We live in uncertain times and people are worried about what would happen in the future. In particular, people worry about their finances and how they would manage in the years ahead. The biggest worry most people have is whether they would have enough money and be financially well-off.
A nightmare scenario is if they realize that they are late and won’t be able to make it. This is why people hope they could look into the future to see what it holds for them. If there were a time machine, then they would love to use it to know how their finances would be.
Understanding the problem
The main problem most people have is to decide how to manage their money in the best way. Their fear was that they were not getting the best results from their finances. Many of them were in need of clarifications about what they need to do next. A major problem they encounter is that when they look towards their bank, they don’t get help.
Traditional banks are not able to offer what their customers way when it comes to managing finances. Banks do offer financial planning services. But this is only for their richest customers. Others are getting left out. There is a serious financial advice and value gap.
What banks can do?
The problem with banks is their legacy systems and way of working. Today’s scenario of digital banking has virtually made branches obsolete. Banks today need to use technology to innovative in more ways than one. They need to use technology to solve problems and give customers what they want.
Banks today need to change their approach to banking. It is not merely transactional. The approach should be where banks being the guardians of customer financial well-being. When they start doing this, they will be able to help customers manage their finances better.
This is where they need the time machine to look into the future. Banks should be able to use technology to predict the financial future of customers. They should then offer them ways to change it. Banks now have tools that can help customers predict their finances 10 or 20 years down the line.
The use of AI along with tools like goal-based planning can help in this. When banks start using this approach, they can help customers plan better for their future. It will also help them change their relationships with customers for the better.
The article was authored by Bahaa Abdul Hussein and has been published by the editorial board of the Fintekdiary. For more information please visit www.fintekdiary.com.
