The financial services sector, encompassing a broad range of areas like investment banking tax preparation and planning, as well as fraud and risk, is increasingly leveraging AI to enhance overall industry operations.

Financial advisers reliant on trust, high-quality data, and robust professional relationships, are experiencing thriving success with the integration of AI. This has ushered in a new era of innovative work practices as the industry norm. In fact, research further supports this trend, revealing that 9 out of 10 financial advisers believe AI can contribute to growing business by over 20%.

To give you more insight, in this blog we discuss 6 major ways AI is helping financial advisers today.

1) AI is speeding up data analysis and providing insight

Financial advisers are up to their ears in data, whether that be from analysing client spending habits, reviewing trading insights or examining shares and investments, the list goes on. This data can be complex and often requires quick and efficient analysis so that advisers can assist their customers with their financial decisions. This is where AI is making a difference.

Research says that “by analysing financial data rapidly and precisely, AI can detect trends, patterns and investment opportunities that may go unnoticed by human advisers”.  So, with the support of AI, financial advisers are now able to help clients make better and more informed decisions.

Tools like RavenPack or Accern, for example, are assisting financial advisers with not only collecting data, but ensuring it is accurate and fit for purpose. AI facilitates the following:

• Identifying trends
• Highlighting inconsistencies
• Forecasting and planning
• Removing irrelevant information

2) AI is strengthening client and customer relationships

In a world that is non-stop and operating 24 hours a day, the demand for constant service and support is at an all-time high. With a large part of a financial adviser's role being client and customer service focused, the pressure to not only build but maintain trusted client relationships is critical to their success. With high expectations and individual cases, AI is assisting financial advisers with the personalisation and knowledge required to maintain healthy and effective client relationships.

A few ways AI helps strengthen client and customer relationships is by allowing for personalised information and data to be quickly retrieved, including:

• Past interactions had with specific clients: virtual conversations can be saved and filed away for future use.
• Client preferences: where they like to spend and invest their money.
• Differences between demographics: are male and females likely to invest in different initiatives?
• Monitoring conversations: specifically between customers and AI chatbot and virtual assistants.

Financial advisers can also use AI to increase their marketing capabilities, like the automation of newsletter sendouts, the creation of topical written content and social media listening.

3) AI is improving risk management

With large sums of money comes great risk, and one of the reasons that many individuals seek out financial advisers is to help reduce this risk. Risk management is a vital part of any financial advisers’ job and is simply the act of identifying potential risks within a client’s portfolio or financial plans.

When a financial adviser is unable to effectively predict future trends, however, this is where AI can assist financial advisers with their goal to reduce overall loss. AI’s algorithms can identify potential financial risks, both ones that could happen immediately and that could occur in the future. AI takes into consideration:

• Current market trends
• External economic factors, and
• Overall client spending habits

This, in turn, allows financial advisers to plan proactively for the near future, increasing overall security – including fraud detection and prevention – as well as educating their clients on pre-emptive measures to be taken.

4) AI is taking away everyday mundane tasks

When it comes to those repetitive and often boring day-to-day tasks, automation and AI is a financial advisers best friend. Making more time for the responsibilities that require human interaction, such as relationship building, AI can assist with admin duties such as:

• Documenting and note-taking
• Creating and analysing monthly reports
• Organising client portfolios
• Appointment scheduling, and
• Issuing regular payments

Not only does this free up a lot of time, it’s also much more cost effective and, in many cases, more environmentally friendly.

5) AI is optimising client portfolios

With multiple clients on the go at once, financial advisers are often spinning plates and multiple portfolios. What used to be hard documents are now typically digital files, meaning AI powered portfolio management tools can be utilised.

AI powered portfolio management tools allow real time updates and insights, which means client portfolios are easily managed and updated respectively.

Additionally, portfolio management tools can also review and analyse the data within a portfolio, this means that strengths, weaknesses, and improvements can be easily recognised, making the life of a financial adviser that little bit easier.

6) AI is changing client acquisition

When it comes to generating new business and adding to a financial advisers client base, AI can detect potential client leads, making use of automation and algorithms. This means it’s more likely that customers will find the services of a financial adviser while doing research and vice versa, paving the path for plenty of new business.

Some additional benefits of using AI in customer acquisition include:

• A rise in efficiency: repetitive tasks such as writing job descriptions can be automated.
• Radical accuracy: customer data can be analysed to a high level, minimising errors and subsequent issues.
• Enhanced customer experience: AI allows for personalised and product recommendations; you can get to know your customers even more than you did before.
• Better decision making: AI provides insights and data into customer preferences, which aids unique decision making.

When it comes to the role of a financial adviser and the financial landscape in general, the impact of AI is transformative. Where financial advising previously was admin and data heavy, with less time for relationship building, there’s now opportunity for customisation, more accurate trend predictions and plenty of growth.

If you’re interested in becoming a financial adviser, study a LIBF Diploma for Financial Advisers (DipFA) 100% online with ICS Learn today.