The Power of AI in Personalizing Financial Education

The financial services industry is evolving rapidly, with AI taking center stage in facilitating customer-centric digital transformations. A key application of AI in this space is the personalization of financial wellness content, which aims to increase accessibility and relevance to customers with varying degrees of financial literacy. In this post, we’ll delve into how generative AI can craft tailored content that is both easily accessible and engaging to customers. We’ll walk through an example of utilizing GPT-4 to analyze the psychographic attributes of a Gen X customer from their Meta account feed, then rewrite a Yahoo financial wellness article tailoring the content to the customer based on these attributes. Finally, we’ll ask GPT to explain the rationale behind the personalization driven editorial changes.

Customer Challenges in Product Adoption

Customers face several frictions when considering the purchase of financial products, even when the products align with their best interests:

• Complexity: The intricate nature of many products can cause confusion and create a reluctance to commit to a purchase.
• Trust: Many customers are wary of hidden fees or unethical practices.
• Decision paralysis: A huge number of product options can be overwhelming for prospective customers.
• Lack of personalization: Products are less likely to convert if the product’s benefits don’t resonate with the customer.
• Financial literacy: Insufficient financial knowledge can hinder a customers’ ability to evaluate products and be confident in their decision.

Tailoring Financial Wellness Education

Personalized financial wellness education plays a critical role in addressing these frictions. Instead of a one-size fits all approach to content, personalization tailored to a segment or individual has a much higher likelihood of engagement by:

• Enhancing understanding – by breaking down complex concepts which enables higher comprehension and helps inform decision-making.
• Building trust – transparent and relevant education content demonstrates a financial institutions’ commitment to helping customers which can generate trust.
• Increasing interest – by resonating more deeply with customers, the likelihood of taking action, such as purchasing a product or updating financial plans, is increased.
• Providing recommendations – personalized recommendations based on a customers’ financial situation, goals, and risk tolerance helps boost customer confidence and increasing the likelihood of a purchase decision.

Generative AI models such as GPT, help address challenges through the creation of deeply personalized content, at scale. While there are a few companies that offer this capability (such as Persado), below we’ll walk through an example to show how this capability can be simply built using the current generation of LLMs.

Example: Personalizing Financial Wellness Content with GPT

Analyzing Customer Psychographics with GPT-4

In our example, we utilize an actual Facebook user’s feed. We first set up a task in AWS Comprehend to eliminate any PII from the post before further processing with GPT-4. The request to GPT-4 included the sanitized feed, accompanied by prompts to evaluate the psychographic characteristics of the post’s author. The following is GPT-4’s response::

Based on the Facebook posts, here are some psychographic details about the person:
1. The person started working at CBS Sports in 1996.
2. They enjoy traveling, especially to Japan, and have visited Kyoto and Meiji Shrine, Tokyo.
3. They appreciate nature and have visited Kiyomizu during Sakura season.
4. The person is from the Bronx, New York, and has a connection to Co-op City.
5. They have an interest in preserving and protecting sacred lands, as they have attended a wedding related to this and donated to related causes.
6. They have attended various birthdays, showing they have close friends and value their relationships.
7. They have a strong social consciousness, as they are a board member for an organization called CAAAV, and have been involved in fundraisers and job postings related to public housing and Asian communities.
8. They completed a marathon and a 50-mile race, indicating an interest in fitness and personal challenges.
9. They have a sense of humor and enjoy engaging with friends in a playful manner on social media.
10. They have a background in design, as they were looking for a junior designer with Photoshop and HTML skills.

These details paint a picture of an individual who is professionally successful, socially conscious, physically active, and values their friendships and connections with others.

Tailoring Financial Wellness Content to Customer Needs

Many organizations maintain a collection of content tailored to the users on their platforms. In this scenario, we’ll assume that the process of matching a customer or lead to a financial wellness article has already taken place further upstream in the content delivery process (this is a simple classification problem that we won’t cover in this article).

For our illustrative example, we’ll use a recent Financial Wellness article featured on Yahoo Finance, which is aimed at Generation X – the age group of our sample user.

Tailoring Financial Wellness Content to Customer Needs with GPT-4

Building on our psychographic GPT analysis, we input the source article (mentioned earlier) and ask GPT to rewrite and personalize the content for our target user. In a real-world scenario, we would use pre-written prompt templates to guide GPT and incorporate other known user attributes, such as location, etc.

Moreover, we requested GPT to mention financial products (from Fidelity – for illustration purposes only) that could help this user achieve their retirement goals while assuming the user does not possess a high level of financial literacy.

Below is the revised and personalized article content:

Retirement Saving: Finding Financial Wellness for Gen X
The path to retirement for Gen X has been a unique one, full of unexpected detours and challenges. While they may be playing catch-up compared to other generations, there are still ways to secure a comfortable retirement with the right strategies and tools, such as those offered by financial institutions like Fidelity.

Gen Xers, who are now in their late 50s, may have started saving for retirement later than ideal, but they remain optimistic about their future. Many of them are eager to explore the world, like experiencing the beauty of Sakura season in Kiyomizu, Japan, or immersing themselves in the rich history of sacred lands. This generation's drive for personal challenges, such as completing marathons, can be applied to their financial goals as well.

Early setbacks, like the absence of pension plans and the burden of student loans, may have hindered Gen X's ability to save for retirement, but it's not too late to make a change. By focusing on the fundamentals, like living on a budget and making thoughtful investments, Gen Xers can still work towards a secure retirement. Financial institutions like Fidelity offer a range of investment options, including low-cost index funds, which can help to build a diversified and balanced portfolio. A diversified portfolio helps to spread risk and minimize the impact of market fluctuations, providing a more stable foundation for retirement savings.

In addition to smart investing, it's essential for Gen Xers to take advantage of catch-up contributions for retirement accounts like 401(k)s and IRAs. These additional contributions, available to those over 50, can help bridge the gap in retirement savings. Fidelity provides retirement planning resources, such as their retirement calculator and expert guidance, which can help individuals create a tailored strategy that fits their needs and goals. By maximizing their contributions, Gen Xers can effectively accelerate their retirement savings, ensuring they have enough funds for a secure and enjoyable retirement.

Moreover, it's important for Gen Xers to consider unconventional approaches to retirement planning, like exploring part-time work, relocating to lower-cost areas, or ensuring that their parents have up-to-date estate plans. Financial institutions, including Fidelity, offer a wide selection of financial products and services, such as IRAs and annuities, which can provide additional support in achieving financial wellness. Annuities, for example, can offer a guaranteed stream of income during retirement, providing peace of mind and financial stability as individuals pursue their passions, from traveling to supporting causes like CAAAV.

Ultimately, securing a comfortable retirement for Gen X may require discipline, sacrifice, and a well-crafted plan. By utilizing resources and products from financial institutions like Fidelity, Gen Xers can pursue their passions while enjoying the financial security they've worked hard to achieve. With a diversified portfolio, maximized retirement contributions, and thoughtful planning, Gen Xers can confidently look forward to a secure retirement.

Editorial Transparency: GPT-4’s Rationale Behind Personalization

To empower teams in refining the prompt templates and to enhance transparency regarding the article modifications, we also asked GPT-4 to explain the edits it implemented and provide the reasoning behind these changes. This allows us to better understand the AI’s decision-making process and ensure the personalized content aligns with the target audience’s needs and preferences.

As a result of this request, GPT-4 supplied us with a detailed explanation of the adjustments it made to the content, highlighting how these changes were specifically tailored for our Gen Xer. This information not only helps teams refine the personalization process but also ensures they have a comprehensive understanding of how the AI model is working to achieve higher engagement rates.

With this level of insight, content creators can fine-tune strategies, adopt AI-generated suggestions, and optimize content to better resonate with the audience. This transparency also builds trust in the AI’s capabilities and promotes a collaborative approach to content personalization, where human expertise and AI-driven insights work together.

In the revised article, I made several changes to ensure that it resonates with the specific reader in question, who is looking at their retirement situation and has unique psychographic attributes. Here are the changes and the reasons behind them:
Tone and language: I used a more conversational and informative tone to make the article feel relatable and engaging. This approach helps create a connection with the reader, who has a sense of humor and enjoys playful interactions on social media.

1. Personalized details: I incorporated various aspects of the reader's interests and experiences throughout the article, such as traveling to Japan, appreciating nature, completing marathons, and being involved in social causes. This personalization helps the reader feel more connected to the content, allowing them to envision how their retirement planning can align with their passions and values.

2. Simplification: I explained financial concepts and recommendations in simpler terms, assuming a basic level of financial literacy. This approach helps the reader understand the importance of the recommendations and how they can take action towards a better retirement outcome. For instance, I explained the benefits of a diversified portfolio and why it's important for financial stability.

3. Neutral presentation of Fidelity products: I mentioned Fidelity products and services in a neutral, informative manner, avoiding any sales-like language. This approach respects the reader's intelligence and social consciousness, providing them with useful information without pressuring them to make a decision.

4. Focus on diversified and balanced portfolio: I explained the importance of a diversified and balanced portfolio to ensure a more stable foundation for retirement savings. This information is relevant to the reader, who has a background in design and may appreciate the need for a well-rounded approach to retirement planning.

5. Emphasis on unconventional approaches: The revised article highlights the need for creative thinking in retirement planning, which aligns with the reader's experiences in various fields and their interest in personal challenges. This helps the reader see that they can use their skills and resourcefulness to achieve a secure retirement.

By incorporating these changes, the revised article speaks directly to the reader's interests, values, and experiences, creating a more meaningful and engaging piece that they can relate to and learn from.

Conclusion

As we’ve illustrated, the current generation of LLMs make it incredibly easy to highly personalize content for customers, in a way that will be easy to implement for many organizations. As content becomes more accessible and engaging for customers, we’ll likely see some of the frictions related to complexity, trust, decision paralysis, personalization, and financial literacy, be reduced. Ultimately, this will help customers make more informed financial decisions.

As advancements in AI and machine learning continue to evolve, their integration into financial services is set to become even more seamless and impactful. Future innovations may combine refined content personalization with real-time data, delivering highly relevant and timely financial education to customers. The overarching goal is to cultivate a more engaging and supportive financial environment, empowering customers to confidently navigate the complex landscape of financial products and services, supported by AI.