Displaying items by tag: technology

Morgan Stanley's CEO Ted Pick announced that artificial intelligence could potentially save the bank's financial advisers 10 to 15 hours per week by automating tasks such as transcribing and entering notes from client meetings. This AI tool is expected to significantly boost adviser productivity and help tailor investment strategies to better meet the needs of wealthy clients. 

Pick also predicted that high interest rates in the U.S. will continue, aligning with views from leaders at JPMorgan Chase and Goldman Sachs, and noted that this environment could benefit the bank's trading and market-making activities. 

Morgan Stanley plans to expand its lending to high-net-worth clients through more advanced financial products as deposits increase. Pick emphasized the bank’s commitment to maintaining its dividend while suggesting that stock buybacks would be influenced by market conditions. 

Finsum: By using AI to boost productivity this extra time could be devoted to deepening client relationships or new client adoption. 

Smarsh, a compliance tech firm serving major global financial institutions, has integrated OpenAI’s ChatGPT Enterprise Compliance API into its platform. This enables clients to utilize generative AI while adhering to regulatory requirements. 

According to Chief Product Officer Goutam Nadella, regulated industries face challenges with new cloud-based solutions due to stringent oversight. The integration allows for AI-generated content to be tagged, helping financial institutions comply with upcoming regulations. 

CEO Kim Crawford Goodman highlighted the importance of maintaining governance policies for AI-generated content. This aligns with FINRA's Regulatory Notice 24-09 regarding the supervision of electronic correspondence using generative AI.

Finsum: AI is best used to augment the relationship between advisors and clients and can serve for scheduling and many writing tasks. 

A recent Goldman Sachs survey reveals that investors are enthusiastic about separately managed accounts (SMAs). Financial advisors appreciate SMAs for their professional management, customization, transparency, tax efficiency, and diversification benefits. 

Chris Mankoff of JTL Wealth Partners finds SMAs advantageous for aligning with clients' preferences and optimizing tax strategies. While there have been challenges in the past with SMAs but the recent technological advancements have made them more accessible and effective. 

Direct indexing, a step beyond SMAs, leverages technology for customized tax management and ESG preferences. Despite their benefits, SMAs may not be suitable for all clients, particularly those with smaller portfolios or predominantly pretax investments.

Finsum: While SMAs might not be for all, with a sizeable portfolio technology makes them easier for advisors to manage. 

WisdomTree Inc. has launched Portfolio Solutions to help advisors create and manage client portfolios efficiently. With $109 billion in assets under management, WisdomTree offers three distinct services: portfolio consultations for advisor-built portfolios, CIO-managed model portfolios, and a shared CIO service for collaborative portfolio management. 

These services aim to streamline asset allocation, save time, and enhance advisor-client communication. Thomas Skrobe, head of product solutions at WisdomTree, emphasized the growth opportunities these services provide for advisors. 

The firm has seen significant adoption, with 2,000 U.S. advisors using WisdomTree managed models and aims to add 1,000 more by the end of the year.

Finsum: The new technology is abundant for portfolio construction, and advisors can lean on the analytics they provide to garner deeper insight. 

The demand for technology to support model portfolio management and portfolio construction is on the rise as firms aim to centralize and scale these services to stay competitive. Model portfolios are becoming a game-changer for financial advisors, with significant growth expected over the next decade due to their efficiency in diversification, risk management, and tailored financial planning. 

Advisors increasingly rely on asset managers to help manage these portfolios, and Jacobi's technology facilitates this by centralizing performance analytics, integrating investment workflows, and generating professional client reports. T. Rowe Price, an early adopter, has experienced improved efficiency and client engagement through Jacobi's platform. 

Model portfolios use technology to enhances team collaboration and meets rising client demands, and they are driving efficiency and expanding market distribution for asset managers.

Finsum: Model portfolios have been one of the biggest technological innovations for financial advisors in the last decade.