In the first of our “Spotlight on…” series, Wealth Dynamix Managing Director Antony Bream debates the role of artificial intelligence (AI) in wealth management, with DreamQuark’s Mikko Hietanan and François de Lescure.
Key takeaways: How can wealth managers leverage AI to improve outcomes for clients?
– Equip remote-working relationship managers with the tools required to meet client expectations. There has been no better time to gain, rebuild, maintain and grow trust across the entire client base. Given the upsurge in remote working, relationship managers must have accurate client data at their fingertips, gain intimate insights into the personal situations and sentiments of clients, and know which products to recommend based on each clients’ risk profile. AI should not replace the knowledge or personal touch of the relationship manager; it should be used to automatically analyse vast amounts of procedural and behavioural data, and provide insights to relationship managers that enable them to recommend next best actions, quickly and with confidence.
– Utilise AI to achieve ‘mass personalisation’. A client of DreamQuark increased upsell rates by 75% and reduced client churn by 40%. How? By utilising AI to reach a vast number of clients with ‘mass personalised’ communications that are relevant, timely and highly effective in nurturing both cross-sell and up-sell opportunities. AI enables relationship managers to automate the process of delivering the right message to the right customer, at the right time… especially when managing a high volume of ‘long tail’ clients who tend to be served less frequently and conscientiously than the more wealthy minority.
– Utilise AI to improve client retention and loyalty. For relationship managers handling family accounts or HNW clients with extended networks, AI can help to create a complete, interconnected picture of all individuals involved, indicate their requirements, pre-empt their behavioural traits and assess their sentiments, to facilitate product recommendations that will satisfy the AuM growth goals of all stakeholders. AI can also alert relationship managers when there are good reasons to re-engage with clients who have not been contacted for a while. By rekindling engagement in a relevant and timely way, relationship managers can reduce the likelihood of clients downgrading their portfolios or leaving the firm.
AI is proven, and it is here to stay. Wealth managers have vast quantities of data available to them, and the quality and accuracy of the data that AI relies upon to deliver very real benefits has improved exponentially. Especially during the COVID-19 pandemic and beyond, explainable AI – that which can be effectively interpreted and put to profitable business use – is providing relationship managers with real-time context, which is empowering them to serve clients more proactively and effectively than ever before.
The 30-minute webinar is available for you to watch below!
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