Expert and facilitator: Ben Wright, Chief Innovation Officer & Director of Progress, Melo
Headlines:
- The evolution of the financial advisory industry and the impact of emerging technologies, particularly artificial intelligence (AI) and automation
- The changing role of advisers, shifting from traditional investment management to a more holistic, coaching-oriented approach focused on understanding clients' goals, motivations, and psychological factor
- The need for advisers to adapt their business models and processes to embrace technological advancements effectively
Discussion points:
Initial perspectives on how automated clients want their advisory experience to be varied, with some suggesting a balance between automation for administrative tasks and human interaction for more personalised aspects, while others expressed contrasting views, ranging from minimal automation to near-complete automation.
The Changing Role of Advisers
The role of advisers is changing, moving away from traditional investment management towards a more holistic, coaching-oriented approach.
Advisers will become more like psychiatrists, therapists, or money coaches, focusing on understanding clients' goals, motivations, and psychological factors rather than solely providing technical expertise.
The potential of AI and automation to streamline administrative tasks will allow advisers to focus on building emotional intelligence and empathy with clients.
Implementing AI and Automation
The various AI and automation tools, such as Planopal, Saturn, and RecordSure, which can transcribe meetings, analyse client interactions, and identify potential vulnerabilities or compliance issues.
The benefits of these tools in improving efficiency, consistency, and record-keeping, while also addressing concerns about systemic risks, auditing requirements, and the need for human oversight.
The integration of AI-powered virtual assistants, voice recognition, and avatars into client communication and experience is also explored.
Regulatory Considerations and Client Relationships
The regulatory considerations, such as record-keeping requirements under SMCR (Senior Managers and Certification Regime) and the need for advisers to maintain accurate and auditable records of client interactions.
The merits of retaining audio recordings versus agreed-upon written records and the importance of obtaining client consent.
The strategies for maintaining client relationships, such as designating relationship managers or leveraging technology to provide consistent and accessible support.
Business Model Adaptation and Future Outlook
The example of a firm that has restructured its business model to incorporate AI, automation, and money coaches into the client journey was shared, illustrating a model which involves clients self-inputting information, automated cash flow analysis, video-based annual reviews, and advisers acting as final approval authorities.
The need for firms to adapt their processes and embrace technological advancements to remain competitive and meet evolving client expectations.
The importance of communication and a mindset of progress over perfection when implementing changes within organisations.
Key takeaways:
- Explore the implementation of AI-powered transcription tools like Planopal or Saturn to improve meeting note-taking efficiency and accuracy
- Investigate the use of AI-powered virtual assistants or chatbots to provide quick responses to client inquiries and enhance accessibility
- Evaluate the potential integration of avatars or video-based communication for delivering annual reviews or complex information to clients
- Review regulatory requirements and establish clear policies for record-keeping, including the retention or deletion of audio recordings and the use of agreed-upon written records
- Assess the firm's current client journey and identify opportunities to incorporate AI, automation, and specialized roles (e.g., money coaches) to enhance efficiency and personalization
- Develop a communication strategy to effectively introduce technological changes to teams and clients, emphasizing a mindset of progress over perfection
- Explore partnerships or collaborations with AI and automation solution providers to stay updated on the latest advancements and best practices in the industry
