While reports say that adoption rates of AI are accelerating, the Swiss group reckons that it has an opportunity to gain a winning edge at a time when much of the wealth sector is not advancing that fast.

When the Zurich-based multi-family office and wealth manager Linvo announced that it had integrated AI across its asset management, it was a sign of how this technology is taking hold. 

And as far as this firm is concerned, AI has the power to completely flip the division between how much time staff devote to manual chores – such as administration – and the time taken talking to their clients. 

Currently, 80 per cent of Linvo staff’s time is taken by admin, and 20 per cent on dealing with clients and talking to them, the firm told WealthBriefing when asked about its integration move.

“Our goal is to flick it so that people spend 80 per cent of their time with clients,” Vadym Chernyshov, AI solutions assistant, told this publication. WB also spoke to Alexander Kogan, a director at Linvo.

Last week, Linvo said the integration enables clients to access portfolio information, request services, and receive responses in real time. The firm added that it is among the first Swiss wealth management firms to pursue full AI integration across both client-facing and advisory operations.

The organisation, which was founded in 2014, does not disclose its AuM or the name of its strategic partner on AI.  

“We recognise that a lot of systems for the company were outdated, legacy systems. AI brings productivity gains. We have a high compliance burden, and work for middle and back-office operations,” Chernyshov continued. 

Industry figures suggest that productivity gains in its operations could be as much as 10 times by using AI, he said. The technology also improves client engagement because staff can devote more time to serving clients and less on administration and regulatory issues.

Reports from groups such as SimCorp, a fintech, say that wealth management adoption of AI is accelerating.

Kogan said Linvo’s use of AI gives it a competitive edge.

“We see that the industry is using it [AI] but they are slow in adopting novel technologies,” referring to the wider wealth sector. That slowness gives Linvo an opportunity to stand out from the crowd. “Our staff are young and ambitious people.”

There are several challenges that AI tries to solve, such as “task tracking gaps” – client advisors sometimes miss taking notes on what their clients ask for. All client requests must be documented but a respective RM will not always make notes in a CRM system.

This business argues that using AI ensures that calls are answered immediately, 24 hours a day with SMS response capabilities; AI can analyse historical statements, income streams and transactions, and help prepare tax declarations. Another benefit, the firm says, is structuring assets and help with wealth planning. Over time, such technology can enable full automation.