As financial services, in general, become more fragmented and competitive, the quest for differentiation has led forward-thinking advisers to take a more outcome-focused approach. Largely, this has been achieved by leveraging tools that allow you to drive higher client engagement and more tailored outcomes, in more scalable and resource efficient ways.
This opportunity for advisers has been largely fuelled by the transformative power of Artificial Intelligence (AI), however, locally, Open Banking is playing an equally important role.
As in any business, prioritising where and how to drive growth can be challenging as you try to distinguish simple trends from true game-changers. However, in the case of Open Banking, it’s clear that this historic shift represents an opportunity for financial service businesses to redefine their value propositions to clients and market opportunity.
However, it’s not just enough to be in the know. To truly understand the value of Open Banking you need to move beyond the theory to understanding these new opportunities at a practical level. Unlike passive learning through resources and online content, true skill development requires hands-on experience: that is where the true value is uncovered for both the adviser and the client.
Think about the design world. In today’s digital age, transformative tools like Canva, which was valued by private investors at $40 billion back in September 2021, have revolutionised the landscape of visual communications. The Australian giant has democratised design, empowering entrepreneurs to create and publish their own content. However, just as holding a paintbrush doesn’t instantly make someone an artist, simply being aware of Canva’s features doesn’t turn someone into a design expert overnight. Real expertise develops from a mix of theory and practice, where consistent use of the platform is enhanced by a solid understanding of design principles and marketing savvy.
Just like Canva has made design tools accessible to everyone, platforms like LinkedIn, webinars, and conferences offer a wealth of financial information that breaks down barriers to entry in the financial sector. However, while these resources provide valuable insights, nothing compares to the hands-on experience gained from actively using the tools. Engaging with Open banking through a platform like Moneysoft not only deepens your understanding of Open Banking through practical application but also empowers you to handle complex financial data in real-time, boosting your advisory skills beyond conventional methods.
If you haven’t read it already, head over to our previous article for a deeper dive into how Open Banking can be your competitive advantage.
The financial advisory sector is on the brink of a major shift thanks to AI and Open Banking. As AI integration deepens within the industry, its impact is becoming more significant. A report by the Business Research Company forecasts the AI in fintech market to reach $39.44 billion by 2028, growing at a compound annual growth rate (CAGR) of 28.6%. This underscores the rapid adoption and critical importance of leveraging data to enhance financial advisory services.
At face value, statistics like this can be overwhelming. The prospect of integrating AI may seem daunting, but the key lies in accessing the wealth of financial data through Open Banking. This access enables platforms like Moneysoft to provide advanced data aggregation and visualisation tools that support exploration into household financial details far beyond the capabilities of traditional CRM systems.These deep insights into financial intricacies will empower you to provide more comprehensive and valuable advice to your clients.
Gone are the days of one-size-fits-all financial advice. Today, we’re moving toward hyper-personalisation, a response (not a trend) to the growing demand for services that align closely with individual financial aspirations and life paths.
When Epsilon surveyed 1,000 consumers aged between 18-64, 80% of respondents indicated they are more likely to do business with a company if it offers highly personalised experiences. This is especially critical in areas like superannuation and retirement planning, where personalised advice is crucial for safeguarding a client’s financial future. Using these tools, advisers can achieve a comprehensive understanding, paving the way for hyper-personalised advice that leverages the full potential of AI.
Hyper-personalisation offers a multitude of benefits for you as a financial adviser and for your clients. McKinsey&Co highlights that companies excelling at personalisation generate 40% more revenue from those activities than average players. Indeed, when you tailor your financial advice to each client’s unique circumstances, you not only deliver more accurate and relevant recommendations for them, but you also enrich their satisfaction and engagement.
As we navigate the ever-evolving financial world, hyper-personalisation emerges as a guiding light, powered by AI, big data analytics, and of course Open Banking. This shift signals a future where hands-on learning about Open Banking is more than just advantageous – it’s crucial. By diving into these tools and building your confidence, you go beyond traditional methods to offer truly tailored financial advice that leads to stronger long-term relationships.
Invest in your own journey today with a 30-day free trial on Moneysoft, get hands-on, and embrace the potential of AI and Open Banking.
