Personal finance has become increasingly complex in recent years. With the growing trend towards a subscription economy, people now have to manage numerous bills across the physical and digital realms. The average US consumer now has 4.5 video streaming subscriptions alone.
This shift has led to budgeting issues for the average consumer. In America, 84% of people exceed their monthly budget, with 44% of those people using credit cards to cover their overspending. One thing is clear: the need for effective personal finance tools has never been greater.
To meet this growing demand, banks and FinTechs are building AI-driven financial applications that provide automation and real-time finance analytics. In addition to basic budgeting tools, AI-powered personal finance assistants now provide hands-on guidance that actively improves users’ financial literacy.
If you’re interested in taking advantage of the opportunity that AI in personal finance offers, you’ve come to the right place. Read on to explore everything you need to know about AI personal financial assistant app development. We’ll cover:
- The benefits and use cases of AI for personal finance
- Key technologies and features of AI personal finance apps
- How Intellias can help you develop an AI personal financial assistant that users will love
Global trends in AI for personal finance
Personal finance is evolving rapidly in response to technological advancements. With the rise of AI, regular people now have access to financial tools that offer:
- Real-time and predictive analytics
- Tailored financial advice and financial planning
- Automated budgeting and investment tracking
These tools enable users to understand their finances with a level of granularity that was once impossible. Users can see how much they spend on different consumer categories. They can track spending habits and understand future trends. And they can budget for upcoming holidays and other life events.
But that’s not all. AI-based financial assistants provide real-time guidance. Just like a human financial advisor, they learn about the individual’s needs, goals, and financial situation. They then offer personalized advice designed to help the user achieve long-term financial stability. And unlike a human financial advisor, AI-powered robo-advisors are affordable for all.
For financial institutions, shifting towards AI for personal finance management provides an opportunity for growth, improved customer satisfaction, and differentiation. Put simply, banks that offer AI financial assistants will have a competitive advantage over those that don’t.
As a result, the market for AI in personal finance is booming.
Global AI in personal finance market
Source: Market.us
In 2025, it was valued at $1 billion and is forecast to grow to $3.7 billion by 2033 at a CAGR of 18.1%.
Source: Market.us
Why do banks need artificial intelligence?
Banking is nothing like it used to be. Where traditional, in-branch processes were once the norm, customers now expect slick, digital interactions with their banks.
Challenger banks like Monzo and Revolut have been quick to jump on this trend, disrupting the sector with a digital-only approach. These banks have captured market share thanks to their strong focus on mobile apps, outstanding UX, and frictionless processes.
With mobile banking now standard, AI represents the next frontier of digital transformation for banks. It provides the foundation for a whole host of transformative features and services that revolutionize the banking experience for customers.
From a business perspective, AI offers powerful benefits. Banks that build AI-based personal finance assistants can:
- Differentiate themselves in an increasingly crowded market
- Meet customer expectations for automated, hyper-personalized services
- Enhance the user experience, leading to improved customer satisfaction and loyalty
- Reduce manual workloads and improve cost optimization
The chart below shows which AI benefits are the most significant for the financial services sector across different regions.
Source: Forbes
Key components of AI-powered personal finance apps
Building an AI-driven financial application requires integrating core technologies to address user challenges and deliver value. Here are some of the key components that combine to create outstanding personal finance apps:
Financial data management
Users often struggle to consolidate their financial data across accounts, making budgeting and cost-tracking difficult. At the same time, traditional online banking portals offer little in the way of financial insights.
AI-powered personal finance assistants can solve these issues through seamless integration with a range of data sources. Modern financial apps use APIs and secure integrations to enable real-time data flows. The result is an accurate, unified, up-to-date view of finances.
Predictive analytics
Data is the driving force behind AI assistants. In addition to consolidating financial data, it enables apps to deliver personalized advice, track spending, and provide budgeting forecasts.
AI-powered apps take data from multiple sources, analyze it using machine learning algorithms and predictive models, and then deliver financial insights tailored to the individual. These insights help users budget, save, and invest more effectively.
Natural language processing (NLP)
The user experience of legacy banking portals often leaves a lot to be desired. The more complex a financial interface is, the more customs will be deterred from using it. NLP solves this problem by allowing users to interact with modern banking apps using natural language.
NLP combines deep learning, computer learning, and computational linguistics to analyze language and understand the meaning and context of text or speech. It then generates human-like answers that are highly relevant and personalized.
Generative AI
While similar to NLP in some ways, generative AI offers broader options for content creation that spans text, images, videos, and even code. Gen AI typically uses large language models (LLMs), like those behind popular tools such as ChatGPT. This opens the door for powerful use cases, including:
- Personalized finance advice
- Dynamic reports based on real-time financial data
- Accurate forecasts based on different scenarios
Gen AI has the potential to reshape the way customers and banks interact, potentially adding $340 billion to the banking sector in the coming years.
Robust data security
When it comes to digital banking, data security is one of the biggest concerns among users. Data breaches can be catastrophic, leading to lost funds and shattered user trust. This is why robust data security is of central importance when creating an AI financial assistant. We recommend following security best practices such as:
- Data encryption
- Two-factor authentication
- AI-driven fraud detection
Must-have features of an AI-powered personal finance app
While no two personal finance apps are the same, some features are non-negotiable. Below, we’ll look at some key features of a personal finance assistant app that customers increasingly expect.
Financial coaching
One of the most powerful features for your AI personal financial assistant is financial coaching. Powered by predictive analytics, machine learning, and behavioral analysis, so-called robo-advisors provide tailored financial advice that aligns with users’ unique situations and goals.
By analyzing transaction history and behavior patterns, this powerful feature recognises the user’s habits and makes predictions about their future actions. Moreover, it democratizes the kind of bespoke advice that was once only available to high-net-worth individuals. Offering this type of feature is a game-changer for customer satisfaction and retention rates.
With demand for robo-advisors booming, the US market is forecast to grow at a CAGR of 28.3% through the end of the decade, reaching $41 billion by 2030.
U.S. robo advisory market
Source: Grand View Research
Goal setting and progress tracking
This handy feature enables users to set savings goals for major purchases, holidays, weddings, or other key events. It provides real-time updates, with visualizations that show progress towards goals. The same goes for debt repayments.
Visualizing progress towards financial goals is inherently motivating. It provides users with the transparency and insights they need to see their commitments through, resulting in improved customer satisfaction.
Expense tracking and categorization
Where traditional banking apps typically only allow users to sort transactions by incoming/outgoing, modern personal finance apps automatically sort transactions into specific categories using AI algorithms.
Expense tracking and categorization enable users to see where their money is being spent, which helps with budgeting. It also improves the UX by reducing manual effort, resulting in higher retention rates.
Expense forecasting
The best AI-based personal finance assistants leverage predictive analytics to analyze a user’s spending behavior, transaction history, and recurring patterns. By identifying trends and patterns in this data, apps can anticipate future expenses. Users receive alerts such as “your outgoings are likely to be higher next month,” enabling them to budget more proactively.
Investment tracking
The best financial apps combine day-to-day financials with investment accounts for a complete view of a user’s financial position. With APIs providing real-time price updates, users can see how their investments are performing and the total value of their portfolios at any given time.
For your business, providing investment tracking opens the door to investors as well as regular consumers. It creates a one-stop shop for users to manage the entirety of their financial affairs, resulting in greater adoption and a broader user base.
Chatbots and digital assistants
NLP, coupled with AI, enables users to interact with advanced AI chatbots and engage in human-like conversations, transforming the user experience. NLP-powered chatbots can:
- Answer queries about investing and budgeting
- Provide personalized financial guidance
- Troubleshoot technical issues
By providing users with 24/7 assistance, you can reduce operational costs associated with customer support. And with 72% of banking customers expecting immediate service, integrating a chatbot into your financial assistant is now non-negotiable.
|
|
Benefits |
Business impact |
|---|---|---|
|
Financial coaching |
Personalized advice. Improves financial literacy and habits. |
Increases user satisfaction and retention. |
|
Goal setting & progress tracking |
Enables users to set savings/debt goals. Motivates action. |
Increases customer engagement. Drives app usage and loyalty. |
|
Expense tracking & categorization |
Simplifies budgeting through expense automation and transparency. Reduces manual effort. |
Increases user satisfaction through superior UX. |
|
Expense forecasting |
Delivers accurate expense predictions that enable proactive budgeting. |
Builds user trust and increases retention rates. |
|
Investment tracking |
Provides real-time insights into investment performance. |
Attracts high-net-worth users, increasing app revenue. |
|
Chatbots |
Provides 24/7 assistance, support, and advice. |
Lowers support costs and customer waiting time. Increases customer satisfaction. |
Intellias — your trusted partner for AI-powered financial assistants
Leveraging AI to offer highly personalized digital services brings huge benefits for your business and its customers. But building an AI-based personal finance assistant is not a simple task. In addition to deep expertise in highly complex, fast-evolving technologies, it requires a strategic approach that spans user needs, technology integration, and regulatory compliance.
Most banks don’t have the resources or expertise in-house to manage a project of this scale. This is why it pays to work with an expert technology provider, like Intellias.
With deep industry knowledge and expertise in AI, machine learning, gen AI, NLP, and big data analysis, Intellias offers the technical wizardry you need to build game-changing AI apps. But that’s not all. We help businesses like yours at every stage of their adoption journey, from defining use cases to delivering custom solutions.
We’ve helped some of the world’s leading banks, FinTechs, and financial institutions turn big ideas into real-world products that drive customer satisfaction and business growth. For example, we helped:
- An investment firm build a collaborative platform that enhances financial management
- A mortgage provider improve revenue by 10% through a feature-packed mortgage platform
- A FinTech leader launch a secure and fast mobile banking system
Whether you want to scale up your team with some external support or are looking to outsource your project entirely, we can help you achieve your goals. To find out more about working with Intellias, get in touch today.
The bottom line
AI-powered financial assistant app development is a powerful strategy that transforms how banks and customers interact. For users, AI assistants offer personalized financial advice, real-time consumer insights, 24/7 support, and a range of features designed to improve financial habits. For businesses like yours, this means increased customer satisfaction, business growth, and the opportunity to stand out from competitors.
But success with AI isn’t guaranteed. To maximize the opportunity and mitigate the risks, it pays to work with a technology partner like Intellias. Our experts can show you how to build an AI-powered financial assistant app that customers will love, transforming big ideas into successful business strategies.
