PIMFA WealthTech and Morningstar have partnered to launch a competition for fintech firms, seeking to explore how wealth management and financial advice companies can leverage AI to enhance operational efficiency.

The tech sprint will challenge fintech firms to look at how end-to-end processing can be optimised across front, middle, and back-office functions through the use of AI.

Example use cases that firms could use AI solutions to solve included accelerating onboarding and enhancing KYC checks by automating identity verification, document processing, and leveraging AI for real-time customer verification, fraud detection, and regulatory compliance.

Other example cases outlined were improving period suitability reviews through automation and enhanced accuracy in compliance checks, personalising client reporting by using AI to tailor communications, generate customised reports, and provide insights based on client preferences, and innovating software development by using AI to automate the entire software development cycle.

PIMFA WealthTech and Morningstar felt that the rise of AI presented “immense opportunities for innovation and growth” across the sector.

However, they warned that it also presented several challenges for financial advice, planning, and wealth management firms in building, testing, and deploying reliable AI solutions.

Barriers identified for those looking to leverage AI effectively included access to high-quality data, robust evaluation metrics, and seamless integration tools.

To explore this area and address potential issues, PIMFA WealthTech and Morningstar have collaborated to ask: ‘How can wealth management and financial advice firms leverage AI to enhance operational efficiency by optimising end-to-end processing across front, middle, and back-office functions?’

Participating fintech companies will have access to Morningstar’s Intelligence Engine platform, while the winner will present at the Morningstar Investment Conference UK in May.

“PIMFA WealthTech was created to be at the forefront of innovative thinking around tech solutions that can open up substantial opportunity for our industry,” stated PIMFA WealthTech outgoing chair and Evelyn Partners group chief operations officer, Mayank Prakash.

“As chair of the advisory council, I can think of no better example of this than the tech sprint we are launching today on AI.

“AI is undoubtably not only a major change moment in the wealth and advice space, but globally as well, impacting all of our lives.

“This sprint will give fintechs the opportunity to leverage Morningstar’s specialist data and analytics to delve into use cases, exploring opportunities for innovation that could bring meaningful improvements to the client journey by increasing adviser productivity and reducing end-to-end costs.”

Morningstar director of market expansion, Anastasia Georgiou, added: "Innovation thrives on collaboration and access to the right tools. By providing fintech companies with our Intelligence Engine as part of the Tech Sprint challenge, we aim to empower them to develop reliable and impactful AI solutions that address real challenges within the wealth management sector and enhance user experience.

“We look forward to showcasing the winners at this year’s Morningstar Investment Conference UK, helping to expand access to innovative, tech-driven tools for advisers and fund selectors."

---