Would you want a robot managing your money? Are you comfortable with a computer that could think and learn?
While this might sound like a futuristic science fiction novel, it’s already happening in financial services. Robots and smart computers are helping to manage your money, and they will enable banks to increase revenue and employment over the next five years, according to a report by Accenture on realizing the full value of AI.
Artificial intelligence refers to computer systems that are able to perform tasks that historically required human intelligence, such such as recognizing images, understanding speech, translating languages and making decisions. Some examples of artificial intelligence in financial services are mobile checking deposits that read checks, custom notifications that flag high payments and specific transfer reminders.
Recently, J.P. Morgan Chase announced that it was rolling out an AI-powered assistant in the treasury services division that will handle an average of $5 trillion daily. While the assistant is only for corporate clients right now, other banks have launched virtual assistants that use AI technology for retail customers.
“[AI] will help advisors make better decisions and spend less time on the boring parts of the job.”
A majority of banks and financial services companies are planning to implement AI technology in their business or already have, according to a 2017 study by Greenwich Associates, a global market intelligence and advisory services firm in Stamford, Connecticut. Over half of the 100 executives surveyed were exploring the technology and had plans to implement within 12 months, and 18 percent had already started using AI technology.
Financial advisors and banking employees say that new advances in technology are nothing to fear. In fact, most think that it will help them do their jobs more effectively.
It will “help advisors make better decisions and spend less time on the boring parts of the job,” said Paul Dravis, partner of Future Perfect Machine.
AI already in the game
There are many examples where AI technology has already improved money management. Bank of America and Wells Fargohave virtual assistants for retail consumers. In addition, there are FinTech start-ups dedicated to using new technology. FinTech stands for financial technology, and refers to a new industry that uses innovation to improve traditional financial services.