Wells Fargo’s Wealth & Investment Management business has invested over $1 billion over the past several years to modernize its technology platform, with a new generative artificial intelligence-powered suite of tools for financial advisors being the latest addition, Wells Fargo Chairman and CEO Charlie Scharf said Tuesday (July 14) during an earnings call.
The bank launched the Advisor Gateway during the second quarter to give financial advisors “better tools to serve clients and grow their practices,” Scharf said.
When announcing its launch of the Advisor Gateway in May, Wells Fargo said in a press release that this desktop technology offers financial advisors access to more than 200 tools and applications, including goal planning software, research tools and a centralized resource for alternative investments.
Scharf said during Tuesday’s call: “Investments like this are improving productivity, strengthening the client experience, and driving improved advisor hiring and retention.”
Wells Fargo saw broad-based economic strength across the United States during the second quarter, according to a Tuesday earnings release. Scharf said in the release that consumer spending was higher,charge-offs and delinquencies were lower, and savings and investments were growing. He added that while businesses were cautious during the quarter, their balance sheets, cash flows and credit performance remained strong.
As for Wells Fargo itself, the bank delivered growth across all its businesses in the second quarter. Year-over-year revenue gains were 6% in Consumer Banking and Lending, 13% in Wealth and Investment Management, 16% in Corporate and Investment Banking, and 6% in Commercial Banking, according to a financial results presentation released Tuesday.
“We are clearly benefiting from the economic strength we see in the U.S., but the investments we are making and our improved operating discipline drove strong momentum and continued to result in improved performance,” Scharf said.
Wells Fargo’s efficiency initiatives using technology and artificial intelligence have reduced the bank’s headcount in each of the past 24 quarters. The headcount declined to 197,000 in the second quarter, which was 3,500 less than the previous quarter and 15,000 less than the year-ago quarter, Scharf said.
“We are using these efficiencies to offset broad-based investments across the company to drive growth, including adding branch bankers, investment advisors, commercial banking relationship managers, investment bankers and traders,” Scharf said. “We are also increasing our marketing investments, accelerating product development, investing in AI and increasing our cyber defenses.”
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