AIBC

AI Education: Teaching Gen Z financial literacy

Posted:Jul 29, 2022 13:40 Category: AI , Fintech , Payments , Posted by
Ravindu Dabarera

Education is one of the most vital aspects of growing personal wealth. From knowing what to invest into and when to figuring out how to read market sentiment, financial literacy is objectively a pillar for the financial freedom and stability that youth starting out in the job market strive for. While inflation and a chaotic geo-political environment makes it difficult for Gen Z to safely start accumulating a net worth, this generation does have some powerful new tools to fight back against a hostile investing environment. Enter; Artificial Intelligence.

AI Education: Teaching Gen Z financial literacy

Seeking to close the wealth gap between the generations, financial players ranging from established legacy banks to visionary fintech startups are utilizing the latest advances in artificial intelligence to assist, onboard and educate Gen Z clients. Through cutting edge AI-based applications, these neo-banks and fintech ventures allow this burgeoning customer-base to benefit from services ranging from responsive chatbots, enhanced KYC protocols and intelligent automation which could range from portfolio rebalancing to advisory services. The head of financial services for Infosys’ North American branch, Dennis Gada, elaborated on this phenomenon by telling leading tech media outlet ZDNet that

“Gen Z are completely digitally native. For them, banking or financial services is an extension of their lifestyle… the more digital a bank is, the higher their level of trust.”

Conversational AI: Humanizing financial literacy

As digital natives, Gen Z respond better to automated support than previous generations. Having grown accustomed to AI systems such as Alexa and Siri, financial players are starting to see conversational AI as the next step in comprehensive customer support. With ambitions beyond simple chatbots, the next generation of this support layer could include voice recognition, personalised advice and the ability to dive into backend security for solutions.

Predictive analysis is another vital area for the growth of the financial service ecosystem. These could range from automated warning for potential overdraft charges to expense forecasting and account monitoring, including ever useful portfolio management tools. This is even leading to service contract negotiations mainly powered through AI with subscribers benefiting from recouping savings.

Approaching saving, the Gen Z way

As per a 2022 internet-based review by Investopedia of 4,000 adults on the topic of investing and personal finance, the review found that:

  • The majority, approximately 54%, of Gen Z adults hold an interview of some sort or another.
    Almost a fourth of Gen Z adults hold digital assets and stocks with one out of every ten adults owning an NFT.
  • Gen Zs tend to have positive expectations about consuming and saving.
  • Gen Z adults who have a wage of more than $50,000 tend to be more confident in their financial literacy (57%) in comparison to the Gen Z workforce that makes below $50,000 (39%).
  • 33% believe that they have a basic level of knowledge pertaining to financial literacy (borrowing money, loan management, debt refinancing, budgeting etc.)

 

Gada again chimed in to elaborate on this demographic focus.

“We see a lot of investment firms focus on Gen Z to give them alternatives with robo adversary techniques. Using lifestyle requirements, they are recommending the kind of investments to save money and how savings can be automated”

Information sourced from ZDNet.com

Join us in Belgrade, Serbia from the 22-25th August:

With the peninsula being known for its natural beauty, rich cultural landscape and fantastic delicacies, the Balkans are renowned for having some of the most quintessentially Mediterranean vistas and experiences. From the Adriatic coastline of Split to the fairytale-esque castle of Lake Bled, the region has a lot to offer the world. This being said, something that fewer may know is the fact that the nations of the Balkans are incubating a nascent but powerfully growing technical expertise when it comes to frontier technology such as Blockchain, GameFi, AI and more. Therefore the region may not only be a rich adventure into the past but my also serve as a window into the very near future.

Join us in Belgrade for the best the industry has to offer and for a window into the future of Deep Tech. To learn more about sponsorship and speaking opportunities or to inquire about attending the event, please contact Sophie at [email protected]

Related Posts

Downfall and conviction of Sam…

Sam Bankman-Fried, the co-founder of the now-defunct cryptocurrency exchange FTX, has been handed a 25-year prison sentence for defrauding his…

An unfinished battle: Coinbase vs…

Stuart Alderoty, Ripple’s chief legal officer, has expressed his belief that Coinbase’s ongoing legal battle with the US Securities and…