What are the benefits of AI for financial advisers? Can it possibly give you back three hours?
And what would they do if it did? Aside from pop the kettle on.
In all seriousness, by shifting the burden of time-consuming administrative tasks from the adviser’s workload to an AI assistant, there’s a lot that they could do with the time and freedom from repetitive tasks.
Putting the client first
Off the bat, advisers would be able to prioritise more time with their clients for meetings and consultations. When we introduce the benefits of AI to financial advisers, we’re not looking for the platform to take over their role, rather to enhance it. This means the adviser can build rapport and genuine, nuanced relationships with their clients. With more time to interact one-on-one, the deeper an adviser can understand their customer’s financial situation, their investment goals and strategies, as well as working through their concerns. This, in turns, allows the adviser to develop more personalised and comprehensive financial advice.
Improved communication between advisers and their clients will mean that meeting times don’t feel pressured or rushed and important information won’t fall between the cracks. With the support of an AI assistant, not only will comprehensive notes be taken and referenced for the adviser, they will have more time to ensure that the client understands what’s being discussed.
This is imperative, now more than ever, since the introduction of the Financial Conduct Authority’s (FCA) Consumer Duty regulation. One of the pillars of this regulation focuses on the consumer’s understanding of guidance being provided. Knowing that they have been able to provide a fully comprehensive outline of a customer’s financial plan and received feedback and insight into the customer’s understanding, can continue to foster a trusted partnership moving forward.
On top of this, advisers can actively manage their clients’ portfolios to ensure that they are reacting to customer and industry changes as they happen. This will ensure that investments are properly balanced, returns are optimised and risk is matched to client desires, one of the key benefits of AI for financial advisers.
Adviser and industry knowledge growth
Knowledge is a powerful tool, especially when it comes to our finances. So it makes sense that one of the biggest benefits of AI for financial advisers would be using their newly found freedom to educate themselves on their industry changes and best practices.
By allocating more time to in-depth research and analysis of investment opportunities, market trends, and financial products, financial advisers become more indispensable to their clients. Arming themselves, and their customers, with key insights can lead to better investment recommendations and financial strategies tailored to each unique situation.
Allowing time for networking events can also develop adviser knowledge, and open doors to attract new client opportunities, as well as nurturing new strategies that would aid customer portfolio growth, alongside the growth of the business and its revenue. With more freedom to pursue these key details and foster success means that there will be more opportunities to bring on new advisers on top of new clients, and so the cycle of growth continues.
We all know that there’s plenty of risk involved when it comes to financial planning, so setting aside time to conduct thorough risk analysis and develop strategies for risk mitigation can help advisers ensure that their clients’ portfolios are aligned with risk tolerance and their financial goals. This is another of the benefits of AI for financial advisers.
Fully embracing a coaching and training plan would also be a big boon to firms. If you don’t already have dedicated resources, this opens the door for more time supporting the next generation of advisers and paraplanners in your business, which in turn supports overall better and consistent client experience, and improves staff workplace fulfilment.
Smaller firms may also take advantage of the additional time by dedicating resources to creating effective business strategies. Where there isn’t a dedicated department to structuring goals and growth, firms can now focus on how to align their operations with customer needs and satisfaction and focus on successfully meeting their goals.
Personal career or business development doesn’t need to be formal or linear. With three hours every day to improve their practice, advisers can turn to the way that the industry is developing, from AI integration to market trends and service offerings. Compiling together the things that clients truly need to get the most from their advisers sets any business up to grow and succeed.
Remaining regulation compliant
As we’ve said before, one of the biggest changes to an adviser’s day-to-day operations has been the introduction of the Consumer Duty. With two deadlines brought into play over the last two years, it’s safe to say that the landscape has shifted.
Being able to dedicate time to developing the skills and knowledge to know how to best take care of your clients is crucial in the finance industry. It’s why Consumer Duty has been so heavily pressed upon us the last few years.
By remaining aware of the regulatory changes to the industry, not only is the adviser able to provide the best, most personalised service for their clients, but they continue to improve their skills and standing within the industry, bringing the benefits of AI for financial advisers journey full circle.
