Displaying items by tag: advisors

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. 

RNMKRS, a company based in Larchmont, New York, leverages artificial intelligence (AI) to enhance sales training. By creating an AI persona called Alex, the system simulates customer interactions and provides feedback to sales representatives, helping them improve their communication and selling skills. 

Since its inception, RNMKRS has trained around 30,000 sales professionals from over 100 companies. Co-founded by Stefanie Boyer, a marketing professor at Bryant University, the platform is grounded in her extensive research on learning science and sales performance. 

The AI-driven system has role-played over 500,000 conversations, refining its ability to give consistent, data-backed feedback. Boyer believes AI has the potential to transform human-to-human communication by offering non-judgmental, constructive criticism.

Finsum: Advisors really need to utilize the full capabilities of artificial intelligence to grow and expand their business, and sales training could be a very valuable addition. 

With 2024 coming to an end, financial advisors contemplating a switch to a new broker-dealer may wonder if there’s still time to make the move. While possible, the process can take several months depending on the complexity of the transition and level of support available. 

Advisors looking to act quickly may benefit from financial incentives and smoother tax records by completing the transition before the new year. However, rushing such an important decision isn’t advisable, so careful planning and blocking time for key discussions is essential.

Transition consultants can help expedite the process by securing offers and guiding advisors through the logistics. Ultimately, those who begin the process now may still be able to switch broker-dealers by the end of 2024, but many may find it more practical to plan for early 2025.

Finsum: While it’s certainly late in the year these services could help optimize time in order for a smooth transition.

Many financial advisors struggle with the idea of their own retirement due to a fear of losing identity and purpose, leading to delayed succession planning. Casey Jorgensen, head of the Dynasty Institute for Adaptive Leadership, emphasizes the psychological barriers that keep advisors working past their prime. 

Advisors often fear losing their sense of self and purpose, contributing to delayed transitions and frustrated potential successors. Dynasty Financial Partners focuses on the emotional aspects of retirement in its advisor succession planning efforts, encouraging advisors to plan not just for what they’re leaving behind, but for what lies ahead. 

Failure to prepare adequately for retirement can negatively impact a firm’s growth and valuation as aging clients distribute assets. Jorgensen encourages advisors to develop a post-career plan to maintain a sense of purpose after stepping down from their careers.

Finsum: A successful succession plan is not only fruitful for the company but for advisors as well and can give other clients confidence. 

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.