tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, May 25th, 1:32PM

News

rss
Latest Headlines

Analysing AI’s Impact on Financial Advice, Part 3

Saturday, April 13th 2024, 6:58AM

by Clive Fernandes

Throughout this series, I’ve outlined the key functions being automated through AI, from back-end processes to customer-facing apps and platforms. Viewing AI as an enhancer rather than a universal solution is important, so the key is in…

Balancing Capabilities Across Humans and Bots

The rise of interactive large language models (#LLMs) democratises access to knowledge. This leads to flattening organisational structures while proliferating best practices and policies. Moreover, AI technology’s ability to extract information from emails, recorded discussions, and other resources helps build a valuable repository of organisational insights, making it easier to onboard new talent or customers.

Instead of viewing AI as a substitute for human advisers, we must recognise their potential to reduce service costs, improve efficiency, and deliver more tailored customer experiences. However, financial advisers should focus on cultivating organisational AI literacy to prepare for the impact of LLMs. This could encourage staff to use AI models, provide training, develop strategies for leveraging technologies, and rethink structures to address #futureskillneeds and be more responsive.

Robo-advice isn’t a catchall solution yet. Still, we must ensure we’re ready for when it becomes a dominant force by ensuring the right data is in place to facilitate seamless integration. After all, data is key. Utilising proprietary data and market insights while ensuring they are easily adaptable for AI processing is the key to differentiation and achieving success for financial advisors.

At National Capital, we have run projects using AI and machine learning to map client journeys and determine which journey best suits their needs and profiles. We’re also continually refining our skills, policies, and practices to ensure our team gets the most out of the intelligent tech solutions available.

Many financial advisers, particularly in the SME space, could experience job insecurity due to the prolific use of intelligent technologies. However, AI is a resource, not a replacement.  Intelligent technologies allow our industry to automate manual, time-consuming processes, freeing advisors to provide value-added services and #humantouchpoints. After all, the real value of advisors is in managing human behaviours and coaching investors through their emotions to remain on track. They’re there to guide customers, often acting as an insightful voice of reason.

Robo advisers currently must be fed information, operating reactively rather than proactively. Plus, the technology still has limitations regarding accuracy and security. Conversely, advisers can consider the specifics of a person’s situation and ask the right questions, developing the right understanding and context, identifying issues, and agreeing upon goals with customers.

The human touch is now a defining factor in financial advisors' services. Still, developments in AI can change that, so every person in this industry must keep an eye on this fast-growing phenomenon.

Clive Fernandes is a director at National Capital.

Tags: AI

« Sharesies has biggest trading yet[GRTV] Peer support helps with compliance stress »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 7.29 6.59
SBS Bank Special - 7.14 6.69 5.99
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.21 7.29 6.65

Last updated: 20 May 2024 10:01am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com