Gen Z using finance app
Arta Finance, a wealth management startup, is breaking traditional finance norms by introducing an AI assistant that speaks Gen Z slang. Pexels

Forget stuffy financial jargon and complicated charts. A new finance application talks directly to Gen Z – in their own language! This innovative platform uses artificial intelligence to deliver investment guidance with the casual, authentic feel of chatting with a friend.

Launched in July 2021, Arta Finance, a new wealth-management company, is betting that artificial intelligence can break down investment barriers by communicating in the language of Gen Z. Founded by a former Google executive and supported by the former head of the major Swiss bank UBS, the startup aims to make financial guidance feel less like a lecture and more like a conversation.

Gen Z Gets Financial Advice in Their Own Language

Arta is launching an AI helper to share money tips through voice chats, using whatever style and lingo users prefer. This includes even those in their twenties who have already made millions.

Responding to a user's question about their investment portfolio, the Arta assistant says, 'Low-key gonna break down ur investment plan rn,' adding 'No cap, ur portfolio is fire!' The phrase "no cap" serves as a genuine affirmation, signalling that the statement before or after it is entirely true.

This AI helper will not suggest investments that go against what customers say they're comfortable risking. It will also absolutely not make trades on its own without the user's approval—it's not that sort of autonomous AI.

AI Helps Navigate Complex Financial Scenarios

However, this tool can explain the advantages and disadvantages of particular company shares, suggest methods to lower tax expenses and provide guidance on how an individual could adjust their investment approach if their salary decreases.

For instance, if a user anticipates a pay reduction, the AI could recommend reassessing current expenditures, modifying investment contributions, and prioritising the maintenance of a readily available emergency fund to ensure financial security during this period.

According to Shirl Penney, CEO of Dynasty Financial Partners, a platform for independent advisors, many wealth managers are investigating how AI can assist human advisors behind the scenes. However, automated assistants that directly interact with clients are still quite uncommon.

'It's really about utilising AI to minimise some of the back office operations,' Penney said, highlighting how the tool can come in handy while filling out forms or drafting notes to clients. 'It's still pretty hard for AI to tell someone they should sell their business or that they should retire—or to give advice when they're going through a tough life event, like a divorce.'

AI Platform Targets Wealthy Gen Z Investors

According to a report by The Wallstreet Journal, Arta, headed by Caesar Sengupta, believes that younger Americans who grew up with technology will prioritise phone applications, ease of use, and reduced costs over the in-person guidance their older relatives got from conventional financial advisors.

'This is essentially a relationship that is available on your phone at any point in time,' said Sengupta, Arta's CEO and co-founder.

Arta, which also offers its platform via a computer application, isn't the only new wealth-management company highlighting its phone-based services or exploring AI. Only recently did Robinhood Markets introduce an AI helper for its trading platform.

As the cost of many essential financial services faces downward pressure from budget-friendly alternatives, numerous banks and brokerages are increasingly focused on attracting more affluent customers. These institutions aim to provide financial guidance to a wealthier clientele willing to pay higher fees for personalised and comprehensive services.

Arta's platform is exclusively for accredited investors, meaning individuals need substantial assets, significantly more than six figures in assets, to be eligible. Sengupta also mentioned that the company intends to offer its technology to other financial institutions.

Experts See AI as a Tool to Enhance, Not Replace, Advisors

Ralph Hamers, who previously led UBS and ING, believes AI tools similar to Arta's can potentially transform the financial advice sector. However, he does not anticipate that AI will eliminate the roles of human financial advisors.

'How can you use technology to bring that to a much broader, much wider part of the market,' said Hamers, an investor and adviser at Arta. 'It isn't necessarily directly in competition.'

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