11:FS Podcast: What AI Can and Can't Do in Financial Services
ICYMI: Cleo's Senior Machine Learning PM, Kate Janssen dropped by the studios at 11:FS to chat AI + Fintech with some of London's biggest brains.
IN THIS ARTICLE:
It’s easy to get in a negative cycle with personal finance. Most people want to spend as little time thinking about their finances as possible, and when money is a big source of stress in your life, it’s even less tempting to think about.
Enter AI budget apps, who do all the thinking for you. A good AI budget app is like having a personal money assistant to give you a clear picture of your finances, help you make smart money decisions, and do all the tedious admin for you so you can spend more time on the important things.
Here’s what the right AI budget app can do for you. We’re gonna use Cleo as an example, because we’re biased, and our lawyers told us we can’t talk about other apps anymore 🙃
But, obviously, you should shop around to find the right one for you based on your preferences. Here’s what you should look out for.
Does using the AI budget app feel like having a chill conversation?
One of the most exciting features of AI is that it can make boring tasks feel like a chilled conversation– think asking Alexa what the weather forecast is. So this is something you should definitely look for in an AI budget app– if it can make personal finances as easy as asking a few questions and getting the answers straight away. A red flag to look out for is if it starts to feel like an Excel spreadsheet at any point.
Especially since a good AI budget app is all about providing you will financial education without having to pay to do an accountancy course. You should be able to ask your AI budget apps questions like “Where has all my money gone?” or “Can I save $200 dollars this month?”
(Hint, Cleo can answer both of those questions and more. Like, if you say “Roast me,” she will. We’ve warned you.)
Will the AI budget app make you a personalized budget?
The beauty of using an AI budget app is that, like having a personal money assistant, you just connect your bank and it’ll give you a clear picture of where your money is leaking and how you can fix that.
With Cleo, you connect your bank account and she’ll use her fancy algorithm to analyze your spending, categorize it into groups like groceries and shopping, and create you a personalized budget. She’ll show you which areas you can cut back on, and find that subscription you swore you’d canceled last year that’s still bleeding you dry each month. Then, you can go back and tweak your categories and your spend limits to make it even more personalized.
Will the AI budget app ✨ hold you accountable? ✨
Again, a good money assistant should keep you on track with your budget and let you know when your bills are due so you never miss any payments. The best AI budget apps (ahem, Cleo) will notify you when you’re about to hit a spend limit and when you have a bill payment due.
This is super important for a couple of reasons. Because you’ll be notified on spend limits, you can go about your day without a cloud of Money Guilt hanging over your head, safe in the knowledge you’re within your limit for the month.
Bill notifications are also really important. Because timely bill payments are not only good for your peace of mind but make up the majority of your credit score.
Does the AI budget app automate your savings?
Saving money is easier said than done, but AI budget apps have changed this aspect of personal finance, too. These apps offer automated saving features that can effortlessly divert a portion of your income into your wallet each budget cycle. By setting up automated transfers, you remove the temptation to spend money that’s already earmarked for your goals.
Whether you're saving for emergencies, retirement, or a major purchase, the AI budget app can basically help you achieve your goals faster. You can even set up specific savings goals within the app, and it will calculate how much you need to save regularly to reach those goals on time. With Cleo, you just type, “Autosave” “I want to save [whatever amount]” into chat, and she’ll take you where you need to go.
Ready to see what Cleo can do for you?
Enjoy this post? Give it a share or send it along to a friend. You never know, it could make a big difference. Big love. Cleo 💙
*Eligibility requirements apply. Not all users will qualify. Advance amounts range from $20 to $250. Same day transfers subject to express fees. Visit meetcleo.com/terms for more information.
Bank account dangerously close to overdraft? Cleo could spot you up to $250*. No credit checks. No interest. No stress.
FAQs
Still have questions? Find answers below.
How can AI budget apps help with long-term financial goals?
How do AI budget apps handle irregular expenses?
Can AI budget apps give me a picture of my overall financial health?
Are AI budget apps suitable for freelancers and self-employed people?
