Enforcing AI into the Banking and Investment Industry.
The banking industry has drastically changed over the last decade, with technological advancements allowing customers to do carry out bank-related tasks right from their smartphone (whether it's cashing a check or transferring money). It's no doubt that online and mobile banking is a big part of the consumer's satisfaction with banks.
Nowadays, it's difficult for people to save and invest their money for the future. It is recommended by financial experts to put away 20% of your monthly income in savings and put aside 3-6 months salary for protection. However, In the United States, the majority of people save less than 15% of their income, and an estimated 58% of Americans have $1000 or less in savings and investments. Reckless spending and lack of budgeting did not help either.
People refrain from saving money and investing it merely because of the effort and time it required. Not to worry, companies, like Acorn, came up with a solution: automated investments, with the help of a Robo-advisor.
A Robo-advisor is a virtual assistant, powered by sophisticated algorithms and AI technology, that helps by supplying the consumer with investment advice. For example, with apps like Acorn, they automatically invest in stock and bond-based portfolios by rounding up purchases to the nearest dollar. They also offer auto-recurring deposits into an Acorn investment account, making it extremely simple and easy to invest and save money because, unlike most banks and brokerage firms, It's hassle-free, commission-free, and offers a user-friendly application.
Maybe now more Americans will be driven to open saving and investment accounts, to be better prepared for their future.