- 71% of Canadians aged 18-34 finding AI useful in automating savings
- 75% of survey participants expressed skepticism about AI’s abilities
- RBC’s NOMI Find and Save, which leverages AI, has helped clients put aside more than $4.5 billion since it launched in 2017
TORONTO, Aug. 28, 2023
Younger Canadians are ready to harness the power of Artificial Intelligence (AI) when managing their finances, according to a new RBC survey conducted by Ipsos. By surveying a sample of 1,501 Canadians, the report indicates a stronger, positive perception of AI’s utility among younger Canadians aged 18-34, marking a transformative shift in the management of personal finances in the age of technology and innovation.
From automated savings and budgeting to quick insights and cash flow forecasting, AI quietly yet significantly changes how Canadians can handle their finances. Results of the survey indicate that younger Canadians are more inclined to use these AI-based benefits, with 65% of this demographic finding AI useful in expedited bill payments through reminders.
On the other hand, older Canadians appear more wary. The report finds that only 38% of those aged 35-44 and just 11% of those aged 55+ are open to using AI-powered apps or services for future personal financial management. This generational divide extends to the appreciation of advice on finding automated savings facilitated by AI. Seventy-one percent of younger Canadians reported to value this AI benefit, while only 28% of those aged 55+ share the sentiment.
“We believe AI is revolutionizing personal finance management,” says Peter Tilton, chief digital officer, Personal & Commercial Banking at RBC. “The ability to harness the power of AI can help level the playing field in terms of financial literacy for Canadians. It can take the manual calculator work out of budgeting, tell you where you might be overspending, help you save automatically and even give you a view into your future cashflow.”
The impact AI can play in helping manage personal finances is significant
NOMI, a digital assistant feature integrated into the RBC Mobile app, uses AI to provide personalized insights to help clients build confidence in managing their money. All the data-driven insights are generated to be hyper-personalized to individual finances, with the intent of making it easier for clients to stay connected to their money.
“NOMI is a powerful tool that can enhance our client’s financial intelligence and resilience. That clients are increasingly turning to NOMI underscores its value to meet the evolving needs of a digital-first generation,” says Tilton.
NOMI has been enormously successful with clients, boasting a range of achievements, including:
NOMI Find and Save has helped clients put aside more than $4.5 billion since it launched in 2017
More than 3.6 million budgets have been set in NOMI Budgets since 2019
Approximately 1 million people have used NOMI Forecast to see their future cash flow
NOMI Forecast, the latest addition to the NOMI suite of capabilities, was recently recognized for Best Use of AI for Customer Experience at the 2023 Digital Banker Digital CX Awards, adding to the many global awards the suite of NOMI capabilities have won over the years
Building Trust in AI
While 75% of survey participants expressed skepticism about AI’s abilities, many of these same survey participants may be using AI without realizing it, especially given that its influence is subtly and steadily increasing. Whether it’s personalized recommendations on streaming services or navigation assistance from GPS apps, many of these services are powered by AI technologies using predictive analytics and machine learning.
Building awareness and educating Canadians about AI and its applications in finance is a key priority for us at RBC. We are committed not just to integrating AI into our services but to doing so responsibly and transparently so our clients are comfortable with the technology and realize the benefits it can deliver.
Interim Head at Borealis AI
Furthermore, the survey reveals that trust in AI applications is strong among Canadians who understand or have used the technology in the past. In fact, the findings indicate that Canadians who are knowledgeable about AI are 34% more likely to use AI in the future than those who aren’t (Knowledgeable 51% versus Not knowledgeable 16%). This indicates that with increased awareness and understanding, the adoption of AI in finance can significantly rise.
“Clients trust us with some of their most sensitive and personal information, a responsibility we’ve always taken, and will continue to take, seriously,” says Tilton
With RBC’s renowned digital team and Borealis AI, an RBC-backed AI research center, RBC continues to innovate and explore the development of responsible AI. In 2020, Borealis AI launched RESPECT AI, an online hub that brings open-source research code, tutorials, academic research, and lectures to the AI community, helping to make ethical AI available to all.
“It’s incumbent on us to ensure AI continues to be deployed responsibly, not only in our products, but across industries,” explains LaPlante. “It’s never been more important that we continue to enable secure, fair, ethical, and trusted AI products, especially in banking.”
The survey points towards an optimistic future where AI is more widely adopted. The report finds that a third of Canadians are likely to use an AI-powered app or service to help manage their finances in the future. As AI becomes a vital tool in managing economic challenges, RBC is ready to lead the way, helping clients navigate their finances with confidence.
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 97,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.
About RESPECT AI ™
RESPECT AI™ stands for Responsible, Ethical, Safe, Private, Equitable and Compliant Technology in AI, encompassing what the platform will contribute to the AI community. The program consists of publicly available scientific research and research code; training material and thought leadership. The code is intended for AI developers and researchers to use in their own AI research and development. It is not designed for commercial use. This material is made available under license as-is without any representations or warranties of any kind and in no event will Borealis AI be liable for any damages arising out of the use of the licensed material.
About Borealis AI
Borealis AI is a world-class AI Research center backed by RBC. Recognized for scientific excellence, Borealis AI uses the latest in machine learning capabilities to solve challenging problems in the financial industry. Led by award-winning inventor and entrepreneur Foteini Agrafioti, and with top North American scientists and engineers, Borealis AI is at the core of the bank’s innovation strategy and benefits from RBC’s scale, data and trusted brand. With a focus on responsible AI, natural language processing and reinforcement learning, Borealis AI is committed to building solutions using machine learning and artificial intelligence that will transform the way individuals manage their finances and their futures. For more information please see: www.borealisai.com.
Joel Dembe, Senior Manager, Corporate Communications, 647-518-4981