The wealth industry is notorious for its archaic processes, passive, unaware investors and advisors overwhelmed by technology and operational inefficiencies, leaving the latter very little time to understand their clients or share advice. Added to this, financial advisors now face remarkably higher demand for engagement due to the volatility in investment portfolio performance, all while attempting to prepare for the “Great Wealth Transfer” of an estimated $68 trillion from baby boomers to younger generations. When added to the aging population of financial advisors, the lack of qualified back-office staff to support this surge in demand and exacerbated by higher operating costs, the table is set for nothing short of a fundamental rethinking and reorganization of the industry itself.
A Reimagined Wealth Experience
The latest technological advancements in AI such as LLMs and Knowledge graphs couldn’t have come at a more opportune moment for an overburdened and dated wealth management industry—and could change the game if applied strategically and with the proper support. AI-enabled digital assistants have the potential to serve as advisor co-pilots, assisting clients as they cruise through the bread-and-butter process lifecycle from prospecting, planning, onboarding, client meetings and client management operations, thereby transforming today’s broken experiences and manual efforts into a seamless, intuitive Amazon- or Uber-like experience for all stakeholders. Just like how you would ask your digital home assistant to “switch off the kitchen lights,” you can now interact with your Advisor Assistant to set up an RMD distribution for a client or initiate a simple beneficiary change. The underlying demand for this kind of technological solution is uncharted, especially with trillions of dollars on the verge of transfer between generations, a complex and shaky financial and economic environment terrifying investors, and thousands of financial advisors on the precipice of retirement.