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Technology has taken customer service to another level. Companies such as Netflix and Amazon are able to improve customer experience in a myriad of ways due to artificial intelligence and predictive analytics. This has set a new standard for customer experience and shows the power of technology as a business tool. Wealth management has also begun to take advantage of technology, with these digital upgrades serving as the modern centerpiece for how advisors, investors and financial institutes conduct business. 

Data Insights

The concern that technology may replace humans is a widespread one, even in the wealth management industry. Realistically, wealth management technologies are not meant to replace the role of the wealth manager, but rather to supplement it. This way, wealth managers have more time and energy to focus on improving customer experience. For example, AI offers unique insights into large amounts of data for wealth managers. This data allows wealth managers to offer better, more useful advice to their clients. U.S. Bank provides a service that gathers external financial accounts and allows them to get a better glimpse of clients’ financial situations. The service allows clients to get a better understanding of their entire financial life, and AI tools work to determine what kind of impact the purchase of something such as a car might make to the client’s financial health.


Another piece of technology making waves in wealth management is the “robo-advisor.” Robo-advisors use computer algorithms and high-end software to create and manage investment portfolios. They’re typically capable of services such as automatic rebalancing and tax optimization, and they don’t usually require any human interaction to function. Robo-investing is quick and easy, and it comes at a relatively low cost. Most companies that provide robo-advisors only charge between .25% and .50% as an annual management fee, and frequently waiving the transaction fees associated with human advisors.


Distributed ledger technology (DLT) is another innovation in wealth management technology. In particular, blockchain has been trending in the industry. Blockchain eliminates the need for stock transaction intermediaries, so trades can be settled in real-time. DLT can be used for wealth management in other ways as well. Since DLT has high data security, client onboarding is as easy as ever, and smart contracts offer the potential for immediate strategy adjustments.

In the current customer service climate, clients expect personalized experiences. By incorporating new technologies, wealth managers can give clients these experiences, allowing them deeper insights as well as helping to make investing easier than ever.