Improving client outcomes with AI

Speaking at the SMSF Association national conference in Brisbane last week, general manager of marketing at Netwealth, Andrew Braun, explained how financial advisers could utilise AI in their practices.

As the low number of advisers continues to pose issues for the industry, technology has the potential to increase the efficiency of advisers, particularly those just entering the field.

“Imagine if you could pull all your internal documents, all your compliance stuff, all your strategies that you’ve already done, and put them into one single system. And then a person typing a question and then AI comes up with a response,” Mr Braun said.

He gave the example of global financial services provider Morgan Stanley, which has already implemented this process and is using it to assist junior staffers while they improve their knowledge of the business.

“They’ve got their analysts’ recommendations, their website and everything like that, and they can answer simple questions like how can someone set up Morgan Stanley accounts? Pretty simple, but it gives you the answer,” Mr Braun said.

He added that the process can also be used for more complex questions, like helping decide how to address a complicated inquiry from a client.

“I’ve got a client who has walked in and found an exotic piece of memorabilia and they want to dispose of it. What’s the best approach to that?” he said.

Mr Braun pointed to how Jeff McMillan, chief analytics and data officer for Morgan Stanley, describes that firm’s tool.

“You essentially have the knowledge of the most knowledgeable person in wealth management instantly,” Mr McMillan said.

“Think of it as having a chief investment strategist, chief global economist, global equity strategist and every other analyst around the globe on call for every adviser every day.”

The technology is also powerful in reshaping how financial advisers build a financial plan, Mr Braun said, giving the firm access to better assumptions and projections around life expectancy, spending habits and other factors related to client finances.

“All of these things are based on the knowledge of the adviser, the honesty of the clients, [and] the experience of your firm,” Mr Braun said.

“What if we could use AI to make better assumptions and better projections?

“What if you had a client who walked into your office today who looked similar to an older client?

“Maybe you could use that information about those groups of clients and better project life expectancy and things like expenses and so forth, than can create better models for you.”