In the mid-1800s, California’s Gold Rush sparked a frenzy of prospectors chasing untapped wealth. Fast-forward to today, and a new kind of gold rush is transforming wealth management. This time, the treasure is data, and the tools are powered by artificial intelligence (AI).

A study by Accenture, AI in Wealth Management: A Financial Advisor Study, found that 97% of financial advisors believe AI can help grow their book of business by over 20% (Accenture, 2024). Access the full study here.

This optimism isn’t surprising. Firms leveraging AI are better equipped to uncover growth opportunities, optimize client strategies, and streamline operations, all of which contribute to sustainable business expansion.

AI as a Growth Catalyst

Boston Consulting Group’s Global Wealth Report 2024 notes that global financial wealth grew by 7% in 2023 after declining by 4% in 2022. “The wealth rebound presents significant opportunities for firms that are prepared to leverage AI tools to enhance decision-making and customer engagement,” BCG states (BCG, 2024). Learn more at BCG.

AI empowers financial advisors in several key areas:

• Client Retention: By analyzing client behaviors and preferences, AI can help advisors identify at-risk clients and proactively address their needs.

• Upselling and Cross-Selling: Predictive analytics tools allow advisors to recommend the right products or services at the right time, enhancing client satisfaction and increasing revenue.

• Operational Efficiency: Automation reduces time spent on manual tasks, enabling advisors to focus on growing their business.

EY’s Generative AI: Transforming Wealth and Asset Management report highlights that firms adopting AI see improved scalability and efficiency, allowing them to serve more clients without adding significant costs (EY, 2024). Explore EY’s report.

How Milemarker Drives Growth

Milemarker specializes in helping wealth management firms unlock the potential of AI through data readiness and seamless integration. Its solutions address three critical areas for growth:

1. Data Consolidation: The Milemarker Data Model unifies disparate data sources, providing a single source of truth for advisors.

2. Insights and Reporting: By leveraging advanced analytics, Milemarker enables firms to identify growth opportunities and make data-driven decisions.

3. Workflow Automation: With repetitive tasks automated, advisors can dedicate more time to high-impact activities like client acquisition and retention.

“Milemarker isn’t just about technology—it’s about creating a framework that enables firms to scale effectively,” says Kyle Van Pelt, Co-founder at Milemarker.

Real-World Impact

In one success story, Milemarker worked with a regional advisory firm to streamline its reporting processes. By consolidating data from multiple systems, the firm reduced reporting time by 60%, freeing up resources to focus on strategic growth initiatives.

This kind of transformation highlights why AI isn’t just a tool for operational efficiency—it’s a catalyst for business expansion.

The Road Ahead

As the wealth management industry becomes more competitive, firms that invest in AI will have a clear advantage. Accenture’s study emphasizes that advisors who adopt AI are poised to grow faster, retain more clients, and deliver better outcomes.

Milemarker offers the expertise and tools firms need to seize these opportunities, positioning them for long-term success in an AI-driven world.

References:

• Accenture. AI in Wealth Management: A Financial Advisor Study. 2024. Available at: https://www.accenture.com/in-en/insights/capital-markets/wealth-management-artificial-intelligence-all-systems-go.

• Boston Consulting Group (BCG). Global Wealth Report 2024: The Gen AI Era Unfolds. 2024. Available at: https://www.bcg.com/publications/2024/global-wealth-report-the-gen-ai-era-unfolds.

• EY. Generative AI: Transforming Wealth and Asset Management. 2024. Available at: https://www.ey.com/en_us/insights/financial-services/generative-ai-transforming-wealth-and-asset-management.