Artificial intelligence could be used as a financial advisor in a ‘super application’, assesses BC

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For the president of the municipality, “financial aggregators”, nicknamed “super applications”, will bring together the information of individuals currently spread across several banks. Reproduction of BC Central Bank presentation The president of the Central Bank (BC), Roberto Campos Neto, assessed this week that artificial intelligence (AI) could be used as a type of financial advisor of the future. The statement was given during a lecture at the meeting of the Political and Social Council of the São Paulo Commercial Association (ACSP). This artificial intelligence consultancy would take place through so-called “financial aggregators”, nicknamed “super applications”, to be developed by banks and which will bring together information from individuals currently spread across several banks on a single platform. The BC’s expectation is that this type of application will be available within a year and a half, that is, close to the end of 2024. “There should be something in the application that leads you to have more financial education, to better plan your payments. Sometimes, a person has money invested and is paying seven times the interest on their credit card. So, we think that artificial intelligence can help people a lot with this financial programming”, said the president of the Central Bank, Roberto Campos Neto . Reproduction of BC Central Bank presentation Increasing competition Financial aggregators are another stage of “open banking” (or open finance) — a platform that allows customers to share banking data and transaction histories with banks and fintechs (small technology companies in financial services). The objective is to increase competition between financial institutions. According to the BC, among the features of the “super applications” will be: Choosing which bank to withdraw funds from when making a payment through PIX; If you want to get credit, the application will show the interest rate that each bank offers for the operation; Conversion of physical currency to digital currency, and vice versa, between the same bank or different financial institutions; Making investments, enabling greater competition on rates of return; If you have company shares in a bank, other financial institutions will know and may offer a cheaper ‘custody’ (maintenance) cost; Banks will begin to compete for the services offered, such as credit, for example, as they will know the rates that others charge. And it will be possible to do “credit portability”; Unify the financial flow of debits and credits into a single tool. According to the BC, there is no need for additional regulation for financial aggregators, as open finance regulations already allow this type of product. Artificial intelligence The expectation of those preparing for the topic is that data analysis using artificial intelligence will gain more agility and enable the combination of traditional information with data such as social and telecommunications networks, among others. CEO of an artificial intelligence platform specialized in selling financial services, Leonardo Rochael gave some examples of how artificial intelligence can be used in open finance. When users talk to AI and provide data, within the “open finance” environment, it seeks to identify which financial products are most suitable for these users at the moment; If this user has a credit restriction that the AI ​​already knows will prevent this user from being approved by certain banks and fintechs, it directs to this user only those financial products that do not treat such restrictions as impediments. “Even if they are negative, customers can access credit products, as is the case with the FGTS Birthday Withdrawal, for example,” he explained. In other situations, AI can identify, through open finance, amounts of loans already contracted by users and suggest other financial products with better rates and effective costs, presenting options for contracting other loans and even portability. With the portability of the INSS payroll, for example, the AI ​​can identify the values ​​of effective fees and costs currently paid by the user to a given bank and, subsequently, present suggestions for the same product from another financial institution with higher effective fees and costs. cheap for the user.

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