Tessa Lee, managing director of adviser fintech support firm Moneyinfo, looks at how Financial Planning can be transformed in the coming years by AI.

The year is 2034, and Financial Planner Penny Wise wakes up to Alexa’s soft chimes. After a quick glance at the morning news on her smart mirror, she heads to her London office, a sleek, solar-powered building in the heart of the city.

1. An AI assisted morning routine

Penny grabs a cuppa and reviews her AI dashboard which has highlighted key meetings and related documents, generating insights for clients Penny is due to meet. She adjusts the plans based on her knowledge of each client's unique circumstances. This blend of machine efficiency and human intuition means Penny is ready for the day ahead.

2. Hyper-personalised budgeting

First client, James, is a young professional struggling with student loans, a mortgage, and saving for the future. Overnight, Penny’s AI-powered budgeting tool has analysed James's spending habits, income, and financial goals, producing a tailored budget. Penny reviews the suggestions. "James, cutting back on takeaways could save you quite a bit each month,” she begins. “The AI suggested reducing your travel budget, but I know you commute daily. So let's adjust that and find savings elsewhere."

Together, they tweak the AI's recommendations to better fit his lifestyle. James leaves the meeting with a customised plan that balances AI efficiency with Penny's personal touch.

3. Predicting market trends

Next up is Sarah, a long-term client with a complex investment portfolio. Penny’s AI-driven predictive analytics tool has projected a downturn in the tech sector but sees promising growth in renewable energy. Penny examines the AI's forecasts in line with Sarah’s risk tolerance and investment history. "Sarah, based on the latest analysis, I recommend reallocating some of your investments into green energy," she advises. "The AI suggests 20%, but I think a 15% adjustment would be more appropriate for your risk level."

Sarah nods, impressed. The predictive insights improve Sarah's returns and reinforce her trust in Penny’s expertise.

4. Transforming client support

As Penny finishes her meeting, a notification from the AI chatbot integrated into her client portal pops up. A client has a question about their pension contributions, and the chatbot has provided a real-time response. It’s good at handling routine questions, so Penny can focus on more complex client conversations. Later, during a meeting with Emma, Penny can focus on her client’s long-term needs. "The chatbot was really helpful with my ISA options," Emma observes. 

5. Tailored plans for every client

That afternoon, Penny meets new clients Rohan and Alisha, a couple planning for their children's education and their own retirement. Her AI-powered workflow schedules the Teams meeting and automates information collection so Penny is well-prepped. It also records and transcribes the meeting allowing her to focus on getting to know her new clients. Following the meeting the AI produces notes and a detailed fact find. In minutes, it creates a highly personalised financial plan based on the couple’s current situation, goals and risk profiles. Penny reviews this plan and adjusts the suggested level of pension contributions to allow for their desire to travel more, before approving it to be sent via the client portal.

A perfect partnership

As the sun sets over the Thames, Penny reflects on her day. AI has not replaced her; it complements her, allowing her to focus on building relationships with empathy and expertise. Financial Planning is still deeply human, but it’s hugely more efficient. With AI handling the heavy lifting, Penny can dedicate more time to her clients. The perfect blend of technology and the human touch.

Tessa Lee is managing director of Moneyinfo, a fintech firm based in Warwickshire, specialising in client portals and mobile apps for the wealth management industry. She has more than 20 years’ experience working in financial advice and fintech and holds several CII Financial Planning qualifications.

https://www.moneyinfo.com/

@moneyinfotech 

Fintech entrepreneur Tessa Lee of Moneyinfo looks at why AI and the latest tech are valuable tools for Financial Planners but are no replacement for human interaction.

I wondered what ChatGPT would think about replacing a human Financial Planner so I asked it. Its response was that while it could offer insights and guidance, it cannot replace the expertise and personalised advice offered by a human.

When I said I was anxious about having enough money in retirement it suggested that I consult with a qualified Financial Planner who could provide valuable guidance, personalised advice and peace of mind.

If AI doesn’t think it can replace the human planner then why should we? 

Technology and humans possess fundamentally different abilities. Computers are good at automation. They are faster and more accurate than us.

They complete repetitive tasks without making mistakes or getting bored, but they are not emotional or empathetic.

Where computers act based on the inputs or data they receive, humans possess a very different type of intelligence. Often what people say is not what they actually feel. Humans sense emotion and vulnerability. They understand nuances of behaviour or cultural differences. They make judgements and adapt to changing circumstances. This is why computers, even the artificially intelligent ones, cannot replace a real-life Financial Planner.

Instead, technology’s role is to enhance what we do. In Financial Planning this means outsourcing tasks to technology to allow planners to focus on what clients really value; the conversations they have with their planner and the peace of mind that this brings.

Today’s clients, young or old, expects access to information and service in a digital way because this is what they get in all other aspects of their lives. In today’s world it is also critical that firms can communicate securely with their clients but in a way that is easy for them.

Every firm I speak to is looking to improve efficiency throughout their business and remove friction and cost from key processes like on-boarding and client reviews. It’s precisely these processes that technology can enhance, removing paperwork and driving greater efficiency. We call this digital relationship management and it’s changing the way Financial Planning firms do business for the better.

Imagine that a client gets a push notification through your app to update their digital fact find when their review is due, or to nudge them to review a financial plan report or accept your client agreement.

Through tailored workflow processes to perform key tasks, such as getting clients to book meetings or sending out documents, business processes can be speeded up. When tasks can be completed in minutes rather than days your business becomes more profitable.

Instead of replacing human interaction, technology frees up time for everyone to focus on more rewarding and valuable tasks. Planners can then spend more quality time talking to clients and nurturing new relationships.

Technology is far from becoming the next super-planner. In reality, it’s an ally not an enemy and it’s there to help you do business in a more efficient and profitable way. Clients will always value and want the human relationship in Financial Planning…just ask ChatGPT!

Tessa Lee is managing director of Moneyinfo, a fintech firm based in Henley in Arden, Warwickshire, specialising in client portals and mobile apps for the wealth management industry. Ms Lee has more than 20 years’ experience working in financial advice and fintech and holds several CII Financial Planning qualifications.

https://www.moneyinfo.com/

@moneyinfotech