Value3

Mark's Value3 Insider #8

Written by Mark Moreland | Jun 29, 2025 11:51:32 AM

AI Is Reshaping Wealth Management -
and Banks Are Feeling the Heat. 

Picture this: your financial advisor wears a tailored suit, never sleeps, and can analyse market trends faster than you can say “diversified portfolio.” But here’s the twist—they’re not human. As AI storms the gates of wealth management, banks are sweating, startups are sprinting, and robo-advisors are becoming the hottest new asset on the block. Welcome to a world where your money might just trust machines more than men.

Why AI-Driven Wealth Management Is a Wake-Up Call for Investors

Artificial intelligence isn’t just transforming wealth management—it’s redefining who wins in the financial sector. For investors, this shift presents both a major opportunity and a clear warning: the firms that adapt fast will dominate, and those that don’t may fade fast.

The Strategic Edge of Automation

Microsoft’s Martin Moeller, a leading voice in financial AI, says the changes underway are as disruptive as the early days of digital banking—but happening much faster. AI is allowing lean, agile startups to deliver services that used to require massive teams and infrastructure. This levels the playing field and creates openings for new market leaders.

Take Klarna. The Swedish fintech cut its workforce by nearly 25% while boosting productivity. Its AI assistant now handles tasks equivalent to 700 employees, slashing customer service resolution times from 11 minutes to just two. That kind of efficiency isn’t just operational—it’s a margin-expanding, investor-pleasing engine..

UBS: A Case Study in AI Adoption

On the institutional side, UBS is moving quickly to incorporate AI across services. The bank’s pilot program for instant credit bypasses traditional credit officers, enabling faster decision-making and streamlined lending. Even more telling, UBS clients are starting to use AI themselves—bringing AI-generated strategies to meetings with their bankers. It’s not just about what banks can offer; it’s about what customers now expect.

New Clients, New Demands

For investors, one of the biggest shifts is in client behaviour. Younger, digital-first investors want 24/7 access to tools that let them manage portfolios, test strategies, and get real-time insights. They don’t want to wait for a phone call—they want an AI that thinks ahead.

This is where “agentic AI” comes in. Moeller says we’re just two years away from AI that can make independent financial decisions without human input. That’s a game-changer: always-on advisors that operate without the cost or inconsistency of human staff.

The Investment Takeaway

For Value3 investors, the implications are clear:

  • Startups leveraging AI are serious disruptors—don’t underestimate them.
  • Banks that integrate AI well are becoming more capital efficient.
  • Workforce reductions + productivity gains = margin upside.
  • Agentic AI will completely reshape fee structures, product offerings, and client acquisition models. aser-focused on controlling costs, especially fixed costs

AI in wealth management isn’t a trend—it’s a structural shift. Investors should look at which firms are building AI into their core, not just bolting it on. The market’s next winners are likely the ones already betting big on automation, data, and decision intelligence. And they will be the ones that disrupt the current popular players. This is both a risk and an opportunity to incumbents – think Banks and advisory groups such as:

  • Netwealth Group Ltd (ASX: NWL)
    A leading platform provider offering investment and superannuation solutions to financial advisers and investors.
  • HUB24 Ltd (ASX: HUB)
    Provides integrated platform, technology, and data solutions to the wealth industry.
  • AMP Limited (ASX: AMP)
    One of Australia’s oldest financial services companies, offering wealth management, banking, and investment services.
  • Challenger Limited (ASX: CGF)
    Specialises in providing annuities and investment management services, focusing on retirement income solutions.
  • Magellan Financial Group Ltd (ASX: MFG)
    A global fund manager offering international investment funds to retail and institutional investors.
  • Pinnacle Investment Management Group Ltd (ASX: PNI)
    Operates as a multi-affiliate investment management firm, supporting a diverse range of specialist investment managers.
  • Perpetual Limited (ASX: PPT)
    Offers asset management, wealth advisory, and trustee services, with a history dating back to 1886.
  • Insignia Financial Ltd (ASX: IFL)
    Formerly IOOF Holdings, it provides financial advice, investment, and superannuation services.
  • Navigator Global Investments Ltd (ASX: NGI)
    An asset management holding company with a focus on alternative investment strategies.
  • Australian Ethical Investment Ltd (ASX: AEF)
    Offers ethical investment products, focusing on sustainability and positive social impact.

AI-Driven Wealth Tech Innovators in Australia

A few examples of the contenders trying to disrupt the establishment.

  1. Stockspot

    As Australia’s first robo-advisor, Stockspot offers automated, low-fee investment portfolios tailored to individual risk profiles. Its AI-driven platform democratises access to professional-grade portfolio management, making it accessible to everyday investors.

  2. Tiimely

    Originally focused on mortgage automation, Tiimely has expanded its AI capabilities to streamline financial services, including wealth management. Its technology automates data validation and compliance processes, enhancing efficiency and reducing operational costs. 

  3. Wisr

    Wisr combines ethical lending with AI-driven financial wellness tools. By leveraging AI, Wisr provides personalized financial insights and credit solutions, positioning itself as a challenger in both lending and wealth management sectors. 

  4. Go Fintech

    An emerging global fintech player, Go Fintech is expanding into the Australian market with AI-powered inclusive finance solutions. Its platform aims to enhance financial accessibility and efficiency, particularly for underserved communities.

An emerging global fintech player, Go Fintech is expanding into the Australian market with AI-powered inclusive finance solutions. Its platform aims to enhance financial accessibility and efficiency, particularly for underserved communities.

Conclusion

If you’re invested in any of the established players, now’s the time to get curious. Read their reports. Look for real, budgeted commitments to AI—not just vague statements. Ask questions at AGMs. Dig for clues, evidence, and ideally proof that they’re evolving with this new AI-enabled world. If you don’t like what you find, it may be time to reallocate your capital.

And be warned: every company will claim they’re “taking it seriously.” Don’t take their word for it—play detective. Your portfolio will thank you.

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