A new Capgemini report has laid out the benefits of artificial intelligence (AI) for wealth management businesses.
The report, which focuses on application development and maintenance, found that 75 per cent of Australian organisations that implemented AI reduced client complaints and increased customer satisfaction by more than 10 per cent.
Nearly 80 per cent of firms that implemented AI managed to increase their operational efficiency by 10 per cent, said Capgemini.
AI also creates better insight and analysis, allowing practice owners to make better management decisions, the report said.
“The financial services industry is a heavy user of IT, since much of its assets, besides cash and people, tend to be IT systems, and most IT applications enable revenue generation,” said Capgemini.
“The financial services industry represents a bit of an enigma in that they are early adopters of technology, spend a lot on IT, have strong engineering skills, yet often enough, their work practices are not very mature.”
The top priorities for financial services firms are: market share growth, customer engagement, profitability, cyber security, regulation and digital transformation, the report said.
“Financial services firms can access unprecedented opportunities to deliver compelling new products and value propositions to customers by combining insightful use of digital and IT advances with their traditional strengths and prudence; aided by forging value multiplying collaboration with fintechs and InsureTechs,” said Capgemini.
“The financial services industry represents a bit of an enigma in that they are early adopters of technology, spend a lot on IT, have strong engineering skills, yet often enough, their work practices are not very mature.”
Who wrote this report? Which part of the financial services industry are they looking at? I’m tipping he/she accidentally wandered into the wrong dept. of Capgemini on their first day. Psst … you’re supposed to report to catering.
Please name one AI solution that is READY for prime time and will make any SIGNIFICANT impact on the efficiency of a financial advice business. No doubt they will come, but anyone who claims they’re here today either doesn’t know what they’re talking about or is trying to generate some hype around a startup fintech. I expect in this case, it’s the latter … a paid for report that uses “data” to make a business case. Clever marketing, but no substance to back it up
As soon as the capability is there and reliable enough the life companies will drop advisers like yesterday’s news. They are chomping at the bit to do it now and are all false smiles and platitudes to advisers faces currently. If anyone needs proof of their duplicity with advisers and their lying ways look no further than the 2 year clawback (they initially WANTED 3 years!!). And they say they are COMMITTED to advisers . . . such corporate dribble-speak I want to vomit each time I hear it from one of their top execs or their hapless BDMs. AI, RoboAdvice, whatever way they want to market or hide it, will initially seem to be the friend and saviour of the life company but in only a few short years it will be their downfall. Robo-Policy cometh with a massive increase in non-disclosure upfront (no upfront underwriting) and claim denial at the crucial end. Thanks regulators – you hastened the life adviser’s demise with ridiculous requirements and now you will see ‘client best interest’ destroyed on a wholesale basis. Well done fools.
AI whats that ?? I’m neglecting it . obviously costs too much !!!!