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Personal Financial Management with AI: Beyond financial aggregators

The fintech sector is revolutionizing the way users perceive their personal finances. Now, banks are at a crossroads and need to find new ways to attract consumers. One of the options that has gained more followers are financial aggregators.

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These expenses tools offer customers greater control over their accounts and imply a substantial improvement in their financial health.

What are the 5 advantages of a Personal Finance Manager?

To ensure a solid financial health, you need to learn to manage your household economy. By understanding and controlling your expenses, income, savings, and investments, you can make informed decisions and achieve your short, medium, and long-term financial goals.

Want to be in control? Then take note of the steps to start managing your finances like an expert:

1. Define personal and financial goals

Your goals should be clear and achievable. By understanding what your financial aspirations are, you can create a plan to guide you along the way. Whether you want to buy a house, save for your children’s education, or plan your retirement, Personal Financial Management is an essential tool to achieve it.

2. Establish a written financial plan

Maintaining commitment over time is not easy. That’s why you need to set a clear guide to help you stay focused on the goal.

A well-structured financial plan includes: a detailed budget, saving and investment strategies, and a timeline. By following this plan, you avoid deviations and ensure that your actions align with your goals.

3. Efficiently manage your finances

PFM tools will allow you to track your expenses in detail, categorize transactions, and set limits on spending. By having a clear view of your situation, you can identify areas for improvement (where you can save money) and adjust your consumption habits to maximize savings.

4. Improve financial decision making

Personal Financial Management provides guidance for making informed decisions. PFM tools use algorithms and data analysis to provide fully tailored recommendations on how to maximize your savings, invest smarter, and reduce your expenses.

5. Minimize economic risks

AI-based financial advisors will help you assess your situation, identifying potential risks and offering strategies to mitigate them. By understanding and controlling our finances, we can avoid unnecessary debts, better plan investments, and establish an emergency fund.

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PFM (Personal Finance Manager) powered by artificial intelligence

Fintech services that apply AI and Machine Learning allow for making financial decisions in a simpler way. Through automation, they offer a myriad of options to improve the economic situation of the population. In fact, one in three bank customers is already moving some money from their main account to competitors to get more out of it.

Thanks to the continuing sophistication of technology, personal finance management is becoming much more relevant among consumers.

One of the most attractive aspects for users is its ability to increase financial education, an aspect that has been quite neglected to date and that customers want to improve.

Artificial intelligence is capable of analyzing, categorizing, and enriching large amounts of information in seconds. It constantly learns and offers recommendations based on data.

That’s why PFM tools that have this technology make a difference in enhancing the financial health of the population.

The importance of external factors: inflation, instability, and geopolitical conflicts

There are many things you won’t be able to control, such as rising commodity prices or the economic instability of the country. That’s why it’s so important to have a complete overview of all your bank transactions in detail: purchase location, amount, date, and name of the store.

Thanks to technology, you can now use the best PFM tools to identify your strengths and weaknesses, establish patterns of financial behavior, and prevent market fluctuations from disrupting your plans. AI continually monitors changes and alerts you to potential impacts on your investments.

AI provides personalized recommendations on how to adjust the financial strategy to mitigate the effects of economic instability. Similarly, it can reduce the mental burden inherent in managing our household economy. Its strategies can counteract the effects of inflation and help us weather the financial storm in case it is approaching.

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