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

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Why we should follow Canada and cut migration

An explosion in low-skilled migration to Australia has depressed wages, killed productivity, and cut rental vacancy rates to near decades-lows. It’s time both sides of politics addressed the issue.

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

Australian house price speculators: What were you thinking?

Australian housing’s 50-year boom was driven by falling rates and rising borrowing power — not rent or yield. With those drivers exhausted, future returns must reconcile with economic fundamentals. Are we ready?

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Welcome to Firstlinks Edition 627 with weekend update

This week, I got the news that my mother has dementia. It came shortly after my father received the same diagnosis. This is a meditation on getting old and my regrets in not getting my parents’ affairs in order sooner.

  • 4 September 2025

Latest Updates

Shares

Why the ASX may be more expensive than the US market

On every valuation metric, the US appears significantly more expensive than Australia. However, American companies are also much more profitable than ours, which means the ASX may be more overvalued than most think.

Economy

No one holds the government to account on spending

Government spending is out of control and there's little sign that Labor will curb it. We need enforceable rules on spending and an empowered budget office to ensure governments act responsibly with taxpayers money.

Retirement

Why a traditional retirement may be pushed back 25 years

The idea of stopping work during your sixties is a man-made concept from another age. In a world where many jobs are knowledge based and can be done from anywhere, it may no longer make much sense at all.

Shares

The quiet winners of AI competition

The tech giants are in a money-throwing contest to secure AI supremacy and may fall short of high investor expectations. The companies supplying this arms race could offer a more attractive way to play AI adoption.

Preparing for aged care

Whether for yourself or a family member, it’s never too early to start thinking about aged care. This looks at the best ways to plan ahead, as well as the changes coming to aged care from November 1 this year.

Infrastructure

Renewable energy investment: gloom or boom?

ESG investing has fallen out of favour with many investors, and Trump's anti-green policies haven't helped. Yet, renewables investment is still surging, which could prove a boon for infrastructure companies.

Investing

The enduring wisdom of John Bogle in five quotes

From buying the whole market to controlling emotions, John Bogle’s legendary advice reminds investors that patience, discipline, and low costs are the keys to investment success in any market environment.

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.