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Project Title: Personalised Financial Advisory Platform

By:- Priyash Namdeo

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Project Description:

Create a personalized financial advisory platform that uses customer data and machine learning algorithms to offer tailored financial advice and product recommendations. Collaborate with data scientists and technology teams to build a scalable and secure platform.

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What is Personalised Financial Advisory Platform?

Personalised Financial Advisory Platform is a platform or section page in the ICICI Bank app and website from where the customer can able to get the personally curated financial advice based on their current financial condition, their risk tolerance and their financial goals.

For whom this service will be for ?

ICICI Bank wants to start this section/platform for every citizen of India who have access to internet but doesn’t have much knowledge about how to do financial planning and still wants to grow their money instead of saving it in a traditional way.

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Just saving the money as deposits to get some interest from banks is not the right way of getting financially secure for the future condition because putting money in such a way in bank will not make your money grow but even it may make decrease the value of your money because presently the thing that you can able to buy at x amount will no longer be you able to buy the same amount at price x because of the increasing inflation. The normal way in which people keep money is very simple, such that the interest rate they get on money can’t able to beat the inflation rate. Therefore there is a very high requirement of the financial knowledge so that people can able to grow their money at the exponential rate based on their financial goals as well as through their risk tolerance capability. Now this is clear that it is very necessary to have a proper financial knowledge but still they not try to gain financial knowledge.

  1. According to a recent survey conducted by SEBI (Securities and Exchange Board of India), only 27% of India's citizens are financially educated.
  2. The Global Financial Literacy Excellence Centre reported that only 24% of the Indian adult population is financially literate.
  3. Financial literacy rates are particularly low among teenagers, with only 17% considered financially literate.

The problem is not only this, that they not know how to manage money but they also not aware about the various financial schemes. At present bank employees try to make them aware about such things but still they are not interested in listening these things.

Why their is a need of such section or platform?

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Some Anecdotes

"I really want to buy a flat in three years for my parents , but I don't know where to put my money so it grows enough – like a plant that needs the right soil. I wish I had someone to guide me on what to do." - Aditi

"I really want to make sure my family is safe in the future, but money stuff confuses me. It's like a big maze – I don't know where to save, what loans to take, or how to make our money grow. I wish there was someone who could show me the right path." - Rahul

"I'm good with tech stuff, but money stuff? That's a puzzle. I make decent money, but I'm lost when it comes to saving for later. Retirement plans, investments – it's all just too much. I really wish someone could explain finances in a simpler way." - Anu

"I want to better my family's life with government schemes, but I'm lost in the details. It's like having a key but not knowing which door to open. If someone could guide me, I'd be able to use these opportunities for a brighter future." - Rajesh

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Target Customer

Basically all those people who are earning money will be the potential customer but still not everyone will be going to use it.

  • According to a 2022 survey by the National Financial Inclusion Council, only 13% of Indians have ever used a financial advisor and among this 13%, around 60% of this go for the bank for seeking the financial advice.
  • According to world bank report of 2021 , In India, the number of people with limited access to technology or digital services is estimated to be around 700 million which is nearly 50% of the total population of India. This number includes people who do not have access to the internet, people who do not have a computer or smartphone, and people who do not have the skills or knowledge to use technology.
  • According to a 2022 survey by the World Wealth Report, In India, there are an estimated 5.4 million HNWIs(High Net Worth Individuals) with over $1 million in investable assets. Of these, 1.8 million HNWIs had over $10 million in investable assets. Therefore it is estimated as around 54 lakh people doesn’t go for such platform.

Estimation: 380 million Indians

Fact

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Now as per report around 5.4 million people have their own personal advisor so there it can be considered as they don’t have the need of the personalised advisor platform but still some 3-4% of these may be considered as financially literate because they may have the knowledge of financial things.

So these people haven’t been counted in the illiterate person. Therefore they are not included in our previous data or calculation.

So among this 5.4 million around 96% of them (5.1 million) need to be excluded from the previous data as they don’t require our platform but still comes under the previous calculation of financially illiterate person.

So now the number reached to around 380 million people ( 386-5.4x96%).

So based on all these calculation we have around 380 million people who have the requirement of financial education.

How this number come ?

Around 50% of total population have access to internet and 77% of the total indian population are financially illiterate so this implies that the 23%(100-77) of financial literate person comes under this 50% of population who have access to internet. There despite of having the internet access around 27%(50-23) are financially illiterate.

So the number of such people having access to internet and still financially illiterate is around 386 million people (1,429 million x 27%).

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Customer flow while using this service:

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This platform will be a separate section which the user can access from the app. This section will be powered or can we say, integrated with the power of Generative AI. Here the user need to ask financial question or feed their query in the form of text or voice. Based on the question asked by the user, the virtual financial advisor will give answers based on user’s financial condition. The user can also able to click on the suggested prompt.

This virtual financial advisor will able to give answers related to any type of financial question asked by the user. This virtual financial advisor will also help users in doing their financial planning. This will be done only when the customer shares his personal details like his financial goals, risk tolerance capability, income, expenditure, money that he has. So the virtual financial advisor will give all the advice based on this whether it is any investment plan or any other things like ongoing scheme for which they are eligible for. This virtual financial advisor can able to help you in doing the financial planning. It will also give advice to the user related to the stocks and trading but will not give his own suggestion whether the price will go up or down.The personalized virtual financial advisor will contain advice related to:

  • Financial goals. What are the user's financial goals? Do they want to save for retirement, buy a house, or start a business? The chatbot can help the user to set specific, measurable, achievable, relevant, and time-bound financial goals.
  • Current financial situation. What is the user's current financial situation? What are their income, expenses, and debts? The chatbot can help the user to track their spending, create a budget, and manage their debt.
  • Risk tolerance. How much risk is the user comfortable taking with their finances? The chatbot can help the user to assess their risk tolerance and make investment decisions that are appropriate for their needs.
  • Investment options. What investment options are available to the user? The chatbot can help the user to research different investment options and choose the ones that are right for them.
  • Tax planning. How can the user save money on taxes? The chatbot can help the user to understand the tax implications of their financial decisions and make choices that will minimize their tax liability.
  • Retirement planning. How much money will the user need to retire? The chatbot can help the user to calculate their retirement needs and create a plan to save for retirement.

In addition to these specific topics, the virtual financial advisor could also provide general financial advice, such as tips on how to save money, how to budget, and how to make smart financial decisions. The virtual financial advisor could also be used to answer questions about financial products and services.

How this platform will work (from User end)?

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How this platform will work (from tech end)?

Here we will use the API of the available Generative AIs who are specifically trained for answering the financial related things. So whenever the user ask any query then the frontend will make the API request to the backend which further sends request to these Gen AI APIs which in return sends the response to the backend and then backend sends this response to the frontend.

Now in case if there is any requirement of analyzing the present financial activity of the customer then the Gen AI sends the response to the backend that it require some more data then at that time the backend will use internal APIs to get back the financial activity related information to the Gen AI API which uses this to give the financial advice. This will only be done after the consensus of user.

The API which we can use is of Ada. It is specifically designed for financial advice, and it has a large database of financial information that it can draw on to generate personalized recommendations.

We can also use non generatie AI APIs but for more power and right up-to date information we should use the generative AI APIs like Ada. Some of the non generative AI API are:

  1. NaviPlan APIs: These APIs provide integrated financial portals for clients with access to financial plans, personal financial management, account aggregation, document collaboration, and more. You can use these APIs to provide personalized financial advice based on a customer's financial condition.
  2. Akoya APIs: These APIs enable financial planning and budgeting tools, investment management, payment enablement, account opening, lending, credit enhancement, and more. You can use these APIs to get the data you need reliably and provide personalized financial advice based on a customer's financial condition.

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Wireframe:

Click this link to see the complete wireframe on Figma. Figma Link

Section on home page to drive customer on this new section

Making inform about the service

Type box in which user can type his query

Suggestion prompt

Platform will help you in getting solution of your financial problem by giving the advice

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Impact:

Success Metrics:

  • Increase in customer engagement
  • Increase in Customer
  • Increase in the financial portfolio of the company.

Difficulties:

  • We need to make sure that our platform follows all the rules and regulations for financial advice can be really complicated.
  • It might be tough to get people to believe in our platform, especially if they're used to old-fashioned money advice.
  • Making financial stuff easy to understand and showing why our platform is helpful could need some clear explanations and talking.

  • The platform might attract and engage customers in new ways, creating stronger relationships and loyalty to the bank.
  • The bank's services could be accessible to a wider audience, potentially leading to increased customer base and growth.
  • The platform's usage could provide valuable insights into customer behavior, preferences, and financial needs, enabling the bank to offer tailored solutions.
  • Offering personalized financial advisory services could differentiate ICICI Bank from competitors and attract customers seeking comprehensive financial solutions.