Revolution in financial advice: AI ensures more transparency!

Revolution in financial advice: AI ensures more transparency!

Hagenberg, Österreich - The Hagenberg University of Applied Sciences has developed an innovative AI-based recommendation system that is intended to revolutionize the way financial products are offered. In cooperation with the Bluesource company, anonymized data is used to generate personalized suggestions for users. This system focuses on maintaining the anonymity of the users and at the same time offering a high degree of transparency in digital financial advice. According to oe24.at, specific data such as usage behavior for customer cards and advertising licks are to be analyzed without collecting age, gender or place of residence of the users.

functionality of AI-based recommendation systems

recommendation systems are now widespread and targeted user behavior. Artificial intelligence is used here to generate personalized suggestions based on various data points. These include the course of the browser, buying behavior and duration of interaction. According to Comarch, these systems not only promote customer loyalty, but also increase sales through cross-selling and up-selling.

The technology behind these recommendations uses advanced algorithms such as matrix factorization and deep neural networks to continuously analyze customer behavior and product information. This is particularly relevant in the financial industry, where personalized approaches are becoming increasingly important.

security and data protection aspects

The use of AI in the financial sector also brings challenges, especially with regard to data protection and cyber security. According to bigdata-insider.de, financial institutions are under pressure to improve their security architectures in view of intelligent cyber attacks. Over half of the asset managers consider disruptive technologies to be a significant influence on their security strategies.

In order to minimize the risks, banks and fintechs must ensure that personal data is removed from training units or anonymized. The choice of the technology partner becomes crucial, whereby security measures, compliance and scalability put in the foreground. A growing demand for transparency regarding the storage of customer data and the security measures applied can also be observed. The protection of sensitive data remains a fundamental requirement in the digital transformation of the financial world.

Overall, the project of the Hagenberg University of Applied Sciences shows how, through the responsible use of AI technologies in financial advice, both the benefits for customers can be increased and the requirements of data protection and cybersecurity can be taken into account. While the sector is developing, innovation and trust formation remain central topics.