Data driven consumers are pushing banks, financial institutions, and retailers to adopt AI driven technology. Fintech is revolutionizing the way people shop, bank, and take loans, removing the human aspect that was once a necessity. Financial Technology Today has compiled some of the top stories showcasing this trend. Read on to learn more.
AI For Investments
Last year, Morgan Stanley developed automated technology to comply with the markets in financial instruments directive and stress testing. Now, the bank is focusing on cloud, big data, and artificial intelligence. Morgan Stanley has developed a “next best action” AI system that helps human advisers with investment knowledge that can then be shared with clients. This system uses machine learning and predictive analytics to analyze research reports, client databases, and market data to provide insights to advisers and clients on market events and their effect on the client’s portfolio.
“We have enormous, staggering amounts of data for risk management, [anti-money-laundering], regulatory and other purposes,” says Robert Rooney, head of technology at Morgan Stanley. “The use cases here are enormous” for AI, cloud, big data and analytics.
Read more here.
Chatbots The New Teller
Mercantile Bank of Michigan has partnered with Abe AI to bring customers MercMoney, an artificial intelligence-enabled chatbot. Customers can interact with the chatbot on Facebook Messanger, Google Home, and SMS for simple tasks like account balances and general bank information. Industry observers suggest that chatbot fintech is the customer service of the future, but not many banks have made the switch.
Emmett Higdon, director of digital banking at Javelin Strategy & Research, suggests that chatbots could personalize the consumer banking experience where it wasn’t possible before.
“Chatbots can get interesting,” said Higdon. “If nothing else, [they are] helping them to think more broadly about their behavior rather than focus on a single data point.”
Read more here.
The Humanless Store
“Just Walk Out” fintech is changing the way consumers shop and purchase items by integrating blockchain and AI. Amazon Go, the first check-out free store has incorporated this data driven technology into its flagship location in Seattle. Customers walk in, grab an item off the shelf and it is automatically added to their virtual cart. This AI driven technology creates a seamless experience for consumers with no human interaction.
“Since opening, we’ve been thrilled to hear many customers refer to their shopping experience as ‘magical,’” Jeff Bezos, Amazon CEO, wrote in his annual letter to shareholders. “What makes the magic possible is a custom-built combination of computer vision, sensor fusion, and deep learning, which come together to create Just Walk Out shopping.”
Read more here.
Robo-advice
Financial Engines, the robo-advice platform, is being sold to Edelman Financial Services in a deal that will shape the landscape of digital fintech. The assets of this deal are expected to top $1 trillion by 2020, gathering retail and institutional assets. Market observers urge advisory firms to take the leap into digital and extend their brands now.
“The digital model is the future,” said William Trout, who heads Celent’s global wealth management practice. “Plus market share. Remember, Financial Engines is the original robo-adviser and 10,000 investors turn 65 each day.”
Read more here.
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