AI-Powered Personal Finance Advice: A Goal-Oriented Approach to improving Financial Wellness
As a concept, Artificial Intelligence (AI) is far from new. Even the ancient Greeks had stories about Talos, the giant bronze statue which defended the island of Crete by throwing giant rocks at enemy ships. In recent years society has been bombarded with the idea of AI constantly, especially in movies like 2001: A Space Odyssey, i Robot, Ex Machina, and even Marvel’s blockbuster Avengers series. AI has never been more prevalent or accessible than it is today. Now, artificial intelligence is everywhere: in our phones, our computers, even our businesses. They inform the way that we harvest and analyze data in almost every aspect of our lives, from weather forecasting, to risk management, to large-scale investments, and even acting as investment opportunities themselves(1,2). Machine learning and artificial intelligence are increasingly responsible for the day-to-day management of complex systems, allowing individuals and organizations greater understanding and freedom to act according to accurate data.
One area in which AI is proving particularly useful is personal finance management. According to FINRA data, 53% of Americans feel anxious just thinking about their finances, while a further 44% said that discussing their finances was stressful(3). Not only that, 59% of people say that they trust a machine to do a better job of handling their finances than they themselves(4). All this is to say: managing your money effectively has gotten more and more complex, and the rise in popularity of, and exposure to, AI has people thinking of AI-driven personal finance tools more like the friendly voice of Siri, and less like evil HAL.
The fact is, these AI tools, like Marble Financial’s MyMarble platform, can be integrated into personal banking information almost seamlessly, and begin providing near-instant updates to personalized budgets, financial trackers, investment portfolios, and more because the framework for their data gathering is already in place. As of 2021, 64.6% of Americans use online banking(5), while even more make purchases using debit or credit cards. AI tools harvest this information to discern purchasing habits and other patterns in financial behaviour and can make suggestions to the user based on their stated goals and preferences.
Through these AI platforms, users can view detailed breakdowns of their spending habits, set up automated bill payments and automatic transfers to savings or retirement savings accounts, manage investment portfolios, and track balances in real-time. This instantly available information allows users to make smarter, better-informed decisions around their personal finances, and alleviate some of the stress brought on by a lack of understanding or knowledge.
Marble Financial’s MyMarble platform provides its users with a top-tier AI-driven SaaS personal finance tool, designed to help ease the stress and uncertainty that surrounds money management. Its user-friendly interface allows users to select the program that best fits their individual needs and will help them achieve their goals. Banks and lending institutions all over the world are developing these tools in order to help their clients better manage their finances and decrease risk.
Sources:
- https://www.datadriveninvestor.com/2020/01/17/artificial-intelligence-as-a-tool-for-investing/#
- https://towardsdatascience.com/the-growing-impact-of-ai-in-financial-services-six-examples-da386c0301b2
- https://gflec.org/wp-content/uploads/2021/04/Anxiety-and-Stress-Report-GFLEC-FINRA-FINAL.pdf?x85507
- https://www.oracle.com/a/ocom/docs/applications/erp/money-and-machines-infographic-2021.pd
- https://www.statista.com/statistics/946109/digital-banking-users-usa/
