Insights:
- Unstructured data remains a key challenge across financial services, limiting the application of Artificial Intelligence (AI) to develop digital solutions and automation.
- With so many tech tools and solutions on offer, the key to tech integration is to start small and pick key capabilities your business wants to add now and then add more over time.
- Experts advise businesses should only consider developing tech themselves where there is a unique processing model.
AI can add significant value by reducing manual data entry and client engagement, but the industry must first address data quality.
This was the message from industry experts and practitioners at the recent Class Ignite conference discussing the topic ‘Is your practice best practice’ which focussed on how to use data and tech to get the most efficient and productive practice.
The panel included SuperGuardian Chief Operations Officer Josh Williams, Intralink Wealth Management Partner Zoe de Jong, myprosperity Founder and Director Peter McCarthy and HUB24’s Director Strategic Development Jason Entwistle.
Unstructured data remains a driver of tech challenges
Leveraging AI remains a challenge while data across the industry sits in numerous locations such as email and file notes, creating a cycle of inefficiency that remains difficult to change.
“The data entry we do is triggered by unstructured data, but we can solve both ends of that, to read unstructured data with machine learning and glean information to fill in the gaps,” said Entwistle.
He said currently 80% of the data across the industry is unstructured, and by structuring this data we can then utilise machine learning and AI to automate processes and enhance client engagement through digital tools.
McCarthy agreed: “AI is only as good as the data. You’ve got to get the data right. If you can clean up your data, then you’ll be ready for AI.”
The currency and accuracy of data is a key concern for accountants who want to ensure they can effectively service their clients. For this reason, registry feeds and document feeds top their list as desirable automation capabilities.
de Jong said to try and manage data quality, Intralink automates where possible and trains its team to understand their role and the impact of making errors. It also reviews all reports before they go out to clients.
Integration is challenging when there is much tech on offer
Integrating technology remains a challenge for accountants but starting with the client first mentality, helps de Jong’s business focus on what technology capabilities they really need to run their wealth management services business.
“If we can use tech to make it simple for us and our clients, we should,” she said.
Williams agrees: “It’s easy to see a plethora of apps and think we need it, but we might not. It’s about what we are doing in the first instance and then how can technology help with that. This helps us stop automating bad processes.”
Building tech stacks with disparate solutions that lack proper integration is a common industry challenge, but according to Entwistle, this is starting to change.
“Big solutions don’t solve all your problems, it’s all the pieces of a puzzle that fit together. But there is a huge change coming where the technologies do the integration themselves and there are efficiency gains to be made from this.”
In the meantime, Williams said taking employees on the journey remains an important strategy to apply with integration. “It is hard to get them to take a step outside their bubble when they are used to doing things a certain way.”
McCarthy said he has learned from clients that the key with adoption and integration is to start small and pick key capabilities that you want to add now and then add others over time.
Tech delivering new client experiences
Client experience and engagement has shifted from focusing solely on visible elements to emphasising the entire client journey.
McCarthy said with greater reliance on phones to deliver digital experiences, clients not only want to see their whole view of wealth, but also use their phone to login and to engage securely with their adviser or accountant using tools such as digital signatures.
Despite this functionality, Entwistle said Covid-19 and the new experience of signing into everything including restaurants, has moved clients ahead of what is being offered by most financial service providers.
“As an industry, we don’t have an Uber equivalent. It’s about how are you using tech to increase engagement.”
Building versus buying tech
Intralink has developed a document management system to facilitate client engagement and centralise data securely. However, the question of whether it is better to build or buy tech solutions requires careful consideration. Building custom solutions may seem cheaper initially, but maintaining these solutions often comes with significant long-term costs and resource demands.
McCarthy noted while initial expenses can be saved, the long-term costs of maintenance can outweigh these. Additionally, choosing to build in-house can come with significant opportunity costs, diverting focus and resources from serving existing clients and driving business growth.
“Build as little as possible, know what’s available in the market, and only develop tech when you have a unique processing model,” said Entwistle. By leveraging AI, businesses can drastically reduce manual data entry, saving businesses days and weeks rather than seconds and minutes.
Further, he said if speed is the main advantage and the only reason for building is that no one else has done it yet, it’s likely a large tech firm will eventually provide the solution – it just might take a bit longer.
AI in action in financial services
AI has the potential to significantly enhance the operations of the accounting industry, driving improved efficiencies and deeper client engagement.
During the Class Ignite session titled ‘Immersing your Business with AI Tech’, Dr Evan Morrison, Head of the Innovation Lab at HUB24, shared practical insights on how AI is already reshaping client experiences in financial advice.
Since its inception in 2018, the HUB24 Innovation Lab has been committed to exploring how AI and machine learning can bolster service delivery, driving productivity and operational efficiency.
Today, AI tools are streamlining financial advice processes such as automating fact-finding from conversations to notes, generating videos, creating content and imagery, and powering response models like chatbots.
These capabilities have evolved from basic data visualisation tools to more advanced business intelligence, predictive analytics, machine learning and optimisation functions.
Generative AI is also being used to create a range of content, such as automated email drafts and marketing visuals, and can be used to summarise complex documents such as SOAs. This capability streamlines process automation and content generation,
enabling businesses to communicate more effectively with different client segments in their unique brand voice.
These capabilities empower employees to find answers quickly and can be used in customer service, operational knowledge and research, while content generation can support client engagement.
“Generative AI is something you can use as a starting point to get involved in AI,” said Dr Morrison.
New channels for client engagement include augmented reality (AR) and virtual reality (VR), which use immersive technologies like smart glasses to deepen client interactions.
Voice AI can be leveraged to transcribe client meetings and generate reports, provide personalised, voice-based advice, and improve accessibility and client engagement.
It can also be used to create scripts and personalised explainer videos for client statements or integrate voice technology, similar to Siri or Alexa, to enhance SMSF practice efficiencies.
This technology can further enhance client communications through newsletters, where staff avatars can deliver scripted content in video format to engage clients more effectively.
Disclaimer
The information contained in this document is provided by Class Pty Ltd ABN 70 116 8023 058 (Class), which is a subsidiary of HUB24 Limited (HUB24) and is current as at the date of publication. It is factual information only and is not intended to be financial product advice, legal advice or tax advice, and should not be relied upon as such. This information is general in nature and may omit detail that could be significant to your particular circumstances. Accordingly, before acting on any of this information, the viewer should consider the appropriateness of the information having regard to their or their clients’ objectives, financial situation and needs. This information is provided in good faith and derived from sources believed to be accurate and current at the date of publication. The information given in this document is in summary form and does not purport to be complete. While reasonable care has been taken to ensure the information is correct at the time of publishing, superannuation and tax legislation and circumstances can change from time to time. Accordingly, neither Class, nor HUB24 nor any of their related bodies corporate make any representations or warranties as to the completeness or accuracy of the information in this document and none of these entities is liable for any loss arising from reliance on this information, including reliance on information that is no longer current. We recommend that you seek appropriate professional advice before making any financial decisions.
