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Automation: An Essential In Modern Day Financial Planning

Automation: An Essential In Modern Day Financial Planning

by c-incognito

Automation in the finance industry has arrived. Signalled for a long time with some trepidation, the reality has been a boon to financial planners everywhere.  Financial planning automation utilises artificial intelligence (AI) to assess risk, audit compliance and analyse results quickly and accurately, allowing financial advisors to offer a better and more personalised service.  Automation of routine tasks allows advisors time to build relationships with new clients and increase their customer base. The introduction of automation into financial services has also reduced the incidence of fraud, which according to a survey from the Association of Certified Fraud Examiners caused five per cent loss of revenue every year. 

Automation advantages to finance

Financial automation is applied to a range of purposes that allows process standardization and centralization in an industry, vastly increasing efficiency and therefore productivity. 

Automation began as simple rules called macros and scripts that robotically perform repetitive tasks such as general accounting, income management, and cash distribution.  With AI taking care of these mundane and routine tasks staff can focus on professional development, innovation and customer service. 

 (AI) and intelligent automation (IA) work by applying algorithms to data.  The data is analysed for identifiable patterns, from which information can be extrapolated and applied to the client in meaningful ways.  In a financial advisory setting, AI can incorporate information from multiple sources, presenting solutions based on real time settings. 

Client centred planning

Automation enables a financial advisor to present their clients with scenarios based on individual finances and goals, allowing them to make informed decisions based on these projections.  An important element of automation in financial management is the speed of computation, analysis and risk assessment. Client meetings can result in instant needs analysis, and informed advice on investments, insurance and superannuation very quickly. 

Another benefit is automated Customer Relationship Management (CRM) inbuilt into financial advisor software, providing a central location for all client information and activity including emails, file notes statements of advice (SoAs) and workflows.  The client has instant access to visual information around their own portfolio and financial performance.  As client and advisor both have access to the information via mobile devices, communication is streamlined, contact can be made from any location and the customer can be confident that the information the advisor provides them with is reliable.  

A new approach to the financial advisory role

Financial planning automation has transformed the role of a financial advisor into a facilitator for the client.  With the application of financial advisory software client’s goals can be matched accurately and quickly to suitable products, with AI providing instant updated product comparisons and simulated scenarios to illustrate projected results to the client. 

With administrative and analytical tasks completed automatically with limited input, the advisor has the capacity to service more clients and spend time on relationship building.  Conversely, financial planning automation has enhanced communication and allowed for more meaningful and frequent contact and between client and advisor, with better results for both parties.

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