Automating the money experience: The future of banking and fintech

Although digital banking has existed for decades, it’s too often felt like a chore. People have to track every expense they make, manually categorize their transactions, endlessly tweak their budgets, sort through indecipherable transaction descriptions, and so on.

Fortunately, today’s data-driven machine learning and artificial intelligence have enabled something entirely different from yesterday’s digital banking tools. Backed by stable whitelisted or API/OAuth connections, automated categorization rates of over 97%, and algorithms that know how to put all of this data to use, we’re seeing a transition from cumbersome money management to a comprehensive money experience.

The money experience is an easy way to digitally connect, view, and interact with money. Customers get automated nudges in an intelligent and personalized financial feed, creating an experience that’s as unique as shopping on Amazon, streaming on Spotify, or driving a Tesla. Since every interaction is built on aggregated and enhanced data, every interaction fits the individual it’s meant for. And it’s all automated.

The benefits of this money experience extend to bankers as well. For bankers, this automated approach to banking is about gaining access to clean, dynamic, and permission-based data. With a 360-degree view of each customer, you can understand what your competitors are doing and adapt accordingly. Just like the experience for your customers, everything is simple, streamlined, and automated.

Why does this transition to the money experience matter?

Here are three reasons.

  1. The money experience transforms financial services companies from intermediaries to advocates. Instead of using banking as a way transactional relationship — which puts you at risk of being replaced by whatever company offers better service down the road — you turn banking into something that is outcome oriented. As your customers see you improving their financial strength, they’ll be more likely to stick with your organization in the long term.
  2. The money experience sets the foundation for a true data transformation. By building on a robust data initiative today, you’ll start the data flywheel needed to succeed tomorrow. The more data you get, the more intelligent and personalized products you’ll be able to build, and the more users you’ll onboard, which will in turn bring in new data and start the beneficial cycle again. Put simply, aggregated and enhanced data pave the way for new avenues in digital banking — all while setting you up as a trusted source in the space.
  3. The money experience frees you up to expand in other areas. Automated banking means that you can have more and more of your employees pivot to relationship building and complicated processes that can’t yet be replicated by an algorithm. In this way, automation is ultimately more human than the manual approach to digital banking has been.

As is the case in a range of industries — from shopping to music to driving — the future belongs to organizations that use data to build intelligent and personalized experiences.