AI in Financial Services and Wealth Management

Artificial intelligence (AI) is a set of technologies that enable computers to perform a variety of advanced functions, including the ability to see, understand and translate spoken and written language, analyze data, make recommendations, and more. Two types of AI include predictive and generative AI. Predictive AI is used to make predictions or projections based on existing data sets or trends. Generative AI produces new content based on existing data.

AI in Financial Services and Wealth Management

AI holds much promise for financial institutions and wealth managers, potentially driving significant efficiencies across business operations. Financial services AI tools and capabilities available to financial advisors include:

• Portfolio improvement: AI can analyze large amounts of data immediately to identify opportunities for investment performance and enhancement, market trends, and red flags to manage risk. These tools can monitor portfolios to make informed decisions and optimize asset allocation. 
• Regulatory Compliance, Auditing and Reporting: AI can monitor laws and regulations to alert financial advisors to any changes and updates, as well as ensure compliance across jurisdictions. AI can also automate the auditing process, generate reports and file them on time. AI can store documents securely and archive past versions of documents.
• Meeting transcription: Capturing client feedback, questions, requests, and discussion points with details is critical. AI can transcribe meetings efficiently and accurately and free financial advisors to focus on the discussion. Psympl uses Fathom for note taking and transcription, though there are also other AI tools available.
• Customer Support: Chatbots have become ubiquitous, and consumers have become used to them for simple queries. While financial advisors will want to personally handle more complex and important client questions, AI chatbots can handle more routine questions and be more interactive and efficient user experience than a simple FAQ page on a website.
• Tax optimization: AI can identify short and long-term tax benefits through asset sale opportunities and balance against gains.
• Client communication: AI can automate messaging and emails that don't require a lot of personalization, such as meeting reminders, summaries, and follow-ups, deadlines and even courtesy holiday and birthday wishes. Consistent communication is a key to client loyalty and retention.
• Marketing and Prospect Acquisition: Catching a prospect's attention and converting them can be extremely challenging, especially in a highly competitive market with approximately 300,000 financial advisors working across a range of industries. AI can help predict which prospects are high-potential leads most likely to convert based on past data. AI can generate content for emails and social media, which can be targeted following specified criteria. "Thought leader" articles can be generated for websites and shared, pinpointing people who have been actively engaged on similar topics across social media. CRM platforms like Hubspot use AI to personalize content.

Content Personalization

Content personalization can drive higher client retention and conversion rates, but behavior-based predictive analytics and AI-driven targeting and engagement can only go as far as the data available to it. For example, two people may have behaved the same way in the past, and AI will pick up on these behaviors (e.g., communication response, purchases, etc.). However, AI will not necessarily know WHY people engaged in these behaviors. No two clients are alike, and their motivations could be quite different. True personalization takes human factors into account, such as personality, desires, and fears.

A method for understanding psychological differences among a population is psychographic segmentation. Psychographics pertain to people's attitudes, values, beliefs, fears, personalities, and lifestyles, which are core to their motivations and priorities. Psychographic segmentation groups people according to these shared characteristics. Psympl conducted extensive market research to understand people's approaches to investing, financial services, and the role of financial advisors, and to identify a financial psychographic model that explains consumers' decision-making processes and investment behaviors - a client motivation analysis.

Financial Services Segments

Psympl identified five distinct psychographic segments for financial services:

Each psychographic segment approaches investing and money management differently, and they require unique engagement strategies involving message, wording, channel mix, and frequency of communications to catch their attention and activate desired behaviors. Advanced, wealth management personalization goes beyond demographic and socioeconomic variables, which AI typically relies upon, such as age, net income, and investable assets.  It takes into account psychographic, human characteristics and preferences.

Psychographic AI^TM

Psympl offers Psychographic AI^TM to enable financial advisors to leverage psychographic insights and automated content generation for enhanced client engagement, prospect marketing, and wealth management personalization. Psychographic AI powers the immediate and effortless generation of personalized content using psychographic insights, including:

• Email
• Text messages
• Call scripts
• Social media
• Digital advertising
• Search terms
• Print/postal mail
• Print advertising
• Plus any method of client engagement using words and/or images

Psychographic AI does not replace a financial institution's existing CRM platforms or AI tools; rather, it integrates with and enhances these technology investments to maximize their effectiveness and results without disrupting current operations. Whether a financial advisor manages dozens or thousands of clients, Psychographic AI scales to deliver advanced personalization that resonates with each, individual client.

To find out more about the Psympl Financial Psychographic model, market research, or Psychographic AI-driven customer insights, please download our whitepaper, Psychographics in Financial Services and Wealth Management.