Everyone wants to make smart choices when it comes to financial management. Whether it is smartly saving money, finding new opportunities for investing or just being updated. As the AI is rapidly taking an important place in every services and product, what if a machine starts to manage your money.
The AI-powered programs aimed at helping customers to save money by analyzing and tracking their spending and providing them insights into their spending habits.
“The number one source of anxiety for Canadians is managing their finances,” says RBC’s Peter Tilton, Senior Vice President, Digital.
“In finance, like in any other field, people want and expect faster, easier, more accessible and proactive service,” says Arik Frishman, EVP, and head of the digital and data division at Discount Bank. “AI is the main enabler for all of these,” he adds.
This AI is great at showing you what you spent in the past, but not so helpful showing how you can allocate your money differently in the future.
With Bank, it currently offers clients a personalized digital financial insight and a fully automated savings service with its NOMI Insights and NOMI Find & Saves programs.
RBC’s first service, NOMI Insights keeps an eye on the customer’s finances. It uses AI to review customer’s daily financial spending habits and offers a breakdown of how much he or she spends in certain categories, such as food, transportation or telecom.
For example, if your monthly hydro bill has gone up, you’ll be alerted directly so you can think about ways to reduce your bill for the next month.
NOMI Insights also detects changes in how much is spent on each category over time. It also helps you track spending, plan for upcoming expenses such as that gym membership renewal and gives you a heads-up when needed, such as an upcoming bill payment.
The alerts it sends you not only help you make immediate changes to your spending, but it also puts you on the path towards saving since you’ll learn about the things you’re spending money on.
Meanwhile, NOMI Find & Save takes things a step further. It uses AI-powered predictive technology to set aside money directly into your savings. It can also determine how much money a user can afford to put into a savings account.
The predictive technology will identify the cash flow based on your spending habits and automatically starts to save your money. Once you opt in to this service, everything is automatic; you literally do nothing.
NOMI Find & Save will never set aside more savings than you can afford, nor will there ever be a risk of you going into overdraft. The money set aside ends up in a separate NOMI Find & Save but you can move your money whenever you want. For that, you have to pause NOMI Find & Save at any time in such case you need to manage your cash flow manually.
Both AI that helps you find & save more money mainly focuses on customers actually need and cutting down unimportant expenses. Both the services solve one of my biggest complaints about savings and budgeting apps.
NOMI Insights and NOMI Find & Save to dig into my financial activity to identify trends, unusual activity, and potential savings opportunities.
NOMI uses the data in your account to figure out how much you can save and transfers that money into dedicated savings accounts every few days. That way, even if you never open your account or a spreadsheet, you’re still saving as much as you can towards that thing you want whether it’s a house or a vacation.
You can rate each insight, which helps NOMI get smarter and deliver more helpful and relevant tips to keep you on top of your finances.
AI can also help with goal setting, which is essential for people trying to save up for a down payment on a home, a business, or another expense.
For example, NOMI Insights may notice that you’ve been dining out more than usual in a given month, or your transportation costs have increased. A timely ‘nudge’ can help get you back on track or prevent more overspending.
RBC is the first bank in North America to help you track your spending and fast-track your savings using artificial intelligence so you can get all of the benefits of the admittedly time-consuming manual tracking, without any of the actual time.
RCB’s both services are easy, simple and handy to use even for someone like me who gets paid once a month but has several bills due, transfers to make, and post-dated cheques that could be cashed at any time.
NOMI which will give customers peace of mind when it comes to their account security. This is an easy way to get people saving with no work on their end. NOMI Insights and NOMI Find and Save are available now on the RBC Mobile app on both the App Store and Google Play.
According to Thabet, RBC’s AI that helps you find & save more money focuses on the strategy of using AI-powered algorithms to scour volumes of users’ data and help them make improvements to their daily financial lives.
The AI-backed services are available to all company clients who choose to opt-in. Once they do so, the algorithm highlights and displays their financial habits in the bank’s mobile app.
“What this does is it immediately brings those insights to your mind’s eye, making them more relevant,” Thabet said.
Speaking to his own experience, Thabet noted the NOMI Insights service pointed out his personal home insurance bill was 10 percent higher than it had been a year earlier. Because the service highlighted the payment increase, it prompted him to investigate how much he was paying, ultimately leading him to switch insurance providers.
RBC’s intention is to use this AI that helps you find & save more money for its customers to make more informed financial decisions by quickly analyzing and presenting their information, Thabet explained.
“These types of unique insights are triggering people to be a little more mindful of their finances,” he said.
Thabet said RBC sees additional opportunities to let AI and virtual assistants like Apple’s Siri and Amazon’s Alexa collaborate on banking services.
The company already allows customers to use Apple’s Siri to perform a variety of banking functions using voice commands, including checking balances, paying bills and making peer-to-peer (P2P) transfers.
“We see a lot of value and a lot of promise with AI and voice combined,” he said.
But beyond the individual banking customer, Thabet expects AI to help small- and medium-sized businesses (SMBs) manage their own financial needs. For example, the service can quickly review a company’s financial habits and offer advice to help better manage cash flows.
It can also be used to determine previous cash flow patterns, allowing business owners to prepare in advance and avoid having low levels of capital.
“The power that AI can unleash for the small business community and the commercial community is immense,” Thabet added.
Will this AI that helps you find & save more money be a great success? Do you want an AI that helps you find & save more money?
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