By Marcus Roth, Simplicity Lone Beacon’s Senior Director of Data, Automation & Content.
As a financial advisor, you are tasked with helping your clients achieve their financial goals, while also navigating the complex world of investments, taxes, and regulations. However, with the rapid pace of technological advancements, it can be difficult to keep up with the latest trends and tools that can help you deliver the best possible advice to your clients. One such tool is ChatGPT, a powerful language model that can help financial advisors automate and streamline their work.
ChatGPT is an artificial intelligence you can utilize within your internet browser for free. It has been trained on a massive dataset of text, allowing it to understand and generate human-like responses to a wide range of queries. With its ability to analyze vast amounts of data and generate insights quickly and accurately, ChatGPT can be a valuable asset for financial advisors looking to improve their services.
Think of this as your own Siri, Alexa or Google Assistant, but the questions you type into it give you the answer you want. ChatGPT’s responses feel like you are communicating to an expert in ANY field, all at once!
Here are some of the ways in which ChatGPT can be used by financial advisors:
Streamlining client communication and client advice
As a financial advisor, you likely spend a significant amount of time communicating with your clients via email, text or in-person meetings. With ChatGPT, you can write a brief of what you’d like to write in an email to a client and then tell ChatGPT to state the concept for a professional email and it will fill in the rest of the text for you. Instead of taking the time to compose each sentence and idea in an email, you can let Chat GPT do 85% of the work, review the email, add your own flair and comments to it it, and send it off. Anecdotally, ChatGPT creates basic pieces with remarkably few grammatical or spelling errors – much fewer than me, at least! This can save you time and help you provide a more efficient and responsive service to your clients. Don’t believe me? – Well… 75% of this very article was written by ChatGPT, and the last (more challenging, cognitively demanding) 25% was written by me; this blended way of working is exactly the way I am suggesting financial advisors can work with ChatGPT too!
Aiding in portfolio management
Managing a portfolio can be a time-consuming and complex task, especially as you need to constantly monitor market trends, research new investment opportunities, and rebalance your portfolio to ensure that it aligns with your clients’ goals and risk tolerance. However, with ChatGPT, you can automate much of this process, allowing you to focus on more strategic tasks. ChatGPT can analyze market data, identify investment opportunities if prompted correctly, and even suggest new investment strategies based on your clients’ goals and preferences. It’s important to note, however, that ChatGPT provides workable responses to your questions, it doesn’t claim to provide sound financial advice
One of the key challenges of financial advising is providing personalized advice that meets the unique needs and preferences of each client. With ChatGPT, you can personalize your advice effectively by using what you know about your clients, their preferences, and goals and using ChatGPT to fetch key data you are looking for to make an optimal recommendation with the aid of your own expert analysis.
Chat GPT is a great tool for getting advisors the historical data and trends of past markets they need to aid them in providing the insights necessary to make the best financial decisions.
Enhancing compliance and risk management
As a financial advisor, you are subject to strict regulations and compliance requirements, which can be challenging to navigate. However, with ChatGPT, you can automate some of the compliance and risk management tasks, reducing the risk of errors and regulatory violations.
ChatGPT can act as a quick way to compliance review copy you would like to send out quickly. Now, it is not going to be able to replace your compliance department or company but, in a pinch, it will be a time saver. By copying text into ChatGPT and telling it to identify any issues that might breach FINRA compliance standards, you can identify the obvious compliance issues and make necessary edits quickly, reducing the risk of errors and regulatory violations. However, ChatGPT is still prone to errors.
Furthermore, ChatGPT can help you stay up to date with the latest regulations and compliance requirements by analyzing relevant documents, such as regulatory updates or SEC filings. This can help you stay ahead of any changes in the regulatory environment, ensuring that you remain compliant and up to date with the latest industry standards.
A small note here is that technically Chat GPT is only fully trained on the internet as of late 2021 so any new laws that passed, such as The Secure Act 2.0 will not be fully weaved into its answers. This said, the model DOES get updates slowly to a more recent time and so some more popular topics WILL be weaved in later.
Improving client engagement on your website
ChatGPT can help you improve client engagement by providing a more interactive and engaging experience on your website. ChatGPT can be integrated into your website or mobile app along with a chatbot interface, allowing clients to ask questions, potentially book appointments to your calendar and receive instant responses. This can help clients feel more connected to your services, leading to increased loyalty and retention.
Programs like ChatGPT provide a powerful tool that can help financial advisors automate and streamline their work, while also improving client engagement and personalization. By leveraging the power of ChatGPT, financial advisors can provide faster, more effective, and personalized advice to their clients, helping them achieve their financial goals. While ChatGPT can’t do the important work, it can provide a basic framework to work off of, helping speed up your processes.
About the Author: Marcus Roth is Simplicity Lone Beacon’s Senior Director of Data, Automation & Content. Marcus has a unique experience in B2B and B2C start-up companies ranging from enterprise-level market research of Artificial Intelligence to self-defense eCommerce products. His experience in AI market research brought him, and his research, to INTERPOL, The United Nations and Harvard University.
