Financial Services Technology AI Can Help Improve Financial Wellness
Financial services technology has changed the retirement plan industry landscape. Artificial intelligence (AI) is now more prevalent within financial services technology than ever before. In fact, according to a recent article from Benzinga, a website for investors, “AI has been growing exponentially growing at the speed of the fintech industry” and financial services technology.
Thus, it’s important for retirement plan sponsors to keep up with advances in AI in financial services technology. And this includes helping workers to take control of their financial wellness. Financial services technology AI can track users’ spending habits, provide users with account balance projections, and help users to understand how much they can spend based on their income and expenses. AI in financial services technology can also help users to establish savings goals and work with users to make a plan to achieve their retirement goals. The financial services technology AI can successfully monitor their progress along the way.
This incorporates an accountability factor, which is necessary to make financial wellness a success. Financial services technology AI can take the concept of financial wellness beyond mere education and put some action and accountability behind it, making users much more likely to have success when it comes to reaching their goals. Thus, financial services technology AI could be a boon for plan sponsors who are interested in incorporating financial wellness into their existing retirement programs.
Benzinga mentioned EnvestNet’s Yodlee AI FinCheck Advisor as an example of financial services technology with built-in AI. FinCheck Advisor can create personalized advice for users, which is driven by past financial history data of other users. Envestnet’s financial services technology AI uses algorithms that analyze millions of data point simultaneously. Financial services technology AI is designed to discover trends. Based upon those trends the next logical move is to predict the future. FinCheck Advisor can help create retirement savings goals, plans for wealth management and keep finances within a budget.
AI in financial services technology is also touching customer service, specifically via chatbots. These chatbots imitate human conversation using computer programs that leverage AI. Chatbots can’t fully replace human interaction, but they can help customers get faster responses to questions that would otherwise have to wait until business hours.
Chatbots are programmed to respond when contacted by a human, or even other chatbots. Chatbots are capable of answering basic customer service questions, and customers can access them any time of day.
An app called MoneyLion uses financial services technology AI and includes a chatbot. MoneyLion is a personal finance app that helps users to manage money. MoneyLion recommends ways for users to save more money and provides credit monitoring tools as well. The app’s chatbots are adept at answering simple user questions, and the built-in financial services technology AI can transfer users to a human customer service representative if the chatbot is unable to answer a question.
Plan sponsors should pay attention to AI in financial services technology and talk to advisors and providers about ways to incorporate this “intelligent technology” into their benefits offerings. Growing numbers of retirement plan and HR benefits are incorporating financial services technology AI to help track user behaviors and improve those behaviors to foster better outcomes — something both plan sponsors and employees want.
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