Clients are facing delays of up to three months due to the lengthy onboarding processes of some wealth managers, according to a new report.

Tessa Lee, managing director of adviser fintech support firm Moneyinfo, looks at how Financial Planning can be transformed in the coming years by AI.

The year is 2034, and Financial Planner Penny Wise wakes up to Alexa’s soft chimes. After a quick glance at the morning news on her smart mirror, she heads to her London office, a sleek, solar-powered building in the heart of the city.

1. An AI assisted morning routine

Penny grabs a cuppa and reviews her AI dashboard which has highlighted key meetings and related documents, generating insights for clients Penny is due to meet. She adjusts the plans based on her knowledge of each client's unique circumstances. This blend of machine efficiency and human intuition means Penny is ready for the day ahead.

2. Hyper-personalised budgeting

First client, James, is a young professional struggling with student loans, a mortgage, and saving for the future. Overnight, Penny’s AI-powered budgeting tool has analysed James's spending habits, income, and financial goals, producing a tailored budget. Penny reviews the suggestions. "James, cutting back on takeaways could save you quite a bit each month,” she begins. “The AI suggested reducing your travel budget, but I know you commute daily. So let's adjust that and find savings elsewhere."

Together, they tweak the AI's recommendations to better fit his lifestyle. James leaves the meeting with a customised plan that balances AI efficiency with Penny's personal touch.

3. Predicting market trends

Next up is Sarah, a long-term client with a complex investment portfolio. Penny’s AI-driven predictive analytics tool has projected a downturn in the tech sector but sees promising growth in renewable energy. Penny examines the AI's forecasts in line with Sarah’s risk tolerance and investment history. "Sarah, based on the latest analysis, I recommend reallocating some of your investments into green energy," she advises. "The AI suggests 20%, but I think a 15% adjustment would be more appropriate for your risk level."

Sarah nods, impressed. The predictive insights improve Sarah's returns and reinforce her trust in Penny’s expertise.

4. Transforming client support

As Penny finishes her meeting, a notification from the AI chatbot integrated into her client portal pops up. A client has a question about their pension contributions, and the chatbot has provided a real-time response. It’s good at handling routine questions, so Penny can focus on more complex client conversations. Later, during a meeting with Emma, Penny can focus on her client’s long-term needs. "The chatbot was really helpful with my ISA options," Emma observes. 

5. Tailored plans for every client

That afternoon, Penny meets new clients Rohan and Alisha, a couple planning for their children's education and their own retirement. Her AI-powered workflow schedules the Teams meeting and automates information collection so Penny is well-prepped. It also records and transcribes the meeting allowing her to focus on getting to know her new clients. Following the meeting the AI produces notes and a detailed fact find. In minutes, it creates a highly personalised financial plan based on the couple’s current situation, goals and risk profiles. Penny reviews this plan and adjusts the suggested level of pension contributions to allow for their desire to travel more, before approving it to be sent via the client portal.

A perfect partnership

As the sun sets over the Thames, Penny reflects on her day. AI has not replaced her; it complements her, allowing her to focus on building relationships with empathy and expertise. Financial Planning is still deeply human, but it’s hugely more efficient. With AI handling the heavy lifting, Penny can dedicate more time to her clients. The perfect blend of technology and the human touch.

Tessa Lee is managing director of Moneyinfo, a fintech firm based in Warwickshire, specialising in client portals and mobile apps for the wealth management industry. She has more than 20 years’ experience working in financial advice and fintech and holds several CII Financial Planning qualifications.

https://www.moneyinfo.com/

@moneyinfotech 

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