Automated financial services delivered through Robo-advisers, Apps and Chatbots can be used to help change how consumers approach everyday savings and investments. AI uses information that the customer has provided to determine the most suitable investment options or saving plan.
- According to a report by PWC, only 24% of millennials demonstrate basic financial knowledge.
- Over the last two years high street banks like Barclays, RBS, Lloyds and Santander have revealed plans to launch Robo-advisers.
- AI provides low-cost financial advice to millions of people who are unable or unwilling to pay high fees.
- Adoption has been slow despite Accenture reporting in 2016 that 68 per cent of UK consumers were prepared to use Robo-advice for banking services.
- For Robo-advisers to succeed they need get the consumer back onside through clear digestible information as right now they’re not speaking in simple language whilst also failing to understand consumer needs.
- The key to the adoption of robo-advice will be through helping people to first take control of their everyday spending this will make the transition to AI-driven wealth management services more natural.
- These AI powered services encourage customers to put away a little more often and ‘micro-wins’ provide positive reinforcement and can potentially lead to longer-term positive behavioural change.
- Services also exist which offer decision-making prompts around whether they are going to go over budget or save money based on their spending – allowing the customer to take control of their spending with ease.
Automation is an exciting development which could change the landscape of personal finances and give banks the opportunity to rekindle relationships with customers. The challenge for banks will be in convincing customers to use their services over start-ups and this will require rebuilding trust and loyalty.
Read the full Global Banking and Finance Review: ‘How is AI is changing how customers think about savings and investments’.
Interested in finding out more about the future of financial services why not check out our blog post ‘Banking and designing for voice recognition’.