The status of financial affairs is changing rapidly in 2022 and in many ways. Whether it’s adapting to the new digital interface where most of our money is now represented on a screen, the fading out of paper money and the integration of the chip or simple “tap to pay”, or the globalization of money thanks to the corners of the world map blending in—banking has taken on a whole new era.
In turn, people are trying to become savvier on how to make their money work smarter, not harder. Fintech, a skyrocketing market, is unlocking many of the passages in achieving this. It was shown that 75% of survey respondents prefer to use Personal Finance Management (PFM) tools, as seen through applications, from their primary financial services provider. What is more, on average, bank customers who utilize PFM tools for their financial health are 18% wealthier than those who don’t.
This is changing the way that people interact with their financial assets, and expectations are changing alongside this shift. One company, BOND.AI, is helping to catalyze this technological adaptation while still keeping the users at the heart of banking—helping to keep the person in personal finance. Let’s take a look at the biggest current problems in banking and the most noteworthy solutions that BOND.AI looks to provide to help take personal finance into the next era.
The Biggest Disparities in Finance and Its Applications
There are so many individual factors when it comes to personal finance—from the amount of income to the frequency of paychecks, to the number of investments, to financial goals one is saving for, or the ways to which one spends money—no matter which way you flip it, money will always be linked to the individual. Unfortunately, many major banks and financial institutions have gotten away from this fact and have turned personal finance into something that is glutinous for money and the business that can be gleaned from it. As people fade from the financial picture it has been showcased that in 2022, empathy doesn’t seem to exist in finance.
One might think that technology would further distance people from the banking process, but in fact, the opposite has the potential to occur. With more connection to the bank through a digital interface, people have the opportunity to constantly be in tune with their personal finances and monetary movements.
In general, on personal finance or wealth management apps, transactional data is the sole resource that is taken into account and then banks attempt to create a personal profile based on this narrowly scoped data. This, however, does not give the whole picture of a person’s life, and there has to be a better way to understand all of the individual factors that come into finance as mentioned earlier. For every 40 financial data points, there are probably another 60 contextual data points that are missing.
BOND.AI not only looks to help catalyze a better technological connection to financial assets but also takes banking a step further through their proprietary Artificial Intelligence (AI) software. This technological capacity allows more efficient and transparent access to the data that matters to both individuals and their banks, opening up a better channel of communication in personal finance.
BOND.AI: A Holistic Approach To Personal Finance
Even with everything being connected and easily accessible, the banking sector has yet to nail down a holistic approach. BOND.AI looks to patch this disparity by leveraging the power of AI, helping banks to incorporate software that wields human-centered design through the combination of both transactional data and psychological data.
When data runs through BOND.AI’s Empathy Engine® it creates unique personas for every consumer or small business of a bank. This persona connects their behaviors, strengths, potential, and by holistically understanding users, can offer multiple paths to boost their financial lives. This allows for truly interconnected finance, benefiting from the singular power of the Empathy Engine and integrating into a series of relevant features.
Using the data generated from the engine, the first feature is the text and voice bot, which goes beyond your average chatbot. By facilitating straightforward questions that lead to valuable answers, the bot gleans unique insights to enhance finances every time a user speaks with it. In addition, by focusing on an individual’s spending patterns and behaviors, it builds a contextual profile for each user.
Through the fastest and most personalized account opening module on the planet, banks can onboard customers in seconds and address their needs from day one. Once this has taken place, the software helps to build persona clusters that create intuitive tools for marketers that categorize similar personas based on user behavioral stability and helps to spark conversions between bankers and individuals that haven’t been seen in banking before.
With an open channel of communication between banks and the individuals that bank with them, new data helps to fill in the financial picture. For example, if you travel a lot, what’s your favorite airline? If you have a large amount of time between paychecks, what credit card gives you the most benefits for utilizing it in these financial gaps? This helps to create a whole non-tangible profile that can optimize a person’s financial life, enhancing their spending efficiency by 45% according to an in-house study done by BOND.AI.
Changing Banking for The Better
The way it currently stands, the banking industry is propelling a losing game for both the institutions and the individuals who use them. There are plenty of studies out there that show how much money banks are losing by not paying attention to the customer, with only 29% of consumers trusting their bank to look after their long-term financial wellbeing in 2020. Empathy and need-based data not only create a more accurate picture of financial aptitude for banks but also helps individuals to feel that their voice has been heard—creating a positive trend for personal finance.
BOND.AI will be a company that helps to blaze trails in banking through its proprietary Empathy Engine® that leverages the power of AI to not only extract but employ this data. Helping to turn the tides in the banking sector, look out for this trailblazing company as it helps to evolve industries for the better through the power of technology.
Disclosure: This article comes to you on behalf of a client of an Espacio portfolio company.