Most banks and credit unions are in the early stages of adopting artificial intelligence technologies. The U.S. body Narrative Science calculates that 32 percent of U.S. financial services executives are using artificial intelligence technologies like predictive analytics, recommendation engines, voice recognition and response. The next big leap is to apply this technology to consumers, to permit more ‘self-driving’ of banking services and to help consumers to manage earthier accounts.
One of the most interesting findings from the Varo Money survey is the consumer response to artificial intelligence. When the data is extrapolated to the population as a whole, 195 million U.S. citizens are open to idea of banking technology helping them to manage their finances. This in effect means the use of artificial intelligence. Here, when demographics are examined, this tendency is greater with millennials with 85 percent of those polled open to the use of artificial intelligence systems.
In terms of what consumers would want from smart banking, the Varo survey provides some interesting indicators. The main findings were:
-37 percent of adults inducted that 24/7 availability is a top benefit of artificial intelligence banking services.
-29 percent felt that the use of artificial intelligence would lead to less error.
-Similarly, 29 percent felt that having financial decisions made by an artificial intelligence platform rather than by another person would be more likely to lead to unbiased advice.
In terms of the headline services from artificial intelligence:
-36 percent of adults consider that artificial intelligence can help them with calculating and implementing a savings plan.
-30 percent think that smart banking would give them better visibility into how they spend.
-28 percent think such systems would help them with understanding the big picture rather than simply providing a snapshot from a short period of time.
With specific services, the survey found that a large proportion of people would like artificial intelligence in banking to automatically pay bills (47 percent). The same proportion would also like artificial intelligence to analyze their cash flow.
Almost half (43 percent) would like to see a system that could set up automatic savings.
Another useful service would be connecting their accounts (such as checking, credit card and loans) in one place. This appealed to 42 percent of people surveyed.
Commenting on the survey results, Colin Walsh, co-founder and CEO of Varo Money said: “Americans [U.S. citizens] today — and particularly millennials — understand how technologies like AI are going to fundamentally change our lives. We founded Varo for this digitally savvy generation. By creating a mobile-only bank that puts AI to work for people, we can provide our customers with the full financial picture, proactively notifying them of their spending patterns and helping them bridge cash traps, and, ultimately, achieve their financial goals with maximum ease and minimal hassle.”
Fintech companies appear ready to take advantage of these trends, while legacy groups continue to pursue digital transformation capable of drawing more of these digitally savvy consumers towards their organizations.
