How the investment industry’s digital transformation is making advisors more productive

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A combination of cloud computing, AI, and digital collaboration apps have led to better outcomes in wealth management, but the use of blockchain has yet to gain traction

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“Technology can help teams address the complexities of wealth and open up time for higher-value activities,” she says. “It can improve the client experience, allow advisors to scale client relationships, and enhance advisor productivity through process automation and workflows.

“Some of those might be ‘nudges’ to help our clients live healthier lives or save a little bit more efficiently,” she says. Broadridge sees opportunities in using AI to predict which clients are at risk of leaving. The company has just signed its first customers for a service that scans thousands of data points to see which clients are most and least satisfied. That can drive better client conversations for advisors, Mr. Lo says.

Although AI and digital collaboration have captured investment firms’ attention, blockchain is still struggling, Broadridge’s research says. Investment in that technology fell to 13 per cent in 2021 from 15 per cent in 2020. Nevertheless, it still holds promise in applications such as documenting private equity ownership.

“Independent practices need to juggle the price of each individual technology solution with the value it will add to their firm and whether it warrants the additional cost, which can quickly add up,” Ms. Shtyrkov says.

 

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