A challenge Australian Financial Services Licensees often struggle with is reviewing financial advice to identify trends and habits that occur across multiple client interactions.
Normally done by experts in hindsight audits and reviews, it relies on a sharp and experienced eye to detect issues every time.
The latest stage of TIQK’s evolution combines robust audit datasets with Artificial Intelligence technologies to assess the quality of advice across all Statement of Advice (SoA) files produced by an adviser.
Now and for the first time there’s a truly automated solution to detect so-called “cookie-cutter” financial advice in SoAs.
(“Cookie-cutter” advice is where an adviser repeats the subject matter of their advice to many different clients over time, and it is identified as one of the strongest Key Risk Indicators for Australian Financial Services Licensees in ASIC’s Report 515.)
With Mira technology, TIQK now provides compliance experts with immediate feedback on trends and behaviours, so that they can be addressed before becoming real and expensive issues.
Meet Mira: the newest (virtual) member of the TIQK team
Mira is an advanced Artificial Intelligence engine that was designed for compliance analysis.
Building on the detailed and accurate results captured from every SoA regulatory and Best Interests audit, Mira can provide risk insights that simply weren’t possible before.
While you might not "see" Mira when using TIQK, if you’re in financial services in Australia you’ll see the benefits it can bring.
The first release of Mira introduces a new dimension to our SoA audits – one that the market told us it was keen to see delivered: a truly automated solution to detect so-called “cookie-cutter” financial advice in SoAs.
We believe that smart technology doesn’t have to be hard to use
Rather than overwhelm you with vast datasets and probabilities, Mira simply surfaces a straightforward and useful analysis when a potential cookie-cutter issue is detected:
The analysis includes a clear explanation of the relevant scope of advice, and a list of the other files containing similar advice.
How does Mira work?
Even though the analysis looks simple and is completed in just seconds, Mira does a lot of heavy-lifting behind the scenes.
Detecting cookie-cutter advice is a challenge for compliance experts because:
- A typical Statement of Advice has more than 500 data points to analyse in each audit, including complex assessments like insurance churn;
- It is only possible to perform an accurate assessment of cookie-cutter advice when the entire output for a financial adviser is reviewed; and
- The nature of the advice will evolve over time as market conditions and clients change, and as AFSLs and advisers modify the language they use in SoAs.
With over a million SoAs produced in Australia every year, this can prove an impossible task for compliance teams.
TIQK makes the impossible possible by enabling you to conduct an initial audit on every SoA rapidly and effortlessly. During the audit TIQK collects data about the advice itself, and regulatory and Best Interest outcomes. Mira leverages that dataset to build (and constantly update) unique profiles for every financial adviser in your organisation.
We understand that not all advice follows a strict template. Where an adviser gives specific, complex or highly-edited advice, MIRA employs a type of Artificial Intelligence called Machine Learning to quickly adapt to understand what it means.
What’s next for Mira?
Mira represents the latest stage of TIQK’s evolution. You can expect to see its capabilities applied to a wide variety of complex compliance analysis challenges in future beyond detecting cookie-cutter advice.
Our roadmap of TIQK features is designed from the ground-up to augment compliance and risk professionals, and are only possible through the combination of comprehensive audit results datasets and advanced technologies that TIQK uniquely delivers.
Catch up on the new features and improvements we regularly add to the TIQK platform in our release notes; learn more and discover tips and tricks in the searchable TIQK Knowledge Base; and connect with our team on Twitter and LinkedIn for the latest news and perspectives.