Plain Jane’s financial world is about to be disrupted. Past disruptions by companies like Waze, Netflix, and Amazon have dramatically improved her quality of life. Did people actually drive to video stores to rent a movie! Now, Financial Technology (Fintech) is about to improve Plain Jane’s financial fortunes.
Plain Jane has basically been ignored by the traditional banking industry in favor of wealthier more established clients. Fintech is specifically targeting Plain Jane, the underserved banking customer. Plain Jane and her contemporaries are searching out new banking options that are secure, reliable, affordable, and can be accessed online or from mobile apps. Fintech startups have developed a lower-cost model of banking that meets customer expectations in a more efficient method. The opportunity for disruption is coming from the mainstream introduction to artificial intelligence (AI).
Fintech believes that digital savvy Plain Jane is prepared to move away from traditional “human” money managers and interface with automated options like robo-advisors, chatbots, smartbots and automated algorithm-driven trading, all powered by advances in AI technology.
Using big data and advanced analytics, robo-advisors can advise and provide Plain Jane with online advice and discretionary wealth management solutions. The robo-advisors can apply this financial data into other investor segments like retirement, well-being, health, and research.
Chatbots and smartbots are always available to answer Plain Jane’s financial inquiries. The days of waiting “one hundred minutes for an operator” have come to an end. As time goes on, fewer questions will stump the AI-powered chatbots and smartbots.
Plain Jane’s investment portfolios will be managed by automated algorithm-driven trading. Algorithms provide better risk control helping invested funds perform better. Plain Jane can expect improved returns brought on by this disruption.
2017 is ushering in the next digital phase of technology to Fintech. This year, Plain Jane will no longer have to experience AI through science fiction movies on Netflix. AI is a part of her new financial reality, and her investment team includes robo-advisors, chatbots, smartbots, and automated algorithm-driven trading.
Can’t wait to meet the disrupted Jane, no longer so “plain”.
(Originally published on February 27, 2017)