Displaying items by tag: ai

TradePMR has introduced Fusion SYNC, an AI-powered tool designed to ease the custodian transition process for registered investment advisors (RIAs). By allowing advisors to upload complete client data and automatically transferring it to TradePMR’s Fusion platform, Fusion SYNC aims to reduce manual data entry and speed up transitions, potentially cutting transition time from weeks to days. 

The tool also cross-checks for errors, minimizing the need for manual corrections and improving data accuracy. Jon Patullo, TradePMR’s chief product officer, emphasized that Fusion SYNC aims to ease the burdens of custodial transitions, helping advisors maintain client trust through streamlined service. 

With 40% of advisory assets expected to change hands in the next decade, Fusion SYNC positions TradePMR as an early AI adopter in custodial services. 

Finsum: Lean into technology, and particularly AI when it comes to changing custodians as it can greatly aid the data transfer process. 

The financial services industry is at the brink of transformation with the introduction of generative AI, which could reshape how financial advice is provided. Traditionally, financial planning has relied on human advisors, but AI tools now offer the ability to handle tasks from retirement planning to portfolio management, learning from user data and economic trends. 

These AI systems can improve efficiency and communication between clients and advisors, but adopting them requires careful consideration of the costs and risks involved. Issues like AI "hallucinations," where the technology generates inaccurate advice, and bias in recommendations highlight the need for vigilance. 

Despite these challenges, the potential for AI to revolutionize financial services is immense, provided businesses implement strong governance, human oversight, and regulatory compliance. 

Finsum: By striking the right balance, AI can enhance the financial advisors practice while ensuring ethical and responsible use.

The U.S. is close to finalizing rules that will restrict certain American investments in China’s artificial intelligence sector, with a focus on national security. These regulations, currently under review by the Office of Management and Budget, are expected to be released soon and stem from an executive order issued by President Biden in August 2023. 

The new rules will require U.S. investors to notify the Treasury Department about AI-related investments and limit funding for technologies like semiconductors, quantum computing, and microelectronics that could benefit China's military. 

Some exceptions, such as investments in publicly traded securities and certain limited partnerships, have been proposed. Experts expect further clarification in the final rules, particularly regarding AI's scope and the conditions for limited partners. 

Finsum: There seems to be broader efforts to safeguard U.S. technological from China and this trend is worth monitoring. 

A new survey by Orion reveals that financial advisors are increasingly viewing AI as an opportunity, though its adoption is still gradual. Currently, about a third of advisors are already utilizing AI in their practices, with 42% experimenting with its potential uses. 

Nearly half of advisors plan to integrate AI into their strategies within the next three years, though some remain cautious, with 36% expressing concerns about its implementation. The survey also highlights a divide in preferences for tech solutions, with a majority favoring a mix of bundled and unbundled platforms to balance efficiency and customization. 

Additionally, 84% of advisors see high-net-worth clients as critical for their firm's growth, with most actively expanding in this segment.

Finsum: Its clear that higher up the wealth chain, clients want not only AI thematically but also integrated into their services; making sure their advisors are on the cutting technological edge. 

Advisors aiming to strengthen relationships with younger affluent investors may want to enhance their AI knowledge, as a new survey suggests. Conducted by Boosted.ai, the survey found that younger high-net-worth (HNW) individuals are increasingly incorporating AI into their daily lives and expect their financial advisors to do the same. 

With 82% of respondents describing themselves as AI-proficient and 56% using it regularly, many are looking for advisors who integrate AI into their services. In fact, 35% of younger HNW individuals would consider leaving their current advisor if they aren’t adopting AI. 

As a generational wealth transfer looms, adapting to the preferences of tech-savvy clients becomes critical. However, the survey also reveals concerns about AI, particularly around data security and regulation.

Finsum: This is a huge shift in adoption of this technology and advisors might want to integrate this into their practice for new client adoption.