The better you understand your users, the more relevant your solutions will be — and the more likely they’ll bank with you instead of the next guy. Learn how AI technology and tools can help you deliver the future-forward financial solutions customers are looking for, when you join this VB Live event!
“One of our big aha moments when we started Varo Money was discovering that about 70 percent of users are hands-off,” says John Vars, chief product officer at Varo money. “They don’t want to build spreadsheets, they don’t want to do budgeting, they don’t want to re-categorize transactions — they just basically want to know if they’re doing okay.”
And if they’re not doing okay, they want to know immediately what they need to do to fix it. If they’re in the green and looking good, they still want to know how to get even further ahead.
“We know that most people don’t want a big, detailed app that they have to open up every day,” he says. “They want to set up their accounts or link their accounts, and then we can just let them know when action is needed — when there’s a chance for them to either get ahead or avoid a pitfall.”
And to make that happen is where predictive analytics comes in — one of the most powerful tools you’ve got in your stack, and one which larger financial institutions seem to be missing out on. And it starts with the data.
“A lot of the major banks keep customer data in silos, and they’re not good at looking at your entire financial life,” he adds. “We’re really focused on a person’s holistic financial situation, and how we can help them improve that and live their lives.”
On the Varo Money app, customers are urged to link all their data from across all their financial accounts in order to create a full, holistic picture of their financial situation, top to bottom.
Behind the scenes, Varo’s machine-learned algorithms give the company the ability to detect the customer’s income and expenses, and then predict outcomes over the near-term future — linked to a system of notifications, visualizations, recommendations and tracking.
“Because we have that predictive capability we can say, ‘It looks like you’re going to be in a cash trap, so we recommend that either you spend less right now, or you move money from savings, or perhaps you want to use one of our lending products to help cover you,’” Vars explains. “So we can offer a bunch of different options, personalized to their situation, based on their real-world data.”
And that’s what customers are now insisting on. They don’t want to sit for thirty minutes at a desk waiting for a banker to set up a savings account; they want, and are beginning to demand, these kinds of solutions, especially as they becomes easier and easier for companies to implement. They want frictionless, two-taps-and-you’re-done experiences that make managing their very personal money situations as painless as possible.
“There’s so much transactional data available and so many ways we can turn that into good predictions and better outcomes for customers. I think if you’re not doing that as a financial institution, your customers are going to go someplace that does,” Varo Vars says.
Predictive analytics and AI has transformed the banking industry, and there’s no going back — there’s only falling behind if you don’t get on board.
Learn more about the data you need, the vendors you should be partnering with to get analytics tools spun up and running, and more about what customers are looking for, when you join this VB Live event.
Don’t miss out!
In this VB Live webinar, you’ll find out how to:
- Drive customer engagement and loyalty with the next wave of financial wellness solutions
- Use predictive analytics and AI to deliver more personalized and engaging apps and chatbots
- Provide users with intelligent financial guidance based on past behavior
- Extract valuable insight from a wealth of data to measure users’ financial health
- Partner with vendors to develop the machine-learning based systems that constantly analyze data and derive insights to drive more meaningful conversations with your end users
- Katy Gibson, VP of Application Products, Envestnet | Yodlee
- Dion F. Lisle, VP Head of FinTech, Capgemini America Inc.
- John Vars, Chief Product Officer, Varo Money
- Keith Armstrong, Co-founder and Chief Operating Officer, Abe.ai
- Evan Schuman, Moderator, VentureBeat
Sponsored by Envestnet | Yodlee