Financial guidance possibly evolving by 2035: a glimpse into future trends
In the digital age, financial advisors are facing challenges with outdated, paper-based processes, fragmented systems, and legal uncertainties. However, a new era of financial advice is on the horizon, thanks to the advent of AI and regulatory frameworks like FIDA.
FIDA, Financial Data Access, aims to create a reliable framework across Europe for secure, standardized access to financial data across all sectors. This will enable AI agents, such as Eva Schwarz's AI agent, Noa, to organize appointments, analyse clients' financial data in real-time, and suggest relevant conversations.
Eva Schwarz, a financial advisor in the year 2035, is no longer a traditional advisor but has evolved into a financial companion, coach, and sparring partner for financial life decisions. Her clients pay 100 euros monthly for continuous accompaniment, ongoing analyses, strategic conversations, and personal financial impulses.
The change in financial advice is not science fiction but a result of rethinking financial advice in the digital age. Financial companionship means listening, recognizing patterns, and providing context-based impulses. The incentive shifts from short-term sales to long-term accompaniment in the new financial industry model.
The vision of future financial advice is discussed by Andreas Beys, a financial advice expert, in the second episode of the podcast "3×3=10". The podcast explores how AI agents and technology can make financial advice more human by combining AI personalization with human validation and transparency.
AI can analyze vast amounts of customer data to generate tailored financial advice, plans, and notifications, enabling a deeply personalized experience that addresses individual needs effectively, much like a human advisor would. However, because trust in AI for sensitive financial advice remains low, leading banks pair AI-driven insights with human review. Humans validate AI recommendations and provide context and empathy that AI cannot fully replicate, fostering greater customer comfort and confidence.
Making AI advice transparent, with explainable AI models that show how and why recommendations were made, helps customers understand and trust the guidance they receive. When users know humans oversee AI decisions, trust and acceptance increase significantly.
Regulatory frameworks like FIDA play a role in making the system of human-AI financial advice possible. They ensure fairness, accuracy, privacy, and accountability by requiring human oversight and validation of AI outputs, mandating explainability, protecting consumer data, establishing standards for transparency, and promoting ethical AI development.
In the financial industry, the model for earning income shifts from commissions to a monthly "financial life subscription". The AI agent, such as Noa, does not make decisions but provides hints, allowing the human advisor to make the final decisions. The quality of the relationship, not the sales quota, decides in the new model of the financial industry.
In summary, AI makes financial advice more human by enabling personalized, scalable, and data-driven insights augmented by human validation and transparency. Regulatory frameworks must ensure ethical use, user trust, and accountability to realize this vision in practice.
- Other financial advisors, such as Eva Schwarz, are transitioning from traditional roles to becoming financial companions, coaches, and sparring partners, using technology like AI to analyze clients' financial data in real-time and suggest relevant conversations.
- The emergence of AI agents like Noa, combined with regulatory frameworks like FIDA, aims to create a reliable, standardized system for secure access to financial data across all sectors, thereby transforming the business of finance by making it more human, personalized, and transparent.
