A third of US investors are open to trusting AI financial advice: Survey

August 25, 2023 Coin Telegraph

In a recent survey from the Certified Financial Planner Board, 31% of investors said they would be fine to follow AI financial advice without verifying the information.

Around one in three United States investors would be open to following AI-generated financial advice without verifying it with another source, according to a recent survey.

On Aug. 22, the Certified Financial Planner Board of Standards released the results of a poll that surveyed over 1,100 adults in early July.

Only 31% of the respondents had actually received financial planning advice from AI, with 80% recorded some level of satisfaction with the experience. Older respondents were more likely to be satisfied with the experience compared to those under 45 years of age.

However, nearly a third of all surveyed respondents, whether they have tried it or not, indicated they’d be comfortable taking advice without verifying it.

Before the wave of AI chatbots, such as OpenAI’s ChatGPT and Google’s Bard, it had been noted that more investors were beginning to rely on friends, influencers, and social media for investment advice.

Interestingly, the most recent survey found generative AI tools have beat out social media across all ages, with investors surveyed saying they were comparatively more comfortable using AI financial advice without verifying the information, compared to social media.

*26% cited comfort in using unverified financial advice from social media, compared to 31% citing the same from a generative AI tool. Source: CFP Board*

The CFP Board claimed, however, that investors of all ages cited being more comfortable with AI-generated and social media-derived financial advice if it was verified by a financial advisor.

*Experience using AI for financial advice was low but was largely satisfying for those who had. Source: CFP Board*

The findings, however, found that only 52% of the respondents were interested in receiving AI-created financial advice in the future.

Magazine: How to control the AIs and incentivize the humans with crypto

7 potential use cases of chatbots in banking

May 4, 2023 Coin Telegraph

Banking

chatbots can offer a convenient and accessible way for individuals to manage their personal finances, fraud prevention and more.

Chatbots are computer programs that use artificial intelligence (AI) to simulate conversations with users, providing quick and efficient assistance. In the banking industry, chatbots have the potential to revolutionize the way customers interact with their financial institutions.

Here are seven potential use cases of chatbots in banking:

Customer service

Chatbots are increasingly being used in the banking industry to provide efficient and cost-effective customer service. Customers can interact with chatbots to get answers to their banking-related queries and resolve issues related to their accounts, transactions or products. Chatbots can also be programmed to provide personalized responses to customers, enhancing the customer experience.

Chatbots can provide 24/7 customer support, allowing customers to get assistance at any time of the day or night without the need to wait for a customer service representative. This can significantly reduce wait times and improve customer satisfaction.

Furthermore, chatbots can handle multiple queries simultaneously, enabling them to handle a high volume of customer requests efficiently. This can save banks time and money, as fewer customer service representatives may be needed. For instance, the chatbot of Bank of America’s virtual assistant, Erica, can help customers with a range of tasks, such as checking their account balances, making transfers and even disputing charges.

DID YOU KNOW? Bank of America’s voice-activated virtual assistant Erica now has > million users! Financial institutions of all sizes need to make #voicebanking part of their digital strategies. Around 41% of U.S. consumers now own a voice-activated speaker. #fintech #finserv
— ENACOMM (@ENACOMM) December 17, 2019

Personal finance

Chatbots can also be used for personal finance purposes, such as budgeting, financial advice and investment guidance. They can provide personalized recommendations based on a user’s spending habits and financial goals and help users keep track of their expenses and savings. For example, a chatbot could help a user set a budget and remind them when they are approaching their spending limit in a particular category.

Furthermore, chatbots can assist users in finding the best deals on financial products, such as credit cards, loans and insurance policies. They can compare different options and provide recommendations based on the user’s needs and preferences. For instance, Cleo, a chatbot from Cleo AI, can help users track their spending habits and provide suggestions on how to save money.

Loan applications

Chatbots can be used in loan applications to streamline the process and provide 24/7 support to customers. The chatbot can guide users through the application process, answer questions and provide real-time updates on the status of their application. By automating parts of the loan application process, chatbots can help reduce errors and processing times, leading to a faster turnaround time for loan approvals. Chatbots can also assist in collecting necessary documentation and verifying user information.

Additionally, they can use natural language processing (NLP) to assess the creditworthiness of a user and recommend loan options based on their financial situation. For example, HSBC’s Jade chatbot can help customers apply for personal loans and mortgages by providing assistance and collecting necessary information.

Account management

Chatbots can help customers manage their accounts by providing account balance information, setting up automatic payments and updating personal information. For example, Wells Fargo’s chatbot, named Greenhouse, can help customers manage their accounts by providing balance information, setting up payments and even tracking spending patterns.

Fraud prevention

Chatbots can also be utilized in fraud prevention in banking. Fraudulent activities can lead to significant financial losses for both customers and financial institutions. Chatbots can help prevent fraud by monitoring and analyzing customer behavior and transactions in real-time to detect suspicious activity. Chatbots can also be programmed to send alerts to customers in case of unusual activity or suspicious transactions.

Additionally, chatbots can assist customers in reporting fraudulent activity and provide guidance on the next steps to take. With the help of chatbots, banks can improve their fraud prevention strategies and mitigate financial risks. For instance, the chatbot from Mastercard, named Kai, can help identify suspicious activities and alert customers of potential fraud attempts on their accounts.

Mastercard introduces KAI #ChatBots & #millennials are liking the idea of messaging platforms... https://t.co/Q3OlZOYM95 #MastercardEmployee pic.twitter.com/ONjPzAtjno
— Darko Nikolic (@nikolichdarko) November 3, 2016

Investment assistance

Chatbots can provide investment advice and portfolio management recommendations based on customer preferences, risk appetite and investment goals. For example, the chatbot of Wealthfront can provide investment advice and portfolio management recommendations based on customers’ preferences and risk appetite.

Related: A brief history of digital banking

Marketing and sales

Chatbots can promote bank products and services and help customers open new accounts or upgrade their existing ones, providing personalized recommendations based on their needs and financial profiles. For instance, Ally Bank’s chatbot, Ally Assist, can provide personalized recommendations and help customers open new accounts or upgrade their existing ones.

Gary Gensler finds new audience for his crypto skepticism: The US Army

January 12, 2023 Coin Telegraph

Armed Forces

The U.S. Securities and Exchange Commission chair called crypto "the Wild West" and urged troops not to “get caught up in the FOMO.”

United States Securities and Exchange Commission (SEC) chair Gary Gensler has found a new audience for his crypto-skeptical pep talks — the United States Army.

On Jan. 11 the U.S. Army hosted its first Twitter Space of 2023 with Gensler and SEC commissioner Caroline Crenshaw joining the discussion to provide financial advice on how and where U.S. soldiers should invest their money.

https://t.co/oRjE3pDc8C
— U.S. Army (@USArmy) January 11, 2023

Sergeant Lawrence Holmes noted “there are soldiers that look for those alternative investments [such as] crypto assets” asking the pair what risks there were to crypto investing.

“It’s the Wild West,” Gensler answered, adding that “most of these 10,000 or 15,000 tokens will fail.”

“History tells us there's not much room for micro currencies, meaning, you know, we have the U.S. dollar and Europe has the euro and the like.”

He urged soldiers not to “get caught up in the FOMO — the fear of missing out” saying cryptocurrencies are “highly speculative” and “non-compliant.”

“Most of these are not complying with the securities laws, but they should be.”

Gensler further advised that if the G.I.’s see a yield that’s “too good to be true — it probably is” regardless of whether it’s crypto-based or not.

Crenshaw added to Gensler’s comments saying cryptocurrencies are “noted for their scams” and stated:

“They claim to be transparent, what’s on the blockchain is transparent but the rest of what’s there is not transparent and I think there have been some examples of that recently.”

She said those considering a crypto investment should give “careful, careful consideration” to the percentage of their portfolio they devote to digital assets.

As for the SEC’s advice on where U.S. Army personnel should place their dollars, Crenshaw told troops to invest “as much as possible” in a Thrift Savings Plan (TSP) — a government-sponsored retirement plan for federal employees and service members.

financial advice