Artificial intelligence is certainly one of the buzziest technology trends around. But beyond the hype, how can AI best help financial advisors grow their business?
One way is to predict which leads that they acquire are the most likely to convert to clients.
Broadly, "by embracing AI and other marketing tools, advisors can … find hidden opportunities and engage clients in meaningful ways," Wilbur Swan, CEO and co-founder of Catchlight, argues in an interview with ThinkAdvisor.
But not all AI "is created equal," he cautions.
"The better the training data, the better the models and outcomes," says Swan, managing director of Fidelity Labs, a tech incubator within Fidelity Investments.
Catchlight, a software and AI firm inside Fidelity Labs, is a finalist in ThinkAdvisor's 2024 Luminaries awards in the Digital Marketing categories of innovation and industry disruption.
The firm mainly targets RIAs, along with independent and wirehouse advisors, as well as others that have wealth management lines of business.
In the interview, Swan discusses how Catchlight's predictive AI, using machine learning models, zeros in on the leads most likely to convert by analyzing up to 2,000 data points on each prospect. Further, its generative artificial intelligence helps make prospect outreach more personalized and efficient.
Here are highlights of our conversation:
THINKADVISOR: How should financial advisors embrace AI and other marketing tools?
WILBUR SWAN: Firms should view AI as a powerful, enabling technology to support their growth goals. Having the data isn't enough.
Using tools, such as Catchlight, to make sense of the data will enhance a firm's efficiency and lead pipelines, as well as create more personalized client interactions.
What makes one version of AI superior to another?
Not all AI is created equal. Models are based on training data. The better the training data, the better the models and outcomes.
By embracing AI and other marketing tools, advisors can work smarter, find hidden opportunities and engage clients in meaningful ways. That means freeing up more time for relationship-building.
Please explain Catchlight's "lead enrichment and prioritization" strategy.
Our products are designed for wealth management.
The first step in our process is to build a comprehensive profile on the prospect. From there, we employ AI models to augment the data.
The models include our Catchlight Score, which is a prediction of the likelihood that an individual is an ideal wealth engagement prospect.
The models also estimate income and investable assets.
Firms can use this data to prioritize who they call immediately and who they may put into a marketing campaign.
How can Catchlight pinpoint the best opportunities for an advisor?
The Catchlight Score is an AI-based model that predicts the likelihood that an individual will convert to paid financial advice. It's built on a number of attributes about the individuals.
Combined, these data points help firms qualify and prioritize an advisor's outreach.
What should financial advisors do differently now when it comes to marketing?
