artificial Intelligence: The Next Big Thing in Wealth Management...
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Artificial Intelligence: The Next Big Thing in Wealth Management Industry

By Capital Markets CIO Outlook | Thursday, September 05, 2019

To suffice the evolving needs of the tech-savvy new generation, wealth managers are deploying AI to realize the importance of quality data.

FREMONT, CA: Technology has influenced many sectors, including the private wealth management sector. Artificial intelligence(AI) plays a huge role in wealth management using the market sentiment as a potential indicator. The next decade will see a rush in demand for wealth management services, driven by a surge in the number of new high net worth people. A core consideration for wealth managers is the preferences of a modern generation of high net worth individuals who are increasingly tech-savvy. They prefer digital touch-points over regular in-person customer servicing. With access to a growing and unique volumes of data, firms have the chance to expand AI to deliver extensive client experience. Rich client experience allows productivity within wealth managers when performing specific higher value and strategic tasks.

• Quality Data: A Necessity in Short Supply

Wealth managers holding the classification of AI data is neither favorable nor dwells in single storage containing back the potential of AI. The solution is to instill systematic policies for storing, capturing, and maintaining data across firms. Wealth managers work with external parties and specialist solution provider to support them with the implementation of the policies. It even helps them with the daily management and interpretation of datasets.

• Blending Ownership and external data

Integrating their restrictive data with external sources, managers are maximizing the potential of AI. This may lead to generate technological and privacy challenges; the penetrations that exude from this process are ground-breaking. Wealth managers are mapping alternative specialists to acknowledge the impact emanating from a news event. Managers can unveil the real opportunities and uncertainties presented by bringing all of the information under a single roof.

• AI to Drive Operations

The ability of technology to move ahead of traditional tasks is one of the AI bearings in wealth management. The trend accelerates towards new means of enhancing the client experience and relationship management. While businesses explore on how to make their relationship managers more fruitful, a new generation of clients wants predominately online services. This new generation helps banks to examine how it can optimize its digital offering.

• Critical Human Involvement

Humans continue being critical to the evolution and oversight of AI, despite the advancements in technology. The idealistic vision of machines autonomously bestowing wealth management services is nonsensical. AI has the potential to modify client experience in wealth management firms. It can empower wealth managers to perform more powerful value and important tasks better. Wealth managers are concentrating on their data and work in close partnership with back-office teams to get the maximum value out of it.

Artificial intelligence is a unique resource of increasing importance within the financial-advice industry. Forward-thinking advisors need to embrace this technology to innovate their practice. AI helps in learning the client's emotions better, enhancing the ability of wealth managers to protect the data and advance financial well-being. Businesses are using AI to amplify its compliance oversight and risk management. Integrating AI into wealth management produces better outcomes for investor clients.

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