The Role of Disruptive Technologies in Redefining Personal Finance

Personal Finance

Personal Finance

Leveraging AI, Machine Learning, Chatbots and Blockchain can reshape the face of personal finance.

The technology and its development has always been at the forefront to assist humans, even it is now being used to help make effective decisions. From the evolution of artificial intelligence and machine learning to robotics and others, all are delivering enhanced capabilities to ease the burden of humans. In the context of making financial decisions, AI and machine learning technologies are already proving its capabilities. Financial institutions are using these technologies to help customers make wiser financial decisions. For instance, Wallet.AI, an AI-enabled app, which creates intelligent engines to help people make better financial decisions by assessing millions of pieces of data based on their spending behaviors.

AI technology can also be used to make predictions. Trade-Ideas, real-time market intelligence, which relies on trading data, assists people in making the right investment decisions without requiring to have financial advisors. This disruptive tech has completely changed how people do everything, from communicating with others to creating things. AI has enabled companies to make everything more efficient, faster, and more available than ever before. It has now entered our personal financing decisions, affecting nearly every aspect of our money including our bank, financial security, our budget, and how we pay and get paid, among others.

Previously, people were generally paid in cash or with a check. But with the evolution of technologies, this system has shifted to online banking. The development of financial technology has also not only paved ways into how to get paid, but how people make their payments too. 

Technologies such as AI, robotic process automation (RPA), Blockchain, chatbots, and online payment systems, among others are increasingly making their way into financial institutions or banks, easing the process of personal financial planning. Companies are using these technologies to assist and deliver smoother services to their customers.

Robotic Process Automation

As banks and financial institutions these days are experiencing tremendous pressure to optimize costs, boost productivity by providing faster and convenient financial services, and stay competitive, the use of RPA can be beneficial for them. Since this tech is perceived as an intelligent automation solution across different business operations, it not only assists in minimizing costs but also helps in improving efficiency, service levels and data quality. It enables banks & finance companies to offer better compliance, conquer risks, and reinforce the overall consumer experience.

Chatbots

Today, almost every financial service provider is using chatbots or digital voice assistants that have transformed the way customers interact with banks. As customers expect their every query to be resolved within a matter of time by visiting the financial institution’s website, these AI-powered chatbots significantly stepped out for customer queries. For managing personal finance, customers require financial chatbot with a bank account. Many companies in this space offer free digital assistants that track people’s expenses and assist them in saving money. Trim chatbot, an AI-powered assistant, for instance, helps people save their money by canceling unexploited subscriptions. It analyzes people’s spending habits so they will know where their money goes. Trim app looks at its users’ transaction data and then recognizes regular payments made.

Blockchain

Blockchain has garnered a lot of traction among various private equity firms thanks to its potential to lessen the financial services industry infrastructure cost. As it is a distributed ledger technology and delivers secure ways of storing information and data, finance teams could use this technology more in the coming years to enable faster and cheaper settlements that will help save billions from transaction costs providing transparency. Blockchain has the ability to augment the accounting profession by minimizing the costs of maintaining and integrating ledgers, and delivering absolute certainty over the ownership and history of assets.

So, the use of disruptive technologies has the potential to change consumer and business expectations in payments and gives the ability to customers to manage their personal finance effectively. At the same time, financial institutions or banks can heighten their productivity, efficiency and cost-saving capabilities by leveraging these technologies at large.