19 April, 2023

5 reasons to incorporate automation into your asset allocation plans



19 April, 2023

5 reasons to incorporate automation into your asset allocation plans

5 reasons to incorporate automation into your asset allocation plans

Automation is transforming the wealth management industry, with a growing number of firms embracing this exciting new class of technology solutions to streamline operations and enhance services. This blog post will explore the benefits that wealth management firms stand to gain by implementing automation solutions, ranging from increased efficiency to improved risk management. I decided to take a closer look.

1 – Optimising investment performance

Automated portfolio management and rebalancing

Automated portfolio management and rebalancing can significantly improve efficiency and ensure consistency in adhering to investment strategies. By leveraging technology, wealth management organisations are able to execute real-time adjustments in response to market fluctuations, ensuring that portfolios remain in line with client objectives and risk tolerance.

Utilising AI and machine learning

Advanced algorithms, AI, and machine learning provide wealth management businesses with deeper insights into market trends and investment opportunities. By analysing vast amounts of data more efficiently than a human, these technologies uncover hidden patterns and potential investment opportunities, ultimately improving decision-making and investment performance.

2 – Enhancing risk management and compliance

Real-time risk monitoring

Automation enables real-time risk monitoring, allowing businesses to proactively identify potential threats and make prompt decisions to mitigate them. Through the continual assessment of market conditions, wealth management organisations can better understand and manage risk, providing a more secure investment environment for clients.

Automation in regulatory compliance

In an increasingly complex regulatory environment, automation streamlines reporting processes and reduces human error in compliance tasks. Automating routine tasks such as data entry and report generation enables companies to minimise the risk of non-compliance and associated penalties, while also freeing up resources to focus on more strategic initiatives.

3 – Elevating experience

Personalisation of services

Automation allows wealth management organisations to offer tailored investment strategies and customised reporting to meet clients’ unique needs and preferences. By using data-driven insights, businesses can develop personalised investment plans that align with clients’ goals and risk tolerance, enhancing client satisfaction and fostering long-term relationships.

Faster response times

By automating certain aspects of client communication and portfolio management, welth management businesses can provide faster response times and more efficient query resolution. For example, NLP (natural language processing) chatbots can handle routine client inquiries and provide automated advice, freeing up time for human advisors to focus on more complex tasks. As such, quicker execution of client instructions ensures their needs are addressed promptly, contributing to a positive client experience.

4 – Reducing operational costs and human error

Cost savings

Implementing automation can lead to significant cost savings by reducing staffing requirements and enabling businesses to scale their operations without incurring substantial expenses. Furthermore, through the automation of repetitive tasks, organisations can increase efficiency and minimise the need for manual intervention. This not only saves time but also enables wealth managers to focus on high-value activities, such as building client relationships and developing investment strategies.

Minimising human error

By reducing the reliance on manual processes, automation can improve accuracy in data entry and calculations, ultimately minimising human error. This results in fewer costly mistakes, increased client trust, and a more stable investment environment.

5 -Preparing for the future of wealth management

Staying competitive in the industry

In order to remain competitive in the wealth management industry, businesses must adopt cutting-edge technology and adapt to the changing landscape. Incorporating automation into asset allocation plans is a key step in ensuring that organisations meet the evolving expectations of their clients and stay ahead of the competition.

Encouraging innovation and growth

Embracing automation and other advanced technologies assist wealth management business in fostering a culture of continuous improvement. By constantly looking for ways to enhance their services and processes, organisations can drive innovation and growth. Likewise, adopting new technologies makes companies more attractive to top talent, who may be drawn to companies that demonstrate a commitment to staying at the forefront of the industry.

Final thoughts

In the world of wealth management, where change is the only constant, automation can play a crucial role in helping organisations stay competitive.

Keen to discover how automation can elevate your wealth management firm to new heights? Reach out to one of our experts today. We’re eager to help you harness the power of automation and unleash your firm’s true potential.

Mat Paixao

Director of Revenue



Want our help?
Drop us your email address and we will get in touch.

Prefer to call? No problem! Call +44 (0)1603 578150