The past three years have seen pretty much non-stop uncertainty and market turbulence. The pandemic, war, and the battle to keep inflation under control have all been a worry for investors concerned about the impact of volatility, interest rates and inflation on their portfolios. 

It is no surprise that clients are reaching out to their advisers with increasing frequency. They seek reassurance, insight, and, more than that, to know that their portfolios are appropriately positioned for risk-adjusted performance over the long term and to match their risk profile and investment aspirations. 

To meet those expectations, advisers need to be able to react to markets and look after their clients. They also need to be able to take a proactive approach and demonstrate to their clients that they have a handle on investments, have considered all the various ‘what-if scenarios’, and can provide timely and personalised advice to steer their clients through these difficult times. 

The challenges of servicing large client books across multiple channels

Advisers need to be able to reach out over a variety of channels and provide timely and personalised advice. This is hard to do when advisers look after many clients, but never has it been as important in terms of client experience.

The issue is that with so many clients to look after, advisers find it almost impossible to deliver that level of service to all their clients. But each and every client is different and a personalised, bespoke service level and proposition is now very much the expectation. This is where the technology comes in…

Using AI to effectively serve clients at scale

AI tools like InvestCloud’s Next Best Action provide recommendations in the context of the current market outlook, client goals, risk profile, behavioural elements, current and past investments, and likes and dislikes. The end result is to serve clients with relevant and personalised investment proposals and back that up with appropriate research.

In this context, AI is the real game changer and is what is making a difference to advisers. It adds extra capacity that the adviser can leverage to make better suggestions to clients and thus provide a value-added and personalised service. Natural Language Processing (NLP) and Machine Learning (ML), in particular, are harnessed to scan hundreds of pages of research, product information, and the like to produce short and focused insights. Those outputs are then directed to clients with matching portfolios, risk appetites and interests. Essentially, the technology does all the heavy lifting, and the adviser then provides the human touch and the service.

Work with technology, not against

Using AI and ML does not replace or deskill advisers. When an adviser is managing 300+ clients, and everyone has different aspirations, portfolios and regulations to adhere to, technology is here to support and augment the adviser. This highly regulated and dynamic environment is a complex jigsaw puzzle and too big for a single human to deal with effectively. It is information overload. The technology is not performing a task that a human couldn’t, given unlimited time and infinite bandwidth. But human time and energy are limited, and AI provides the extra capacity required. Using technology to come up with actionable insights and ‘next best action’s’ means that advisers can service more clients but keep the service level and personal touch. 

There is a real pivot to the front office, with clients increasingly demanding 24/7 servicing. Deploying digital tools has become critical to alleviating advisers' capacity constraints and making more strategic decisions. Technology enables advisers to focus on ensuring the best outcomes for their clients. That includes finding the best portfolios and products to support those outcomes and communicating to make sure what they do registers with the clients. This is particularly important now as advisers must help clients steer a course through choppy investment waters.