With the integration of artificial intelligence in asset management we can say goodbye to traditional wealth management services: consumers will benefit from simple services, fast and efficient with the use of chatbot, robots and intelligent machines.




With the creation of intelligent machines, artificial intelligence is changing the management of substantial assets, thanks to its ability to solve problems autonomous and efficient.


The machines can analyze and isolate the most relevant Big Data in a short time and facilitate the decision making the process.


For wealth management, the introduction of AI is an opportunity,  not only for the management and analysis of Big Data but also to improve customer relationships and facilitate before sales  and post-sales management and consulting operations.


Moreover, with artificial intelligence, wealth management will no longer have a narrow target of customers but will be able to expand its scope of activities to millennial.



What is wealth management


Wealth management includes all those services of high quality that regard the control of the wealth to a limited number of customers that have a consisting patrimony and requirements in continuous evolution in the time.


In particular, wealth management deals with asset protection over time and future investment goals.



The main asset of wealth management is savings management. The wealth management service is divided into two well-defined ones:


          Advice on the choice of investments that is the planning phase in which a consultant advises the most appropriate financial instruments to the client.


          Portfolio management which encompasses all the securities purchasing activity on the financial markets on behalf of the client.




AI and wealth management



Wealth management is affirmed today as a natural evolution of private and investment

banking. This trend has been dictated by the increasing needs of customers and the consequent weight of the services required, in particular advice.


The intelligent machine can manage normal back-office administrative activities, from marketing to investment management.


Thank to the integration of AI, new communication systems between intermediaries and clients are an essential factor in the consultant-client relationship.


Consultants can expand their activities and serve their customers effectively by increasing their productivity by managing the daily workflow better.


Collect and understand the complex needs of customers, propose solutions based on customer history, and explain complex concepts related to their customers, are the main activities of an AI consultant engaged in asset counseling.


Another factor in favor of AI, in asset management, is the expansion of wealth management to Millennial. They are native Digital, and for them, the technology must be the basis of any activity. With the introduction of AI, wealth management is also affecting new generations.


Moreover, millennial, unlike previous generations, value experience more than profit and do not consider money the only factor of success. Their vision of a sustainable world and their tendency to invest in socially responsible companies have opened up new challenges for wealth management.


Climate change, demographic change, and the rise of Digital in the workplace are some of the multiple factors that have led to a transformation of traditional models of wealth management.


Although wealth management is a service that can only be enjoyed by holders of huge assets (500,000 euro base)Today, technological innovations make it possible to reduce unnecessary costs and offer a highly specialized service to people with assets of less than 100,000 euros.


Wealth Management and fintech


AI, chatbot, and robots are the fintech technologies that are changing the financial market and in particular, wealth management.


The wealth management relies on fintech companies, introducing their innovative solutions that use artificial intelligence and robotics, to reduce costs and facilitate operations to consumers in the post-sales and customer care; With artificial intelligence, consumers can manage their money easily, quickly and effectively.


Reducing data storage, management, and analysis costs are the main reason why financial institutions rely on fin tech companies.




Benefits of Artificial Intelligence in wealth management



AI and machine learning bring benefits to managers and financial advisers in three particular areas:



1) Management and analysis of Big Data: thanks to artificial intelligence, wealth managers can isolate Big Data (vast masses of data and graphs) more meaningful and relevant to facilitate and reduce decision-making time.



2) Analysis and forecasting of market trends: The ability of artificial intelligence to predict market trends facilitates decision-making operations of financial managers and consultants.



3) Management of risk: Artificial intelligence can detect and react to the first signs of market volatility allowing financial managers and consultants to respond faster than the competition and improves risky activities and strategies of the cover story.



This is how artificial intelligence is integrated into the wealth sector and how easy it is to manage with chatbot, machine learning, and robots.


While traditional private bankers, through their relationships, have managed customer needs and ensured a high level of service, digitization of heritage management services does not replace that high-quality personal relationship but improves it by accelerating processes and using customer data to predict precisely what will be closest to their needs shortly.


AI can help wealth companies maximize their potential by recommending the Next Best actions, increase productivity, and improve the quality of experiences and relationships with customers, allowing the latter to receive an increasingly specific and personalized service.

Source : wallstret italiaMoneyfarm , Finscience