How can AI help IFAs deliver better client service?

A staggering 73% of IFAs say they’re likely to include AI-based applications in their advice process. It’s a clear sign our industry is on the cusp of a transformation – one where AI is a powerful ally.

In this article, we explore AI's potential to reshape the advisory landscape and deliver exceptional client experiences. This includes how it can elevate client engagement, portfolio management, and operational efficiency. Alongside the benefits of embedding AI, it is equally important to assess the ethical considerations and the unwavering importance of the human touch. 

Using AI to improve client engagement

Building strong client relationships is the cornerstone of any successful practice, but keeping clients engaged can be a constant challenge. IFAs have to juggle limited time, complex financial concepts, competing priorities, and generational shifts in communication styles.

By supporting these processes, AI can help you build trust, educate clients, and motivate them to achieve their financial goals.

1. Personalised communication 

AI can analyse individual client data to understand their financial goals, risk tolerance, and communication preferences. This allows you to tailor your conversations, delivering targeted financial information and insights that matter most to each client. 

2. Automate routine tasks 

AI-powered chatbots can handle basic client questions, schedule appointments, and gather essential financial data – 24/7. This frees up your valuable time for more complex tasks, in-depth consultations, and personalised strategies. 

3. Proactive engagement 

AI can monitor market trends and client portfolios, triggering timely alerts about maturing savings accounts, and new products and rates. This helps prompt proactive investment conversations that cement your role as a trusted adviser. 

AI as your portfolio management partner

The financial industry can be a volatile place. Balancing risk, optimising returns, and ensuring compliance while delivering exceptional client service. It’s a lot of plates to spin.  

Fortunately, portfolio management is an area ripe for AI's analytical skills, including:  

1. Data-driven insights

AI can analyse vast sets of financial data faster and in far more detail than any person. By identifying hidden patterns and new investment opportunities, AI can suggest more robust and diversified portfolios to deliver higher returns. And it’s all backed up by clear, data-driven insights that support your recommendations.  

2. Risk management

AI algorithms can continuously monitor client portfolios against their individual risk profiles. By identifying potential risks and suggesting adjustments, they can help ensure the best possible risk vs. reward results. 

3. Scenario planning

Geopolitical events and government intervention can suddenly and unexpectedly impact financial markets. AI can simulate various market conditions, allowing you to stress-test portfolios and ensure they stay strong in unforeseen circumstances. This lets you have more informed client conversations about potential risks and opportunities. 

Streamlining operations for enhanced efficiency

Beyond the challenges of client service and portfolio management, IFAs often have to deal with time-consuming admin. Manual data entry, compliance headaches, and managing client communication can all stop you focusing on your core business. AI can smooth the way, enabling you to concentrate on helping your clients achieve their financial goals. 

1. Document processing

AI can automate tasks like data entry, document analysis, and report generation, freeing you for higher-value activities. 

2. Compliance management

By analysing data and identifying areas where checks are needed, AI can streamline the compliance process. It can also monitor transactions for suspicious activity, reducing the risk of regulatory or data breaches, and financial penalties. 

3. Client onboarding

AI can guide clients through onboarding, collecting and verifying information simply, quickly, and efficiently. This allows you to onboard clients faster and provide a smoother overall experience. 

Balancing AI with human expertise

While AI has the potential to provide great benefits, it's important to remember it’s just another weapon in your armoury. Nothing can match the human expertise and emotional connection that clients value.

AI can’t understand a client's emotional state or risk tolerance during complex financial conversations. Your ability to empathise, listen actively, and address their concerns is invaluable – and irreplaceable. 

Financial decisions are often deeply personal. Clients want advisers they can trust with their financial futures. While AI can provide insights, clients rely on your unique personal understanding, experience, and judgment to make crucial decisions. 

Transparency and trust

AI can sometimes be a divisive topic. As integration evolves, remember to keep the ethical considerations in mind. Your clients have a right to know where and how you use AI to inform your recommendations. Always position AI as a powerful tool that enhances your human expertise, not a black box making its own decisions. 

Integrating AI

While modernising some existing IFA platforms might be necessary for seamless AI integration, the future is full of potential. Cloud-based systems offer a smooth path, while workarounds and upgrades can even pave the way for legacy systems. Simpler AI tools like chatbots can be a springboard to integrate more in-depth solutions at a later date. 

Technical expertise is also no longer a must. Technology providers are increasingly developing user-friendly AI solutions specifically for financial services with limited tech knowledge. Often, these are pre-built to seamlessly integrate with common platforms and prioritise data security and compliance.  

The future of financial advice is one where AI empowers advisers to deliver exceptional client service. By embracing AI, you’re positioning yourself to thrive in this ever-evolving landscape and meet your clients’ needs – today and tomorrow.