Participants in the program gained practical guidance on how AI can be used to improve client services, how predictive analytic technology can advance client interactions with advisors, and the U.S. Securities and Exchange Commission (SEC)’s proposed rule on predictive data analytics.

Our panelists explored the transformative impact of artificial intelligence (AI) on the financial advisory industry. In an era marked by technological advancement, financial advisors are presented with both unprecedented opportunities and notable challenges. Financial technology is increasingly being used to help mediate the advisory relationship, providing seamless ways to match with financial advisors, communicate more effectively, and increase client engagement opportunities.

As AI tools have become increasingly available, integrating these techniques into advisory relationships has been on the rise within broker-dealers and registered investment advisors. The SEC proposed a new rule in August 2023 that highlights where regulators see an increased risk of conflicts of interest that may not be in the best interest of clients. The proposed rule outlines the SEC’s potential approach to addressing these risks when predictive data analytics are used in client interactions (for proposed rule, click here).

The panelists also explored the following topics:

• Use cases for how AI can enable advisors to make informed decisions and provide timely advice and services to clients.  
• How predictive analytic technology and AI-enabled services can provide tools to clients to self-manage their own financial decisions and strategies.
• Governance practices that companies can consider to manage potential negative impact to clients.
• The SEC’s proposed rule on predictive data analytics and the regulatory perspective on the risks created by these technologies.
• The potential implications of AI on advisor/client interactions, and the industry.

Career Pathways in Financial Services: An Introduction for Black Americans is a practical guide to career pathways in financial services. It explores the challenges and opportunities facing potential Black financial services professionals, outlines the career paths available to you, and helps you chart your personal path forward.

Challenges and Opportunities

Black Americans are underrepresented in the financial services industry. While Black Americans make up almost 13% of the US population, they make up only 5% of financial professionals.¹ This underrepresentation is mirrored in the wealth gap between Black and White Americans —the median Black family’s wealth was just $24,100 in 2019, about one-eighth of the $188,200 median wealth of White families.²

These statistics point to a serious schism in the relationship between Black Americans and the financial service industry. Yet the industry offers significant opportunities for potential Black professionals. Many financial services firms have a strong sense of mission and a career in financial services can be rewarding for those who want to serve their communities. A career in finance can offer generous pay - financial services jobs pay a median wage of close to $40 an hour compared to less than $23 an hour for all jobs on average.³

Financial Services

Industry Overview

For those with the right skills, there are a range of opportunities in the various sectors of the financial services industry:

• Banking
• Insurance
• Financial Planning
• Wealth and Investment Management
• FinTech
• Brokerage

Core Skills

Financial professionals need a range of skills, including:

• Skilled in leadership and able to demonstrate accountability.
• Comfortable with numbers.
• Good at communication.
• Organized.
• Proficient at problem-solving.
• Mature and have a high degree of emotional intelligence.
• Proficient at time management.
• Good at teamwork and at working and interacting with different types of people.

Your Career Path

A career in financial services can be professionally, financially, and emotionally fulfilling. Your career will generally move through three phases.

Phase 1: Learning

• Finding your first job.
• Developing industry knowledge and practical skills.
• Building relationships within your industry/firm.
• Learning industry norms.
• Building customer contacts.
• Obtaining any necessary licenses.

Phase 2: Building

• Developing specialized skills.
• Building your network inside and outside your firm.
• Pursuing new career opportunities/promotions.
• Becoming active in industry groups and professional associations.

Phase 3: Leading

• Understanding how to manage a business/department.
• Developing leadership skills.
• Staying current on industry trends and developments.

Next Steps

• Reach out to The American College of Financial Services’ Center for Economic Empowerment and Equality® to access cutting-edge research into the financial services industry, guidance on scholarships that can support your financial services education journey, and opportunities to connect with Black financial services professionals.
• Read financial media and watching financial news, as well as following financial professionals on social media.
• Reach out to any contacts you have who work in finance or connect with financial professionals through your LinkedIn network.
• Consider your current education and whether you may benefit from additional certifications or designations.
   

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