AMP is already in the "fancy AI" business. It is ahead of the curve when it comes to this tech my friend! Here is an AFR article from September 2017:
AMP uses artificial intelligence to recommend financial products
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Jack Regan, group executive of AMP's advice arm in Australia and New Zealand: "The potential of this technology is democratising the opportunity." Louise Kennerley
by
Alice Uribe
Wealth giant AMP will make "Amazon-like" recommendations for financial products using the data it collects from its customers as they go through its goals-based advice platform.
The group executive of AMP's advice arm in Australia and New Zealand, Jack Regan, said the modelling engine that generates personalised advice solutions based on customer goals and financial circumstances,
dubbed Goals 360, will not only improve financial outcomes for customers but is also a "more efficient marketing engine" for the company.
"The data we collect is the same data [that has always been collected] but it is going to be used in a more evolved process. The capability is a little like when you start shopping at Amazon, and Amazon will let you know when the next John Grisham novel is coming out if you read David Baldacci," he said.
Mr Regan said AMP already collects data on its customers via its traditional financial advice process, but the modelling engine will use "sophisticated" data analytics to have a so-called "next best interaction" with a customer
"Instead of going and running a search query through the enterprise data warehouse we have on our mortgage customers and sending out an e-brochure … we will see that someone taking out a mortgage would be a good person to offer an interaction for a life insurance product."
Companies are increasingly using algorithms to detect patterns in data, and learn from these to predict what items customers may be interested in. Amazon has successfully integrated recommendations into much of its purchasing process and early next year will open a R&D hub in Barcelona that will specialise in machine learning research.
Actuarial firm Milliman created the system that powers AMP's modelling engine, as well as other systems for superannuation funds and smaller financial planning outfits
'The applications become almost unlimited'
Its principal, Wade Matterson, said there is shift to creating a more engaging and personalised experience between people and the way they view their finances.
"The data informs the algorithms which will then drive the right product solutions and put them into the hands of the right people at the right time. This is the real power of these calculation engines – the applications become almost unlimited," he said.
"People will go through the goals explorer exercise and they plug in what they want to achieve and then they can be analysed and we'll say what strategies are relevant."
Mr Matterson said strategies can be changed as someone's life circumstances changes, with the platform being able to be responsive in real time.
"Businesses do these things because there is a commercial imperative, but I think what's changing is now the way that the world has evolved and morphed is if your commercial reality isn't to leave your customers in a better position than before they engaged with you, then you won't be in business much longer."
AMP's Goals 360 platform was launched in October last year and provides consumers with 29 financial and life goals to choose from via an artificial-intelligence based platform.
Longer-term goals
The full operating system is scheduled to be completed in the first half of 2018. AMP's advice business is also currently implementing Salesforce as its new customer relationship management (CRM) system.
Customers work with "goals coaches" and financial advisers to track their goals via the system. Mr Regan said the "goals exploration sessions" were worth about $350 and it would look at charging for them eventually.
He added AMP wants to offer financial advice in an "omnichannel" way, so whatever format clients want, whether that be in person, on the phone or via a robo advisers.
"If you go to one of the major banks there are certain levels of advice that are available, but it will be quite narrow. In most instances they will have their thresholds and will tend not to deal with you unless you are at a certain [financial] level," he said.
"But the potential of this technology is democratising the opportunity."
AMP has now formalised a partnership with US goals-based wealth management giant United Capital to collaborate on its wealth management operating system.
Last week the father of the Australian financial advice reforms Bernie Ripoll said the only way to reach the 80 per cent of Australians without a financial plan was to make it cheaper to get by using technology that automates the advice process.
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