The tech edge that could put RIAs on par with wire-houses

Artificial intelligence can also help businesses to identify new clients and also streamline back-office operations, but so far, only the largest companies that have found the data-heavy tech practical.

Early adopters of artificial intelligence are indeed expecting substantial increases in profitability in 2018. But, also those that made use of big data were also indeed more likely to have sizeable assets under management.

Datasets are also growing rather increasingly in importance in relation to wealth management firms, information such as purchasing power, life events and also even website browsing history. One needs to observe that there are signals in relation to financial information for credit, insurance as well as investment decisions. Also, the focus is on habits as well as hobbies that are meant to analyze retirement and lifestyle planning.

Data-based analytics, as well as decision tools, can indeed support productivity by pinpointing client psychosocial and financial requirements. Such insights do get integrated into the CRM system and also provide on-the-go in something close that happens to be to real time.

Larger firms have indeed traditionally feasted on these data sets. Tech firms such as Facebook, Google and Alibaba do make use of them to visualize connections between the customers and also to create powerful information advantages.

External market signals are indeed utilized and portfolio management is indeed being commoditized and advisors that can connect the fall of the Turkish lira to foreign exposure in the given clients’ portfolios.

Advanced analytics is indeed slowly becoming more accessible to RIAs. Some are in fact even available on the cloud.

The tool is available to estimate when clients should cash in their social security checks and another more important tool that does determine the most tax-advantaged vehicles for wealthy clients in order to place their assets.

Data does still reside in silos and that does affect the client’s experience whether it’s a lack of a single sign up or not being able to get real-time information on a given portfolio. There is much to achieve on this front.

In several cases technology was indeed fashioned on the basis of one layer lumped on top of the next and large institutions have rather multiple lines of business, various services units that are of course walled off from each other.

Data one may take not of has become the “lifeblood” of the financial services industry and in fact, firms need to be doing their best to catch up. The firms need to get clean data for improving their delivery system. Data plays a major role in daily operations.

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About the Author: Jaya Nandini

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