Netflix generation expects AI-driven financial advice
That is where society is at when it comes to technology and money, according to Tomi Poutanen, chief AI officer at TD Bank and co-founder of Layer 6, who believes algorithms enable financial institutions to establish a deeper connection with their customers.
TD Bank recently released a report on AI entitled Responsible AI in Financial Services, engaging a cross-section of experts for a roundtable discussion and then conducting a survey to better understand how Canadians view the rise of technology in finance.
Poutanen told WP people can expect AI to drive a bank forward in providing everyday utility and value via transactions, and through its ability to help customers navigate their financial lives in real time and through their app.
However, he stressed that he doesn’t envision a world where humans will be elbowed out of the branch door by AI robots any time soon.
He said: “There's a ton of applications where the AI algorithms will augment humans and help them make more informed decisions and have more meaningful conversations with our customers.
“In a world where the customer relationship with a bank now is so Omni-channel and 24-7, whether they're using an ATM or mobile banking, or telephone banking, or going to the branch, it's very hard for a human being to really piece it all together to understand the full life of a customer’s relationship with a bank – and AI can actually do that.”
So where is the industry heading? Will there be a time when a machine can provide all the banking and investment advice we need? For some, maybe, but Poutanen believes it is more about having a spectrum of AI.
He added: “Consumers are expecting algorithmically driven interactions in their daily lives, much like when they consume music on Spotify, or watch movies on Netflix. For example, what to watch next is a piece of advice driven by an AI algorithm.
“That’s what financial services with AI can provide consumers in the future, but it will never replace that human interaction you have with a bank teller or your financial advisor, or branch manager. Those are important conversations to have and AI can help augment and enable those conversations be deeper conversations.