The FinTech sector always keeps abreast with new technologies and innovative approaches. For instance, JP Morgan is one of the first banks that embraced blockchain technology, and it is on track to launch its digital coin. The company takes this step at a time when many banks in the world are only considering such a move, and even more banks haven’t started thinking about it.
But even with that said, artificial intelligence is proving to be a way more powerful disruptor in the financial industry. The rise of AI-powered application development has shown it, brought to provide a new level of services to customers.
Chatbots are an excellent example of AI-powered apps. They are programmed to carry out conversations with customers in a way that mirrors human communications through text and audio, providing suitable solutions to client concerns. Apart from chatbots, it is hard to find a bank without an AI personal finance assistant or in the process of developing one in this age.
Let’s now take a more in-depth look into finance AI software.
The Current State of the Personal Financial Assistant Market
Going by figures on Statista, personal finance transactions are expected to reach $1,092,496 million in 2019. Notably, the sector’s most significant segment is robot advisors with an asset net worth of $980,541 million. By 2023, AI-assisted advisor bots are forecasted to reach the value of $2,695,361 million.
Another notable aspect of finance AI software is money management apps. These programs help users to track their expenditure and thus, make better decisions with their money. GlobalData reports that 61% of clients say that customized suggestions on managing finances are helpful.
One of the biggest software launches happened in May 2019. Clerkie, the AI personal finance assistant, presented its first app. This free AI-powered software went live after receiving a $2 million seed funding received from Flourish. With the application, users can access actionable personal finance assistance as well as professional advice on managing their money.
Why You Need to Create a Personal Finance Assistant with AI
AI is taking financial management to another level, delivering top-notch personal finance assistance to customers. Case in point, AI-powered applications can help your clients to monitor their spending while, at the same time learning from how they use money. As such, the apps can tap into predictive analytics and provide customers with helpful suggestions on how to spend money the best way.
With AI-powered financial assistants, clients do not have to worry about money management and savings. These applications can learn about your needs and spending habits, thus, keeping users from impulsive purchases.
By creating an AI-powered assistant for your FinTech business, you can show that you care for your customers. Such a tool can assist them in making the right financial decisions all the time. NerdWallet reported that about 49% of US citizens have contended that emotions have pushed them to use way more money than they could afford. With an AI financial application, they can avoid such habits and use money way more appropriately.
Finance firms should also create AI-powered financial assistants to foster personal relationships with customers. AI assistants can respond instantly 24/7/365, making them easier to reach compared to human agents. As such, these applications offer a better experience to the customers than traditional customer support methods.
Benefits of AI for Personal Financial Management
Below are the advantages of using a personal finance application:
1. Better management of money. Finance applications, unlike people, make data-based decisions and not emotion-based ones. As such, they are sure to keep people from irrational decisions, for example, impulsive purchasing.
2. Better security of finances. Money management applications can flag fraudulent activities on customer accounts. What is more, they can send alerts to inform the affected individual and offer a few solutions to each case.
3. Business management. AI-powered applications can act as financial assistants to business people, helping them to automate the management of their business’s expenditure.
Examples of Financial Assistants Powered by AI
Here are some AI-based personal finance assistants:
1. Olivia AI. It is a financial assistant that users can converse with. She uses machine learning algorithms to perform an array of functions, such as connecting to the bank accounts of customers and offering on-the-go information on expenditures. Olivia learns about the user by monitoring spending patterns and providing suggestions based on them. She is cloud-based software, thus, entirely secure.
2. Digit. It works similar to Olivia by linking to the bank account of a customer and assessing the client’s spending habits. Digit can also forecast the user’s expenses and send the rest money to a savings account.
3. NOMI. Created by the Royal Bank of Canada, NOMI comes with a mobile application and can provide customized trends, alerts, and recommendations based on the spending pattern of the customer. However, users can not chat with this application.
To conclude, creating finance assistance applications is a sure way of developing solid relationships with customers. Apart from that, AI-powered financial apps help users become smarter with their money, spending habits, and savings. This technology is worth embracing to give customers a new helpful way of handling their finances. In turn, this will result in increased business revenues and investment rates in the FinTech sector.
If you want to create a personal financial management app, feel free to contact inVerita. Being an experienced software development company in the FinTech market, inVerita has a huge experience in building AI-powered solutions. Reach out to inVerita now!