OREANDA-NEWS. October 22, 2015. “While the discussion around the benefits of automating some jobs continues, numerous businesses such as banks are already using software automation to improve operational processes and efficiency,” writes Tony Virdi. “The power of smart robots may in fact enhance today’s knowledge-based jobs and even create entirely new job categories.  But how do companies view automation and how widespread is it already?” Excerpts:

“With banks at the forefront of adopting software automation, one area that can be especially beneficial is wealth management, where providing prescient financial advice hinges on the ability to conduct real-time monitoring of risk.

In recent years, a combination of factors including rapidly developing digital technologies as well as changing customer demographics have led to a number of disruptive start-ups entering the wealth management arena.

By providing their wealth management robots with a set of personal preferences and data including income, savings rate, and preferred level of risk aversion, clients get algorithm-generated advice that they may or may not choose to act on.

Globalization has led to more variables for wealth managers to consider, requiring analysts to monitor an increasing number of factors that influence risk. These include not just global interest and currency exchange rates but also election outcomes, policy decisions, geopolitical events and more.

Instead of having to spend even more time closely watching information flow, wealth managers are turning to robots to develop their abilities to monitor risk for customers.

While revenue, speed, efficiency and savings clearly drive banks to adopt software automation processes, the data generated by those same processes is potentially a bigger reward for banks and financial institutions in the long-term.”