Artificial Intelligence, Member Exclusive

Human financial experts may be too challenging to automate — hybrid solutions are the next-best thing

  • For now, humans continue to offer financial expertise that can’t be automated.
  • So instead of trying to replace financial advisors altogether, companies are focusing on automating the gap between users and experts.
close

Email a Friend

Human financial experts may be too challenging to automate — hybrid solutions are the next-best thing

Technology has managed to do a lot of things in finance, but there still seem to be places where it can only do so much: specifically, with financial advice. 

In general, people’s finances tend to be things that impact them on a highly emotional and personal level. 90% of Americans say managing their finances causes them anxiety, for example.

With this in mind, certain fintechs and incumbents have been turning more to hybrid solutions — automating what they can and leaving the rest to the human experts. 

Albert, for instance, has taken a hybrid approach to providing financial advice to people. The company has a team of financial experts that users are able to text. The advice these experts provide is then automated to match other similar scenarios.

 


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $79/mo. Already an Outlier member? Sign in to your account

0 comments on “Human financial experts may be too challenging to automate — hybrid solutions are the next-best thing”

Finance Everywhere, Member Exclusive

Embedded Briefing: How embedded platforms rose in preference for SMBs looking to borrow

  • In 2021, alternate lenders led the uptick in SMB loan application approval, approving 24.5% of the loans, as against the 23.8% approved by institutional lenders.
  • Why have traditional lenders been unable to effectively meet SMB demand? Because they can't figure out how to do it profitably.
Subboh Jaffery | June 27, 2022
Green Finance, Member Exclusive

Green Finance Briefing: Greenwashing on Wall Street, and climate tech stocks outperforming the market

  • Regulators have started to investigate misleading ESG claims at big banks, signaling that they’re paying close attention to the wave of greenwashing happening in finance.
  • Elsewhere, climate tech stocks continue to outperform the market, and UN Secretary General Antonio Guterrez bemoans the counterproductive attitude of the finance industry towards climate change.
Iulia Ciutina | June 24, 2022
Member Exclusive, Payments

Payments Briefing: Is the ‘Apple Pay Later’ hype warranted?

  • This week, we review the hype around Apple Pay Later and try to determine how much of it is justified.
  • We also look at Square’s move to bring Afterpay to in-store purchases, making it even easier to pay in four – and how this greater ease could lead to overspending and growing consumer debt.
Ismail Umar | June 23, 2022
Member Exclusive, Online Lenders

Lending Briefing: The SMB Brexit, and digital lending VC funding

  • Given the recent announcement from expense management platform Brex to stop serving SMBs, how are its competitors looking to address the market?
  • We also take a look at the first quarter VC funding in fintech, and how lending compares to other verticals in the space.
Iulia Ciutina | June 22, 2022
Green Finance, Member Exclusive

Given the lack of standardization, how should FIs think about ESG reporting?

  • Creating a well-defined global framework for ESG and sustainability factors will bring more accountability in the financial sector, but this task is very complex in nature.
  • Financial institutions are increasingly feeling the pressure from an ESG standpoint, given the SEC crackdown and demands from consumers, but the lack of standards makes it hard for them to formulate a strategy.
Iulia Ciutina | June 21, 2022
More Articles