GenAI’s Role In Asia’s Explosive Wealth Management Growth
Doubling AUM under management in three years!
Accenture lays out how Asia’s wealth management industry is on fire and will use GenAI to help -double- AUM over the next three years!
Are you shocked? Don’t be.
The IMF says that Asia will contribute roughly 60% of global economic growth this year, making it the world's growth engine. Note that Asia’s share of the global economy rose from 21% in 1990 to 39% in 2023.
This is “Asset management at the speed of Asia,” and Accenture does a great job of explaining in granular detail how GenAI will play a big part in Wealth management.
👉TAKEAWAYS
GenAI’s six primary use cases for Wealth Management are:
GenAI-powered prospect identification:
Leads capture, prospect 360 view, conversation topics
Onboarding E2E tracking:
Workflow tools, digital document signing
Gen AI-driven investment recommendations:
Here, RMs are pushing back and view their expertise as the key differentiator in clients’ eyes and might worry that AI could replace them when it comes to investment recommendations.
Gen AI-powered E2E content dissemination:
Clients say content is the most important of 40 elements of the investment proposition; it also has the largest satisfaction gap at 7 percentage points versus expectations. Almost half of clients do not get relevant, personalized content.
Service agent co-pilot:
A chatbot to assist in client services, term sheet, and document generation, and compliance and fraud detection.
Knowledge management co-pilot:
Autogenerate reporting presentations.
👊STRAIGHT TALK👊
Accenture’s report does a fabulous job in capturing how clients, relationship managers (RMs) and CXOs all see GenAI from a different perspective.
This is a fundamental problem to overcome because AI development must serve many masters.
Take client prospecting, for example; here, RM's and CXOs have a large gap, with CXOs feeling that no GenAI intervention is required and that traditional referral and sourcing networks are doing their job. Meanwhile, RMs whose job depends on bringing in new clients need all the help they can get!
In contrast, CXOs want GenAI’s help in advisory, while RMs feel that their expertise is the key factor in their client relationships and don’t want GenAI to steal the show!
While these differences may impact roll-out speed, GenAI will ultimately become an integral part of the entire WM process, whether CXOs or RMs like it or not.
And why not? Accenture predicts that enabling the six primary GenAI systems above would allow a model firm to grow 3.5x GenAI-enabled compared to normal organic growth.
Who can argue with numbers like that?
Certainly not high-growth Asia!
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