Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 209

How robotics can deliver smart wealth advice

Over the last three years, there has been a significant shift towards the adoption of new and emerging technologies leading to a widening mix of advice, administration and investment practices among wealth managers.

In the face of competitive market pressures, constant regulatory change and escalating data volumes, it is critical for wealth management firms to leverage technology and the underlying data creatively to improve service quality, personalise customer experiences and create platforms for smart processing.

How mature are your digital operations capability?

Wealth managers need to define and firmly establish digital operations as a capability within their businesses. EY’s assessment framework of digital operations measures nine key dimensions that drive business benefits and outcomes.

One of the key drivers to the speed and adoption of digital operations is the maturity of the Robotic Automation solutions. There are two types of solutions in this marketplace: Unassisted Automation and Assisted Automation.

Both types of Robotic Automation can deliver significant time, processing and error reduction and service quality benefits to many areas of the wealth and asset management value chain.

For instance, Assisted Automation (often called Robotic Desktop Automation or RDA) could be used to augment workforce productivity. Unassisted Automation (often called Robotic Process Automation or RPA) could be used to reduce operational processing windows, operating costs and high-cost, low-value tasks.

Robotic Automation can also drive digital operations functionality, for example, by acting as a keystroke surveillance agent, enabling workforce intelligence and improved employee performance via data-driven coaching. Or it could be used as an engine to work alongside or supplement front-end robo-advice platform offerings.

How can software robotics provide assisted advice with front-end robo-advice?

Keeping a customer’s best interests at the centre of an advice model is essential to wealth management success. Risk management in advice is also under increasing scrutiny from regulators. In the superannuation space for example, this message was highlighted recently by the Productivity Commission.

ASIC also published a review earlier this year, as part of its Wealth Management Project, identifying areas for improvement in how advisers are overseen within large organisations:

  • “Failure to notify ASIC about serious non-compliance concerns regarding adviser conduct
  • Significant delays between the institution first becoming aware of the misconduct and reporting it to ASIC
  • Inadequate background and reference-checking processes, and
  • Inadequate audit processes to assess whether the advice complied with the ‘best interest’ duty and other obligations”.

Robotic Automation can help regardless of whether a robo-advice platform already exists within the organisation. One example of this is the data analysis and data crunching work used to prepare a Statement of Advice with a risk management overlay. Robotic Automation solutions can automate a number of these steps, such as dealing with data points, drawing information out of multiple legacy systems, stitching it together and providing an end to end audit trail.

EY’s recent report, Robotics and its role in the future of work, found that the gains from automation can be considerable, but that even more is possible when robotics and digital are brought together. Robotic Automation can tap into shadow or legacy IT systems where it may otherwise be hard to create a new integration point, to feed a greater number of services or data points into the robo-advice channel.

What about investments and administration?

Non-indexed and unstructured investment instructions from different sources can lead to inefficiencies, errors and service quality reductions as data is reassembled into a variety of models to understand exposures, risks, performance and attribution.

Many organisations face the challenge of managing critical information across a mix of core and secondary systems, requiring highly-skilled staff to undertake repetitive activities. Robotic Process Automation could be used to operate around the clock, managing data collection, augmentation, and analytics and reporting. This model would result in only exceptions needing to be escalated to skilled staff as required.

It’s an especially good candidate where a set of steps occur each every day which is highly repetitive, rules-based, digitally triggered and based on structured data.

Where will your robotics journey take you?

Driving a Robotic Automation agenda into advice, administration and investments functions can help improve costs and significantly relieve pricing and margin pressure. The benefits, such as moving towards 100% paperless, can also be greatly accelerated through the use of a range of other capture and workflow tools.

Competing in the digital age means doing things differently. Wealth managers need to be laser-focused on data management and analytical strategies, using a data-driven approach to derive key outcomes and measure the maturity of their digital operations capabilities.

 

Jason McLean is the EY Oceania Wealth and Asset Management Advisory leader. Andy Gillard is the EY Asia-Pacific Digital Operations Leader. The views expressed in this article are the views of the author, not Ernst & Young. The article provides general information, does not constitute advice and should not be relied on as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Liability limited by a scheme approved under Professional Standards Legislation.

 

RELATED ARTICLES

Five charts show predicaments facing financial advice

1 January is a moment of truth for the wealth industry

FoFA, the Failure of Financial Advice, Take 2

banner

Most viewed in recent weeks

Why the $5.4 trillion wealth transfer is a generational tragedy

The intergenerational wealth transfer, largely driven by a housing boom, exacerbates economic inequality, stifles productivity, and impedes social mobility. Solutions lie in addressing the housing problem, not taxing wealth.

The 2025 Australian Federal election – implications for investors

With an election due by 17 May, we are effectively in campaign mode with the Government announcing numerous spending promises since January and the Coalition often matching them. Here's what the election means for investors.

Finding the best income-yielding assets

With fixed term deposit rates declining and bank hybrids being phased out, what are the best options for investors seeking income? This goes through the choices, and the opportunities and risks involved.

What history reveals about market corrections and crashes

The S&P 500's recent correction raises concerns about a bear market. History shows corrections are driven by high rates, unemployment, or global shocks, and that there's reason for optimism for nervous investors today. 

Howard Marks: the investing game has changed

The famed investor says the rapid switch from globalisation to trade wars is the biggest upheaval in the investing environment since World War Two. And a new world requires a different investment approach.

Welcome to Firstlinks Edition 605 with weekend update

Trump's tariffs and China's retaliatory strike have sent the Nasdaq into a bear market with the S&P 500 not far behind. What are the implications for the economy and markets, and what should investors do now? 

  • 3 April 2025

Latest Updates

Investment strategies

4 ways to take advantage of the market turmoil

Every crisis throws up opportunities. Here are ideas to capitalise on this one, including ‘overbalancing’ your portfolio in stocks, buying heavily discounted LICs, and cherry picking bombed out sectors like oil and gas.

Shares

Why the ASX needs dual-class shares

The ASX is exploring the introduction of dual class share structures for listed companies. Opposition is building to the plan but the ASX should ignore the naysayers and bring Australia into line with its global peers.

The state of women's wealth in Australia

New research shows the average Australian woman has $428,000 in net wealth, 40% less than the average man. This takes a deep dive into what the gender wealth gap looks like across different life stages.

Investing

The two most dangerous words in investing

Market extremes are where the biggest investment risks and opportunities lie. While events like this are usually only obvious in hindsight, learning to watch out for these two words can alert you to them in real time.

Shares

Investing in the backbone of the digital age

Semiconductors are used to make microchips and are essential to a vast range of technology and devices. This looks at what’s driving demand for chips, how the industry is evolving, and favoured stocks to play the theme.

Gold

Why gold’s record highs in 2025 differ from prior peaks

Gold prices hit new recent highs, driven by a stronger euro, tariff concerns, and steady ETF buying – all while the precious metal’s fundamental backdrop remains solid amid a shifting global economic landscape.

Now might be the best time to switch out of bank hybrids

In this interview, Schroders' Helen Mason discusses investing in corporate and financial credit securities, market impacts of tariffs, opportunities for cash investments, and views on tier two and hybrid bonds.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.