AI is ready to replace financial advisers. Three things you need to know
For a while now, naysayers are betting big bucks on AI toppling jobs. The field of finance is not spared from this scrutiny. AI’s ability to process much larger data sets then human minds gives it a clear edge. Since AI-advisory is already seen in the fields of wealth and investment management, the field of financial planning should be open to imbibe AI’s advantages too.
How will AI fit into the world of Financial Advisory?
Unlike banking features such as funds transfers, credit/debit card blocking and activation etc., the implementation of automated financial advisory, will depend on its ability to pass the hurdles of regulations. Among the risks identified in implementing automated AI is the fact that just like humans, automated AI will have to meet regulatory guidelines so as to ensure any risks to the customer are prevented. Sparebank 1 SR-Bank, counted among the largest Scandinavian savings banks, is currently upgrading Banki, its virtual agent in order for it to become the world’s first certified digital financial advisor.
A good Mix – Financial advisory with human touch
Financial advisers can add value to their regular jobs with the help of AI and deliver better results to the clients at much lower costs. What AI cannot add as yet to the field of Financial advisory can be done by the human touch for example being empathetic to clients, nuanced dialogues, trust and insight. So businesses must plan a good intermingling of AI with the personal touch and form their business modus operandi on the same for a win-win scenario. AI certainly adds value to the business and the future of all financial advisory businesses will depend on their ability and willingness to take the next step.
Conversational AI as the step forward
So how does a good automated or AI-based financial advisor work? Besides making the right calculations, it is also important for the AI to be foolproof. Risk management is a big challenge here. As we said earlier certified financial advice is a bit more complex. A person who is newly retired and is seeking advice on his retirement plan which involves his lifetime of savings will need a face-to-face advisor who can answer queries about averting risks, unforeseen expenditure and so on. The lack of these abilities can pose serious risk to the client’s finances and the company can even face the risk of legal action. We at Infinite Analytics make conversational AI handy with the use of advanced NLP and deep learning. The virtual agent can be given training to operate within pre-determined and specified guidelines, and be as efficient as a human advisor who does the same.
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