Buying a house may not be the number one way you would think automation could work (after all, finding your perfect home and the process of getting a mortgage is a very manual process), but it would seem Wealthfront thinks otherwise.
The financial firm has partnered with online estate agent Redfin, helping homebuyers find their perfect home, save for deposit and work out if you can afford to buy it, solely using algorithms. The automation platform will even show those using the service how stretching themselves now will likely affect their finances further down the line, such as in retirement.
Wealthfront made the decision to automate the home buying process after it realised customers were mostly withdrawing money from their savings to pay for the deposit on a home and it wants to become the go-to company for first time buyers, helping those desperately saving for a home to be able to buy one.
It works by analysing a customer’s spending habits and income, working out how much they’re likely to be able to save and what kind of house they can afford. It then sends them suggestions of available property from Redfin’s selection.
The financial industry is one that has to be careful how it implements automation and robotics as there’s so much risk involved, but this is one way banks and other financial institutions can make a difference, personalising services to their customers and advising on the outcomes.
Many US banks are considering introducing more automated processes too. According to Quartz, Vanguard Asset Management thinks becoming more personalised is key. Financial advisors will have to get to know their clients by learning about every aspect of their lives and help them make the right decisions for now and the future.