Wealth management today faces an inflection point. As the demand rises for tailored solutions, goal-based financial planning has taken center stage. For financial advisors looking to make an impact, Gen AI has your back.
Gen AI offers financial advisors the potential for growth and expansion. From automating data analysis to providing personalized investment recommendations, Gen AI puts advisors in control.
It streamlines workflows, helps meet client expectations, and opens up newer markets, offering unlimited benefits. This, in turn, provides businesses with vital insights to maximize profitability.
Here’s a closer look at how Gen AI is advancing goal-based finance planning, what’s in it for advisors, and some of its use cases.
Gen AI for Goal-Based Finance Planning: A Real Game Changer
A comprehensive reporting solution is the hallmark of a functional financial advisor. With Gen AI’s powerful algorithms, it is now possible to fast-track accuracy, save time, and reduce human error.
According to KPMG’s 2024 Gen AI Reporting Survey, 71% of company leaders leverage data for significant decisions. Another 52% are using Gen AI to impact “competitive positioning,” and 47% for new “revenue opportunities.” For goal-based financial planning, Gen AI checks all the boxes.
- Identification of short and long-term goals by re-evaluating circumstances
- Offering customized risk management strategies using advanced support systems and analytics
- Providing personalized, actionable recommendations tailored to client goals
- Simplifying complex concepts to boost financial literacy and drive more informed decisions
- Using an interactive interface to offer answers to common queries
- Generating detailed reports with visual aids for clients to understand financial data better
The Shift From Traditional to AI-Driven Solutions
Managing finances has always been tricky and time-consuming. The non-availability of relevant information, juggling balance sheets, and lack of data transparency have been a bummer. Yet, one can’t help but rely solely on human advice.
Fast forward to today. Financial advisors are busy shuffling budget plans and investment strategies in a few clicks. It invariably puts them a step ahead in winning the client’s trust with age-defying tools.
Take robo-advisors, for instance. They are algorithm-powered assistants offering portfolio management and investing advice without human intervention. So, does that mean there’s no room for human advisors? Not at all! In fact, a combination of humans and AI does the job right.
A good case in point is estate planning, where you draft and analyze a bunch of legal and financial documents. These documents decide the course of events after a person dies. Such complex situations warrant clients speaking to a human. That’s where the best financial planning software for advisors packs a punch. It promises a string of benefits for advisors to live up to client expectations.
- Gaining real-time insights across market trends
- Navigating volatile markets with greater confidence
- Analyzing varying patterns for client preferences and goals
- Reducing the time reserved for routine tasks
- Focusing on high-value tasks like strategic planning and client conversations
- Automating financial report preparation
- Presenting data in a clear and actionable format from multiple sources
- Improving consistency and accuracy of reports
Asset-Map believes simplicity and accessibility should be at the core of a financial planning system. That way, advisors can win more referrals and continue to flourish their business.
Gen AI Ruling the Roost of Finance Planning- Use Cases
As a subset of Machine Learning, Gen AI uses NLP processing to make a positive impact. And it’s not limited to financial reporting or market research alone. Here are other best use cases to consider.
- Performance Management: Gen AI algorithms can readily generate vital insights for optimizing a company’s financial performance. This allows financial professionals to monitor and improve the performance of existing investments.
- Risk Assessment: Gen AI uses its model training data to teach the algorithms to identify potential risks. This, in turn, helps financial advisors assess short and long-term investment opportunities and improve clients’ decision-making processes.
- Earnings Analysis: Training models focusing on historical earnings and reporting direct Gen AI algorithms to offer predictive insights. Thus, financial advisors find it easy to identify lucrative investment opportunities for their clients.
A Rewarding Future Awaits Financial Advisors
Gen AI is more than a trend for financial advisors. It’s a strategic move driving innovation and maximizing operational efficiency. Thus, embracing Gen AI can be a game changer in realizing a firm’s goal-based financial planning.
However, the major challenge is creating a meaningful client experience. Hence, the primary focus should be understanding the client’s perspective. Only then can financial advisors remain relevant in today’s connected world.
