AI In Finance, Part 3: The Transformative Role of AI in Account Setup


We continue with part 3 of our five-part series, exploring how artificial intelligence (AI) enhances the client experience by creating an end-to-end digital experience without armies of software engineers.

In part one of this series, we discussed how the client experience is being enhanced by AI, and part two explored AI chatbots. Now, in part three, our focus is on the transformative role of AI in account setup and how it’s leading to a better experience for firms, advisors, and clients.

By Teresa Leno

In recent years, the wealth management industry has dabbled into integrating emerging technologies, focusing on artificial intelligence (AI). AI has been recognized for its boundless capabilities, improving operations, enhancing customer experiences, and driving efficiency. We are now seeing wealth management firms adopt AI technologies to manage the account setup process, revolutionizing traditional methods of service delivery. This innovative approach in the wealth industry demonstrates the adoption of digitization while significantly enhancing the overall customer experience.

The Pivotal Role of AI in Account Setup

AI technology plays an instrumental role in changing the face of wealth management, and the key to this transformation is the streamlining of account setup procedures. Traditionally, the account setup process within the wealth industry has been tiring and labor-intensive, prone to human error, requiring back-and-forth communication, compiling and verifying multiple files, and completing tons of paperwork. That’s where AI comes in as a game-changer.

AI simplifies the entire process by automating and validating all necessary procedures, eliminating human error, and reducing the time to set up an account from weeks to minutes. Furthermore, AI optimizes the process by aiding in the digital capture and verification of customer documents and data. This automation simplifies collecting and verifying valuable customer data, ensuring a secure and efficient onboarding process.

Improving Customer Experience

AI offers a platform for wealth management firms to deliver superior and hassle-free customer experiences. Account setup procedures can often become a pain point due to the paperwork and verification required. However, wealth management firms can now provide a seamless onboarding experience with AI.

Customers can easily submit the necessary documents digitally. AI does the rest by integrating data management systems to extract and process the required information. AI significantly improves speed, efficiency, and accuracy, making it a winning proposition for customers who appreciate swift, efficient, and seamless experiences.

Risk Management and Compliance

The account setup phase typically entails high risk due to potential mistakes during data entry and document verification. AI manages these risks with its precise algorithms by enhancing data accuracy and ensuring comprehensive compliance with regulatory standards. AI systems can cross-verify data with global databases and automatically flag discrepancies, ensuring rigorous compliance with anti-money laundering norms and Know Your Customer (KYC) guidelines. This feature is critical in the wealth industry, where any compliance oversight can lead to significant repercussions.

Using AI for account setup in the wealth industry dramatically improves efficiency and customer experience while ensuring risk management and compliance. Wealth management firms embracing AI are proving to be pioneers, setting a precedent for firms still reliant on traditional procedures. This innovation signifies the continuous evolution of the wealth management industry towards digitalization.

While the practical advantages of AI are undeniable, the wealth industry must cautiously and strategically monitor AI for cybersecurity concerns and the need for ongoing technology management. However, with prudent application and cautious oversight, AI promises a transformative impact in the wealth industry, redefining the future of wealth management services.

Read all the posts in this series here:

AI In Finance, Part 1: Harnessing the Power of Artificial Intelligence in the Finance Sector

AI In Finance, Part 2: Chatbots and the Client Experience

AI In Finance, Part 3: The Transformative Role of AI in Account Setup

AI In Finance, Part 4: Using AI In Portfolio Construction

AI In Finance, Part 5: Using AI to Write Financial Content


Author Bio: Teresa Leno is a former financial advisor turned entrepreneur and the CEO and founder of Fresh Finance, a marketing technology designed for the wealth, banking, and insurance industries. Her experience has touched wealth industry technology across applications- portfolio management systems, trading and rebalancing, CRM, etc., including the use of AI in wealth tech and marketing technologies.