An assistants profession

Transcription

1 An assistants profession A transformation propelled by talent and technology Aymane Benslimane Managing Director IT Finance Canada Copyright 2018 IT Finance Canada - All Rights Reserved.

2 An assistant s profession A transformation propelled by talent and technology AGENDA New trends in the wealth management Overall view of the emerging technology trends ü ü ü AI & Machine Learning Robotic Process Automation Innovation as key for firms to be future-ready Implications for an assistant s profession Open discussion: How to adapt to these changes?

3 A recent history of the Wealth Management 30s 80s 2000s - Late 2000s recession - Goldman Sachs - Morgan Stanley - Accounts worth more than 10$ M - More popular with private banks and brokers spreading knowledge - Expansion of the assistants role - Individuals more educated about their wealth and establish better communication with their wealth managers Digital Disruption

4 Digital disruption 4 New trends in the Wealth Management Demographics shifted Regulations Digital Disruption Competition intensified New clients expectations

5 Digital disruption 4 New trends in the Wealth Management Millenials are outnumbering baby boomers Digital expectations Demographics shifted Regulations Digital Disruption Competition intensified New clients expectations «38% of millenials in Canada said Computer generated recommendations (robot) should be a basic offering (This is twice more than boomers)»* * Accenture

6 Digital disruption 4 New trends in the Wealth Management Millenials are outnumbering baby boomers Digital expectations Demographics shifted Regulations Digital Disruption Competition intensified New clients expectations Digital portfolio platforms Non-financial players Digital portfolio platforms in Canada: BMO Smartfolio WealthSimple Nest Wealth Tangerine Responsive Portflio IQ Justwealth ModernAdvisor Idema SmartMoney InvestCube SteadyHand Invisor

7 Digital disruption 4 New trends in the Wealth Management 45% of millenials prefer a self-directed investment portal with assistant access * Millenials are outnumbering baby boomers Digital expectations Demographics shifted Regulations Digital Disruption Competition intensified New clients expectations Digital portfolio platforms Non-financial players More control & transparency Lower fees

8 Digital disruption 4 New trends in the Wealth Management Millenials are outnumbering baby boomers Digital expectations Demographics shifted Digital Disruption Competition intensified Digital portfolio platforms Non-financial players In its 2019 published priorities, IIROC strategy includes to: prepare to regulate blockchain applications and digital assets Increased regulation around fraud prevention & other areas Regulations New clients expectations More transparency Lower fees «Conduct table-top exercises and second selfassessment to improve Dealers cybersecurity preparedness»

9 Online Poll New technologies and concepts as Artificial Intelligence, Machine Learning and Cognitive Computing can be perceived as a threat to the assistants role: q Strongly agree q Somewhat agree q Neither agree nor disagree q Somewhat Disagree q Strongly disagree Please respond at: pollev.com/assistantsco467

10 Emerging technology trends 3 Key Factors Cognitive Computing, AI & Machine Learning (ML) Robotic Process Automation (RPA) Innovation

11 Emerging technology trends 3 Key Factors Cognitive Computing, AI & Machine Learning (ML) Robotic Process Automation (RPA) Innovation Wikipedia: «Cognitive computing (CC) describes technology platforms that, broadly speaking, are based on the scientific disciplines of artificial intelligence and signal processing. These platforms encompass machine learning, reasoning, natural language processing, speech recognition and vision (object recognition), human computer interaction, dialog and narrative generation, among other technologies.»

12 Emerging technology trends 3 Key Factors Cognitive Computing, AI & Machine Learning (ML) Robotic Process Automation (RPA) Wikipedia: «RPA is an emerging form of business process automation technology based on the notion of software robots or artificial intelligence». Innovation

13 Emerging technology trends 3 Key Factors Cognitive Computing, AI & Machine Learning (ML) Robotic Process Automation (RPA) Innovation

14 Emerging technology trends Cognitive computing, AI and ML Move toward lower fees Demand toward personalized and data-driven insights Exponential increase in computer power and data storage Key Drivers

15 Emerging technology trends Cognitive computing, AI and ML Move toward lower fees Exponential increase in computer power and data storage Key Drivers Demand toward personalized and data-driven insights More data is being created Expected to increase three-fold from 2016 to 2021.* Explosion of data means wealth managers can leverage the Next Best Action framework. * The ZetaByte Era: Trends and analysis, Cisco

16 Emerging technology trends Cognitive computing, AI and ML Move toward lower fees Demand toward personalized and data-driven insights Exponential increase in computer power and data storage Key Drivers Wealth managers to invest heavily in technology to reduce operating costs

17 Emerging technology trends Cognitive computing, AI and ML Move toward lower fees Demand toward personalized and data-driven insights Exponential increase in computer power and data storage Key Drivers

18 Emerging technology trends Cognitive computing, AI and ML Predictive analytics as an early warning system for assets at risk Predictive analytics to generate investment ideas Trend Overview High-speed automated asset trading New techno Applications to provide hybrid services

19 Emerging technology trends Cognitive computing, AI and ML Predictive analytics as an early warning system for assets at risk Predictive analytics to generate investment ideas Trend Overview High-speed automated asset trading New techno Applications to provide hybrid services JP Morgan won last year an award for its analytics platform, SPARTA, which includes real-time calculation of performance, in addition to advanced ex-post risk analytics.* * Best Analytics Initiative: Buy Side JP Morgan Asset Management, Waters Technology

20 Emerging technology trends Cognitive computing, AI and ML Predictive analytics as an early warning system for assets at risk Predictive analytics to generate investment ideas Trend Overview High-speed automated asset trading New techno Applications to provide hybrid services BofA Merrill Lynch is experimenting with an AI stockpicking tool to help identify value in small-cap stocks that analysts might miss* * Machine learning is transforming investment strategies for asset managers, CNBC

21 Emerging technology trends Cognitive computing, AI and ML Predictive analytics as an early warning system for assets at risk Predictive analytics to generate investment ideas Trend Overview High-speed automated asset trading New techno Applications to provide hybrid services

22 Emerging technology trends Cognitive computing, AI and ML Predictive analytics as an early warning system for assets at risk Predictive analytics to generate investment ideas Trend Overview High-speed automated asset trading New techno Applications to provide hybrid services *Automated advisors utilizing AI are expected to have assets worth US$ 2.2 trillion by 2020* LetsTalkPayments, accessed at

23 Emerging technology trends Robotic Process Automation Increasing Regulations Increasing Competition Key Drivers Demand for better digital capabilities

24 Emerging technology trends Robotic Process Automation Increasing Regulations Increasing Competition Key Drivers Demand for better digital capabilities

25 Emerging technology trends Robotic Process Automation Increasing Regulations Increasing Competition Key Drivers Demand for better digital capabilities

26 Emerging technology trends Robotic Process Automation Increasing Regulations Increasing Competition Key Drivers Demand for better digital capabilities

27 Emerging technology trends Robotic Process Automation Client onboarding Back-Office operations RPA Regulations Chat-bots

28 Emerging technology trends Robotic Process Automation Know Your Client processes automation Client onboarding Back-Office operations RPA Regulations Chat-bots

29 Emerging technology trends Robotic Process Automation Know Your Client processes automation Client onboarding RPA Back-Office operations Timeconsuming tasks automation Automating time-consuming tasks and processes will lead to agile operations, and free up the time of the assitants, in addition to reducing costs.* Regulations Chat-bots * Where to Start with RPA in Financial Services, Finextra

30 Emerging technology trends Robotic Process Automation Know Your Client processes automation Timeconsuming tasks automation Client onboarding Back-Office operations RPA Regulations Chat-bots Answer FAQs Voice assistants (eg. Siri) Identify new client leads

31 Emerging technology trends Robotic Process Automation Know Your Client processes automation Timeconsuming tasks automation Client onboarding Back-Office operations RPA Regulations Chat-bots Cost/Income ratios in check Improve Operational excellence in BO and MO Answer FAQs Voice assistants (eg. Siri) Identify new client leads

32 Emerging technology trends Innovation Changing HNWI behavior Nontraditional players: Big Tech firms Need for differenti- -ated offerings

33 Emerging technology trends Innovation Changing HNWI behavior Nontraditional players: Big Tech firms Need for differenti- -ated offerings Big Tech firms are behaving like Big Banks: - Google offers payments - Apple Inc. invests its cash in company securities - Amazon.com lends money and offers account balances instore - Alibaba manages customer funds like an asset manager

34 Emerging technology trends Innovation Changing HNWI behavior Nontraditional players: Big Tech firms Need for differenti- -ated offerings

35 Emerging technology trends Innovation Customer experience Processes security Customer acquisition Innovation

36 Emerging technology trends Innovation Example: Customer experience Processes security Customer acquisition BNP Paribas Wealth Management 3 new services: Digital platforms to enhance coinvestments Innovation Ø The Leader s Connection to share their views on exclusive private investment opportunities. Personalized investment advice through Smartphones Ø myadvisory, provides personalized financial advice. Online banking using Biometrics Ø mybiopass, enables clients to easily access their online banking services using biometrics.

37 Emerging technology trends Innovation Customer experience Processes security Customer acquisition Wikipedia: Digital platforms to enhance coinvestments Personalized investment advice through Smartphones Online banking using Biometrics Blockchain and Innovation Distributed Ledger Technology (DLT) «A blockchain is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block,, a timestamp and transaction data».

38 Emerging technology trends Innovation Customer experience Digital platforms to enhance coinvestments Personalized investment advice through Smartphones Online banking using Biometrics Processes security Blockchain and Innovation Distributed Ledger Technology (DLT) Customer acquisition POCs completed by Banks to use KYC Blockchain A blockchain-enabled KYC shared ledger platform benefits all stakeholders by: ü Enabling greater transparency ü Reducing operational inefficiencies ü Reducing potential for fraud by inhibiting data ambiguity

39 Implications for the assistants role Innovation PA for the automation of cost-income ratios in check and to improve the operational excellence RPA used for KYC and other due diligence processes during client onboarding

40 Implications for the assistants role Glimpse: day-in-a-life of an assistant Administration Acquisition & On-boarding of clients Reporting Research & Analysis Product research Opportunity management Client-facing Innovation Making Recommendations Financial planning Customer service & engagement Business Development Marketing Regulatory Licensed tasks Customer segmentation & targeting Prospecting new customers Enhancing client experience KYC processes Work closely with compliance teams Processing trades

41 Implications for the assistants role Glimpse: day-in-a-life of an assistant Administration Acquisition & On-boarding of clients Reporting Research & Analysis Product research Opportunity management Client-facing Innovation Making Recommendations Financial planning Customer service & engagement Business Development Marketing Regulatory Licensed tasks Customer segmentation & targeting Prospecting new customers Enhancing client experience KYC processes Work closely with compliance teams Processing trades

42 Implications for the assistants role Glimpse: day-in-a-life of an assistant Administration Acquisition & On-boarding of clients Reporting Research & Analysis Product research Opportunity management Client-facing Innovation Making Recommendations Financial planning Customer service & engagement Business Development Marketing Regulatory Licensed tasks Customer segmentation & targeting Prospecting new customers Enhancing client experience KYC processes Work closely with compliance teams Processing trades

43 Implications for the assistants role Glimpse: day-in-a-life of an assistant Administration Acquisition & On-boarding of clients Reporting Research & Analysis Product research Opportunity management Client-facing Innovation Making Recommendations Financial planning Customer service & engagement Business Development Marketing Regulatory Licensed tasks Customer segmentation & targeting Prospecting new customers Enhancing client experience KYC processes Work closely with compliance teams Processing trades

44 Implications for the assistants role Glimpse: day-in-a-life of an assistant Administration Acquisition & On-boarding of clients Reporting Research & Analysis Product research Opportunity management Client-facing Innovation Making Recommendations Financial planning Customer service & engagement Business Development Marketing Regulatory Licensed tasks Customer segmentation & targeting Prospecting new customers Enhancing client experience KYC processes Work closely with compliance teams Processing trades

45 Implications for the assistants role Glimpse: day-in-a-life of an assistant Administration Acquisition & On-boarding of clients Reporting Research & Analysis Product research Opportunity management Client-facing Innovation Making Recommendations Financial planning Customer service & engagement Business Development Marketing Regulatory Licensed tasks Customer segmentation & targeting Prospecting new customers Enhancing client experience KYC processes Work closely with compliance teams Processing trades

46 Implications for the assistants role Glimpse: day-in-a-life of an assistant Administration Acquisition & On-boarding of clients Reporting Research & Analysis Product research Opportunity management Client-facing Innovation Making Recommendations Financial planning Customer service & engagement Business Development Marketing Regulatory Licensed tasks Customer segmentation & targeting Prospecting new customers Enhancing client experience KYC processes Work closely with compliance teams Processing trades

47 Implications for the assistants role Glimpse: day-in-a-life of an assistant Administration Acquisition & On-boarding of clients Reporting Research & Analysis Product research Opportunity management Client-facing Innovation Making Recommendations Financial planning Customer service & engagement Business Development Marketing Regulatory Licensed tasks Customer segmentation & targeting Prospecting new customers Enhancing client experience KYC processes Work closely with compliance teams Processing trades

48 Implications for the assistants role Administration Research & Analysis Client-facing Digital personal assistants to complete administrative tasks Data analytics applications will give firms an edge on stock market predictions Next best Action Engine to provide actionable insights Move towards hybrid advice Business Development Marketing Regulatory Innovation Use of social media Leverage data analytics for prospecting clients Leverage Chat-bots to identify new client leads and automate the follow-up with specific input Big Data and advanced analytics to improve customer experience by providing customized offerings to the clients RPA for the automation of cost-income ratios in check and to improve the operational excellence RPA used for KYC and other due diligence processes during client onboarding

49 Implications for the assistants role Administration Research & Analysis Client-facing Digital personal assistants to complete administrative tasks Data analytics applications will give firms an edge on stock market predictions Next best Action Engine to provide actionable insights Move towards hybrid advice Business Development Marketing Regulatory Innovation Use of social media Leverage data analytics for prospecting clients Leverage Chat-bots to identify new client leads and automate the follow-up with specific input Big Data and advanced analytics to improve customer experience by providing customized offerings to the clients RPA for the automation of cost-income ratios in check and to improve the operational excellence RPA used for KYC and other due diligence processes during client onboarding

50 Implications for the assistants role Administration Research & Analysis Client-facing Digital personal assistants to complete administrative tasks Data analytics applications will give firms an edge on stock market predictions Next best Action Engine to provide actionable insights Move towards hybrid advice Business Development Marketing Regulatory Innovation Use of social media Leverage data analytics for prospecting clients Leverage Chat-bots to identify new client leads and automate the follow-up with specific input Big Data and advanced analytics to improve customer experience by providing customized offerings to the clients RPA for the automation of cost-income ratios in check and to improve the operational excellence RPA used for KYC and other due diligence processes during client onboarding

51 Implications for the assistants role Administration Research & Analysis Client-facing Digital personal assistants to complete administrative tasks Data analytics applications will give firms an edge on stock market predictions Next best Action Engine to provide actionable insights Move towards hybrid advice Business Development Marketing Regulatory Innovation Use of social media Leverage data analytics for prospecting clients Leverage Chat-bots to identify new client leads and automate the follow-up with specific input Big Data and advanced analytics to improve customer experience by providing customized offerings to the clients RPA for the automation of cost-income ratios in check and to improve the operational excellence RPA used for KYC and other due diligence processes during client onboarding

52 Implications for the assistants role Administration Research & Analysis Client-facing Digital personal assistants to complete administrative tasks Data analytics applications will give firms an edge on stock market predictions Next best Action Engine to provide actionable insights Move towards hybrid advice Business Development Marketing Regulatory Innovation Leverage data analytics for prospecting clients Leverage Chat-bots to identify new client leads and automate the follow-up with specific input Big Data and advanced analytics to improve customer experience by providing customized offerings to the clients RPA for the automation of cost-income ratios in check and to improve the operational excellence RPA used for KYC and other due diligence processes during client onboarding

53 Implications for the assistants role Administration Research & Analysis Client-facing Digital personal assistants to complete administrative tasks Data analytics applications will give firms an edge on stock market predictions Next best Action Engine to provide actionable insights Move towards hybrid advice Business Development Marketing Regulatory Innovation Leverage data analytics for prospecting clients Leverage Chat-bots to identify new client leads and automate the follow-up with specific input Big Data and advanced analytics to improve customer experience by providing customized offerings to the clients RPA for the automation of cost-income ratios in check and to improve the operational excellence RPA used for KYC and other due diligence processes during client onboarding

54 Implications for the assistants role Administration Research & Analysis Client-facing Digital personal assistants to complete administrative tasks Data analytics applications will give firms an edge on stock market predictions Next best Action Engine to provide actionable insights Move towards hybrid advice Business Development Marketing Regulatory Innovation Leverage data analytics for prospecting clients Leverage Chat-bots to identify new client leads and automate the follow-up with specific input Big Data and advanced analytics to improve customer experience by providing customized offerings to the clients RPA for the automation of cost-income ratios in check and to improve the operational excellence RPA used for KYC and other due diligence processes during client onboarding

55 Implications for the assistants role How to adapt to these changes? ü ü ü As routine tasks are automated, you can focus on high value-added activities, and learn new skills to maintain and upgrade your contributions to the firm s growth. Invest on digital skills, the wealth management workforce of the future will consist of professionals who see technology as a trusted coworker and know how to maximize it to clients advantage. Invest on social skills and develop a trust relation with your customers, the latter are a key to success in the client experience, that Robots cannot master.

56 Implications for the assistants role How to adapt to these changes? ü ü ü As routine tasks are automated, you can focus on high value-added activities, and learn new skills to maintain and upgrade your contributions to the firm s growth. Invest on digital skills, the wealth management workforce of the future will consist of professionals who see technology as a trusted coworker and know how to maximize it to clients advantage. Invest on social skills and develop a trust relation with your customers, the latter are a key to success in the client experience, that Robots cannot master.

57 Implications for the assistants role How to adapt to these changes? ü ü ü As routine tasks are automated, you can focus on high value-added activities, and learn new skills to maintain and upgrade your contributions to the firm s growth. Invest on digital skills, the wealth management workforce of the future will consist of professionals who see technology as a trusted coworker and know how to maximize it to clients advantage. Invest on social skills and develop a trust relation with your customers, the latter are a key to success in the client experience, that Robots cannot master.

58 Implications for the assistants role How to adapt to these changes? ü ü ü As routine tasks are automated, you can focus on high value-added activities, and learn new skills to maintain and upgrade your contributions to the firm s growth. Invest on digital skills, the wealth management workforce of the future will consist of professionals who see technology as a trusted coworker and know how to maximize it to clients advantage. Invest on social skills and develop a trust relation with your customers, the latter are a key to success in the client experience, that Robots cannot master.

59 ABOUT THE SPEAKER As Chief Executive Officer of IT Finance Canada, Aymane offers recruitment and consulting expertise in the information technology and finance industries. Throughout his career, he has collaborated with several software companies and financial institutions to help them achieve business objectives by proposing tactical and strategic initiatives related to business positioning, human resources recruitment needs, and technological transformations. Copyright 2018 IT Finance Canada - All Rights Reserved.