Netwealth signals use of AI

Publicly-listed platform provider, Netwealth has declared it is actively implementing artificial intelligence (AI) to improve efficiency and productivity.

In its quarterly update filed with the Australian Securities Exchange (ASX), Netwealth not only pointed to a 38.7% increase in funds under administration (FUA) representing $3.8 billion but also pointed to its technology implementation agenda.

It said the technology environment was changing extremely quickly and “innovations in artificial intelligence, especially with the rise of generative AI, are being explored and actively implemented to improve, efficiency, productivity, client engagement and service”.

The quarterly update said that Netwealth’s FUA stood at $88 billion at 30 June having increased by $3.3 billion for the quarter based on net inflows of $3.8 billion and negative market movement of $0.5 billion.

The company also pointed to record 12 months FUA inflows of $22 billion.

It said its Managed Accounts balance had increased 29.4% to $17.6 billion with managed account net inflows of $0.8 billion for the June quarter representing an increase of $0.4 billion or 129.2% over the prior corresponding period.

Netwealth noted that while positive market movements of FUA contributed to higher administrative fee revenue, the impact was significantly diluted due to the structure of tiered administration fees and fee caps.