When it comes to digital fintech innovations, personalization is one of the biggest and most persistent trends. Let’s explore the role of artificial intelligence in personalized financial services and what are the use cases.
Personalized Financial Services: Benefits Overview
Personal financial services as a concept have many benefits. Customers get the service that meets their personal financial needs depending on their current situations, objectives, and attitudes towards risks. This brings about efficiency in financial optimization like getting high returns in investments and attaining set goals.
Also, the opportunity to obtain its specific service involves clarity of all costs, opportunities, and threats associated with its acquisition, promoting rational decision-making among customers. Such an approach of segmentation leads to a higher level of customer loyalty and customer satisfaction.
Examples of AI-Driven Personalized Financial Services
Investment advice
AI financial advisors can provide a specific recommendation of an investment based on the client’s risk profile, investment objectives, and other characteristics. Wealthfront and Betterment are examples of the AI investment platforms which automatically and personally invest clients’ money.
Financial planning
Customers can consult with financial planners for designing their financial plans that involve their income, expense, assets and liabilities. Some automated financial planning applications include Personal Capital developed by BlackRock, and a Mint application for financial management. These platforms offer solutions in terms of how best an individual could save his/her money or invest by wisely splitting his/her income.
Insurance solutions
Insurance firms pick machine learning algorithms and consider the various risk aspects of a customer to offer customized insurance products. For instance, all the characteristics of a vehicle, including speed, acceleration, and breaking, can be analyzed by AI algorithms used to evaluate the risk profile of a customer and consequently the insurance offer
Loan solutions
Some credit scoring models based on AI can take into account a customer’s repayment history, income, and other factors for credit worthiness. This can also assist the customers in acquiring loans and credit cards within their most appropriate terms and conditions.
Chatbots and virtual assistants
Today, most financial organizations incorporate intelligent and knowledgeable chatbots and virtual assistants in giving customers unique detailed financial advice. It means that these tools can give responses, suggestions and actually conduct business for the customer.
AI in Personalized Financial Services: Summary
Of course, all of the above is easier said than done. There are more often a need for more employees, knowledge and a suitable technologies platform to develop personalized financial services. A technology partner, in contrast, could help you through all stages mentioned above and help you adopt solutions that your clients would appreciate.
One such partner is S-PRO. Their portfolio includes clients who have successfully integrated AI into their apps, relying on the expertise of the S-PRO team.