AI application
Research shows that consumers want an interactive digital financial coach, but most are still stuck with static online banking. Discover how the industry’s most innovative companies are using AI and machine learning to build financial solutions and apps to attract and engage today’s evolving consumer.
Consumers in every generation, from millennials to boomers, are worrying about their financial health more than ever. There’s a wealth of information out there to guide them through how to make more, save more, spend less, and actually be able to retire at a reasonable age, but the sheer volume of advice – not to mention the noise to signal ratio – makes consumers increasingly frustrated with the tools they have available.
They’ve grown more comfortable using the traditional personal financial management tools that have proliferated since banks first learned how to go online and fintech startups began to sprout like weeds, but those tend to be static, offering a great snapshot of their financial picture, but not giving out clues about where to go next to protect their wealth and make it grow.
And since most consumers prefer to bank by phone or web, they’re not eager or generally willing to break down the doors of the financial advisors who lurk at bank branches, and usually require an appointment during business hours. That means customer engagement stays low, and loyalty is only as good as the next incentive offer from a competitor.
Emerging technologies are gaining momentum, however, and financial service providers – from banks, wealth management advisors, and fintech startups – are embracing the application of artificial intelligence (AI) and machine learning to deliver unique value to consumers.
AI-powered applications are a leap forward, considering data from a huge variety of sources: user preferences, personal demographic information, credit history, risk aversion, lifestyle, earning power, income sources, and financial goals. They can link up all in tandem; the financial wellness algorithms are fed real-time market data that matches portfolio and product suggestions to a customer’s robust profile. Over time, product recommendations get smarter and smarter as data accumulates and results are examined and fed back into the algorithm.
This means hyper-personalized customer experiences that can also deliver targeted financial advice. For an individually tailored savings goal, for instance, an AI system can plug in your spending and savings habits, then suggest ways to create a reasonable budget and slash spending where and when it’ll be most effective.
The financial institutions and fintech companies that provide these kind of smart applications and services can stand apart from the crowd, grow customer engagement, and snag the kind of loyalty that keeps customers with you throughout their whole financial lives.
To see how Elafris Virtual Insurance Agents can help your company click here to schedule a free online demo.
This article was originally published on venturebeat

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