Thursday, 11 April 2019 | By: Herbert Leonelli, Regional Commercial Director, Profile Software
Artificial intelligence is set to transform businesses in ways we’ve not seen since the industrial revolution. The digital era is evolving in the wealth management sector, leading to a dynamic increase of AI and robo-advisory tools. 25% of 600 banking professionals, surveyed by MoneyLIVE as presented in FStech, said that they used AI at a moderate extent. The growth of AI will “plug the current gap in data science skills, predicting that by 2020 more than 40% of data science tasks will be automated” according to Gartner.
According to a recent Deloitte’s report The future of asset serving | Shaped by three disruptive technologies, “A huge wave of technology disruption is heading toward the asset servicing industry. Within a five-year timeframe, robotic process automation (RPA), blockchain, and cognitive systems will have a dramatic change and a profound, lasting impact on service providers’ operations". In the report, Deloitte underlines that the rise of disruptive technologies can offer great opportunities to incumbents to achieve improved productivity, minimise operational costs, reduce risk and comply with regulatory scrutiny, while enhancing client service and expanding to a wider range of market segments, competitively.
The World Economic Forum estimates that 133mn new roles may emerge by 2022 adapted to the new era. AI and Machine Learning are developing to better safeguard the business and automate the processes leaving valuable resources to address business objectives. Robo-advisory service is gaining traction with individual investors and firms embracing it, as presented in the interesting article by The National.
“AI-powered value-added services are already on the way to becoming mainstream practice in an industry seeking to build new value chains. Incumbents need to step into this space if they are to compete effectively. Delivering best-in-class personalised financial and investment advice at scale would be economically impossible using human advisors but can be achieved by AI.” The report states.
According to Aite, while “wealth management is characteristically a human and emotional endeavour,” with constant changes in regulation, target markets, global uncertainty and “disruptive innovation,” AI is expected to develop over the next couple of years.
The article was also published on bobsguide (11.04.2019). Trademarks are property of the respective owner.