Q&A: Clarity Money’s Adam Dell on How AI Is Changing The Way You Bank
Today we hear from Adam Dell, CEO and Co-Founder of Clarity Money, which analyzes and helps you improve your personal finances. Adam gives us the scoop about how Clarity is relying on artificial intelligence techniques and data science to make managing your money less stressful and more seamless. Check out the full conversation below.
Can you start by giving us an overview of Clarity Money and its key differentiators from competitors in the market?
Clarity Money is a personal finance mobile app that acts as a financial champion for consumers, using artificial intelligence and data science to help our users make smarter financial decisions and get the most from their money. What makes Clarity different than other PFM’s on the market is that it was created to be a tool for consumers to improve their financial well-being at the touch of a button. Our mission is to help consumers take control of their finances and be an advocate for them.
Can you talk about the core technology behind Clarity?
Clarity Money’s use of data science and machine learning means that we can personalize the app experience for all our users. We use a combination of techniques from Natural Language Processing and Anomaly Detection, to Spectral Analysis of spending patterns. We combine this technology with some of the world’s best financial experts and data scientists to help our users better understand their own financial management. In short, we use our technology to turn real-time data into actionable insights to help users understand and improve their finances.
To make sure consumers’ data is secure, we built Clarity Money using bank level, 256-bit encryption. We don’t store login credentials, and we partner with leading security companies including VeriSign and Experian.
What’s a popular feature in the app?
One of the features our users love is that they can cancel subscriptions through the app, and it’s a feature that makes us different from other PFM’s on the market. Too many people unknowingly pay for subscriptions they no longer use — Netflix, Birchbox, Spotify, etc. Our technology automatically identifies recurring payments and lets you cancel anytime within the app. To date, we’ve been able to save our users more than $300,000 in subscription fees, which means more money in our users pockets to do things like save and invest in the future.
There’s been a lot of conversation around younger generations’ dissatisfaction with the traditional banking experience. How does Clarity help bridge this divide and engender more of a trust factor among users?
Banking and financial institutions have powerful tools designed to sell, market, and retain customers. But today’s consumers are growing tired of being taken advantage of by these institutions. They are looking for an advocate who puts their needs first and offers transparency into their finances. Clarity Money is designed to do just that.
Trust is a key priority for today’s younger consumers. They want to trust that their financial provider supports them and is working in their best interest. One way Clarity Money helps foster trust with users is by serving them first. With access to user spending data, we refuse to sell users a product or service that doesn’t uniquely benefit them.
How do you see commercial banking adapting to compete with fintech startups that offer greater transparency, fluidity and efficiency?
Contrary to popular industry belief, automating all banking services doesn’t win over younger consumers or build trust. These customers crave a combination of the right technology or automation and personal service. Banks and financial institutions that bridge technology with personalization will be more successful in the long term.
We already pair technology and personalization. We’re now adding our own personal footprint in the PFM space with a 24/7 on-call service that’s available to respond to user questions and provide actionable insight. The response to this service has been overwhelmingly positive as consumers want to know that someone is there to help them navigate their finances when they need it. They want an advocate; we seek to fill that void.
What are some ways you might expect artificially-intelligent personal finance apps like Clarity to evolve over the next 5–10 years?
We live in a heavily interconnected world; all the data around places we go, what we eat, and where we shop come together to form a pattern of our spending habits to create a digital “picture” of us as consumers. Combining some of the tenets of AI mentioned above with behavioral analysis, financial companies can analyze their consumers, unearth unique insights about their customer base, and develop smarter ways to help customers manage their finances.
In the long run, artificial intelligence will enable financial inclusion and literacy, providing access to financial advice for those who might not have had it before. For example, we will soon be announcing major enhancements to our credit card engine; by using AI to review consumers’ unique spending habits, the engine can then compare the benefits and costs of a user’s current credit card against alternative options and provide a personalized card recommendation. Looking farther out, Clarity Money could use AI to develop into more of a planning tool allowing users to determine the best funds in which to invest their 401ks.
Do you see Clarity expanding into other verticals of the finance space in the future?
What we are seeing in fintech is the shift towards startups collaborating with other startups. The combination allows both companies to offer services that provide users solutions aligned with their lifestyles.
We recently announced a partnership with Acorns, the popular micro-investing app. The integration will allow Clarity Money users to have access to Acorns’ cash forward rewards program, Found Money. This feature has been well received by our users and we hope down the line to continue to partner with other like-minded companies interested in making an impact and improving the financial lives of our users.
Learn more about Clarity Money at their website and on twitter.
