Technology firm TIFIN announced that RBC Wealth Management-US has agreed to use a company's new artificial intelligence wealth management program that tracks the flow of money in client accounts.
AI-Powered Insights is a program offered by TIFIN AG, a spinoff of TIFIN, that "uses artificial intelligence to observe client behaviors and patterns to identify those who might have money in motion following a significant financial event," the company said in a press release yesterday.
TIFIN AG was created by TIFIN in January, when it was described as a company devoted to helping wealth managers increase client assets. The company's efforts to incorporate AI into wealth management operations comes at a time when AI technology companies are a driving force on Wall Street.
TIFIN, of Boulder, Colo., said that the more than 2,100 RBC financial advisors will have access to the AI technology, which determines which clients might, for example, have freed-up liquid assets after a significant financial event, such as coming into an inheritance. TIFIN AG rolled out the program companywide this week.
The RBC partnership “is a really big deal,” Jeff Koeneman, chief experience officer at TIFIN AG, said in an interview. “It’s an inflection point for the industry. There are a lot of firms sitting on the sidelines and waiting to see how the application of AI models play out. RBC is a household name. Having a partner like RBC just shows the validity of what we’re doing.”
TIFIN described the deal as a “new phase of collaboration” between the companies. RBC has been an early adaptor of TIFIN AG’s platform, which, overall, employs the technology to help wealth management companies grow assets by deepening their knowledge of customers’ habits and financial needs. It also helps firms consolidate client information and customize marketing efforts.
"RBC Wealth Management-U.S. has been one of the early adopters of TIFIN AG's AI capabilities to use actionable intelligence to help our 2,100+ advisors deepen client relationships and grow their practice," Greg Beltzer, head of Technology at RBC Wealth Management-U.S., said in a statement.
TIFIN said it creates and operates new companies that apply data science, AI and technology to address problems that may exist in wealth and asset management firms.
The announcement of RBC’s enhanced collaboration comes shortly after SEI, which manages, advises or administers about $1.4 trillion in assets, said it’s investing $10 million into TIFIN. Earlier this month, the company purchased the Giving Place, a charitable tech solution in Medina, Ohio, that oversees $670 million in philanthropic assets.
Koeneman said TIFIN AG’s “mission” is to bring more people into the world of financial advice. He noted that the company’s addressable market is 4,500 firms with around 320,000 financial advisors.
“The moat,” he said, “is large.”