Lydia with Brian Portnoy and Andrew Smith Lewis | E330

How AI will make the advisory industry more human.

In this episode of Fintech Impact, Jason engages with Brian Portnoy and Andrew Smith Lewis, pioneers behind Lydia, a groundbreaking venture that marries behavioral finance and artificial intelligence. This dialogue explores how Lydia is set to revolutionize the way financial advisors interact with clients, making the advisory process more human through technology.

Episode Highlights:

  • 00:09: Jason Pereira introduces the episode, mentioning his excitement about hosting Brian Portnoy and Andrew Smith Lewis. They discuss Lydia, a revolutionary venture that intertwines behavioral finance with AI to enhance the effectiveness of financial advisors. Jason's enthusiasm sets the stage for a deep dive into how technology is being harnessed to foster more human-centric financial advising.

  • 00:35: Andrew briefly expresses gratitude for the opportunity to discuss their project, Lydia. This moment of acknowledgment hints at the collaborative spirit and mutual respect among the speakers, setting a positive tone for the conversation.

  • 00:47: Andrew takes the lead to describe Lydia's vision. He portrays Lydia as an empathetic AI collaborator, designed to improve advisors' interactions with clients for better outcomes. He emphasizes the project's humanistic approach, highlighting the ambition to use technology not as a replacement but as an enhancer of human capabilities. This vision challenges conventional fears about technology undermining human roles.

  • 01:38: The conversation shifts to explore the background of both guests, which is vital for understanding the inception of Lydia. This segment is crucial for grasping the unique confluence of their expertise in behavioral finance and AI, laying the foundation for Lydia's innovative approach.

  • 02:07: Brian shares his journey and how behavioral finance became a pivotal aspect of his career. His transition from a traditional investing trajectory to focusing on the psychological aspects of finance illustrates the evolving landscape of financial advice. Brian's passion for applied behavioral finance is contagious, underscoring the importance of understanding client needs beyond the numbers.

  • 04:12: Both Brian and Andrew narrate their personal and professional journeys, leading up to their collaboration on Lydia. Their stories emphasize the value of cross-disciplinary insights in creating solutions that address complex challenges, like enhancing the advisory process with AI.

  • 07:25: They delve into the potential and capabilities of Lydia, explaining how it personalizes education and learning for financial advisors. This detailed exploration into Lydia's functionalities showcases the thought and technology behind making advisory services more impactful and human-centric.

  • 14:46: Andrew discusses the challenges and opportunities presented by AI, bringing a nuanced perspective to the conversation. He touches upon the responsibility of leveraging AI to empower humans rather than displacing them, which is a crucial consideration in the development of Lydia.

  • 18:24: The discussion about Lydia's technological backbone emphasizes its unique approach of remembering and learning from interactions with advisors. This personalized touch demonstrates how AI can be tailored to add value to professional growth and client relationships.

  • 24:41: Toward the end, the conversation pivots to the broader implications of Lydia and similar technologies on the industry. Jason Pereira and his guests contemplate the future of financial advising amid rapid technological advancements, highlighting the potential for transformative change in how advisors connect with and support their clients.

Key Takeaways:

  • Lydia represents a significant leap forward in integrating behavioral science and AI to enrich financial advisory services. The technology aims to deepen the advisor-client relationship, making advisory processes more intuitive and empathetic.

  • The collaboration between experts in behavioral finance and AI underscores the potential of interdisciplinary approaches in tackling industry challenges. By focusing on the human aspects of financial advising, Lydia aims to enhance the quality of advice and client outcomes.

  • The development of Lydia emphasizes the importance of personalized learning and growth for financial advisors. Through AI, advisors can gain nuanced insights into their practices, evolving their approach to meet client needs effectively.

Tweetable Quotes:

  • "Lydia is about amplifying human brilliance, not replacing it with technology." - Andrew

  • "Understanding your clients goes beyond the financial; it's about human connections." - Brian

  • "In the era of AI, embracing technology to enhance our humanity is not just possible; it's necessary." - Andrew

Resources Mentioned:

Fintech ImpactJason PereiraFintech