Estimated reading time: 3 minutes, 2 seconds

Would you allow a robot to manage your money? Well, while it may appear as fictional futuristic movie stuff, financial services providers are already doing it. Robots and artificially intelligent computers and systems are now helping in the management of your money and other financial services. According to Accenture, this trend will allow banks to boost their revenues and employment in the next five years. Similarly, AI apps that help people in their Personal Finance Management (PFM) are now available to help individuals in the management of their finances.

It is expected that personal finance management software will have grown tremendously by 2023 globally, with an estimated revenue of $1,213 million. This is a significant growth considering the market was just $837 million in 2017. Although the revenue growth in the AI-driven PFM is a considerable achievement, the rapid increase and development of this industry is crucial in this market.

Automate it

Autonomous finance, which includes financial services driven by AI algorithms to help in decision making on behalf of a customer ,is slowly gathering pace. It has shown the potential of replacing human expertise in financial decision making while also ensuring that customers have access to services such as financial-related coaching and other daily money and planning matters 24/7.

Although this technology is showing good signs already, the question which remains is whether people will trust AI. As evidenced by how people have embraced this technology, the answer to the question is yes. Credit Karma in their research has indicated that the public is comfortable with autonomous finances, even more than they are with the self-driving cars. Millennials who form one of the most significant customer bases have confidence in the use of AI in financial planning since most of them find finances too hard to understand.

Many FinTech companies are already getting into autonomous financing by venturing into different vital niches. Wealth management, for example, is one of the niches that AI is revolutionizing. It uses advanced AI-powered algorithms with big data analytics to offer suggestions on the best course of action to customers. Some known examples are Wealthfront and Betterment both of which are Robo-investing solutions. These two have however been facing competition as new types of fully automated wealth management applications and assistants make entry to the market. For example, Deloitte’s Robo-Advisor 4.0 comes up with optimal asset allocations based on the needs of the customer using a self-learning AI algorithm. It also devises the market conditions in real-time allowing customers to adjust their portfolio based on the prevailing conditions.

Personal savings and budgeting niche is another PFM space that is growing. Examples of apps in this area are YNAB and Mint, which have effective user interfaces that help users access their banking services. Although this first-generation PFM software made a statement a few years ago, new AI-driven solutions are now edging them. Some of these include Digit, Plum and Cleo which were fronted by FinTechs and other financial instruments leveraging on AI to assist in financial coaching and advising on investments, savings and suggest spending. In the lending niche, Chinese fintechs are exploring how they can use AI with digital banking by leveraging big data analytics and machine learning capabilities to ease micro-loans.

As Ai keeps improving, large financial players are in a few years going to resort to AI and autonomous finance to manage your financial needs and services. The goal here is to make it easy for the customer to carry out banking and investment activities easily, automatically and effectively. Since customers want better guidance in matters finances, introducing AI-powered apps allows banks to deliver quality and collect insights which are needed in future decision making.

Last modified on Monday, 03 February 2020
Read 302 times
Rate this item
(0 votes)
Tagged under
Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

Find his portfolio here and his personal bio here

Website: scottkoegler.me/

3 comments

  • Comment Link fddbiEvage Sunday, 05 April 2020 16:36 posted by fddbiEvage

    viagra sex old man fucking with viagra female viagra can a 64 year man recover from ed without viagra teen boys using viagra

    sister brother viagra what is in viagra [url=https://viagrnetwork.com/#]viagra in action [/url] tricked into taking viagra porn step sister helps viagra boner

    https://viagrnetwork.com/# - natural viagra

    Report
  • Comment Link StepBougs Friday, 20 March 2020 04:41 posted by StepBougs

    Levitra Medicamento Para Impotencia buy cialis online reviews Cialis 10 Mg Precio Farmacia cialis online india Dove Trovare Cialis Senza Ricetta

    Report
  • Comment Link StepBougs Wednesday, 11 March 2020 06:43 posted by StepBougs

    Buy Cialis C80 Cialis Viagra For Men Price In Kolkata 390 canadian pharmacy cialis Wikipedia Cialis

    Report

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

Visit other PMG Sites:

click me
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.
Ok Decline