Contact

News & Insights

NEWS WRAP – Approaching AI in the Financial Advice Industry

The survey revealed that 72 per cent of financial services firms are planning to introduce a greater reliance on automation over the coming five years, and, tellingly, it is larger firms who are making the most contingencies, with 94% of the larger firms polled saying that they had already earmarked sums for greater investment in AI platforms. **

However, the research found that among some advisers there was reluctance to adopt AI technologies (88.8%) because of fears about a lack of transparency**. The Financial Conduct Authority’s Christopher Woolard recently summarised this view when he expressed concerns that
“true robo-advice” might be impossible to regulate because of its algorithmic decision process.*

The Blacktower FM View

It is hard not to meet the news regarding automated financial services with some level of ambivalence; yes, anything that improves efficiency and/or outcomes and reduces costs while also freeing more time for client-adviser interaction is undoubtedly a good thing, but not if it ultimately leads to a downgrading of human service.

Perhaps AI will work for some and not for others; it is conceivable that it will not be the high-net-worth client who benefits from the technology, but instead those with smaller investment sums or those who are unable to afford bespoke financial advice.

Currently, it is difficult to predict precisely where AI will go.

What is certain is that AI can only make the financial advice process “more meaningful” if it enhances human interaction rather than diminishing it. This scenario would mean AI taking over some of the number-crunching, thereby freeing advisers to provide clients with more frontline and personalised support.

This, at least, is the view of Rainbird’s chief executive James Duez, “Financial advisers will increasingly be performing specialised tasks that machines cannot. A new generation of AI can replicate human reasoning and make inferences from data, but it cannot empathise with people.”*

Human advice from a forward-thinking firm

Blacktower Financial Management has more than three decades of experience in the financial services and wealth management sector. Again and again we have shown our commitment to evolution and innovation while all the time retaining the human qualities that have made us such an outstanding firm.

Wherever you live, if you are an expat and are looking for international financial advice from a team of specialist cross-border advisers, contact your local Blacktower FM office today.

 

* Poll report on FTadviser.com https://www.ftadviser.com/your-industry/2019/10/04/how-automation-could-change-the-advice-industry/ Accessed 01-11-19

** https://www.blacktowerfm.com/images/73RB_EnterpriseSurvey_A4.pdf Accessed 01-11-19

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Expats can enjoy Spain’s top quality beaches

ShellsAlthough the country may not have had much success in this year’s Eurovision Song Contest, Spain has many other reasons to celebrate.

For instance, there is one very strong factor that makes Spain such a popular destination for many holidaymakers and expats (other than its music scene): it is home to many glorious beaches.

Read More

How much should I be saving for retirement?

Retirement couple sitting on a benchMillions of employees work tirelessly for decades in the expectation of a comfortable retirement in the future. But for many UK residents retirement is an event to be feared due to lack of savings and pension. It’s important to find the balance for comfortable retirement savings.

To help you understand how much is needed, we at Blacktower Financial Management have revealed how much to save for retirement, how much you should be saving for retirement each month, and top tips that map out the best way to save for retirement.

If you plan on living out your retirement years without worrying about finances, ensuring you have sufficient retirement savings is a must.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.