Finansliv, Sweden: Cognizant’s Head of Banking and Financial Services in Europe Says Software Automation can Empower Traditional Financial Advisers to Give Better Advice

“While the discussion around the benefits of automating some jobs continues, numerous businesses such as banks are already using software automation to improve operational processes and efficiency,” says Sriniketh Chakravarthi. “The power of smart robots may in fact enhance today’s knowledge-based jobs and even create entirely new job categories.” Excerpts:

“With banks at the forefront of adopting software automation, one area that can be especially beneficial is wealth management, where providing prescient financial advice hinges on the ability to conduct real-time monitoring of risk.

In recent years, a combination of factors including rapidly developing digital technologies as well as changing customer demographics have led to a number of disruptive start-ups entering the wealth management arena. The rise of new financial vehicles, such as passive Exchange Traded Funds, enable these start-ups to offer automated services that make customers’ asset allocation decisions easier, while also lowering costs. By providing their wealth management robots with a set of personal preferences and data including income, savings rate, and preferred level of risk aversion, clients get algorithm-generated advice that they may or may not choose to act on.

Across industries, the benefits of automation are obvious and there is a long tail of processes yet to be automated by a new generation of knowledge “robots”. As disruptive robot advisor startups slowly but surely transform the wealth management industry, adopting similar software automation services is quickly becoming a necessity for traditional banks. However, in wealth management, as in nearly every other industry, there are some tasks that robots just cannot do and that is where a blended model of automation augmenting talented people can provide extraordinary outcomes.”

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