St James’s Place uses AI to spot and help ‘vulnerable’ customers

St James’s Place has started using artificial intelligence to help identify and assist customers using its call centre who might be considered “vulnerable”.

Mark FitzPatrick, chief executive of the UK’s biggest wealth manager, said at the Investment Association conference on Wednesday that the company is using technology “intensively” and that its “big focus” is to “facilitate the productivity and effectiveness of our advisers”.

“Something we’ve done very recently, as well, in terms of supporting and identifying clients who may be vulnerable is we have an AI in our call centre that listens in to the calls and identifies any kind of intonation or any kind of language that is used that may trigger that somebody is a vulnerable customer.”

He added: “It flags there’s something to the adviser, to say there’s actually a risk that your client may be vulnerable . . . and therefore you may want to engage with them in a slightly different way.”

How wealth managers treat customers has come under increasing scrutiny from the UK’s financial watchdog since it introduced “consumer duty” rules last year. SJP was forced to set aside £426mn earlier this year for potential compensation to customers who felt they had not received a sufficient level of service, following a significant increase in the number of client complaints.

FitzPatrick’s comments come as wealth managers and fund groups attempt to integrate AI into some of their processes to improve operational efficiency. Asset managers are also increasingly using AI to guide investment decisions, identify moneymaking opportunities, and to help with back office administrative tasks.

SJP, which has about £170bn of assets under management, works with a fleet of almost 5,000 advisers — representing almost one in eight of the country’s entire adviser network.

FitzPatrick, who joined the wealth manager last year from the insurance firm Prudential, said that the business is doing “a lot more experimentation” with technology.

He added: “I think AI should be part of every board discussion — and if it’s not, I think we’re missing a trick.

“I have no doubt a lot of money will be spent on AI. Some of it will be productive, a lot of it will fall on to the altar of learning and experimentation.”

Other companies are implementing AI to help with investment decisions. JPMorgan told the Financial Times that it plans to expand the use of an AI tool that flags questionable decisions by portfolio managers, such as potentially selling top-performing stocks too soon.

However, wealth management firms understand that clients often want to speak to an individual managing their money. Aaron Bates, who leads the ultra-high net worth team at Bernstein Private Wealth Management, said last year that AI “allows us to focus on remaining competitive and be relevant for the next generation of wealth-holders”.

SJP, demoted earlier this week from the FTSE 100, has recently come under the spotlight over its fees, which have in the past been criticised for being opaque. The wealth manager has committed to ditching its exit charge on some products for new customers from next year, among other changes to its fees.