A study by Avaloq has shed light on the contrasting perspectives between UK wealth managers and investors regarding AI in wealth management.
According to Finextra, the research, which surveyed 300 wealth managers and 3,000 investors globally, found that 87% of UK wealth managers believe AI is crucial to the future of the industry and could significantly improve wealth management practices.
Wealth managers see AI as particularly beneficial in areas like client onboarding, where 86% see its effectiveness, summarising client meetings (65%), automated compliance monitoring (64%), and automated regulatory checks (61%). These applications could potentially free up wealth managers to focus more on client relationships and strategic decision-making.
However, the enthusiasm from wealth managers is not fully shared by their clients. The study revealed a significant trust gap, with only 7% of UK investors willing to rely solely on AI for investment advice. While 38% would use AI tools with their wealth manager’s support, a notable 55% of investors are hesitant to use AI for investment advice at all.
Gery Zollinger, head of data science and analytics at Avaloq, emphasized the potential of AI in wealth management but acknowledged the challenges in gaining client trust. “UK wealth managers recognise the enormous potential for AI to support them. That said, there is still clearly a way to go when it comes to bridging the AI trust gap between wealth managers and their clients,” he said. Zollinger highlighted the importance of wealth managers working closely with clients to demonstrate AI’s value and ensure its transparent and understandable application.
This disconnect underscores the need for wealth managers to engage more actively with clients to showcase how AI can enhance the advisory services provided, ensuring the human element remains central to client relationships.
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