We talk to US-headquartered SEI and its private banking and wealth management head about technology, AI, how firms must embrace skills in these subjects as part of talent management, and the continued importance of human contact.

(An earlier version of this article was published yesterday on Family Wealth Report, sister news service to this one.)

This month, we are taking a look at talent management in wealth management (although, as is often the case, we also cover the topic throughout the year when the opportunity arises). With AI being a hot topic and raising questions about use cases and the impact on how people work, there is a focus on the tech skills bankers, advisors and managers need. Then there is the regular concern about where the next generation of advisors will be coming from, against a background of an ageing workforce. (According to Cerulli Associates a few years ago, the average age of US advisors is in the mid to high 50s, and that’s probably not far off where it is in the UK, the rest of Europe, and possibly even Asia-Pacific, although demographics can vary on the margins.)

One of those we spoke to about talent management strategy is Sanjay Sharma, the head SEI’s of private banking and wealth management business.

Training and “upskilling” have become major areas in wealth management and private banking. The rising complexity of what wealth management entails has also added urgency to the need for training/upskilling, Sharma said.

SEI is partnering with local universities in the US, with internships and development of programmes for example, to deliver in-house training at SEI.

The stakes for getting matters right are high.

“The financial services industry is already facing challenges such as fee pressure and consolidation, and an ageing workforce and the retirement of Baby Boomers will further exacerbate these issues,” Sharma told this publication in a call. “The retirement of experienced professionals could lead to a shortage of finance and accounting professionals, particularly in areas like trust administration.”

“This poses a key inflection point and we believe there’s an opportunity to explore partnerships across higher education to help educate, train, and engage the next generation of the workforce to be equipped with the specialised asset management, tax, accounting, financial planning, and trust expertise that’s critical to the future of financial services. We also see the potential to upskill the workforce through AI-driven tools, emerging technologies, and enhanced operating models that can help offset the potential talent shortage,” he said.

The industry needs talented people as demand continues to grow; talent availability is a big issue for the sector, not just in North America.

At SEI, Sharma said that beyond traditional internship opportunities, SEI has run a long-standing Associates Program, which is a “two year-long accelerated learning opportunity” designed to attract up and coming talent early in their careers.

“The programme helps young professionals access career coaching and mentorship, build connections across our workforce, and engage in strategic projects across our business,” Sharma continued.

Sharma says the younger group of wealth managers must be in sync with the personalities of clients from a similar age group.

The upcoming cohort of younger wealth managers must realise that their peers are more inquisitive than clients, he said. “At the moment, younger people want to ask more questions.”

Using AI to raise scale, service
“As the wealth management landscape evolves, leveraging AI – particularly supervised machine learning – is proving to be a game-changer. Unlike generative AI, which creates new content, supervised machine learning is trained on labeled data to identify patterns and improve decision-making,” Sharma said.

Last year, SEI invested $10 million into an innovation platform called TIFIN that is designed to speed up wealth managers’ use of AI. TIFIN has been backed by JP Morgan, Morningstar, Hamilton Lane, Franklin Templeton, Motive Partners, and Broadridge, among others. The partnership covers areas such as weighing up new ideas to find ways to build or co-invest in opportunities; sharing best practices and resources to keep abreast of AI changes, and developing and finding talent in this space.

Sharma said SEI’s investment in TIFIN highlights how this approach has the potential to enhance the advisory experience by empowering advisors, wealth managers, and relationship managers with actionable insights, ultimately delivering a more personalised and efficient experience for end clients. This kind of technology allows firms to scale their advisory models while maintaining high-quality, customised service.

As AI becomes more integrated into wealth management, understanding how to ask the right questions is critical to maximising its potential.

“We invest in training both clients and staff to develop ‘TechAdvisors’ – inquisitive, tech-savvy advisors who continuously learn and adapt – to teach them how to craft effective prompts,” he said.

After the pandemic
Turning to other topics, FWR asked Sharma how the work environment has moved since the huge disruptions caused by the pandemic and lockdowns.

The trend seen after Covid 19 where people were keen to have in-person meetings and gatherings has slightly declined, he said. Internships are expanding again after having been relatively quiet since the start of the pandemic and the move to remote working.

Asked what he had to say about wealth management as a career path, he replied: “I would say 100 per cent go for it!”