In a statement Bank of America Corp said it has begun rolling out a new digital financial planning tool – a development that sees the banking giant wade into a space that so far has been dominated by fintech companies.
Launching Life Plan, Bank of America said, the tool can be used on its website; consumers can also download it as an app. The tool allows customers to set multiple goals including purchasing a house, improving credit scores, and planning for a retirement. The app uses an algorithm that runs through its existing trove of client data to serve customized recommendations.
Previously, such personalized advice used to be reserved for high-net worth customers who had enough cash to retain a financial advisor to help manage their wealth, but a host of digital budgeting tools, like Intuit Inc’s Mint app, have used artificial intelligence to bring planning to the masses.
“Planning is no longer an activity that’s born out of how much money you have,” said Evelyn Varner, BoA’s digital planning executive.
Through the tool BoA aims to better target customers, said executives. During the eight-month long pilot period, Life Plan led to over 3,800 referrals for conversations with bankers.
“We’re not necessarily targeting and replacing something that clients may be using or comfortable with,” said Teron Douglas, chief digital executive. “But it’s certainly something that we feel is going to naturally happen as the clients continue to engage.”