Leveraging AI for Subscription Management to Transform Financial Services
Andrea Martone
Chief Product Officer
The future of banking and financial services is on the brink of transformation with the integration of artificial intelligence (AI). Autonomous AI agents will not only provide actionable insights, but will also empower consumers to proactively manage their finances. This marks a shift from traditional banking, which has been predominantly transactional, to fostering real partnerships that actively help consumers cut unnecessary expenses and save money.
Data Alone Isn’t Enough
Transaction and financial data is crucial in this evolving landscape. While raw transaction data has been available for a while, it alone is insufficient for fostering financial wellness. Personal financial management (PFM) tools have tried to satisfy this need, but the results have been lackluster. These apps are often cumbersome and require the user to personally categorize all of their spending, rather than automating the tracking, and will never have widespread adoption. For instance, knowing you spent $100 on Amazon last month doesn’t reveal whether you bought groceries, household items, or splurged on that new TV.
Enter Atomic. We are combining data connectivity with advanced AI and creating solutions that are able to dig deeper into the critical information needed to advance from simply displaying the data, to the ability to recommend and take actions to help the consumer be better with their money.
Powering Initiative for Financial Health
A significant opportunity for reducing expenses lies in managing subscriptions and other recurring charges. We all have bills that we have to pay each month to literally keep the lights on, but we also have subscriptions that aren’t always delivering value. Many of us sign up for services, like streaming platforms, intending to cancel after a free trial, yet often fail to do so. This is mostly a combination of “out of sight, out of mind” when the transaction is buried on a credit card statement somewhere, and needing to go to each separate application to cancel or make the change.
The process of managing these subscriptions individually can be daunting and time-consuming. Imagine, however, if you could handle all your subscriptions directly through your bank or fintech app. With Atomic’s subscription management service, users can view, modify, or cancel subscriptions instantly without leaving their banking app, promoting immediate financial decisions that enhance savings. We are developing a system that will proactively make recommendations to the user to optimize their expenses, and then go handle the tasks the user has agreed to, thereby helping account holders to take action to improve their financial lives.
Subscription Management: Opening the Floodgate of Opportunity
This is just the tip of the iceberg for how financial institutions (FIs) and fintechs can deliver better financial health tools to improve customer loyalty. The more customers can do in your app, the less likely they are to take their business elsewhere. The capabilities of subscription management extend beyond just managing recurring payments. It could proactively suggest canceling unused services or switching providers to save money. For instance, if someone hasn’t utilized a subscription in months, the system might recommend cancellation, and then finalize the cancellation for them. Moreover, the savings from canceled services could be automatically redirected to a savings account or used to pay down debt, further enhancing financial health.
Incorporating tools like direct deposit switching complements subscription management by enabling customers to allocate funds more efficiently. For example, automatically transferring a portion of each paycheck towards debt repayment can accelerate financial independence.
Looking Ahead
Action driven tools will transform the banking experience by advancing financial institutions into active partners in consumer financial health. This will not only help retain customers, but also attract new ones who are looking for a more engaged and supportive banking experience. As financial services become more interconnected with daily financial decisions, consumers will find more value in their banking apps, enhancing customer loyalty and satisfaction. By focusing on the future of connected financial services and robust subscription management, Atomic is paving the way for a healthier financial ecosystem for everyone.
