October 20, 2017

Personetics to Showcase AI-powered Banking Applications of ‘Nudge Theory’ at Money20/20

By presenting consumers with small steps that require little effort and are easy to understand, banks can ‘nudge’ them towards better financial decisions.

New York, NY – October 20, 2017

Personetics, the leading provider of cognitive banking applications, will showcase at Money20/20 USA conference how banks can apply ‘nudging’ – a term coined by 2017 economics Nobel Prize winner Richard Thaler – to help consumers make better financial decisions and improve their financial wellbeing.

What is the ‘Nudge Theory’?

Simply stated, Thaler has proven that most people fail to make rational decisions – including decisions about their financial affairs. Short on time and preconditioned to bad habits, people will largely sway towards the easy option, even when presented with all the facts that support a wiser choice.

How can banks use ‘nudging’ to help people make better decisions?

By presenting consumers with small steps that require little effort and are easy to understand, banks can ‘nudge’ them towards better financial decisions. To be effective, ‘nudges’ should be tailored to each person and delivered in the right context and time.

Here are a few examples:

  • “I’ve got your back” nudges: Many people sign up for different subscription and services and forget to cancel them when they stop using them. Prompting a person to review a subscription renewal can help reduce some of this unnecessary spend.
  • “Stay out of trouble” nudges: Most people are not good at managing a budget. However, people tend to dial back on some discretionary expenses when informed they exceed their usual level of spend or if alerted that their balance may not be sufficient to cover upcoming expenses.
  • “Get ahead” nudges: People want to save more, but have a hard time sticking to a plan. By automatically moving money to savings based on dynamic analysis of “available-to-save” funds in their checking account, banks can help customers increase their savings with small and manageable steps.

Why is it important for financial institutions?

Financial institutions that can help their customers make better decisions and improve their financial wellbeing are likely to gain their loyalty and position themselves as a trusted advisor to the customer.

According to research by CEB (now part of Gartner) banks that help customers take the right steps in their financial journey generate one-and-a-half times as much loyal behavior than banks that do not.

How can AI help?

AI makes it possible for banks to deliver ‘nudges’ that are tailored to each person and delivered in the right context and time. Using AI to analyze customer transactions, behavior and needs – banks can present personalized real-time insights that make it easy for customers to make better day-to-day financial decisions – transforming customer interactions from transactional to highly-engaged, trust-based relationships.

Personetics provides AI-powered Cognitive Banking Applications that are trusted by millions of customers worldwide and used by the world’s largest financial institutions to deliver personalized guidance, conversational self-service, and automated programs that help customers reach their financial goals. These latest advances in AI and cognitive banking will be showcased at the Personetics stand in the exhibit hall (K77), including:

  • Engage: personalized guidance and insights embedded in the bank’s digital experience that keep customers informed and help them stay on top of their financial affairs.
  • Assist: an AI-driven chatbot solution that empowers customers with personalized, context-aware, and timely support resources.
  • Act: AI-powered money management that simplifies banking and helps customers reach their financial goals with automated personalized savings and debt payoff programs.

Additional Resources:

About Personetics

Personetics’ Cognitive Banking Applications are used by the world’s largest financial institutions to deliver personalized guidance, conversational self-service, and automated self-running programs that help customers reach their financial goals.

Featuring a unique combination of built-in financial intelligence and advanced cognitive capabilities, Personetics solutions are bank-ready, allowing financial institutions of all sizes to make AI-powered banking a reality for millions of customers today.

Led by a team of seasoned FinTech entrepreneurs with a proven track record, Personetics has been named a Gartner Cool Vendor, a Top Ten FinTech Company by KPMG, and a Top Ten Company to Watch by American Banker.

For more information, visit http://personetics.com.