Conversational AI could make financial information more accessible and understandable, Commonwealth report reveals
A report from the national association Commonwealth notes that âpowerfulâ emerging technologies (Emtech) have the âunprecedentedâ potential to âshape the future of people’s financial lives, often in ways that will stay with us for decades or moreâ.
According to Commonwealth report, Emtech likes Big data– powered AI (for example chatbots and virtual assistants), machine learning, and blockchain / distributed ledger solutions â evolve at a very rapid rate.
Due to their highly transformative nature, these next generation technologies offer creative ways to improve financial security and âopportunities for allâ. However, they also present new types of risks “if they are distributed unevenly, with some populations using emerging technologies to progress, while others may be excluded from the system”.
The Commonwealth Research Report added:
âTo realize the promise of these technologies for all, Commonwealth is focusing on ensuring that the needs of financially vulnerable people are understood, visible, incorporated into conversations and integrated into solutions. Ultimately, our vision for this job is that finances service leaders, fintech entrepreneurs, social impact innovators, nonprofits and more the financial system acts to harness these powerful emerging technologies in the service of this untapped consumer segment, for the benefit of financially vulnerable people and their businesses.
Commonwealth research has identified conversational AI as a “critical area” that may be ripe for innovations “to meet the financial needs of low- and moderate-income people.” Conversational AI technologies such as virtual assistants and chatbots “are becoming increasingly ubiquitous in financial services, becoming the primary means by which people interact with their banking systems,” the report revealed.
According to Commonwealth:
âConversational AI has the power to make financial information more accessible and understandable for customers; help clients effectively resolve their financial needs; and enable financial institutions to reach an untapped consumer segment, improve confidence and ultimately improve the financial security of customers.
The report concluded:
âThe fintech landscape continues to change and Americans have ever-expanding options for banking operations and managing their finances. Our research suggests that financially vulnerable people people are ready to change the way they do their banking and turn to fintech applications and financial services support organizations. Fintechs and financial institutions can engage this market segment, benefiting their businesses and ensuring financial security for all.