Application of chat bots for personalized financial advice

Abstract

Chat bots are web-based systems that have recently received a lot of attention due to their ability to provide professional financial advice at a lower cost than a human advisor. We considered anthropomorphic design of chat bot as a positive impact on human perception, which is an important factor in human-computer interaction, because increasing the level of anthropomorphism of the system can potentially compensate for the lack of contact with a person. The influence of the anthropomorphism effect and anthropomorphic design of the bot on the feeling of social presence, trust, and the desire to follow recommendations are investigated. High cost of financial advice, the volatility of markets and problems with finding professional financial advisors have created favourable conditions for the use of robo-advisors. Due to the growing popularity of robo-advisors and chat bots, new opportunities appeared for banks for attracting new customers. There are a large number of chat bots that can provide financial advice, but usually, these are complex solutions and they require quite a lot of time to work with them, so if the user's goal is to get a quick and specific answer, such solutions are not the best option. The goal of our research is to develop a Telegram chat bot for personalized financial advice. To meet this goal we need consider examples of chat bots advisors for potential investors to analyse available software solutions for financial advisors and create our own software product for personalized financial advice. Research methods include analytical mathematical methods and technologies, such as Python, Telegram Bot API, Aiogram, Docker, Amazon Web Services, EC2, and Ubuntu Server. We created our own software product, a telegram bot for automated financial consultations to achieve the goals of private investors by calculating constant level of consumption during determined period under expected inflation rate to decide whether invest or not. Our telegram bot provides option for receiving financial advice and helping potential investors with capital distribution