Future Digital Finance 2024

How Conversational AI Power Partnerships Lead to Equitable Product Design

Commonwealth

At the Future Digital Finance conference held in April 2024 in New Orleans, Commonwealth Senior Vice President Paula Grieco facilitated a fireside chat with Benjamin Maxim, Chief Innovation Officer at MSUFCU and Chief Operating Officer, Reseda Group. They discussed how integrating inclusivity into fintech product design provides concrete wealth-building opportunities for individuals earning low and moderate incomes (LMI) and growth opportunities for financial services providers.

During the session, Paula and Ben discussed the field research aspect of Commonwealth’s Emerging Tech for All project. The initiative aims to discover how new technologies can enhance the financial well-being of individuals earning LMI,  especially those from Black, Latinx, and female-led households

Key session takeaways

1. Room for growth for people earning LMI

The LMI sector offers a significant growth opportunity for financial service providers. With notable advancements in AI chatbots and mobile technology, providers can now engage with this segment at a much lower cost than before.

  • Over three-quarters of adults in the United States use digital financial services weekly. However, usage varies across income levels, with 66% of households earning less than $40K using these services compared to 84% of households making over $120K.
  • Black (57%) and Latinx (59%) individuals exhibit a stronger preference for mobile banking than white customers (43%).
  • Individuals with low to moderate incomes are particularly interested in guidance on improving credit scores and saving money.

Nevertheless, for generative AI in banking to fulfill its potential, it must strike a balance between technology and the personal touch. Trust remains a key concern hindering chatbot adoption, with 63% of people citing security as their top worry when using a chatbot.

2. Designing with Practicality that Builds Trust 

When it comes to pairing technology with the human touch, particularly among people earning LMI, it’s vital to understand their needs.

Key topics revolve around credit scores, missed loan payments, bounced checks, and the potential implications of loan approval. Research indicates that people earning low to moderate incomes value advice to improve credit scores and savings. 

Integrating AI into design requires a deep understanding of how technology can break down barriers to engagement. For example, chatbots and generative AI offer the anonymity desired to disclose sensitive details like credit scores, late loan payments, and returned checks.

To hear more from Ben on MSUFCU fieldwork and his insights on conversational AI, check out this Commonwealth podcast Episode: Using Tech to Connect Diverse Members.

For more information on Commonwealth’s Emerging Technology for All and Commonwealth’s recently published a new survey report Generative AI and Emerging Technology: Applied Insights for Financial Services Providers, which contains findings from a national survey of more than 3,000 people across the United States.