Consumers want to proactively manage their finances, and current personal financial management (PFM) tools aren’t meeting their needs. Watch this on-demand recording to learn how AI and machine learning are helping innovative financial institutions build financial wellness apps that actually attract and engage today’s evolving consumer.

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Your customers are ready to transform their personal financial management with a financial wellness coach that can help them improve their overall financial health, says Tiffani Montez, retail banking senior analyst at research firm Aite Group.

And over the last few years financial institutions have really tried to shift digital banking platforms from transactional platforms to engagement platforms, to help consumers manage their finance, reach their financial goals, and deepen relationships with their customers through additional products and services.

Personal financial management capabilities such as budget tools, spending analysis charts, and savings goals functionality, integrated into digital banking experiences, had an initial allure, Montez says. Customers played with these tools, set up budgets, created savings goals. And then their interest in these static tools fizzled away.

But new trends in artificial intelligence technology has made machine learning and AI available to any institution, and that’s changing the game.

“With AI, financial institutions really have an opportunity to reinvent how they deliver personal financial management tools,” Montez says. “You’re now able to create an interactive experience that will help consumers take control over their financial health.”

A very recent Aite study, “Rebuilding Personal Financial Management in 2018: What Banks Need to Know,” focused on helping banks leverage this new opportunity. It explored customer attitudes toward financial matters, looking at their overall awareness and uses of personal financial management, and gauged their willingness to use a financial wellness coach that could help them improve their overall financial health. And the potential that AI is unlocking is huge.

They found that the majority of consumers use their bank’s online and mobile financial services: 71 percent of consumers, aged 22 to 34 years old, 62 percent of 35- to 49-year-olds, and 56 percent of those 50 years and older.

And while a majority of respondents can comfortably pay their bills, fewer are able to sock away some cash in a savings account reliably, and a good chunk of consumers, whether they’re able to cover their bills or not, remain anxious about their overall financial health and future security.

“There’s a significant opportunity for financial institutions to educate customers on how their spending impacts their ability to pay their bills, to save money, and to improve their overall financial health,” Moretz explains. “[They can] help them be able to plan for unexpected emergencies or bills and give them multiple ways to be able to save and meet whatever goals they set for themselves.”

And that’s where consumers run into the limitations with current personal financial management systems, where they’re required to actively maintain their financial info, and where for many, the effort required to maintain and plan creates an enormous amount of friction and a lot of attrition.

So the idea of a virtual financial wellness coach is creating a lot of excitement in consumers – not just millennials, but Gen Z’s and to those over 50. Three-quarters of consumers are interested in an online tool that not only allows them to understand their financial picture, but help them evolve their own personal understanding and improve their financial situation dynamically.

And any bank can offer these tools. Artificial intelligence and machine learning has opened up the opportunity to create truly meaningful digital wellness tools. But in order to do that, the consumer has to be willing to share their data with the financial institution, or specifically the virtual financial wellness coach, to be able to get that insight.

Aite found that roughly 8 in 10 22- to 49-year-old respondents were definitely to possibly willing to share information to get advice, while about 77 percent of consumers 50 years and older indicated that they were definitely to possibly willing.

“It was clear that consumers found enough value in the virtual financial wellness coach that they were willing to share their information with the coach,” she says, “if it meant they could get personalized advice.”

Integrating an AI-powered financial wellness tool isn’t just plug and play however, says Montez, particularly in light of how current static financial management tools have somewhat disillusioned consumers. You have to start building experiences that are first centered around making customers aware of their financial activity, she explains. Once you master helping customers understand where they’re spending money, you can then move to layering in more data that gives them more insight into their finances. And once you master layering in data to give insight, you can move to helping them with actionable advice, such as helping them meet their savings goals and reduce debt.

The other opportunity AI opens up is the potential of chatbots and interactive assistants.

“Interactive conversational touch points could really be the format that finally increases engagement and resurrects the concept of personal financial management,” she says.

To learn more about how companies are shaking up their personal financial management offerings with AI-powered tools, how real customers are leveraging these tools, and how APIs can help you gain insight and deliver actionable advice, don’t miss this VB Live event.

Don’t miss out!

Access this VB Live event on demand right here.

Attendees will learn:

  • How AI and machine learning are powering today’s financial wellness tools
  • Recent research from Aite Group on financial wellness tools and virtual financial wellness coaches
  • How digital tools, chatbots, and interactive assistants can revive the concept of traditional personal financial management (PFM)
  • Using an API to gain insight and deliver actionable advice
  • How to leverage data intelligence to build apps and solutions that help users improve their financial health


  • Tiffani Montez, Retail Banking Sr Analyst, Aite Group
  • Keith Armstrong, Founder and COO,
  • Katy Gibson, VP of Application Products, Envestnet | Yodlee


  • Evan Schuman, VentureBeat

Sponsored by Envestnet | Yodlee