Tech

Harnessing AI for Personal Finance: How Modern Technology Hacks Can Streamline Your Money Management

Redefining Money Management in the Digital Age

As we find ourselves in the middle of 2023, the lines between fiction and reality continue to blur. Concepts that were once mere science fiction, particularly artificial intelligence (AI), are now embedded in our daily lives.

AI has become near-omnipresent, from powering our vehicles to customising our entertainment choices. The field of personal finance is no exception to this trend. As you read on, you’ll explore how AI is revolutionising personal finance, acting as a catalyst for cutting-edge solutions and supercharged systems.

The Rise of AI in Personal Finance

The impact of Artificial Intelligence (AI) on personal finance management has been seismic. It has introduced new and efficient methodologies in areas like budget tracking, expense management, investment strategising, and fraud detection.

However, as with many things, the key to understanding and leveraging these technological advancements lies in continual learning and staying informed. For this reason, financial news are an invaluable resource, keeping you abreast of the latest trends and alerting you to hot prospects that could be great to take advantage of. There are also a plethora of companies leading the charge in this field.

For example, the London-based company, Cleo, uses AI to transform how we manage our finances. Operating through Facebook’s Messenger platform, this digital assistant facilitates effective finance management, setting budgets, and providing insightful, data-driven guidance to navigate financial concerns.

But Cleo is not alone in this arena. Companies like Kensho Technologies, AlphaSense, and Enova also harness AI’s power to refine credit decisions, optimise trading strategies, and administer financial risks.

From a user experience perspective, these platforms use AI to provide insightful financial advice and to create an engaging, intuitive interface.

For instance, personalised reminders to save or tips on budget allocation can significantly improve user engagement and retention. By making finance management less intimidating and more accessible, AI is crucial in enhancing user experience and increasing conversion rates.

In this vein, the influence of AI on personal finance is not unlike how wellness and exercise apps have transformed physical health management. As we move further into 2023, AI’s role in shaping our financial future continues to grow, opening new and exciting possibilities.

The Benefits of AI in Personal Finance

Artificial intelligence and its associated technologies, such as machine learning (ML) and natural language processing (NLP), have significantly transformed personal finance. Let’s explore some notable benefits:

Data-Driven Personalised Insights: AI algorithms analyse individuals’ financial behaviour, considering their spending habits, income patterns, and lifestyle choices to provide personalised insights. These insights are not simply generic suggestions but tailored advice, like suggesting lifestyle changes to save more or identifying investment opportunities based on the individual’s risk appetite.
Predictive Budgeting: AI leverages historical data to forecast future spending and income trends. For example, if the AI system notices an annual trend of increased spending in December, it might suggest a savings plan to account for this yearly expenditure.
Automated Investing: With the help of AI, financial goals, risk tolerance, and market trends can be evaluated to recommend suitable investment opportunities. Robo-advisors, for instance, leverage AI to deliver automated, tailor-made investment advice, making investing more accessible and less time-consuming.
Fraud Detection: AI enhances financial security by detecting unusual activity. This benefit can be seen in credit card fraud detection, where AI systems are trained to recognise suspicious activity, enabling early intervention and preventing potential financial loss for individuals and companies alike.
Automated Customer Service: AI-powered chatbots revolutionise customer service by providing 24/7 support. These chatbots can resolve common issues, answer queries, and even provide basic financial advice, freeing time for human representatives to handle complex tasks.
Credit Decisions: Fintech companies like Upstart are using AI to assess borrowers more accurately and objectively, improving upon traditional credit scoring models that might overlook certain factors.
Cost Savings: Automating routine tasks leads to significant cost savings for consumers and financial institutions. To highlight the significance of this point, it’s projected that by 2023, the cost savings for the banking industry alone could reach $447 billion due to the implementation of AI applications.
Improved Financial Health: AI tools can aid users in maintaining financial health. They alert users when they are at risk of overspending or if they could potentially miss a payment, offering proactive solutions for better financial management.

Looking towards the future, AI’s growth will only gain more traction, possibly becoming a key figure in nearly every industry. However, the future of AI in personal finance is coming even more rapidly than in other sectors. According to MarketResearch.

Biz, generative AI in the financial services market reached a valuation of $847.2 Million in 2022. This is expected to grow at a compound annual growth rate of 28.1% from 2022 to 2032.

Challenges and Solutions

While incorporating AI in personal finance has many benefits, it also brings numerous challenges. Here, we’ll delve into these issues and discuss potential solutions:

Data Privacy: AI technologies require access to personal and financial data, which raises huge privacy concerns. The potential risks include identity theft, financial fraud and misuse of data. The key solution is implementing stringent data privacy rules and practices, fostering trust between consumers and financial institutions.
Over-Reliance on Technology: While Artificial Intelligence simplifies financial management, over-reliance on these technologies can impair financial literacy. A balanced use of AI, where individuals remain engaged and informed about their financial decisions, can help mitigate this issue.
AI Errors: AI systems, while efficient, can make mistakes with significant consequences. Rigorous testing and fine-tuning of Artificial Intelligence algorithms can ensure these systems operate as intended, minimising the risk of errors. However, this requires a great deal of time and is, therefore, a challenging fix.
Ethical Concerns: Similar to the first point, the use of AI can pose ethical dilemmas, particularly in regions with inadequate regulatory rules. To address this challenge, robust ethical guidelines for its use should be established and adhered to.
Job Displacement: Incorporating Artificial Intelligence might lead to significant job loss in the finance sector, especially in roles related to routine tasks. This is potentially the biggest issue with AI in all work sectors. Therefore, companies must commit to upskilling and reskilling the workforce to work alongside AI as the primary step in addressing this issue.

On the Brightside, it’s evident that while the challenges are substantial, they are not insurmountable. With careful planning, rigorous testing, and a proactive approach, AI can play a significant role in shaping the future of personal finance for the better.

Enhanced Personal Finance Techniques for the Digital Age

The digital revolution transforms our financial world, with Artificial Intelligence leading the charge. According to studies, millennials especially embrace this shift, moving from traditional banking to digital finance and favouring non-traditional financial institutions and digital finance apps.

If you find the plethora of options daunting, you’re not alone. Here, we aim to simplify the landscape, highlighting practical hacks and providing tangible examples of the most beneficial AI finance apps.

Best AI Finance Apps for Your Money Management

1. Mint: The Ultimate Personal Finance Tracker

Mint has earned its place as a top personal finance app with its diverse, free-to-use features. It’s not just an expense tracker; your financial companion helps you manage bank balances, categorise spending habits, and stay on top of bill payments.

Here’s a hack to benefit from Mint: use its customised budgeting tools to craft a monthly budget that reflects your financial goals and helps you stay on track.

2. Personal Capital: Your Personal Robo-Advisor

Combining the convenience of a money management app with the sophistication of a robo-advisor, Personal Capital gives you a comprehensive financial management experience. A practical hack to leverage this app is setting up automatic portfolio rebalancing, a surefire way to maintain your desired risk level while maximising returns.

3. Kubera: Safeguard Your Wealth and Legacy

Kubera is your finance management app with a unique edge: estate planning. You can store important documents like wills and deeds and designate a beneficiary. To get the most out of Kubera, regularly update your asset list and beneficiaries, ensuring your estate plan remains up-to-date and relevant.

4. You Need A Budget (YNAB): The Key to Financial Discipline

YNAB isn’t just a budgeting app; it’s a financial lifestyle that encourages you to live within your income. For those struggling to manage their finances, YNAB can be a game-changer. Utilise YNAB’s “Age of Money” feature, which nudges you to spend money earned at least a month ago, breaking the paycheck-to-paycheck cycle.

5. Spendee: Your Companion for Shared Expenses

Spendee analyses expenses by categories, people, or locations, perfect for shared budgets or expenses. A practical hack with Spendee is setting up shared wallets for common expenses like rent or groceries, making tracking and splitting costs straightforward and hassle-free.

Remember, while these apps provide automated assistance, they are meant to support your understanding and managing personal finances. Always review these apps’ insights and make informed decisions based on your financial goals.

Embracing Financial Technology

Contactless payments, digital-only banks, and blockchain technology are reshaping finance in this digital age. For instance, cryptocurrency transactions offer a decentralised alternative to traditional banking, potentially benefiting people in regions with limited access to conventional banking services.

Take digital banking apps like Revolut or N26, for example. They offer a complete banking solution from your smartphone, allowing for quick setup, payments in various currencies, budgeting tools, and more.

When choosing these apps, consider security, user reviews, and your financial needs. Look for apps with robust security measures, strong user reviews, and features that align with your financial objectives.

Learning for the Future

Embracing technology in personal finance can feel like navigating uncharted waters. However, free online resources, AI applications, and digital financial courses can empower you to take control of your financial future.

For instance, Coursera and Udemy offer numerous personal finance and investing courses. These platforms and finance apps can create a learning ecosystem that nurtures your financial literacy.

As you journey towards financial mastery, remember that these digital tools are just that – tools. They are most effective when paired with conscious decision-making and a clear understanding of your financial goals.

Also, remember that while AI can offer valuable insights, it’s not infallible and should not replace personal judgement or professional financial advice.

The Bottom Line

Embracing the rapidly growing digital revolution in your personal finances may seem overwhelming, but don’t let it hold you back as we’ve seen, there’s a multitude of cutting-edge apps and online resources out there that will assist you and ensure you have the power to transform your financial game.

Don’t wait until you’ve fallen behind either, jump right in and start learning. Use the swaths of captivating articles to give you a fresh perspective and ignite your financial savvy. Or, if you’re feeling adventurous, take the plunge and experience the magic of those apps we mentioned earlier.

Tech

US: A Judge Mandates that Google Allow Competing App Stores to Access Android

(VOR News) – The ruling is that Google, the greatest technology firm in the world, is required to make its Android smartphone operating system available to merchants that supply applications that are in direct rivalry with Google’s. This decision was reached by a judge in the United States of America.

The Android Play store, which is owned and operated by Google, was found to be an example of an illegal monopoly arrangement by a jury in the state of California on Monday. The finding was reached by a jury. Monday is the day that this decision was come to.

An earlier federal judge ruled Google’s search engine illegal.

This finding, which came after that decision, has forced the company to suffer yet another setback. As a result of the corporation having already encountered its initial obstacle, this decision has been established. This particular decision was made by the judge during the month of August, when the month was in progress.

In light of the fact that the decision was made, what exactly does it mean that the choice was accepted?

In accordance with the verdict, Google is obligated to make it possible for users to download Android app stores that are offered by third-party competitors. For a period of three years, the corporation is prohibited from imposing restrictions on the usage of payment mechanisms that are integrated into the application.

In addition, it is important to keep in mind that Google does not possess the right to impose restrictions on the utilization of ways to make payments online.

Additionally, the verdict makes it unlawful for Google to give money to manufacturers of smartphones in order to preinstall its app store. Smartphone manufacturers are prohibited from doing so.

Furthermore, it prevents Google from the possibility of sharing the revenue that is generated by the Play store with other companies that are in the industry of delivering mobile applications.

In addition to this, the court has mandated the establishment of a technical committee that will be made up of three different people chosen at random.

The committee will be responsible for monitoring the implementation of the reforms and finding solutions to any disagreements that may occur as a consequence of the implementation of the reforms while they are being implemented. This task will fall under the committee’s purview so that it may fulfill its duties.

However, certain components were allowed to be put into action until July 1st, despite the fact that the judge’s statement suggested that the ruling would take effect on November 1st. The statement was the basis for the ruling, which ultimately became effective.

Particularly, I wanted to know what Google’s reaction would be.

There is a fact that Google does not adhere to this directive, which has been brought to their attention. This document argued that the alterations that the judge had ordered to be made would “cause a range of unintended consequences that will harm American consumers, developers, and device makers.”

The judge had ordered the modifications to be implemented. The alterations were to be carried out as indicated by the judge’s ruling. The judge made it clear that he expected these revisions to be carried out in accordance with his guidance.

The company’s regulatory affairs vice president, Lee-Anne Mulholland, provided the following statement: “We look forward to continuing to make our case on appeal, and we will continue to advocate for what is best for developers, device manufacturers, and the billions of Android users around the world.”

On average, over seventy percent of the total market for smartphones and other mobile devices is comprised of mobile devices that are powered by the Android operating system. Both smartphones and other small mobile devices are included in this category.

In the event that the Play app store continues to be shown on the home page and that other Google applications are pre-installed prior to the installation of the Android application, smartphone manufacturers are entitled to install the Android application at no cost at their discretion.

Additionally, the Android application can be installed on devices that are manufactured for smartphones.

SOURCE: DWN

Tech

WhatsApp Now Features a “Mention” Tool for Status Updates and Stories.

(VOR News) – Those who use WhatsApp now have the ability to mention other people in their stories or status updates as a consequence of a feature that was only recently enabled on the platform.

Previous to this point, this capability was not available. It wasn’t until quite recently that this capability became available to the public.

According to the information that was provided by the company, users now have the opportunity to tag close friends in their stories, and the person who is mentioned will have the option to go back and re-share an earlier version of that story. This information was provided by the company. The corporation was kind enough to reveal this information to us.

Because of a new feature that has been added to the WhatsApp app, users now have the opportunity to like individual stories and status updates.

This capability was previously unavailable to WhatsApp users.

A significant amount of progress has been made in this context. Alternative readers now have the chance to “like” a work, which is comparable to liking a post on Facebook. This feature was introduced in recent years. When compared to the past, this is a tremendous shift.

At one point in time, viewers were only permitted to observe the total number of views that a particular story had gotten. These restrictions were eliminated in later versions of the software.

Additionally, it is essential that the likes and reactions to a story be kept anonymous during the entire process. One of the factors that contributes to the general mystery that surrounds this characteristic is the fact that this is one of the elements.

The person who brought it to the attention of others is the only person who will be able to judge who enjoyed it and who did not care about it. These individuals will be able to make this determination.

A notification will be issued to the individual who was referenced earlier in the sentence and who was named in the story or status update that was discussed. A notification of this nature will be sent to the individual via WhatsApp.

This message will be sent to the user in question whenever that person makes a reference to another person while they are in the process of elaborating on a narrative or updating their status. You will receive a notification alerting you that you have been tagged in the narrative.

This notification will be delivered to the person who receives this message. In addition, students will be provided with the opportunity to re-share the tale for themselves.

It is important to note that if the names of individuals who have been referenced in a narrative or a status update are included in any of these, then the names of those individuals will not be accessible to any third party through any of these. In light of the fact that the identities of those individuals will be concealed from public disclosure, this is the condition that will be required.

While WhatsApp recently made the announcement that it will be incorporating this functionality, it is highly likely that not all users will have access to it at the same time.

This is despite the fact that WhatsApp recently made this announcement.

Despite the fact that WhatsApp has only recently made a public announcement that it will move forward with the deployment, this is the situation that has presented itself.

As soon as a short period of time has elapsed, access will be made available to each and every person on the entire world.

Additionally, WhatsApp has hinted that new functionalities might be introduced to the status and updates tab in the future months.

The purpose of these capabilities is to provide users with assistance in maintaining healthy connections with the individuals who play a vital role in their living experiences. This is done in order to give users with support in maintaining close relationships with the folks who are the subject of the inquiry.

It is with the purpose of supporting users in successfully keeping close ties with the individuals in question that this step is taken.

SOURCE: DN

Tech

Over The Planned “Link Tax” Bill, Google Threatens to Remove NZ News Links.

(VOR News) – Google has sent a strong message to the New Zealand government, threatening to stop boosting local news content should the Fair Digital News Bargaining Bill become law.

The law, put up by the Labour government and backed by the coalition in power at the moment, mandates that digital companies such as Google pay back news organizations for links to their material.

News publishers, on the other hand, charge the tech giant with “corporate bullying.”

Google says this measure may have unanticipated effects.

Google New Zealand’s country director, Caroline Rainsford, voiced her worries that the law, which is being referred to as a “link tax,” is not doing enough to support the media industry in New Zealand right now.

She underlined that Google would have to make major adjustments if the previously mentioned law were to pass, including cutting off links to news articles from its Search, News, and Discover platforms and cutting off financial ties with regional publications.

According to Rainsford, similar legislation has been proposed and approved in other nations including Australia and Canada, but it has not been proven to be effective there and breaches the principles of the open web.

She drew attention to the fact that smaller media outlets will be most negatively impacted, which will limit their capacity to reach prospective audiences.

Google says its alternative options will protect smaller, local media from negative effects.

Conversely, it conveys apprehension regarding the possible fiscal obligations and vagueness of the legislation, which it feels generates an intolerable level of ambiguity for enterprises functioning within New Zealand.

The New Zealand News Publishers Association (NPA) has reacted to Google’s warnings by alleging that the internet behemoth is using coercive tactics.

They specifically contend that the need for regulation stems from the market distortion that Google and other tech giants have created, which has fueled their expansion into some of the most significant corporations in global history.

The legislation aims to create a more equal framework that media businesses can use to negotiate commercial relationships with technological platforms that profit from their content.

New Zealand Media Editors CEO Michael Boggs stated that he was in favor of the bill, citing the fact that Google now makes a substantial profit from material created by regional publications.

He also emphasized that the use of artificial intelligence by Google—which frequently makes references to news articles without giving credit to the original sources—highlights the significance of enacting legislation.

Paul Goldsmith, the Minister of Media and Communications, has stated that the government is now evaluating various viewpoints and is still in the consultation phase.

He stated that the government and Google have been having continuous talks and will keep up these ongoing discussions.

However, not all political parties accept the validity of the Act.

The ACT Party’s leader, David Seymour, has voiced his displeasure of the proposal, saying that Google is a game the government is “playing chicken” with. He threatened the smaller media companies, saying that they would suffer from worse search engine rankings if the internet giant followed through on its promises.

Seymour contended that it is not the government’s responsibility to shield companies from shifts in the market brought about by consumer preferences.

The things that have happened in other nations are similar to what has happened in New Zealand.

Google has agreements with a number of Australian media firms that are in compliance with its News Media Bargaining Code. These agreements contain provisions that permit an annual cancellation of these agreements.

Due to the government’s decision to exempt Google from the Online News Act, the company has committed to supporting news dissemination by contributing annually to the Canadian journalistic community.

The New Zealand measure is consistent with global approaches aimed at regulating the relationships that exist between technology corporations and media organizations.

It’s hard to say what will happen with the Fair Digital News Bargaining Bill as the discussion goes on. Google and the New Zealand media landscape are preparing for what might be a protracted legal battle.

SOURCE: TET