Webinar Q & A: How to Make Your Wealth Management Practice More Efficient

Webinar Q & A: How to Make Your Wealth Management Practice More Efficient

On Thursday, August 26 we took part in a webinar panel discussion hosted by Advisor’s Edge. Advisors who watched the webinar (and those who end up watching the replay) are eligible for continuing education credits through CE Corner. The discussion was extremely informative and engaging - so much so that we didn’t get much time to answer all the questions coming in from the audience. Since we couldn’t just leave everyone hanging, we’ve decided to share the answers here:

How Will AI Impact the Financial Industry Globally?

Today, true artificial intelligence hasn’t made its way into mainstream technology, only forms of machine learning, and automation are widely available, including within the financial sector. The potential for these types of advancements is extremely vast, and any repeatable mechanism in a digital form can be replaced by an algorithm these days. This creates the potential for faster and often better processes within any industry. The caveat for financial services is that even repetitive processes require audited systems and controls since they’re dealing with sensitive financial data, regulators have to create a framework to allow for this type of technology to exist within financial services, and most importantly advisors and investors have to feel comfortable letting an algorithm give them advice about financial decisions. Despite these limitations, many wealth professionals are already leaning into technologies like robo-advisors and image recognition for digital photo ID verification, so we’re seeing the shift start to take hold.

When it comes to technology in the cloud, how does it respect the privacy of users?

Data controls and privacy are a top concern for any cloud technology provider. These companies have to undergo extensive Systems and Organizational Control (SOC) audits that allow an independent auditor to certify that their technology is doing what it should in terms of data security and privacy. To get the full picture of cloud computing concerns in the financial sector and how cloud-tech companies manage these, please read our article in The Financial Brand.

How does GIM get their clients, do they have reps?

Great question, but you’ll have to ask them directly! Reach out to the GIM team here: invest@gold-im.com 

Has technology helped clients get better performance than pre-technology?  

Speaking of GIM… one of their portfolio managers who joined us for the discussion, Marisa Pazdar, was able to answer this question during the actual event. She says: Being able to offer some type of technology to your clients to add value to what your firm has to offer is key. If a client can go in and have a more dynamic view of what your firm is offering (a summary view of their information, real-time portfolio data, ways to pull their own statements or run reports) something like that is very powerful. We get very good client feedback when they’re comfortable with the technology we offer to them. Clients have a range of needs, and we already covered that, but having dynamic technology that can really offer what each client needs is important. And having a system that they can use over time (again nothing that is one use only) is quite key and offers a lot of value. 

From Mako’s perspective, we see that when client interactions are automated it frees up a lot of time for the advisor. The direct result is that the advisor can spend more time on actual portfolio management, performance and client relationships.

Bfinance just released a study about wealth management and technology, and we encourage everyone to take a peek at their data here for additional insights on the subject.

What about KYP?

KYP processes can be automated by using technology like Mako Fintech, just like any other part of onboarding that requires custom implementation to account for a firm’s unique processes.

Would you want monthly client performance feedback?

If we understand this question correctly, yes both advisors and technology providers would want to understand client performance regularly. This type of performance monitoring is possible within systems like Mako that can give wealth managers an aggregated view of how many clients need to be onboarded, how long it took for them to complete the process, how many need a KYC refresh and so on. While Mako does provide data like the examples listed above, traditional portfolio management systems are more suited to ongoing portfolio performance reporting.

Can you send me the replay for this by chance? 

The replay of our webinar is available on the CE Corner website. Thanks for attending!

Image Credits

Feature Image: Unsplash/Simon Abrams

Technology and Efficiency in Wealth Management

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In Pursuit of Efficiency:

Working with Technology to De-paper Wealth Management Processes

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