OUTvest, MyTreasury, FinChatBot and DigiBot are local fintech disruptors hoping to shape the future of the financial services industry in South Africa through Artificial Intelligence (AI).
AlphaCode, a fintech hub, and FOUNDeRY, RMB‘s innovation and disruptive technology division, recently hosted a demo-night to showcase their solutions.
These startups are exploring how AI is facilitating collaboration between human and machine in financial services today and the potential of technologies such as chatbots, robo-advice and speech and facial recognition to answer customer needs, improve customer experience and ultimately transform how they do business.
From real-time communication to DIY investing, here’s how these 4 companies are solving some of the most pressing problems in fintech today.
THE CHALLENGE: DIY Saving and Investing
South Africa’s low savings rate, large advice gap and expensive investment products make saving and investing still relatively difficult to navigate for many people. This includes customers accessing financial solutions that are relevant to them, in a way that they can easily interact with, says head of OUTvest, Grant Locke.
The Solution: OUTvest
A product of financial services giant OUTsurance, OUTvest is a direct-to-consumer, hybrid, robo-advisor platform that uses AI and chatbot technology to allow customers to bypass the middle-man and invest on their own.
The platform provides a do-it-yourself, digital front end, and facilities such as intelligent goal-based calculators – which will help customers plan and invest as well as benefit from both algorithmic passive investment strategies and professional human advice.
THE CHALLENGE: Real-Time Interaction
Traditionally, customers have been limited to call-centre hours, store walk-ins or e-mail in their communication with financial institutions.
The Solution: FinChatBot
FinChatBot developed multi-channel chatbots to help financial service providers engage 24/7 in real-time with their audience on their preferred communication channel, with the hope of enhancing user experience, while saving time and reducing call centre costs.
THE CHALLENGE: Seamless Communication
Because consumers are spending more time online including on social media, the trend is to connect with them where they are.
The Solution: DigiBot
AI startup, DigiBot, has developed technology that allows any business to communicate with their customers through social media outlets such as Facebook, Google and WeChat, and corporate websites. By using smart messaging and programmatic AI, service providers can communicate in real-time with their customers.
THE CHALLENGE: Helping Consumers Make Sense Of Financial Products
With the high number of financial products available on the market, consumers are faced with having to navigate a lot of noise to find the one right for them.
The Solution: MyTreasury
MyTreasury is an independent price comparison website that uses AI technology to help customers find the best returns on their savings for their savings preferences using personalised information.
The MyTreasury algorithm searches 670 different rates at eight deposit taking institutions (Standard Bank, Absa, Nedbank, FNB, Investec, Capitec, Postbank, Bidvest) to find clients the best product. Clients can specify liquidity ranging from one day to five years and amounts from R1,000 to R50 million.
“Savings accounts are a great starting point for encouraging smarter wealth management. Just about everyone with an income has a bank account, and by encouraging people to see their ordinary bank accounts as tools for actively growing wealth, we hope to make South Africans more excited about saving,” said Michael Kransdorff, founder of MyTreasury, via a press release.
