Money Smarts Blog

“Hey Siri, what’s the weather?”

“Hey Siri, play my favorite summer playlist.”

“Hey Siri, add coffee to my grocery list.”

Sound familiar? We all use artificial intelligence (AI) — sometimes without even realizing it. Siri is one example that, the more you use it, the better it knows what you need. Ever sent an email? The spell check feature is a mix of AI and language processing, not to mention spam filters and anti-virus blockers use AI to protect you from hackers. And all your Amazon and Netflix recommendations are powered by AI and predictive analytics.

AI’s become so sophisticated and so ingrained that it’d be hard to imagine our day-to-day routines without it. In fact, it’s successfully being used across several areas of the financial services and personal finance industry. Check out some of the ways this exciting digital transformation is taking shape and benefiting members just like you.

Fraud detection

Machine-learning algorithms analyze large volumes of data to detect patterns and identify fraudulent activity on your account. For example, cybercriminals use internet bots to steal credit card information more efficiently. Financial institutions like IHMVCU use AI behind the scenes to bolster our security measures by monitoring user behavior and blocking malicious threats. Everything we do helps protect you and the money you’ve worked hard for, saving you from a financial headache and keeping you on the right path.

Basic financial advice

Some AI-powered personal finance chatbots leverage the power of messaging apps to provide custom financial advice and assistance. They can help with everything from budgeting and expense tracking, to setting savings goals and giving investment recommendations. By analyzing an individual’s financial data, chatbots offer personalized insights and recommendations to help make informed financial decisions more accessible.

PRO TIP: USING CHATGPT You’ve likely heard of trendy AI-trained chatbots like OpenAI’s ChatGPT, which interacts with users in a conversational Q&A style. While it’s great to help generate ideas, brainstorm, translate text and even help plan your summer trips, should you take investment advice from AI? While these tools are helpful for budgeting, expense tracking and other basics, you’ll want to talk to a real financial coach for additional information (like investment advice) when needed. After all, personal finance is just that … personal.

Risk assessment and underwriting

There’s a lot that goes into determining interest rates for loans, including income verification, the type of loan you’re applying for, credit history and more. Gathering everything takes time. But adding AI to the mix helps streamline the underwriting process and ensures quicker customer service. Although all financial institutions use this new technology in different ways, it’s here to stay and will continue to power our industry (and your finances) into the future.