Wealth management sector ready for AI

By Jessica Yun
 — 1 minute read

More than 90 per cent of 'wealth managers' and high-net-wealth investors around the world are willing to incorporate artificial intelligence into their processes, according to a new report.

According to a joint report titled AI and the Modern Wealth Manager by software provider Temenos and Forbes Insights, 93 per cent of surveyed wealth managers said artificial intelligence would play a role in the future of their business.

The report presents survey findings of 310 'wealth managers' and high-net-wealth (HNW) investors from Asia Pacific, Europe, the Middle East, Africa, Canada, the US, and Latin America.


Among the 219 surveyed 'wealth managers' were c-suite executives (25 per cent), heads of asset management (37 per cent), and heads of businesses at investment banks (76 per cent) and private banks (24 per cent).

Not only do wealth managers anticipate a future with AI in it but they are positive about it, the research findings indicated.

“Eighty-six percent of wealth managers say the rise of digitisation is essential or good overall. This sentiment is even higher among high-net-worth individuals—96 per cent,” the report said.

Companies and their wealth managers that failed to incorporate the “unstoppable trend” of AI technology faced an “existential crisis”, it also said.

Temenos product director for wealth Pierre Bouquieaux indicated that advisers and wealth managers would have to work alongside new technologies to better service clients.

“Now that AI technologies are weaving their way into the traditional world of wealth management, a balancing act has emerged that will define the future of the industry: the blending of man and machine in advisors that produces better service and results for increasingly tech-savvy HNWIs and mass affluent clients,” Mr Bouquieaux said.

According to the report, wealth managers found technology to be significant in improving operational efficiencies, product/service innovation, and talent retention/acquisition.

New York University Stern School of Business clinical associate professor Kathleen DeRose noted that wealth managers were looking to use technology to reduce time spent on administration tasks.

According to her, they are concerned with the central question: “‘How do they successfully operate a hybrid model where clients with large portfolios and complex situations can still receive the personal touch?’”

Most surveyed HNW investors were embracing of the adoption of new AI technologies.

“Eighty-four percent are accepting or highly accepting of this technology in their investing experience,” the report said.

Morgan Stanley chief analytics and data officer Jeff McMillan pointed out that “AI [was] not the objective”.

“AI is no different than the other 20 pieces of technology that came before it, such as the Internet and mobile.

“I think much of the disconnect today is that people want to solve for AI, and they forget that really this is all about delivering a superior value proposition to clients.”



Wealth management sector ready for AI
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